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By: Jason Kenner
Starting a business as a teenager may sound scary, but it’s easier than you might think. Several successful business owners started their companies before they turned 20. An 8-year-old girl launched an online store and was nationally recognized for her success. Owning a business isn’t right for everybody. With that being said, don’t let your age stop you from exploring the rewards of being a teen entrepreneur.
How Can Entrepreneurship Benefit Teens?
In addition to providing income, young entrepreneurs can also learn several valuable life lessons:
- Consequences of actions
- Responsibility and the importance of meeting deadlines
- Money management, communication, decision-making, and problem-solving skills
- Supply and demand
- Ways to express themselves
- Marketing and advertising methods
- Confidence, and the realization that reaching for their dreams is doable
- Researching business-related needs
These can all be taught in a classroom, but the hands-on experience can be a better teacher.
How Is Starting a Business Better Than Getting a Job?
Many teenagers work at fast-food restaurants and retail stores, usually for minimum wage. There’s nothing wrong with that type of job, but what if there’s a huge test you need to study for yet you’re scheduled to work the night before the test? Being an entrepreneur allows minors to maintain a reasonable work-life balance. Going to the Homecoming football game and studying is much easier when you set your own schedule as a business owner.
Owning a business is a plus when applying to colleges and for scholarships. It’s likely to impress those processing the applications and may increase your chances of getting into the school you want and obtaining scholarships.
When you work for someone else, your employer sets your wages. Being a business owner can potentially be more lucrative than the low wages that most teens earn.
What Are Some Teenage Business Ideas?
If you’re a teen interested in starting a business, you might already know what you’d like to do. If you don’t, here are a few suggestions:
- Open a store on an online marketplace or create a dedicated website, selling handmade or other items.
- Start a lawn care or house cleaning business.
- Run errands for people.
- Tutor other students.
- Walk neighborhood dogs.
- Provide IT services, such as social media advertising.
- Babysit.
How Should Teens Structure Their Business?
The Small Business Administration offers valuable information for young entrepreneurs, providing insights into starting a business. One type of business structure you might consider is a limited liability company. An LLC provides its owner with tax advantages and limits the company’s liability. Be sure to check your state’s laws regarding LLCs. While you might think that a lawyer has to file your LLC paperwork with your state government, this often isn’t necessary. Using a formation service like ZenBusiness saves you from paying lawyer fees.
Tax rules for minors can be confusing; check with the IRS to be sure applicable requirements are followed.
What Advice Do Successful Teen Entrepreneurs Offer?
Successful young business owners have words of encouragement for aspiring teen entrepreneurs:
- Don’t give up.
- Prioritize and deal with things one at a time.
- Stay committed and focused.
- Ask for assistance, if needed.
- Do something you enjoy and believe in.
Other best practices for a successful business include being organized, providing excellent customer service, striving to reach reasonable goals, and communicating well with business contacts and clients.
Is Entrepreneurship a Good Fit?
There are many benefits to starting a business as a teen. If you think it’s right for you, go ahead and create a business; it could be the start of a lifelong career.
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