A recent survey found that 60% of American teenagers are considering entrepreneurship over regular jobs. In short, they want to start their own business. But do they have the necessary skills to run a business? Not many do. To help your child become an entrepreneur, allow them to start a small business. That way, they’ll learn what it takes to be an entrepreneur. They’ll take some business risks, fail, and succeed. Here are some ways to help your child start a small venture and explore new ways of making money for themselves.
Help Them Understand About Money
Young kids don’t understand how money works or the concept of money itself. The saddest part is that parents don’t help either. Almost 31% of parents aren’t having money conversations with their kids. To help your kid understand what money is, share real-life examples of how people work to earn money. Then explain how the money earned is used to pay for things like utility bills, house rent, groceries, and buy fun things like toys. Teach them how they can make a profit by starting a simple business. Allow them to spend some of the profit they make and save the rest. They’ll quickly begin to understand how money works.
Involve Them in Planning and Decision-Making
An entrepreneur’s life involves making decisions and solving problems. Allow your child to make decisions in their business. The best way to help them get started is by helping them write a simple, one-page business plan. A business plan increases the chances of business growth by up to 30%. Planning the business will help your child understand how to promote it, their competition, and their target market. Planning finances will help them see how their small venture can sustain their lifestyle. Teach them how to plan their finances before starting the business. Explain to them about funding and break down different funding options, like how a title loan refinance works. Refinancing is the process of replacing a current loan with another to get better terms.
Encourage Them to Identify Opportunities
Smart entrepreneurs identify opportunities where others fail to see them. Encourage your child to always look for business opportunities where others don’t and take advantage of them as quickly as possible. For example, they can approach neighbors and ask if they can mow their lawns, tutor other kids for a fee, or resell their old toys on Amazon. Business opportunities are everywhere, teach your entrepreneurial kid to spot them.
Teach Them About Giving Back
Being an entrepreneur isn’t all about making money, it’s about helping people and solving their problems. Tell your child the importance of giving back a portion of their profits to a worthy cause or a local charity. Almost 56% of people donated to charities in 2021. Your child can increase this figure. Explain how much their donations will help a local hospital or a children’s home. This will make them more eager to donate. But don’t put too much pressure on them; keep things fun. Remember, they’re still kids.