The Ultimate Guide to Helping Your Kid Set Up A Business
Research evidence suggests that children tend to learn faster than adults do. They are creative and spontaneous learners in comparison to adults who are less enthusiastic about learning. If you have been postponing the talk with your child, do not delay it any further. Explain to your child how money works and help them understand managing finances.
In fact, in today’s world, there are more child entrepreneurs than ever before. So, if you see that your little one has a passion and a skill, which could find them successful, help them pursue it.
Talk to your little one and understand their passion. Help them understand how a business works and how they could put their skill to use and make an enterprise out of it. Your little one will find it fascinating and demonstrate interest and help them take the baby steps into entrepreneurship. These tips will come handy in helping your little one set up their business.
Just because something is in vogue or a friend’s child is doing something, doesn’t mean your child should follow it too. You could help your child to find their passion. Even if it is something as tiny as a herb garden, help them learn all about it. Your child need not become the Lizzie Marie, Leanna Archer, Cameron Johnson, or Moziah Bridges to be a successful child entrepreneur. So, encourage their passion rather than pass negative comments and discourage them.
Once things seem to take shape, you can help them set up a business and understand how to make money out of their passion. Always remind your child why they began this whole process. It will help them stay focused and enjoy the learning experience. While finding success in their business venture is important, it’s not always about just the result.
Build a Business Plan
Your child knows what they are passionate about. They commit, they want to start a business, what next? While the easiest way to do it is to create a plan and tell your child how to do it, you would not help the cause. Entrepreneurs need to be problem solvers. They should be people who have a vision and can decide. So, help your child be one.
Ask your child to come up with a list of things they need, the ballpark budget for everything, and all the support they need. Your child should also be able to come up with the timelines, the details on how they wish to take it forward, and their plan for getting an ROI on this business. Your child’s plan need not be a foolproof one.
So, do not discourage them. Instead, try to understand the thought they put into it, and why they felt the need to add it. Even if this doesn’t make sense, your child will be happy that you are genuinely interested in what they have to do. It will help them give their business idea a better thought and get more serious with it. This will avoid them giving up on the business idea within a day or two.
Teach Them Money Management
Introduce them to managing money, teach them to save, and tell them that they’re accountable for every penny in the business. Let them watch how you put your income into various buckets, maintain a budget, and pay your bills. Do all this before they kick start their business. And if the business takes off and they make profits, make sure you file their taxes.
And while doing so, explain how the tax slab works and how much you are paying and why. Also, walk them through the process of paying their taxes. This will not just help them have a strong understanding of their business, but will also help them deal with life better.
Besides this, teach your child the importance of customer service, innovation in business, and the legal aspects of setting up a business. Talk to your child about all the steps involved, bring in a career guidance counselor if necessary, and explain how things could pan out in the future.
Remember, it is important to teach your child how to start a business, handle it, and not just do everything for them while watching. So, learn to take a backseat and be an observer.
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