How To Start a Business as a Kid: Guide for Parents and Teenagers

So you’ve stumbled upon one or more small business ideas that could change the world (or at least your high school). What now? If you’re under 18, it’s possible to bring that idea to life and start your own small business. But there’s a catch: Young entrepreneurs will often need parental support or sign off to complete many of the steps leading up to launch.

The good news is that with the help of a parent or guardian, kids and teens can manage most of the day-to-day operations of a thriving business. Becoming an entrepreneur at a young age can open up doors later in life, teach skills outside the classroom, and generate extra cash for entertainment or college.

Hear from several entrepreneurs who started at a young age as they share their advice for how to start a business as a kid—and why doing it now is worth it.

Why start a business as a young entrepreneur

• Making mistakes is easier when you’re young
• You’ll never have this much free time again
• You have a built-in audience for your idea
• You have access to a wealth of free resources and support
• The skills you learn now will help you later
• You can make extra money for fun or college

A business venture can bring many benefits to an entrepreneur. At a young age, it can be a fun learning opportunity that can shape your future. Here are a few reasons why starting a business as a kid can benefit you now and later in life:

Making mistakes is easier when you’re young

Starting a business at any age involves risk. When you’re young and living under a parent’s roof, the consequences of failure are much lower. Making mistakes early means you’ll have more time ahead of you to get it right.

“When starting any kind of business there is a lot you don’t know, and the only way to accelerate your learning curve is by trying many things,” says Nick Mares, who founded bone broth company Kettle & Fire with his brother Justin when he was a teen. “Trying and failing isn’t something to avoid. Fail fast and learn faster.”

You’ll never have this much free time again

Between school, sports, activities, and an active social life, it might already feel like your time is tight. But once you hit adulthood, your schedule can get even busier. With fewer responsibilities and bills to pay, now is the time to act on that big idea.

“I was 16 when I started. When I was in high school, balancing everything was pretty easy,” says LeiLei Secor, who turned her jewelry hobby into a small business. “When I got to college, I treated it as if it were any other part-time job or work study. I set aside a few hours each week to fulfill orders.”

You have a built-in audience for your idea

Classmates become the best springboard for testing a product idea, and a school’s built-in network of potential customers makes powerful word-of-mouth marketing easy. Use your experiences as a kid or teen to solve a problem or create a product geared toward your peers.

Carson Kropfl was 11 when he came up with the idea for his product Locker Board, a short skateboard that would fit in his locker. “I first started selling them at my school for $20 a piece,” he says. “I made an Instagram account, and I posted a video of me riding it to school and putting it in my locker. I woke up the next morning and I went from zero to 300-something followers. My mom and I quickly made a website and started selling them.”

You have access to a wealth of free resources and support

After high school, your education may cost you. Whether you choose to go to college or enroll in a program for entrepreneurship, you’ll likely have to pay to learn new skills. But high schools sometimes offer elective classes for young entrepreneurs.

Additionally, as a kid entrepreneur, you can tap into these school resources:

• Labs and tech equipment

• Computers and software

• Art studio and shop class tools

• Knowledge and feedback from teachers, guidance counselors, and fellow students

The skills you learn now will help you later

Small business owners learn a lot in their first year of business. That’s because they usually wear many hats, from driving sales to developing products to managing customer service. The same is true for young entrepreneurs. Starting a business will empower you to build valuable life skills that can help you navigate interpersonal relationships, juggle several responsibilities, and increase your resilience in the face of challenges.

“Being able to prove that you’ve been through the ups and downs of building a business and making money on your own is incredibly valuable, and in some cases more important than a piece of paper from college that says you went to school for four years,” says serial entrepreneur and former CEO of Combo Tucker Schreiber, who started his first business when he was only a kid.

You can make extra money for fun or college

Hobbies are ideal business ideas for young people. Turn a love of animals into a local dog-walking business or an affinity for sewing into a clothing brand to sell online. Earn extra spending money while doing something you already enjoy doing. Save up for a gaming system or sock it away for college—your own business gives you financial independence.

How to start a successful business as a kid

1. Ask for permission
2. Find and validate your idea
3. Decide how you will fund your business
4. Price your products or services
5. Write a business plan
6. Work with a parent or guardian to get set up
7. Set up your online store
8. Create social media accounts
9. Market and sell your products or services
10. Manage your money

Young entrepreneurs usually get their start by hosting a front-yard lemonade stand or spearheading a neighborhood babysitting empire. These starter ideas don’t have high barriers to entry, but if you’re looking to take entrepreneurship to the next level, it’s time to get a parent or guardian involved. 

Follow these 10 steps to start your own business before you turn 18:

1. Ask for permission

Before you even consider writing a business plan or designing a logo, make sure you have a parent or guardian who supports your idea. They will, after all, be responsible for cosigning on anything involving a contract (legal documents, financial products, your online store account).

Your adult sponsor may also need to sign up for and monitor social accounts if you are younger than the minimum age for certain platforms.

2. Find and validate your idea

Think big! Ideas can come from anywhere—a desire to solve a problem impacting you and your peers, a fresh take on an existing product, or something entirely new.

“Start an idea book or a journal where you can write down all your ideas for your business,” says 25-year-old Maya Penn, who started her business, Maya’s Ideas, at the age of 8. “Whether it be a small thought that crosses your mind or the next big idea, it’s important to have it written down. Even if it doesn’t seem important, it may be very useful in the future.”

There are plenty of business ideas for kids, such as:

• Lawn care services

• Tutoring services

• Recycling collector

• Kids’ book author

• Costume constructor

• Reseller

• Nonprofit founder

When coming up with an idea for your small business, be sure to keep your target market (the people you want to sell to) in mind. Engaging this group in your idea will help you collect feedback and validate that it’s a viable idea.

3. Decide how you will fund your business

Young people can easily start a business with a parent’s support. But some business ideas will require start-up money. Do you have your own savings from an allowance or a babysitting job? Will your parents lend you the funds? There might even be scholarships you’re eligible for that can help you fund your business.

To help you decide the best option for you, take time to consider all your startup costs so you know how much money you need to launch. For example, let’s say you want to sell knitted teddy bears at markets. You already have all the tools you need to make the stuffed animals, but you don’t have any signage for your table. You would then decide if you’re going to make signs yourself out of poster board and markers or pay a printer for signs you can reuse. In this case, your startup costs should include your signage expenses.

4. Price your product or services

Pricing your products and services can be challenging, but with the right tools and research it’s possible. You can start by looking around at your competitors. What are they charging for the same product or service? If what you’re offering is of comparable value, you can price it accordingly. This is especially useful if you’re offering a service.

Here are a few other things to consider when you’re selling products:

• Variable costs. These costs change depending on your production needs. They can include raw materials and shipping.

• Fixed costs. These are costs that remain the same, like if you rent a space.

• Profit margin. This is the amount of profit you want to earn. You can use Shopify’s profit margin calculator to determine this percentage.

This is a perfect opportunity to team up with a parent or mentor to assist with pricing.

5. Write a business plan

A business plan is a road map that can help you run and grow your business. It includes the following:

• Mission statement. This is an explanation of your company’s purpose and values.

• Products and services. This is a detailed description of what you’re selling and the pricing.

• Marketing plan. This breaks down how you plan to promote your business.

• Financial plan. A financial plan includes possible funding sources, projected revenue, and expected operating expenses.

To help you write your business plan, it’s useful to know who you want to sell to, have a clear idea of your goals, and use a business plan template.

6. Work with a parent or guardian to get set up

To reiterate, a parent or guardian’s involvement is critical to starting a business when you’re under 18. In most cases, you’re not old enough to enter into a legally binding agreement or hold a credit card in your own name. In Canada and the US, minors under 18 cannot sign contracts. But your parents can, on your behalf.

Country and state regulations vary, but most financial, ecommerce, and social media platforms have minimum age restrictions. Local governments can provide guidance on these rules.

You’ll also need an adult’s help to handle other financial aspects of the business. Talk to your parents about whether you need a business bank account (with them as the authorized signer). When starting up, you and your parents should also discuss your respective roles around business finance, including paying taxes.

7. Set up an online store

If you’re starting an online business, you’ll need to use a parent or guardian’s account to log in to a tool like Shopify, but the rest is up to you! Choose a theme and customize your design.

Here are a few other things to consider when setting up your shop:

• Your audience. Appealing to your audience is important to keep them coming back. Aim to create a website that is easy to navigate and useful. For example, adding in FAQ pages, policy pages, and contact details can help them find the information they need.

• Your story. Include your story and your motivations behind starting your business. This can help audiences feel connected to your business. It’s best practice to highlight your story on your website’s About page.

• Your product descriptions. You can be casual and silly or straight to the point with your product descriptions. Since they are an opportunity to speak to your audience, make sure your product descriptions are informative, speak to your unique value proposition, and answer any questions a customer might have.

8. Create social media accounts

Social media is a great way to build and connect with your audience. A parent may need to sign up for the account and monitor activity, but when it comes to social media, you’re the content expert.

Here are a few ways to make an impact on your social media accounts:

• Post consistently. Regularly updating your accounts can help get more eyes on your content. Creating a content calendar and planning out what you hope to post can help you reach this goal.

• Engage with your audience. Don’t just talk at your audience—talk to them. When they leave comments, respond with personalized messages.

• Don’t be afraid to try new things. You never know what kind of content will resonate with your audience, so try new formats and types of content to see which one works best for your brand.

9. Market and sell your products or services

It’s time to make your own money selling to your audience. Launch your website or online store, start marketing, and wait for the cha-ching notification on your phone. You can also explore offline sales channels like local craft fairs or events at your school.

10. Manage your money

Once you start making money, you should have a plan for it. For example, you might decide to reinvest a portion of it to grow your business or to pay for expenses. You could also set aside some money for retirement savings or for a college fund.

Ask your parents for help with managing your finances, including understanding financial statements and balance sheets. All of the learning and planning you do can prepare you for tax season.

Shopify Kids Business Starter Kit

We've created a free 44-page activity book of engaging activities and exercises designed to lead children through the journey of imagining and developing a business idea.

Parents, get your free kit

Your business idea can’t wait

Feature image by Anna Shvets
Photos by Pexels

Kid and teen entrepreneurs are in the best position to build for the next generation of consumers—their own peers. You don’t have to wait until you’re 18; talk to a parent and bring your ideas to life today. The lessons you learn by starting your own successful business will carry you into adulthood.

“There will be some obstacles trying to stop you, people doubting you,” says Esma Ilyas, the young cofounder of social enterprise brand Ivory Ella. “As long as you continue to do what you started and love, it will all be worth it in the end.”