How to Start a Business (for Kids)

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If you love to challenge yourself, start your own business! Create a product or service that you're passionate about and gather the materials and money you need. Come up with achievable business goals and fill out the proper paperwork to make your business legal. With practice, you'll gain valuable experience and confidence.

Method 1
Method 1 of 2:

Developing a Business Plan

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  1. If you don't already have a business in mind, brainstorm some ideas. Make a list of the things you're really interested in. These don't need to be businesses, but just things you really enjoy. For example, you might enjoy music, building, athletics, or games. If you happen to think of business ideas too, that's great! [1]
    • For example, you might already know that you want to make bracelets and sell them at a neighborhood market. Or you may just write down that you enjoy dogs, playing the piano, or drawing.
  2. Look at the list of things you enjoy and think of things you could make or do based on those things. This will be your business idea. For example, if you love kids, start a babysitting service or if you like crafting create small pieces of jewellery. If you enjoy drawing, make paintings or sketches to sell at local craft fairs. You could turn a knack for computers into a job designing apps. [2]
    • Once you've decided on a product or service, consider if you’re mainly interested in making money with the business or whether you'd be happier treating it like a hobby.
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  3. Make a list of all the equipment you'll need and ask an adult to help you get them. It's also important to get training that's necessary for the job you want to do. For example, if you want to start a babysitting business, you should probably take first aid and childcare classes. [3]
    • You may be able to buy some simpler materials on your own if you have a little money to work with. For example, if you want to make bracelets, you can start by buying some beads and jewelry wire at a craft store.
    • If you need larger equipment, such as a lawn mower, talk with an adult about borrowing or renting the machine.
  4. (Also note you might not be able to do this with Covid-19 going around) in person if you like working directly with customers. If you choose to sell your product or market your services in person, find a location such as a booth or stall. Find out if there are any fees you need to pay in order to sell your items. To market services, consider going door-to-door and leaving flyers. [4]
    • For example, sell homemade candles at your town's weekly market. To advertise your landscaping business, you might leave door-hanging flyers in your neighborhood.
  5. Even if you're selling a service, it's a good idea to have a website so people can contact you, read reviews, and see what services you offer. Set up other social media accounts so you can show pictures of your work. [5]
    • Depending on how old you are, you might need your parents’ help to set up and run your online accounts.
    • For example, if you baked a cake for someone's birthday party, ask the customer if you can share a photo of the cake at the party.
    • Think about incentives you can offer customers. For example, offer a slight discount if they sign up for a regular service instead of a one-time service.
    • You can also reach customers all over the world by running at least part of your business online !
  6. Create a budget and look for investors. Make a list of all the supplies you'll have to buy, as well as things that will cost money once the business is going, such as advertising. Examine how much money you have available to start your business and how you're going to spend it. If you need money to start the business, ask your parents or family if they'd like to be investors.
    • For example, take an itemized list of your business costs to your parents and tell them exactly how much money you need to start up. Offer to use some of your own money or give them control over certain business aspects, such as marketing.
    • For example, if you're running a craft booth, list the fee for renting the space, the cost of tables or a tent, and the costs for your materials.
  7. Set realistic goals for your business. While it's a good idea to have a few financial goals, such as making money after a month or two, keep in mind that there are other ways to succeed in business. Give yourself manageable goals such as: [6]
    • Building a customer base
    • Selling your product or service in a new venue or area
    • Getting new investors
    • Getting good reviews from customers
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Method 2
Method 2 of 2:

Setting up a Legal Business

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  1. Choose something that will make you stand out from similar businesses and use the name when you're registering the business with your city. For example, instead of simply using your name with your product, like Beth's Beads, make a catchy name, like Bedazzled Bracelets.
    • Run an online search for the business name so you can see if someone already has that business name in your area. If someone already has that name, then you can create a new name that fits your business.
    • If you want, make an eye-catching logo with your business name. Include a slogan or motto to make it even more memorable.
  2. Ask your parents to help you get a business permit. You'll have to go to the city hall or use the city's government website to access the application forms. You may also need to pay a fee (which is usually around $50 in the U.S.), but then you'll be legally allowed to operate your own business! [7]
    • If you're unsure of what's required to set up a legal business, contact a local small business association and ask for guidance. Check local community centers or do an online search for small business associations in your city.
  3. if you make more than $400 in a year. Keep track of your income and expenses for the year. If you only have a few expenses, write them down in a notebook. For more complex expenses, use computer software to log them. If you earned more than $400, you'll have to pay self-employment tax. Your parents will still be able to claim you as a dependent for their tax purposes, but you'll have to pay taxes on your business. [8]
    • For example, if you made $825 and spent $200, you'd have to pay taxes because you earned $625.
    • You may want to set aside 10 to 15% of your income so you're prepared to pay any taxes you might owe.
    • Tax laws vary from one place to another. If you live outside the U.S., check your local laws to find out if you need to pay taxes on your business.
  4. Make or print signs and flyers that you can leave at shops, community centers, grocery stores, or schools. Use social media to let customers sign up for newsletters, send coupons, or remind them of upcoming sales events.
    • Ask your customers to leave reviews online to help spread the word about your business.
  5. It's easy to be frustrated in the early stages of starting a business, but remember that your business needs time to grow! Build up a solid product or service and focus on taking care of your customers. If you feel like you're ready to give up, return to your goals and consider changing your deadlines or expectations. [9]
    • For example, if you haven't been able to turn a profit after 2 weeks, give yourself more time or set a goal of getting 2 new customers instead.
    • If you came close to meeting a financial goal, try setting a few smaller goals that will help you achieve it.
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  • Question
    Can a kid start a company?
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    This answer was written by one of our trained team of researchers who validated it for accuracy and comprehensiveness.
    wikiHow Staff Editor
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    Yes, but you’d need a parent or guardian to be an authorized signer (someone who can make decisions about the business and has access to the money, bank accounts, and so on). The laws vary depending on where you live, so ask an adult to help you research the best way to start a company in your area.
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  • Question
    Is it legal to run a business from home?
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    wikiHow Staff Editor
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    It depends on the business and on local laws and regulations where you live. Depending on what you’re trying to do, you might need a permit to run your business at home. Local laws might also prevent you from doing things like putting up signs or advertising in your neighborhood.
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  • Question
    What can kids sell?
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    Arts and crafts are always a good choice. You can also sell food items, like cookies or lemonade, but check local laws about selling homemade food in your area (for example, you might need to package or label the food in specific ways). Another option is to sell services, such as babysitting, pet sitting, or lawn care.
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      Tips

      • Make sure the price you charge for your product is higher than the amount you paid to create it. That way you will earn money and not lose it.
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      • You can also work with a business partner, such as a friend or family member.
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      • Make a few high-quality products, rather than many sloppy ones.
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      Tips from our Readers

      The advice in this section is based on the lived experiences of wikiHow readers like you. If you have a helpful tip you’d like to share on wikiHow, please submit it in the field below.
      • You can easily start your own business in your driveway. Just make sure to put up signs so people know what you're doing, and check your local laws to see if you need a permit or license before selling.
      • Practice running your business with your family first. They can give you tips on how to improve your selling skills, plus give you referrals so your initial launch is successful.
      • Decide your target consumers before you start! If you are targeting kids, make your fliers bright and colourful. If you are targeting adults, make it simpler and more elegant.
      • Surround yourself with a team that is as interested in your business as you are. That way, you'll work well together and everyone will pull their weight.
      • Ask your mom or dad to help spread your business around. If you're starting a babysitting business, for example, your parents can tell other adults.
      • Be polite with the customers who say no. Even if they are rude, you could say, "I understand. Thanks anyway!" or "Okay, thank you for your time!"
      • If you're close with anyone who owns a physical store, ask them if you can sell your goods there.
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      References

      1. ↑ https://www.entrepreneur.com/article/276753
      2. ↑ https://www.inc.com/colleen-debaise/how-to-come-up-with-brilliant-business-idea.html
      3. ↑ https://www.entrepreneur.com/article/276753
      4. ↑ https://www.entrepreneur.com/article/276753
      5. ↑ https://www.entrepreneur.com/article/276753
      6. ↑ https://www.entrepreneur.com/article/276753
      7. ↑ https://www.businessnewsdaily.com/10278-legal-business-tips-for-kids.html
      8. ↑ https://www.entrepreneur.com/article/276753
      9. ↑ https://hbr.org/2016/01/why-i-challenged-my-kids-to-start-companies-before-college

      About This Article

      Article Summary X

      To start a business as a kid, start by thinking of a product or service to sell, like selling homemade cookies. Once you have an idea, make a list of the materials and equipment you’ll need, such as baking pans and ingredients for your cookies. Next, find a place to sell your products, like a booth or stall at a local market. Then, get the word out about your business by making colorful fliers and asking local shops or community centers to display them. For tips on how to create a website for your business, read on!

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