Kids Kreative Korner
How Much Money Do You Need to Start Your Business?
By Bonnie Drew
It's time to sit down with a pencil and paper and get serious about the financial end of your business. Before you invest your time and money, you want to know it's going to be profitable. The first step is to consider the startup costs.
Some examples of startup costs are: flyers, business cards, signs, equipment to mow yards, supplies to bake cookies, a computer, bookkeeping software, a telephone, answering machine, and special safety clothing or a uniform.
Since most young entrepreneurs have very little money to invest, keeping startup costs down is important. These are some ways to save money on your startup:
1. Borrow or Rent Equipment For the First Few Jobs--For example, most kids start out borrowing the family snow shovel. In a few days, they can afford to buy their own.2. Use Supplies You Have Around the House--If you're starting a craft business, for example, a family member might be glad to donate a box of fabric scraps that's been in the hall closet for the last few years.
3. Buy Only What You Need to Get Started--For example, the first bottle of window cleaner for your first window-washing job is a startup cost. After that, window cleaner won't be a problem because you can buy it with the money you earn.
4. Know the Difference Between Needs and Wants--It would be fun to have your own computer, but unless your business is computer services, you can probably get by with a calculator and notebook. Arrange to borrow time on your parents' computer when necessary.
Sometimes having a limited amount of money to start a business can be an asset. It forces you to think carefully about what you really need and requires that you spend every dime wisely. Some entrepreneurs call this being "lean and mean." I call it "thinking smart."
Starting your business the low-cost way cuts down on risk. Think about it. If your startup list adds up to $200, but you only have $50 to invest, you have to make some "lean, mean decisions." You may have to do without some things you really wanted, but you've just cut your investment and your risk by 75 percent. That's smart business.
Bonnie Drew is the author of FAST CASH FOR KIDS (2nd edition), published by Career Press (1-800-227-3371). She is also the creator of the KIDS BUSINESS software for young entrepreneurs, available from Homeland Publications (713-332-9764).
Drew is also Editor of YoungBiz online magazine, published by Kid's Way, Inc., a company that helps youth prepare for business and the workplace of the 21st century. For more information, write to Kid's Way at 5589 Peachtree Rd, Chamblee, GA 30341 or call toll free 1-888-KidsWay (1-888-543-7929). YoungBiz magazine can be found at http://www.youngbiz.com
|
|
Index |
 |
Idea Help |
|
 |
 |
 |
 |
 |