Five Lessons Your Kids Will Learn by Starting A Business
It’s very important for kids these days to enjoy their time as children. It’s a fleeting time, as we all know, and a truly important developmental period. As they get older, it’s also important for them to learn how to make money, develop financial literacy, and prepare to be responsible adults.
When they’re old enough, kids typically get jobs at fast food restaurants or in the service industry in some capacity. These jobs serve an important purpose, as they teach kids how to listen to a boss, how to work with others and how to handle constructive criticism. Unfortunately, many times kids are forced to give up extracurricular activities, study time and time with families because of their work schedules.
When their work schedule starts to negatively impact their schooling, it’s time for parents to step in. These days, parents are helping their kids start their own businesses. This new generation of kid-entrepreneurs now have the skills and know how to be responsible, and are able to work towards a goal even before they enter adulthood. As kids explore the possibilities of their own creativity and willingness to work, they’ll develop inquisitive minds that will always search out new opportunities.
So why should kids start their own businesses instead of having an after-school job?
After-school job: These types of jobs are very important in the development of your kid’s sense of responsibility. Having a boss to report to, instead of just a parent, makes a big impact on how seriously your child takes the work that they’re doing. They’re also accountable to their fellow employees, who may have to work longer or harder if your child does not pull their own weight.
Entrepreneur: Starting your own business teaches a child the value of hard work. You will only get paid if you put in the time and effort. Compared to the typical after-school job, where you can show up for the required number of hours and either work hard or not but still get paid. Kids who have their own businesses will realize very quickly that the time and energy they put into their business directly relates to the amount of money they make.
2. The Value of a Dollar
After-school job: These types of jobs help kids understand that time = money. In order to make a meaningful paycheck, they need to show up to all of their shifts and put in the actual time.
Entrepreneur: Kids who have their own businesses will learn that they not only have to put in the time, but they also have to be creative and work hard. They will quickly learn that procrastinating on a particular area of their business will cost them money. They’ll also learn how to work smarter, not harder. They’ll learn that it is not the number of hours that you put into your work, but the effort, that is the most valuable. This will also help them realize that they do not need to spend hours and hours after school in order to make money but can make money by working harder on their business.
3. How to Market Yourself
After-school job: For most after-school jobs, kids are required to fill out an application. This process typically includes them going into the business they’re applying to and asking to speak with a manager. This teaches them to be bold and brave in a new situation. Once they have asked for a job application, they then are tasked with filling everything out as accurately as possible. If their resume looks good to the manager, they will then have to do a sit-down interview. This is where they need to learn how to market themselves as the best person for the job. Once they have completed the interview, the marketing is done.
Entrepreneur: Kids with their own business are forced to constantly market not only themselves but their business on a continual basis. Especially when first getting the business up and running, they’ll need to do consistent promotion of the work that they do in order to be visible to potential customers. They will also learn that not everything will work for them. They may have to try a number of different types of marketing ideas before they can find something that really works. This type of persistence and patience is very important for kids to learn at a young age.
4. Customer Service
After school job: At your after-school job, kids are taught that the customer is always right. As kids go through their shift, they will have to learn how to respond positively to customers who are not being kind or understanding. At the end of their shift, they will get money and move on.
Entrepreneur: With their own business, kids will soon learn that they must build strong relationships with their customers so that they can have repeat customers. The customer is still always right, but they are also someone with whom kids must connect with and find a reason for them to return. Repeat customers are the key to helping a business remain sustainable, and kids will soon learn that without ongoing work they will not make any money.
5. Banking Skills
After-school job: Kids working at after-school jobs will learn how to get a paycheck and deposit it in the bank. This will further show them the value of their time, as they can see a number that represents what their work was worth to the company.
Entrepreneur: Young entrepreneurs will learn how to budget for advertising costs, taxes, and expenses and how to weigh those against their profits. They will learn to deposit their income into the bank and write checks to cover their business expenses. This is an ideal hands-on way to learn the inner-workings of a business, which is not something many kids are exposed to.
As you can see, both options have benefits. As for which option you’ll choose? That’s up to you and your child.
Vipe is the founder and CEO of HDX Mix, an environmentally friendly sports drink mix. In addition to being a serial entrepreneur and philanthropist, he has applied his more than 3 decades of experience in launching disruptive brands, brand building and cause-marketing strategies for both for-profit and non-profits. Currently, Vipe is serving as a Board Member for Ocean Champions, Lonely Whale Foundation, AltaSea and RichUncles.com, an SEC reporting company managing more than $450 million in assets.
Today, Vipe’s focus is on ensuring that future generations are met with a healthy and thriving ocean. He’s involved with several ventures focused around innovations and solutions that will reduce plastic waste and minimize the impact on the planet.
Company: HDX Hydration Mix