5 great business for young entrepreneurs

Black Enterprise, Dec, 1996 by Tonia L. Shakespeare

AKAILAH WATKINS, CO-FOUNDER AND CO-director of I AM, puts to rest the old adage that children should be seen and not heard. Starting in business at the age of nine with a lemonade stand, Watkins helped launch I AM (which stands for "Imagine, Accept and Materialize") when she was 14, using money she had collected from selling salvaged furniture at garage sales. "Kids were just hanging out on the streets with no place to go and we provided an alternative," says Watkins, now 19.

Owned solely by young people, I AM is dedicated to fostering entrepreneurship and increasing self-sufficiency. While the company is not-for-profit, its bylaws stipulate that it can offer support for profit-making kids' businesses. In this case, making money is no kids' stuff: last year, the organization brought in an impressive $150,000.

A full-time sophomore at Queens College in New York City, Watkins hires all the members of the 30-employee staff, which includes only two adults. As an outgrowth of her love for entrepreneurship, she started her own cookie business last year. With an initial investment of less than $100, Watkins' "no name" chocolate chip cookie venture soon begin to take off. However, as with many adult business owners, she soon found herself unable to meet the high demand.

"We didn't have a big enough stove and were putting in a lot of time, but we weren't getting enough profit," explains Watkins, who notes that it cost her more to make the cookies than what she was selling them for (25 cents). So, she put the business on hiatus, until recently. Thanks to a donation of two commercial stoves, Watkins is now ready to start up again. She hopes to expand her core market, which has been family, friends, churches and community groups. For her future, she envisions big profits in dough.

Like many of her entrepreneurial peers, Watkins understands that running a business is a viable career option. For some, it's an alternative to going to college; for others, it means extra dollars for the summer. Whatever the motivation, the skills and experience gained are well worth the effort.

It's never too early to expose children to the fundamentals of business, emphasizes Dawnyielle Peeples, program developer for BE's Kidpreneur Konference, which recruits renowned instructors and businesspeople to teach youth the basics of entrepreneurship. "Children have a very clear understanding of the value of money and can be taught simple money management skills from the time they learn how to count," explains Peeples. The easiest way to get your child involved in entrepreneurship, she continues, is to "have them turn a hobby into a business. Don't put your children into a particular area. Let them gravitate toward something they enjoy. You just provide structure and support."

Parents should "talk about business at the dinner table," suggests Juan Casimiro, executive vice president of EDGE, a New York-based company that teaches entrepreneurship. He recommends tearing out the business section of the newspaper and having your children discuss the articles.

There are two types of businesses that are good for children, according to the experts. One is direct selling. It's the easiest to start and teaches kids the fundamentals of business. "It allows young entrepreneurs to develop their presentation skills and identify new business prospects," says Peeples. The second is service jobs, which include baby-sitting, hair-braiding, shoveling snow, yard maintenance, dog walking and window washing. Parents should not overemphasize sales, cautions Peeples. "They should help the child monitor sales, but not pressure them so that they think it's only about making money. It's about instilling discipline and confidence," Peeples concludes.

There are a host of businesses out there that young people can explore, from selling book covers to braiding hair to washing cars. To narrow down the field, here are five businesses that are relatively easy to start up and have proved to be successful ventures for other youth.

SELLING T-SHIRTS

For an initial investment of $300, your child can be in the T-shirt business. To get started, they need to first research wholesale T-shirt manufacturers or silk-screening companies. A call to your local chamber of commerce or small business association can provide referrals. Ruby Bright, president of the Junior Achievement Middle America Inc. of the Greater Kansas City area, says profit percentages can range widely, anywhere from 25% - 100%.

To determine costs, Bright estimates that you'll pay $3 per T-shirt, $2.50 for silk screening and $1.50 for shipping and handling, transportation or other related expenditures. Total cost is around $7, with $12 being the price charged to the consumer. "Can the market bear it?" she asks. "Yes," she answers, adding that T-shirts are the "most popular item for consumers."

Selling T-shirts is not solely for the artistically inclined. Kids can buy already designed T-shirts, and the costs will be even lower. Besides selling to family and friends, they can sell to sports teams at local schools (T-shirts imprinted with their team logos), employee associations, at special community events, malls, churches and at flea markets. They might consider negotiating with a local store to display or sell the shirts for a small percentage of the price.