Introducing Your Kids to First Time Business Ownership
By: Mike Minitelli
As someone with two young kids, I see the value in teaching your kids positive relationship building skills that mean a lot in the long term. One of the most valuable skills I can impart is entrepreneurship. First time business ownership can be an unnerving idea, but with the right guidance, it can also be an incredibly rewarding experience for our kids.
In my years at Benetrends, I’ve seen countless individuals take the leap into entrepreneurship. While many of these were adults making career changes, I’ve also witnessed young adults fresh out of college or even high school students starting their own ventures. This got me thinking: how can we, as parents, set our children up for entrepreneurial success?
Start Early with Financial Literacy
The foundation of any successful business is sound financial management. Start teaching your kids about money from a young age. This doesn’t mean boring lectures about compound interest (though that’s important too). Instead, make it practical and fun.
Give them an allowance and help them budget it. Introduce the concepts of saving, spending, and investing. You might even consider opening a small investment account for them and letting them make decisions (with your guidance, of course) about where to invest their money.
Encourage Problem-Solving Skills
Entrepreneurs are essentially problem solvers. They identify needs in the market and create solutions. Encourage your kids to think critically about the world around them. When they complain about something, challenge them to come up with a solution.
This mindset can be fostered through activities like puzzle-solving, strategy games, or even simple brainstorming sessions about everyday problems. The goal is to get them thinking creatively and analytically.
Teach the Value of Hard Work
Success in business doesn’t come overnight. It requires dedication, perseverance, and a strong work ethic. Help your kids understand this by giving them responsibilities around the house. As they get older, encourage them to take on part-time jobs or internships.
These experiences will not only teach them the value of hard work, but also give them insights into different industries and business operations.
Foster a Growth Mindset
Failure is often just a stepping stone to success. Help your kids develop a growth mindset – the belief that abilities and intelligence can be developed through effort, learning, and persistence.
Encourage them to take on challenges and view failures as learning opportunities. Celebrate their efforts as much as their successes. This resilience will serve them well in their future business endeavors.
Introduce Them to Basic Business Concepts
As your kids get older, start introducing them to basic business concepts. Explain what profit margins are, the importance of customer service, or how supply and demand works. Teach them what a franchise model is and how a franchise system operates. Introduce them to different types of business models, and how they each differ.
Support Their Interests
Pay attention to what your kids are passionate about. Whether it’s technology, art, sports, or anything else, these interests could potentially be the seeds of future business ideas. Encourage them to explore these interests deeply and think about how they might turn them into business opportunities.
Network and Mentorship
If you’re in business yourself, consider bringing your kids to networking events or introducing them to your colleagues. This exposure can give them valuable insights into the business world, and potentially even lead to mentorship opportunities.
If you’re not in business, look for youth entrepreneurship programs in your area. Many organizations offer workshops, seminars, or mentorship programs specifically designed for young aspiring entrepreneurs.
Starting a Business with Your Kids
If you are an entrepreneur looking to share the reins, including your kids in your own business is a fantastic way to help your young adult kids find their feet and gain some real-world experience. It’s not just about the money, it’s about teaching them how to manage finances, lead a team, and plan for the future. As a parent, you can offer them invaluable guidance and share your own experiences, maybe even inspire them to launch their own business. Maybe even help out with some initial funding. Talk to them about their interests and strengths, and find a business idea they’re excited about. Your support can give them the confidence to take this leap.
Franchising is an awesome option if they’re looking for something with a bit more structure. With a franchise, they get the benefit of a known brand and a proven business model. Plus, they’ll receive training and marketing support, and they can connect with other franchise owners. You can help them by researching the best franchise opportunities, understanding the costs, and guiding them through the decision process. It’s a great way to give them a head start with a safety net in place.
Discuss Funding Options
Funding your kid’s first business venture is a big step, and there are a few ways you can approach it. Whether you’re dipping into your own pocket, cosigning for a loan, or just offering whatever support you can, your involvement can make a huge difference. If you have the means, directly investing in their business can provide them with the financial stability they need to get started. On the other hand, cosigning for a loan can be a good option if you want to help them build credit and take on some responsibility. Even if you’re not able to provide financial backing, offering your time, advice, and encouragement can be just as valuable.
Don’t forget, I’m here to help guide you through this process. As an expert at Benetrends, I can provide you with all the information you need to support your kids in their entrepreneurial journey. I can answer your questions about funding options and help you navigate the complexities of starting a business. Whether it’s understanding different financing strategies or finding the best way to use retirement funds to invest, my expertise can be a game-changer. So, don’t hesitate to reach out and get the advice you need to help your kids succeed.
Inspire Your Young Entrepreneurs
Guiding your kids towards first time business ownership is about equipping them with valuable life skills – financial literacy, problem-solving, perseverance, and creativity. These skills will serve them well, whether they end up starting their own business or pursuing any other career path.
Remember, the goal isn’t to pressure them into becoming entrepreneurs, but to give them the tools and mindset that will allow them to pursue that path if they choose to. By fostering these skills and attitudes from a young age, we can set our kids up for success in whatever path they ultimately decide to take.
Interested in having a conversation with me about first time business ownership, becoming an entrepreneurial dad, or financing your next business venture? Schedule a meeting with me here. I look forward to speaking with you!