Dream Merchant • 2309 Torrance Blvd. #104, Torrance, CA 90501 (310) 328-1925 email: Jkm316@aol.com
Kids Kreative Korner
In This Issue, Bonnie Drew Wraps up Her Discussion of the Business Plan
By Bonnie Drew
Part Five
Let's take a look at a few more questions you'll need to address as you write your own business plan:
WHAT EQUIPMENT WILL BE USED IN THE BUSINESS?
One of the ways to cut costs on the start-up of your business is to take equipment, machines, or tools you already own and use them to earn money. In business, this is called "converting personal assets into business assets."
Look around your house and make a list of equipment you might use in your business For example, if you set up an office in the corner of your bedroom, you would list your desk, lamp, chair, calculator, and phone as business assets. If your parents give you permission to use the family lawn mower, it would be listed as one of your business assets. If you start teaching private guitar lessons, your guitar becomes a business asset.
Your business plan should include a list of all the equipment you will be using to operate your business. Indicate on the list whether you own it, borrow it, rent it, or plan to purchase it. Also list the approximate value of your equipment and the dates it was put into business use.
WHAT SUPPLIES WILL YOU NEED?
Your business plan should also include a complete checklist of all the supplies you'll need to operate your business. Supplies are things like the soap, wax, paper towels, and cleaning products you might need to run a car-detailing business. Or it might be the pencils, paper, and 3 x 5 cards you use to run a babysitter finder service.
A supply checklist also helps you save time. Before you go out to work, use your checklist to be sure you have everything you need for the job. Then you won't have to go back home and get things you forgot.
WHO ARE YOUR SUPPLIERS?
To ensure the highest rate of profit on your business, it's always important to buy your supplies at the lowest price. One way to save money is to buy in large quantities from a warehouse outlet or a wholesaler. However, it sometimes takes days or weeks of patient research to find a supplier that will give you a low enough price.
Young entrepreneurs often have additional difficulty buying at wholesale prices because the wholesalers won't accept small orders. The National Foundation for Teaching Entrepreneurship has materials to help find wholesalers who accept smaller orders. Visit their website at http://www.nfte.com
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
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