4 Ways Parents Can Encourage Entrepreneurial Teens

As a parent, you want to ensure your child has the education and resources to reach their full potential.  Perhaps some of your kids are interested in entrepreneurship in STEM fields, and you’re wondering how you can help them achieve their dreams. With these practical tips, you can actually help create future entrepreneurs right in your home.

The Benefits of Youth Entrepreneurship

Some people might think that teens are too young to pursue entrepreneurship. However, teens who start their own business can benefit from the experience in many ways. For instance, young entrepreneurs can work to save more money, gain access to exciting opportunities, and work towards their goals without facing the pressing financial burdens of adulthood.

Prepare Them for Adulthood

Teaching teens to be entrepreneurs isn’t just about increasing their odds for a financially stable future. It’s also about giving them the tools they’ll need for adulthood by prepping them for tasks they’ll face on a regular basis, from writing a check or doing their taxes. By covering these things now, you don’t just give them the opportunity to ask questions in a safe environment; you also subtly impress upon them your belief that these are tasks they’re capable of handling one day.

Business Models for Teens

 Your teenage children might have a wide range of interests that could inspire their business ideas. If some of your children are curious about entrepreneurship, but they don’t know what types of companies they could start, you can provide some suggestions. Lendio states that teens can often be successful at running online stores, social media management companies, or providing web design services. Any of these models could appeal to teens who want to leverage their STEM skills!

Encourage your teens to write business plans. These documents will provide a roadmap to take a business from an idea to a reality. PDFs are a good file type to use for this, and a free tool will let you edit PDF docs online. This way, they can add and change their plans as they come up with new and better ideas. 

Here’s what should typically be included in a business plan:

• Executive Summary: An overview of the business, including its name, location, and concept. It should also summarize the business goals and key features of the product or service.

• Business Description: Detailed information about the business, the market needs it will fulfill, and the competitive advantages it has over similar businesses.

• Market Analysis: This section analyzes the industry, market size, and demographics of potential customers. It also assesses competitors and outlines the target market’s characteristics.

• Organization and Management: Describes the business structure (e.g., partnership, corporation), details of ownership, and profiles of the management team. Include an organizational chart if possible.

• Products or Services: This part provides detailed information about the product or service being offered, including details on the lifecycle, benefits to the customer, and the current development stage.

• Marketing and Sales Strategy: How the business intends to attract customers and the sales strategy (direct sales, sales reps, online sales, etc.). One example is customizing merchandise through Boost Promotional Products.

• Funding Request: If seeking funding, specify the amount needed over the next five years and what it will be used for. Describe the type of funding requested (loans, equity investment).

• Financial Projections: Highlight the financial outlook and expected profitability.

• Appendix: An optional section that includes resumes of key employees, legal documents, product pictures, marketing materials, and any other supporting information.

Encouraging teens to develop such documents not only teaches them about the logistics of starting and running a business but also improves their planning and critical thinking skills.

Marketing Strategies

For many new entrepreneurs, learning how to market their business can represent a major hurdle. Lots of business owners have great ideas for new products and services, but they don’t know how to reach their target audience! If you want to help your children advertise effectively, find ways to talk about marketing and social skills.

Depending on the resources and programs you have access to, you could teach your children about developing basic business apps, using social media for promotion, or creating a blog or email newsletter. You could even turn some of these ideas into projects, like launching a blog and giving all of your children the chance to write their own posts.

Pricing, Negotiating, and Advocating

Young business owners often face a steep learning curve when it comes to mastering the arts of pricing, negotiating, and self-advocacy. Instill negotiating and advocacy skills in your children by hosting debates and teaching them how to confidently assert their views with clear evidence. You could also have your children write on hot-button topics. Furthermore, your children can learn about setting accurate prices for products and services through math. Feel free to use math concepts that business owners need to understand, like figuring out revenue and balancing budgets.

Lots of teens want to become entrepreneurs, but they might not feel confident about taking the initial steps to start their own businesses. As a parent, you can help your children hone their entrepreneurial skills for business success. With these tips, you’ll be able to teach your children about all of the ins and outs of business ownership.