As you look at social media these days, it can feel like everyone is starting a business. It’s also a lot easier to start a business in modern times, and we hear of more and more people starting businesses quite young. There are plenty of success stories of young entrepreneurs going on to launch successful startups and have stellar careers. This article will give parents advice on whether they should let their children, in this case, teenagers, start their businesses — we’ll cover the pros, cons, and considerations so you can make an informed decision. Read on to learn more.
Can Kids Start a Business?
The answer to this depends on where you live. In Australia, there is no age limit to obtain an Australian Business Number, or ABN, which is the requirement you need to become a sole trader. In the United States, it will depend on what state you live in and the local restrictions. In some other places, teens might need parental approval or supervision in order to launch a business. So the answer to this one really depends on whereabouts you are in the world.
What Will Your Kid Do?
The next question is, what exactly will your kids’ business do, and is it going to be viable for them to balance with their other commitments, including school and extracurricular activities? For instance, your teen might consider detailing cars on the weekend, or after school, which should be fine, and as long as they can balance it with their other activities, they might be able to manage it. However, a business like accounting or bookkeeping, which usually requires qualifications and experience, might currently be beyond their grasp.
If your teenager has expressed an interest in starting a business, why not sit down with them and think about what is practical, achievable, and possible? For instance, selling their clothes on Depop might be easy to achieve, or selling crafts and handmade items on Etsy. Babysitting, dog walking, or other low-impact jobs might be the best way to go for your kid.
What Will The Business Require?
You’ll also need to think about what the business will actually require: do you need a WooCommerce website designer? If they are selling goods online, who will pack the orders? Who will deal with customer service, including complaints, returns, and refunds? What about social media? Do you allow your teen to have their own social media account? If not, will you manage their social media presence?
Suppose they are keen on a web business. In that case, they will need to consider search engine marketing, such as paid search advertisements and SEO. Is this all possible for a busy teen who is balancing school, a social life, and other activities, as well as trying to start a business? All of this needs thinking about, and you should have an open and frank discussion with your kids about what is possible and achievable for them, depending on the type of business they want to launch.
The Benefits of Kids Starting a Business
Several benefits exist for your children (teens) when they launch a business, which we’ll now discuss in detail.
Financial Benefits
The major benefit of launching a business for teens is that it will give them some financial independence and help them learn how to manage money. As this is not something that is taught in most schools, this is a major benefit. Your teen, or teens, will have to figure out how to manage cash flow and expenses, figure out a profit margin, and price their products or services. This is excellent life experience and will set them up well for their future careers as either employers or business owners.
Responsibility and Accountability
Another major benefit to kids launching a business is that it will teach them responsibility and accountability. They will be responsible for all the business functions, operations, marketing, banking, and more. The lessons learned here will serve them well for the rest of their lives. The success or failure of the business may rest on their heads, depending on how much assistance you offer them. If they don’t put in effort, the business won’t grow, and they will learn the hard way about work ethics and the payoff of putting in the hard yards.
Running a business will also teach them accountability, as they will be accountable to their clients and customers. For instance, if your teen decides to babysit and cancels a job at the last minute, they will likely lose that family as a customer unless it was unavoidable due to illness or an emergency. The same applies to other businesses, such as car washing, if they fail to ship an order on time or deliver poor customer experience or service.
Things to Consider Regarding Teens Running a Business
There are some potential downsides to this, which all engaged parents should consider.
The Business Could Fail
If the business fails, this could have crushing consequences for teens. While mature in some aspects of life, teenagers are still very much in a crucial developmental stage. Their capacity to deal with failure is less than that of adults, and if their business fails, they might take it exceptionally hard. If your teen or teens struggle with mental health and well-being, this might be reason enough to consider a cautious approach.
They Can Neglect Other Aspects of Their Life
Finally, if launching a business means that your teen neglects other aspects of their life, this might not be for the best. Suppose their study, relationships, or other activities suffer. In that case, this might demonstrate that they aren’t currently equipped with what it takes to balance their lives, which is okay as they will grow into it.
The Question – To Start or Not Start a Small Business?
This helpful article is a practical guide for parents to help them decide whether to let their teen kids start a business. We’ve covered things to consider and some benefits and negatives.
