We’re all familiar with tales of children launching businesses at an early age. The idea is appealing: Your child discovers a hunger for something, transforms it into a business, and suddenly, they’re financially assisting you in your not-so-golden years.
Reality may not always mirror this scenario, but the count of youthful entrepreneurs is on the rise, and their visibility has never been greater. Additionally, many incredibly successful business individuals embarked on their journey from a young age.
Motivate Children to Engage in Community Activities
Prosperous and fulfilled individuals commonly possess a singular characteristic; they reciprocate to their community. There are various reasons for this phenomenon. To begin with, our basic instinct is to extend help to others. In actuality, giving stimulates the part of our brain linked with altruism and joy. Generosity can also lead you towards your passion, enhance your abilities, and nurture empathy. Activities like volunteering, for instance, can also pave the way for networking opportunities.
However, donating food or money to a charity can be quite abstract for children to comprehend where these contributions end up. Hence, starting this practice within the confines of home is advisable. Start by promoting small gestures of kindness, such as aiding a family member, and then gradually escalate to larger deeds. Kids soccer training can also be a fulfilling way to give back to the community while honing skills and building relationships with other kids.
Present the idea of Financial Management
Starting a summer venture is a fantastic method to impart children with fundamental financial management abilities and advanced concepts such as gross profit computation and overhead cost control. Teenagers can manage the tracking of revenue and business expenditures, while younger kids can enhance their skills in summing total costs and counting change.
You might have to provide some capital to jumpstart your child’s business. If that’s the case, have them enumerate all their initial expenses so they know the precise amount necessary.
You could propose to finance a specific amount, provided they also contribute from their birthday funds or allowance. To make it more engaging, you could organise an investor meeting where your child proposes their business idea to you and details their financial requirements.
Begin From the Base and Allow Growth
What should be the initial position for your child when they begin to work? Start them at a basic level and make them answer to a subordinate staff member. This might seem counterintuitive. How could this strategy possibly nurture my child’s leadership capabilities? Why not put them in a role that suits their intellect and potential future place in the company?
To be an effective leader, you must have people eager to follow you. Whether you’re 13, 22, or 30, just starting in the business, and kind of the proprietor, it’s unlikely that anyone will be eager to follow you initially.
Handle the Legal Obligations
Young business enthusiasts must follow the same legal stipulations as their older counterparts. To determine if local permits or licences are necessary, consult your local city or county clerk’s office. There may be circumstances where setting up a formal business structure is beneficial. This is if you foresee the business flourishing or potentially jeopardising your family’s assets. For instance, your firstborn has a talent for creating apps.
If an app demonstrates the potential for commercial success on iTunes, include it in your holding company. Start a Limited Liability Company (LLC) without a holding company for this goal. Determining your child’s business scale and your family’s liability protection requirements is within your discretion.
Endnote
Don’t forget, the journey should be enjoyable. Being an entrepreneur is about passion, not just hard work. Embrace risks, stumble, learn from those stumbles, and then dive right back in. Keep these principles at the heart of your adventure.
Read more:
How to Prepare Children to Run a Successful Business
