Introducing business to children
Well, the school holidays are upon us and if you do not want your children indoors playing video games all day, perhaps you could look at some alternatives. A business could be a good way to encourage your children to have creativity and instill confidence in them, while learning invaluable skills along the way!
This kind of activity is not really about making money, but teaching children valuable lessons on how to manage a business. It teaches children to ‘think outside the box’, use balance sheets and will teach valuable skills in marketing. As parents, you will need to be open minded when it comes to children’s ideas and let them find their own passions. When parents have helped them find their passion, you can then help them with a business plan.
Create a business plan
A business plan is essential for any start up and you will need to work with your children to create a strategy on how the business is going to work. A business plan is much like a game plan if your children play sport. You will need to work together to find the strengths and weaknesses of the business, figure out how to capitalise on the strengths and eliminate the weaknesses. These are the five main elements that will need to be considered and asked:
- Are ready to go into business?
- Do you have your basic business concept?
- Have you decided on your basic product or service?
- Do you have your location and facilities?
- Do you understand your financial position and your investment costs?
Mock Investment Meeting
Assuming you will be the main investor, you could set up a mock investment meeting with your children so they can sell you the idea of the business and at this point you can then tell them how much you are willing to invest and what returns you expect. If your child has birthday money, or has been awarded money for good grades at school, they will be able to use this to cover the initial investment costs as well.
Joint bank account
Once you have discussed these ideas and have them in place, the next thing to consider is setting up a joint bank account with your children and teaching them the importance OF income vs expenditure. If they have access to this account, you will be able to show them the impact that expenditure has on their profits.
Be inspired by others
To give you an idea on how this idea has been created from the experiences of others around the world, check out the links below:
Cory Nieves, Mr. Cory’s Cookies. He is merely 10 years old, but Corey Nieves is already the CEO and head of distribution for Mr. Cory’s Cookies, which offers a variety of all-natural, mostly organic cookies. He is selling the cookies for around $1 each, and can sell up to 1000 each weekend.
Juliette Brindak, Miss O and Friends. At age 10, Juliette Brindak created what is now known as Miss O and Friends. The site mostly targets pre-teen girls and has become one of the most popular girl-only online websites. Currently, she is worth around $15 Million Dollars.
Bella Tipping – Kidzcationz. At age 12 she was barely out of primary school, Bella created Kidzcations, which is a Tripadvisor for kids. Sick of staying in hotels that are adult orientated, she created the site so children can post what they thought of the hotels where they are staying, giving ratings which is similar to what is found on Tripadvisor.
If your child would like further inspiration, you can find some ideas here and here.
Good luck with helping your children build their own super business!