How To Start A Business For Kids
- Ideas For Businesses Suitable For Kids
Getting kids started in business
- Using Cashflow 101 Ideas With Kids
Teaching kids Rich Dad's wisdom about money and business
- Creating Financial Literacy In Your Kids
Ideas for teaching kids about money and business
- Ideas For Businesses For Kids
Information and suggestions about getting kids started in business
- Kids And Money - How To Break Through
Teach your kids how to escape from the rat race
The First Step
If you only ever teach your child one thing about business, here is the one business idea that will make the greatest difference:
First demand, then supply.
Find a market, find out what the market wants, and then work out how to provide it.
A vast, vast proportion of businesses are started completely the wrong way. Someone has a great idea, or an invention, or something they are good at, or something they enjoy, and then they go about trying to find someone to sell it to.
This is a recipe for heartbreak, if not bankruptcy.
From the very first lesson in the very first week at Cash-Smart Kids, we are teaching kids this vital, vital concept.
We don't start out throwing around words like "demand" and "supply", of course - that comes later. We make sure that the child is doing the right thing, even if he or she doesn't know what the right thing is called. Kids learn by doing, and the basic ideas in business are not rocket science. Economists and MBAs like to throw around the big words, but in truth, the big words aren't necessary.
I introduced my kids to this concept by means of a simple Q&A session, which went like this:
Why do you want to have a business?
To get money.
Where does the money come from?
Where are the customers?
And where is the money?
In their pockets.
Why would they take the money out and give it to you?
Because there's something they want.
What is it that they want?
And suddenly they understood why we do market research!
If you don't know what the customers want, you can't offer it. And if you don't offer it, the customers won't hand over the money. And if you don't have customers handing over money, you don't have a business.
Encourage your kids to brainstorm the things that people are willing to spend money on - things they will pay other people to do, things they want a lot (like a cool drink on a hot day - more than one young entrepreneur has made their start selling cool drinks to captive groups of adults, for example at local markets, car boot sales, or sports fields), or things they love (their hobbies, pets, and other passions).
Then have them go out and actually ask questions of their prospective customers. Find out what the market wants to buy, and what they would be willing to pay.
Your kids will then be in a great position to invent a business idea that will actually make them money from the get-go - very important for keeping them motivated!