How To Make Money As A Teenage Entrepreneur
Howdy! A Portland, OR native, I currently reside in the northern San Diego County area as a freelance writer. When I'm not sipping coffee, soaking up some rays and writing or playing guitar you can find me at the hot yoga studio.
This article will discuss how to make money as a teenage entrepreneur. Young entrepreneurs are rapidly becoming an important segment of the economy.
However, it is also important for parents to recognize how much this responsibility is starting to take on, as the boomers near retirement and the millennials begin entering the workforce.
With this kind of demand on young people, we must understand the pressures of being a teenage entrepreneur, as well as how to best prepare them for the reality of being a business owner.
Timely and purposeful preparation
As I learned the hard way, and as my first entrepreneur failed to achieve his potential, being a teenager entrepreneur is much more than just starting a business and getting money.
It is a test of character and a leap into a lifestyle many cannot yet imagine. It is also a time of tremendous opportunity and growth.
But first and foremost, it is a time of tremendous pressure and stress, as the mistakes made are quickly felt and can lead to failure.
This is an important point that needs to be emphasized. With the opportunity and the stress that accompanies it, comes the obligation to prepare and teach teens and young adults how to be good entrepreneurs.
However, it is also an obligation to prepare parents for the high expectations that their children will come to expect of themselves.
Parents must be prepared for the amount of time, energy, and stress that teen entrepreneurs will place on them.
The biggest mistake I made as a teenage entrepreneur was not doing my due diligence before the launch of my first business.
While I enjoyed the work I was doing and my reputation as an entrepreneur was growing, I failed to realize how much work was required to actually open and operate my business.
This lack of preparation cost me time, money, and relationships.
Here are steps parents can take to help their teen and young adult entrepreneurs prepare
Assess the cash flow coming in and going out of your business
Teens need to understand that while the investment in a business is small, the benefits to them are great.
Before investing in your teen's business venture, you need to understand that the investment will be small for some time.
Teens must understand this before diving in, so they do not make costly decisions at the wrong time. The wrong decision could cost them their livelihood.
Fiscal management and cash flow management are essential skills that can save your teen years down the road.
This is the time to teach teens how to budget, save, invest, and make financial decisions.
Create a budget that you feel comfortable with
This can be a tough one for parents to accept, but teens need to understand that they are now responsible for the financial decisions made in their business.
Teens must understand that they have a limited amount of money in their accounts and they are responsible for all the decisions that are made in their business.
This includes deciding on expenses, paying bills, managing money, and any future tax obligations.
Set clear boundaries around how your teen can spend money
Teenage entrepreneurs can become very attracted to all the new toys and gizmos that come with owning a business. Make sure that the money they have is used efficiently.
Set clear boundaries on how they can spend their money. Teach your teen to understand that what they have is theirs to spend or share.
Have a plan for managing the cash flow coming in and going out
The reality is that, while the initial capital needed to start a business is small, the business owner has a finite amount of time and energy they can spend running the business.
The way that this is managed is essential to the success of a business. If you are waiting for your teen to bring you a plan, that plan will likely never come.
Instead, provide guidelines on how to allocate the limited hours a teen entrepreneur is working in their business.
Teach your teen to write down their goals, create a plan on how to get there, and track their progress. When they come to you with a plan, they should be able to show you how the money is allocated.
Start making sales
You may need to spend some time advertising your business, but it is better to spend some time promoting your business than not.
As a teenager, you may not have a lot of funds to spend, but the more people you can bring in the more money you will be able to make.
Make sure you take part in marketing and meet other people so that they know about your business too.
Start growing your business
Once you have established your business, it is time to think about how you can grow it.
The best way to do this is to start making more sales. Try to look for other ways to attract new customers, for example by creating a unique offer for your customers or highlighting an achievement.
Make money from your business
Once you have a profitable business, you will need to find ways of making more money.
Look for new ways to make money from your business, such as joining business networking groups or asking your friends and family for help.