Kids Business Plan
If your child is looking to earn their own money, helping them to
develop a kids business plan can encourage them to make their goals
into realities. It is also an excellent way to start teaching your
child about business, money management and work ethic, while doing
something they are excited about.
Regardless of what type of business or service your child wants to
begin providing, a solid kids business plan can help them to put their
goals into perspective and help them to understand what they will need
to do to make the money they want and what their new responsibilities
Brainstorming and Forming a Plan
To begin creating a kids business plan, sit down with your kids and
have a serious discussion with them about their ideas and goals. As you
talk with them, ask them different questions about their new business
and help them by taking notes that you can later help them type into an
actual ‘business plan’. Questions and information
you should discuss include:
What service will you provide?
If your children have an idea of a service they want to provide, now is
the perfect time to discuss it. Do they want to have a weekly lemonade
stand? Do they want to provide pet sitting services? Let your kids tell
you about their idea. They may even have more than one, and
that’s okay. Explore these ideas with them and help them
narrow them down to one that both you and your kids think is a suitable
Do you have the skills to provide this service?
While your child may have big dreams about starting their own
babysitting business or being an errand boy for neighborhood adults,
sometimes these ideas are not an option due to their level of
experience. For example, if your son wants to start his own grocery
service for the elderly but is not old enough to drive, he may want to
consider other alternatives before finalizing his kids business plan.
Encourage him to pick a ‘business’ where his
abilities and skills will shine. If your daughter is great with animals
for example, pet sitting may be an option that would be very
appropriate for her.
How much will you charge for your service?
Ask your child what they would like to charge for the service they want
to provide. If they have unrealistic expectations, use the internet to
do some research and find out what others providing this service are
charging and adjust their original figure accordingly. Likewise, if
they are setting their standards to low, encourage them to raise the
rate a bit if you think it is appropriate.
Are there any necessary supplies or start-up costs?
In some cases, the service your child wants to provide will require
them to have certain materials of their own that they may or may not be
able to afford. Ask your child what they think they may need and
whether they already have these materials. Also, if you’re
looking to teach them a little about the world of business, discuss
with them the possibility of taking out a loan with you for the
materials with the stipulation that they must make regular installments
to pay off the loan.
What do you plan to do with the profits?
This is one of the most important questions to ask your child when
helping them to create a kids business plan. Converse with them about
what exactly it is they are trying to save for and about their
long-term and short-term savings goals. Try to convince them to have at
least one of each so that their interest does not fade after they reach
their initial goal. For instance, they may want to earn enough now to
purchase a new pair of school shoes, but they may want to continue
saving for a new vehicle or to put money away for a school trip or even
college. The more expensive and important the goal is to them, the
harder they will likely work to achieve it.
These questions are all very important to a kids business plan and
should be included in the final product so that the child knows they
are accountable for their actions, and to remind them of what they are
trying to achieve.
Write a Plan of Action
you have taken notes about the discussion, sit with your child at a
computer and help them to draft a document that outlines all of the
- Their service
- Who will be in charge of the money?
In addition, if your child plans on borrowing money from you for
materials, write up a “loan agreement” regarding
the amount borrowed and a payment schedule that you set up together,
before having them sign it. This will help to teach your children about
real world money management and financial accountability.
Writing a kids business plan is an excellent first step to helping your
child realize exactly what is involved with running their own
‘business’ and can be a great tool for both parents
and teachers to help teach children about business, as well as
financial goals and responsibilities
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