Is Your Child an Entrepreneur?

Entrepreneur definition: An innovator of business enterprise who recognizes opportunities to introduce a new product, a new process or an improved organization, and who raises the necessary money, assembles the factors for production and organizes an operation to exploit the opportunity.

Hmm, sounds complicated and certainly not something a child or teen could accomplish. Business is for adults, right? Wrong! These days, talented young people are showing the world that the word entrepreneur can pertain to them.

Junior entrepreneurs are springing up everywhere and we're not talking lemonade stands on a hot summer day! Thanks to the internet, it's easier than ever for middle and high school-aged kids to start their own business and manage it to the point where it is quite successful and generates a regular income.

The First Steps Toward SuccessIf your child seems to fit the entrepreneur definition and they show a keen interest in developing a new business, there are a few things they'll need to devise and think through in order to be successful.

1. Ideas - Encourage any idea your child/teen might have, but help them do research to determine if it is feasible. Find out if lots of other people are already doing the same thing. If so, your budding business tycoon will need to do it differently and better. Determine whether the idea will fill a need. (Remember the old adage that says, "You can't sell ice to Eskimos.")

2. Resources - Determine whether or not your child/teen has the resources to implement their idea. Will they need special equipment to make their product? Must they stock inventory? Be realistic about start-up costs and determine whether you would be willing to "invest" in your budding entrepreneur.

3. Expertise - Is the idea in line with your teen's interest and expertise or will they require help with the project? If help is needed, who might be willing and will they need to be paid? It's always best for young marketing entrepreneurs to start with a product or service that excites them Internet-based businesses are quite popular these days and kids are so internet savvy that these businesses are a breeze for them to set up and run.

What Comes Next?Once you've settled on a product or service, there's still lots of work to be done before you can kick off a new business. Writing a business plan is most important. For any entrepreneur to be successful, a well-thought out business plan is an absolute necessity, even if the business seems simple. Think about things such as start-up money, amount of sales needed to make a profit, overhead, etc. Your teen will also need to put on their marketing entrepreneur hat and determine the best way to promote his/her product or service.

Set Your Child Up for SuccessNot every child has the drive that it takes to be the epitome of the entrepreneur definition, so reward yours for his ambition by helping as much as possible. Failure can quickly discourage a child, but if parents are willing to use their knowledge to help ensure success, the child/teen will be more likely to stick with the project and perhaps even undertake more new businesses in the future.