You've found one or more small business ideas that could change the world (or at least your high school). What now? If you are under 18, you can turn your idea into reality and start your own small business. But there's a catch. Young entrepreneurs often require parental support and approval to complete the many steps leading up to launch.
The good news is that with the blessing of their parents or guardians, children and teens can manage most of the day-to-day operations of a thriving business. Becoming an entrepreneur at a young age opens doors later in life, allowing you to teach skills outside of the classroom and generate extra cash for fun or college.
Hear advice from several former child entrepreneurs on how to start a business before you're 18 and why it's worth starting now.
Why start a business as a young entrepreneur?
It's easy to make mistakes when you're young
Starting a business involves risks, regardless of your age. If you are young and living under your parents' roof, the impact of failure is much smaller. Making mistakes early on means it takes much more time to get it right.
“When you start any kind of business, there's a lot you don't know. The only way to accelerate the learning curve is to try a lot of things,” says Nick, who founded the bone broth company with his brother Justin. Mares says. Just a teenager. “There is nothing to avoid trying and failing. Fail fast and learn quickly.”
I'll never have this much free time again
Between school, sports, activities, and an active social life, you may already feel like your time is limited. But as adults, their schedules can get even busier. Now that you have less responsibility and less to pay, it's time to act on that idea.
“I was 16 years old when I started. It was so easy to balance everything when I was in high school,” says Ray-Ray Secor, who turned her jewelry hobby into a small business. “When I started college, I treated it like any other part-time job or work study. I set aside a few hours each week to fill orders.”
Comes with a built-in audience that supports your ideas
Classmates are the best starting point for testing product ideas, and the school's built-in network of potential customers facilitates powerful word-of-mouth marketing. You can use your childhood or teenage experiences to solve problems or create products for your colleagues.
Carson Cropfl was 11 years old when he came up with the idea for a product called the Rockerboard, a short skateboard that fits in a locker. “First at school he started selling them for $20 each,” he says. “I created an Instagram account and posted videos of him going to school and putting things in his locker. When I woke up the next morning, he went from having zero followers to about 300. My mom and I I immediately created a website and started selling.”
Access a wealth of free resources and support
After high school, education is expensive. The same goes for all other costs. You'll probably end up paying more for almost everything, from bus passes to entertainment. Many schools are beginning to address the need for practical business skills for young entrepreneurs by offering elective classes as part of their curriculum.
Also consider using the following school resources:
- Laboratory and technical equipment
- computer and software
- Art studio and shop class tools
- Knowledge and feedback from teachers, career guidance counselors, and other students
The skills you learn now will be useful later.
Small business owners learn a lot in their first year of business. That's because they typically wear many hats, from sales promotion to product development to managing customer service. The same is true for entrepreneurs of any age. Starting a business builds a skill set that will help you apply to college.
“Being able to prove that you've been through the ups and downs of starting your own business and making money is extremely valuable, and in some cases more important than a piece of paper from college saying you went to school for four years.” says Tucker Schreiber, serial entrepreneur and CEO of Combo. He started his first business when he was still a child.
Earn extra money for play or college
A hobby is an ideal business idea for young people. Turn your love for animals into a local dog walking business or your affinity for sewing into a clothing brand you sell online. Earn extra pocket money while doing what you already enjoy. Whether it's saving up to buy a gaming system or putting money aside to go to college, your own business allows you to become financially independent.
How to start a business under 18
Young entrepreneurs typically get their start by hosting a lemonade stand in their front yard or spearheading a neighborhood babysitting empire. These starter ideas don't have a high barrier to entry, but if you want to take your entrepreneurship to the next level, it's time to get your parents or guardians involved.
With the help of an adult, follow these five steps to start your business before you turn 18.
1. Ask for permission
Before you consider creating a business plan or designing a logo, make sure you have a parent or guardian who supports your idea. After all, they are responsible for co-signing anything related to the contract (legal documents, financial instruments, online store accounts). Adult sponsors may also require you to sign up and monitor a social account if you are under the minimum age for a particular platform.
2. Find and validate your ideas
Think big! Ideas can come from anywhere. It could be a desire to solve a problem that affects you or your colleagues, a fresh take on an existing product, or something entirely new.
“Start an idea book or journal where you can write down all your business ideas,” says Maya Penn, 22, who started her business Maya's Ideas at age 8. “Whether it's the little thought that crosses your mind or the next big idea, it's important to write it down. Even if it seems unimportant, it could be very useful in the future. yeah.”
There are plenty of business ideas for kids, from starting a lawn care service to selling products through an online business to starting a nonprofit organization around a cause. When coming up with small business ideas, be sure to keep your target market (the people you want to sell to) in mind. Involving this group on your idea will help you gather feedback and validate that it's a viable idea.
3. Decide how to finance your business
Young people can easily start a business with the support of their parents. However, some business ideas require initial capital. Do you have your own savings from pocket money or babysitting jobs? Can your parents lend you funds?
Once you have the funds you need to start your business, you will also need adult help to handle other financial aspects of your business. Talk to your parents about whether you need a business bank account (they are the signatories). When starting a business, you and your parents should also discuss your respective roles in business finance, including paying taxes.
4. Work with your parent or guardian to set it up
Again, parent or guardian involvement is essential for starting a business under the age of 18. In most cases, they are not old enough to form a legally binding contract or hold a credit card in their name. In Canada and the United States, minors under the age of 18 cannot sign contracts. However, your parents can do it for you.
Although country and state regulations vary, most financial, e-commerce, and social media products have minimum age restrictions. Local governments can provide guidance regarding these regulations. The U.S. Small Business Administration advises parents to seek the advice of an accountant or attorney.
Parents should also cooperate with other tasks, such as:
- Pricing decisions. Look around at your competitors. What are they charging for the same product or service? If what you're offering is of comparable value, price accordingly. Ask your parents or coaches to help you with pricing, or check out online resources.
- Launch an online store. You'll need to use your parent or guardian's account to log in to tools like Shopify, but the rest is up to you. Choose a theme and customize your design.
- Create social media accounts. Parents may need to sign up for an account and monitor activity, but when it comes to social media, parents are the content experts.
5. Marketing and Sales of Products or Services
It's time to sell to your audience and make money! Launch your website or online store, start marketing, and wait for notifications to arrive on your phone. You can also explore other sales channels, such as local craft fairs and school events.
Shopify Kids Business Starter Kit
We've created a free 44-page activity book with engaging activities and exercises designed to get kids imagining and developing business ideas.
Parents, get a free kit
Once you have set up the legal aspects with the help of your parents, you are ready to manage the day-to-day business operations. Have fun, earn extra money, and learn new skills that will help you in college and beyond!
I can't wait to see your business idea
Child and teen entrepreneurs are in the best position to build for the next generation of consumers: their peers. Don't wait until you're 18, talk to your parents and bring your ideas to life now. The lessons you learn from starting a successful business will guide you into adulthood.
“There will be some obstacles that will try to stop you. People will doubt you,” says Esma Ilyas, young founder of social enterprise brand Ivory Ella. “As long as you keep doing what you started and love, it will all be worth it in the end.”
Featured image by Anna Shvetz
Photo by Pexels
Frequently asked questions about starting a business under 18
Can I start a business as a teenager?
High school students can start their own business with the help of their parents or guardians. Great business ideas for teenagers include neighborhood services, selling handmade goods online, and starting a tutoring business for younger children. Be sure to talk with your parents to find out the legal requirements for teenagers to start a business.
What is the youngest age a child can own a business?
Any young person can start a small business. Olly Fecuyer was only 6 years old when he started his own bus Fiji business. The amount of help children need from their parents depends on their age. In Olly's case, his mother ran the business side of things, while Olly served as the face of the brand, helping with simple tasks like selecting scents and designs. Older children and teens have more autonomy, but their parents still need to sign up for Shopify.
