Can you start a business as a kid?
In 2021, becoming a kid entrepreneur, or “kidpreneur” as it’s called now, is easier and more accessible than ever before.
You can start an online business as a kid with a little bit of hard work, passion, creativity, and maybe some help from a grown-up or two.
So, if you’ve spent your 2020 quarantine coming up will all sorts of new business ideas, and you’re ready to start your own business as a kid in 2021…
You’re in the right place.
I’m going to go over everything from goal setting and how to write a basic business plan as a kid, to what are good businesses for a kid to start.
And it’s all broken down into my nine step quick-start guide to starting a business as a kid.
Let's dive in!
How to Start a Business as a Kid in 2021
Starting a Business as a Kid
Starting a business as a kid is an attainable goal. “Kidpreneurs” are more common than ever, and with some hard work you can start an online business as a kid. To get started, you’ll need to set goals, write a business plan, open a bank account, and create your own website.
Quick Start Checklist:
1. Dream Big and Set Goals
So you’ve decided to skip out on a wasted summer of watching TV and playing video games until you’re bored, and you want to start a business instead…
Good for you!
Starting a business as a kid isn’t a crazy or unrealistic goal.
In fact, child entrepreneurs are becoming more and more common.
And it doesn’t matter how old you are.
You might need a little bit of help and guidance along the way, but if you are truly driven and passionate…
You can start a successful business as a kid.
If you need a little encouragement or inspiration along the way, I’ve got a few examples for you.
Ryan, whose last name remains secret per his parents’ decision for his safety, has a thriving YouTube channel: Ryan’s World.
He plays with and reviews toys, and invites viewers into little slices of his life through fun DIY’s, projects, and vlog style content...
And he made 22 million dollars in a single year.
Or look at Ryan Kelly, who started a line of high end dog treats, and thanks to an appearance on Shark Tank, now runs his six figure business online.
So much is possible if you have an idea or a dream and you choose to believe in yourself regardless of other people’s opinions.
You can do this!
So whatever your business ideas are…
Don’t be afraid to dream big.
The biggest key to a successful business venture is finding a problem in the world and offering a solution to that problem.
For seven year old Ryan, that problem was a lack of wholesome YouTube content for young kids.
For ten year old Ryan Kelly, it was a pet supply market filled with only poor quality dog treats.
Their business success is rooted in solving problems with excellence and bringing value to the world with their unique ideas.
There is a unique value that only you can bring to the world…
So set goals and get to work!
The world needs your ideas.
Please encourage your entrepreneurial minded kids to pursue their passions.
Never discourage or laugh at their ideas, even if you doubt their potential for success.
You might be surprised when your child turns out to be the next “Kidpreneur”!
2. Writing a Basic Business Plan
If you want to know how to start a business as a kid…
You need to start where every other small business owner starts.
With a business plan.
Writing a business plan is a big step towards making your business idea a reality.
Assuming that you have chosen your business idea, it’s time to start writing it out.
If you need help, don’t be afraid to ask a parent or teacher to sit down with you and help you create your first written business plan.
This is also a good time to sit down and start making a list of things you will need to start your business.
What supplies or equipment will you need to have?
Will you need money to create an entirely new product or invention?
Will you be running your business all by yourself, or will you recruit the help of your friends, siblings, or family members?
These are all important things you will want to know before you get started.
Once you have these questions answered, it’s time to start your official business plan.
The purpose of your business plan is to describe your product or service and how your business will make money.
Your business plan is like a map.
It shows where you are starting, where you want to go, and how you will get there.
Plus it will help you spot potential problems before they come up.
Basic Things to Include in a Business Plan:
3. Getting Legal and Paying Taxes
Taxes are how the government collects and makes money to pay for things that people need.
Even as a kid, you will be required to pay taxes if you make more than $400 from your business.
And hopefully you will make way more than that!
Which means that you need to make sure that your new business can legally make money and pay taxes before you start bringing in any money.
If you want to form an LLC for your business, which is a great way to protect your new business and legally register it where you live…
You will need the help of someone over 18 years old.
This is because a minor cannot legally register a business as an LLC.
But don’t worry…
This is exciting!
This person will be your very first business partner.
Consider seeking the help of a parent or guardian, or maybe even a grandparent/rusted family member.
Basic Next Steps to Take:
Have your new business partner help walk you through each of these steps.
Then you will be ready to fully go into business for yourself…
And you will be legally set up to operate your business and pay taxes at the end of the year.
4. Start Funding
Remember the section of your business plan about finances?
Well now it’s time to look back at that section and come up with a plan.
Depending on the business idea you are trying to start, you may need some money to get started.
Whether you’re starting a produce stand and need money to build a garden bed…
Or you’ve decided to start a YouTube channel and you need your first camera…
Or maybe you have an entirely new product that you want to invent and create...
Chances are, you’ll need startup funding.
There are a variety of ways to get funding to start a business.
Since you are too young to legally get a traditional job and save up the money to start your business over time …
You will need to get creative.
Finding creative solutions to problems is what being a business owner and entrepreneur is all about.
Are there extra chores you can do around the house to earn some extra cash?
Or can you offer to mow your neighbor’s lawn every week?
Maybe you have a family member that will be willing to offer you your first small business loan that you can pay back over time once your company is up and running?
If none of these options work out for you, or if you need a larger sum of money…
You can also look into crowd funding for your business idea.
Crowd funding is a fundraising method where a large number of people pledge small amounts of money towards your business idea because they are excited to buy your product before it even exists.
List of Crowdfunding Websites:
Just be prepared for the fact that most crowdfunding websites will take a cut of the money that you raise or charge you fees to use the platform.
5. Open a Bank Account
Next, you will want to open a bank account for your business.
As frustrating as it might sound…
This is another step that you will need the help of your parent/business partner to complete!
Opening a bank account as a minor (someone under the age of 18) will require an adult.
But your parent(s) or guardian(s) can help you open a joint bank account or even a custodial bank account!
Learning how to open a bank account, make deposits, manage a budget, and save money are important steps in running your business.
Ask your parents to help you set up a meeting at their local bank of choice so that you can have the experience of going to the bank and setting up your account in person.
Make sure that you do your research on joint accounts versus custodial accounts, and choose which one you feel the most comfortable with.
Most banks also offer some form of a student account as well.
Teaching your children about money and managing a bank account can be really exciting.
But be aware that the way you talk about and model money management has probably already been observed by your kids.
You will also need to have certain documents and information ready to bring with you to the bank to help your child open an account:
6. Create a Website
Depending on the business idea you have, the next step will probably be to start a website.
Creating a website for your business can be so much fun!
It will probably make all the hard work you’ve done so far start to feel real.
Nowadays, creating a website as a kid is probably less intimidating and scary for you than it would be for most adults!
Working with technology and computers is second nature to the current generation…
But even if you’ve never designed a website before, or maybe you aren’t very good with design and computers…
There are so many website builders available now that make creating your website from scratch super easy to do.
Many of them use templates and drag-and-drop features so that most of the technical work and coding is done for you.
If you are a kid that is passionate about graphic design and building websites, then learning how to code a website might be really fun for you.
And potentially turn into a skill that you can market as a business in and of itself.
But if the idea of coding a website sounds really boring to you…
Here is a list of super easy website builders for you to use.
Some of them are even designed specifically for kids!
List of Easy Website Builders:
Before you hop on the computer and start building your website, make sure that you parent’s or guardians know what you’re working on.
Including them in every stage of starting your business will help you to succeed, and it will show them how passionate and drive you are to succeed.
Many website builders (like Wix) have templates specifically designed for kids.
Weebly even has an education platform to be used in school.
WordPress, although a little more complex, is great for kids who are serious about launching a successful business long term.
And DoodleKit is best for very young children, or for parents who want greater moderating control over their child’s website.
7. Advertising and Marketing
If you don’t have customers, then you don’t have a business…
You just have an expensive hobby.
Which means that advertising and marketing your new business is a must.
So how do you market your business as a kid?
The same way an adult would!
You have your website, which is a great first step.
So take time to learn the basics of SEO and blogging for your website.
This will really help your website rank higher in Google, which means that more people will see your website..
And therefore more people will find out about your business!
But in addition to your website, you can also market your business via social media.
Using platforms like Instagram, Twitter, Facebook, and even Youtube are great ways to get the word out about the online business you’ve started as a kid.
If your business is a local service, such as lawn care, consider going around your neighborhood with printed flyers for your company that list your services and pricing.
Just make sure that there are no rules against soliciting in your neighborhood.
You can also create business cards for your business that you can leave at different places wherever you go.
Business cards will also be helpful when you meet someone new that you want to tell about your business.
Include your name and a link to your website so that they can find your product or services!
8. Business Ideas
Maybe you’re really excited about starting your first business as a kid, but you don’t even know where to begin.
There are a lot of creative ideas out there that are just waiting to be discovered.
Think long and hard about the things you love to do, and the passions that you have.
What can you do that will make the world a better place?
I promise that there is always something that you can do that you can turn into a business.
It will take time, and hard work…
But it IS possible.
If you are truly struggling to come up with ideas, however…
Here is a list to get you started in the right direction!
Potential Business Ideas:
Just remember, there are some age restrictions with some categories.
9. Failing Forward
No matter what, always remember that there is no such thing as failure.
Failure is a concept that human beings created out of shame and fear.
Just because something doesn’t happen the way that you think, or the way that you hoped…
Doesn’t make it a failure.
When starting a business as a kid, you need to start thinking like an entrepreneur.
Entrepreneurs don’t see failure….
They just see opportunities.
Even if those opportunities are a chance to learn from your mistakes and “fail forward”.
“Failing forward” means that you take everything that you learned that didn’t go to plan and use it to launch you forward into success.
Some of the most successful entrepreneurs in history “failed” tragically before they found the success that made them famous.
If they had stopped because they were afraid to fail or afraid to fail again…
We wouldn’t have amazing stories like Harry Potter…
Or even the lightbulb!
Thomas Edison famously tried 10,000 times before he successfully created the lightbulb.
He is quoted as saying, “When I have eliminated the ways that will not work, I will find the way that will work,”.
Take a page from Edison’s book, and don’t be afraid to find the way that will work.
You can do it!
Starting any Business as a Kid Can Be Profitable, but Lead Generation is Your Best Choice, Here's Why
Learning how to start a business as a kid can set you up for great financial success for the rest of your life.
It will teach you money management skills, and the value of hard work.
Plus there is nothing like the satisfaction of seeing something you’ve worked on come to life!
But if you are a kid that is passionate about becoming an entrepreneur or business owner that generates passive income…
There is a simple business model out there that literally anyone of any age can do.
This business model is my number one recommended method for creating passive income online.
And it’s the method that took me all the way from making only 2K a month to making over 50K a month in only five years…
I literally recommend it to everyone.
And yes, even a kid can get started with it.
This business model is online lead generation.
To put it simply, local lead generation is an online business model that helps create new leads (customers) for small businesses in a variety of different industries.
All you need to know is how to use Google and basic SEO skills to create and rank websites that will generate new leads on auto-pilot.
For the tech savvy “kidpreneur”, this is a great business model that will have you generating passive income in no time.
Then you can fund all of your new business ideas for years to come!
Check this out: