How to Start a Business Before You Graduate: 10 Kidpreneurs to Inspire You

Starting a business as a teenager is a realistic goal that helps you develop valuable skills, build confidence, and potentially generate income for your future. In this guide, NextSky provides a roadmap to help kids and teens turn ideas into reality, from brainstorming to execution, tailored specifically for young entrepreneurs.

Why start a business young?

• Youthful mistakes: Starting early lets you take risks, fail, and learn without significant losses. Each setback is a leap toward success.
• Free time: Without the pressures of adult responsibilities, you have time to nurture dreams. A few well-spent hours can turn a small idea into a big start.
• Free resources: School labs, libraries, licensed software, and teacher mentorship are invaluable assets many successful entrepreneurs wish they had. Use them to save time and money.
• Profitable passion: Turning hobbies into income lets you earn while learning to create value. From pocket money to college savings, it’s a small journey that opens doors to financial freedom.

10 steps to start a business as a kid or teen

1. Get parental support

Before diving into any business idea, have an open conversation with your parents or guardians. As a minor, you’ll need their permission for legal and financial matters, such as signing contracts, opening bank accounts, or setting up online stores. They can help with:

• Registering accounts on e-commerce or social media platforms.
• Handling legal paperwork or tax requirements.
• Providing initial funding if needed.

2. Brainstorm and validate business ideas

Your business should solve a problem, meet a need, or align with your passions. Start by jotting down ideas based on your skills, interests, or challenges you notice around you. Here are some business ideas for kids and teens:

• Services: Lawn mowing, pet sitting, tutoring younger students, or tech support for neighbors.
• Creative: Selling handmade bracelets, custom t-shirts, or digital artwork.
• Online businesses: Dropshipping, reselling products, or creating content (e.g., YouTube videos, blogs).
• Eco-friendly ideas: Recycling services or selling sustainable products like reusable straws.
• Educational projects: Writing eBooks, creating online courses, or teaching music lessons.

3. Understand legal requirements

Starting a business under 18 offers opportunities but comes with legal hurdles. Each country, and even region, has specific rules about the age at which you can operate a business. In the U.S. and Canada, those under 18 typically can’t sign contracts or open business accounts without parental consent. Researching local laws is key to running a legal and smooth operation.

• Age restrictions: Platforms like Shopify or PayPal require users to be 18, but parents can manage accounts on your behalf.
• Permits and licenses: Simple businesses like lemonade stands may not need permits, but check local rules for services like pet care or online sales.
• Taxes: Your business income may be taxable. Work with parents to understand reporting requirements.
• Resources: Visit local government websites or small business support agencies for guidance on youth entrepreneurship.

4. Create a simple business plan

A business plan is like a compass, guiding you toward success. It doesn’t need to be complex, just focus on these key elements:

• Mission statement: Define why your business exists. For example, “Providing affordable, eco-friendly accessories for teens.”
• Products/services: Specify what you’re offering and their prices.
• Target market: Identify your customers, like students, local families, or online shoppers.
• Marketing strategy: Plan how to reach customers, such as social media, community events, or word-of-mouth.
• Financial plan: Estimate startup costs, set product prices, and project revenue to manage funds.
• Example: For a tutoring service, charge $10/hour, target middle schoolers, and promote via school flyers and personal Instagram.

5. Raise funds for your business

Many teen business ideas require little to no capital. If your project needs materials or tools, consider these funding options:

• Personal savings: Use pocket money, gift funds, or part-time job earnings.
• Parental support: Convince parents to loan or invest a small amount to get started.
• Crowdfunding: With parental oversight, use platforms like GoFundMe to seek community support.
• Grants or scholarships: Research programs supporting young entrepreneurs.

6. Price your products or services

Accurate pricing is key to effective business operations. Start by researching competitors’ prices for similar products or services. Then, consider these factors:

• Costs: Include materials, shipping, labor, and other expenses. For example, for candle-making, account for wax, wicks, jars, and packaging.
• Market value: Set competitive prices that ensure profit after costs.
• Profit margin: Aim for a margin that supports long-term growth. Use Shopify’s profit margin calculator for help.

7. Establish an online presence

An online presence is critical, especially for tech-savvy teens. Here’s how to build your personal brand or small business online:

• Website/online store: Use platforms like Shopify (with parental help to set up accounts) to create a professional store.
• Social media: Create accounts on Instagram or TikTok (with parental supervision if under 13), sharing product videos or behind-the-scenes content to attract attention and build trust.
• Product descriptions: Write concise, engaging descriptions highlighting what makes your offerings unique. For example, “Handmade bracelets by a 14-year-old artist—perfect to elevate your style!”

8. Promote your business

Marketing connects you with customers. Leverage your strengths to make an impact and grow your audience:

• School network: Share your products or services with friends, teachers, or at events like fairs or talent shows. Schools are a trusted environment for building credibility.
• Social media: Stay active with posts, stories, or Reels, tapping into trends to build a loyal following with authentic engagement.
• Word-of-mouth: Referrals are powerful. Ask friends and family to spread the word and offer incentives for successful referrals.
• Local opportunities: Join craft fairs, farmers’ markets, or community events to sell directly and build customer relationships.

9. Manage finances

Financial management is a critical skill to develop as you start earning income. It helps you control cash flow and build healthy financial habits for the future.

• Open a bank account: Work with parents to set up a joint account for transparent income and expense tracking.
• Track expenses: Use simple spreadsheets or apps like Wave to log and categorize spending, revenue, and profits.
• Save and reinvest: Allocate some profits to grow your business (e.g., buying materials or upgrading tools) and some for personal goals like college savings.
• Learn about taxes: Small earnings may not require taxes, but discuss with parents or an accountant to ensure compliance and avoid future issues.

10. Embrace change

Running a business is a journey of constant learning and improvement. Each day brings new lessons: which products are popular, which processes need refining. Listening to customer feedback provides real-world insights, helping you adapt to market needs.

Business ideas for kids and teens

Want to try entrepreneurship early but don’t know where to start? Here are creative, fun, and practical ideas to turn your passions into opportunities:

• Dropshipping: Sell online without worrying about inventory. Platforms like Oberlo make it easy to start, focusing on marketing and customer service to generate revenue.
• Handmade products: Create candles, soaps, or unique phone cases, honing creativity and aesthetic skills while earning income.
• Tutoring: Share your expertise in subjects like math, music, or art with younger kids, improving communication and time management skills.
• Digital content creation: Build a YouTube, TikTok, or blog channel around your passions, earning from ads, sponsorships, or affiliate marketing.
• Local services: Offer lawn care, snow shoveling, or small errands in your neighborhood, delivering real value while building community trust.
• Eco-friendly products: Sell reusable bags, recycled crafts, or “green” products, generating income while promoting sustainability.

Starting a business as a kid or teen isn’t just about making money—it’s about building skills, confidence, and a mindset that will stay with you for life. With NextSky’s insights, you have the tools to turn your ideas into reality.