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Business idea

I have a business idea – 5 steps young entrepreneurs can start with!

Business idea

I have a business idea

In the last 2 blog posts I included ideas for how young entrepreneurs might come up with a business idea, an overview of the steps to get started and 10 ideas that work. Now that the business idea is starting to be developed, here is some more detail on what to do next.
Here are 5 steps to get going in the right direction:
1) Calculate how much the unit (or direct) costs are. What is needed to create the product or service? For example, if you are making jewelry, you will need to know how much wire, beads, and other supplies are needed to create one unit (bracelet, ring, earring, etc.) and then figure out the total cost. There may also be costs for equipment or supplies that is necessary to make the product or provide the service so that also needs to be taken into account (these are indirect costs). The same is true for a service, how much do you want to get paid for the service and are any supplies needed to provide the service.
2) Pricing the product or service – after the costs are calculated, figure out how much you want to make per product or unit of service. This can do this by using an accounting equation (a simple math problem); Income-Expenses = Profit. You have already calculated the costs and the profit is how much you want to make (such as $2.00 per bracelet). You can then back into the income which is the sales price for the item or service. Also make sure to account for indirect costs.
3) Get the word out. You need to figure out how you are going to get the word out to potential customers. Once you know who your customers are (neighbors, friends, family, school mates, etc.), you can figure out how to communicate what they are selling to them (this is marketing). This may be by making posters, business cards, flyers, or posting on social media. The key is to find out where your customers are and what the most cost effective way of communicating your message to them is.
4) Follow the rules. Make sure to check with your city, town or school about any rules they have for selling items. You want to make sure they obey the laws and rules so they don’t end up with fines or other issues.
5) Keep good records, make sure you keep track of what you are selling how much you are making and keep it separate from your personal money such as allowance or other non-business funds. This is a good habit to get in right away as it is very important if your business grows to keep business and personal funds separate. If your business takes off – you may need to consult with an accountant or attorney about any taxes you might need to pay.
These 5 steps will get them going in the right direction with a new business. Watch for future posts as they will focus in more detail about the different concepts of running a business as a young entrepreneur.
If you would like additional information on youth entrepreneurship or teaching youth entrepreneurs sign up for my e-newsletter and free tips at http://eseedling.com/

Are you Listening?

 

are you listening

 

I love to learn, especially about entrepreneurship and small business! I read book after book on the subject; I don’t usually read fiction unless it’s something like “All in Startup” which is fiction inside non-fiction (more on that in a later post). I attend professional development seminars on the subject and participate in frequent webinars. So when I exhibited at the American Camp Association Tri-State Conference last week one of my main goals was to learn. Learn if they were the right customer for my products, learn what their needs were, what problems they have that need solving and learn what ideas they had for product improvement and development. Having those goals in mind before even attending the show put me in the mindset to listen to the persons who visited my lemonade stand booth and wow did I learn!

 

Here are 3 big product ideas that I learned from the attendees: 1) They would like a Spanish version of the Biz Ops Game, 2) They would like the Biz Ops Game adapted for Camps (i.e. a Camp Ops Game) to train their staff, and 3) They would like to buy the lemonade stand that I made out of PVC pipe. Each of these ideas is very doable and without the time of developing brand new products and so they are now on my list. I also learned that the Biz Ops Game makes a great rainy day activity for camps; now I have a new way to sell the game. I also learned that e-seedling is confusing to the camp audience – many visitors asked if I had something to do with gardening. If you are going to be clever with a name – you need to think about your audience and make sure it’s clear. So I learned how to explain exactly what E-seedling does; empowers youth through entrepreneurship (hence the e is for entrepreneur and seedling is the youth) and that the More Than a Lemonade Stand book is a do it yourself youth entrepreneur curriculum that can be implement as a whole or individual activities (oh and don’t bring that much candy to give away unless you want to bring it home).

 

I also learned some tips from the other exhibitors: 1) have an information sheet for visitors to take with them (I was directing them to my website), and 2) put the game sheets in a binder so they aren’t accidentally walked off with.

 

It’s amazing how much you can learn just by listening to others and yourself! Being a Covey Facilitator for the Seven Habits of Highly Successful People I have heard this quote many times and agree that it is true. “Most people do not listen with the intent to understand; they listen with the intent to reply.” 
― Stephen R. CoveyThe 7 Habits of Highly Effective People: Powerful Lessons in Personal Change

 

Now I ask; are you listening?

Lemon

Are you building your platform?

I’ve been back a week from Author 101 University and I finally sifted through all the materials and started getting to work on the 3 things I wrote down to focus on: 1) Build my platform (more on that in a moment), 2) Finish writing my book, 3) Follow up and write thanks with contacts.  If there is one thing I learned at Author 101 University (besides you must have a book proposal if you writing a non-fiction book) is you need a platform!  Basically, if you want someone to publish your book, you must have a following (a platform).  We learned at Author 101 that there are many ways to go about building your platform.  We learned that you need to get out and share your expertise either in person or online (or both)!  Free content is a good way to start building your credibility, making an impact and building your platform.  So, in addition to writing the book (thankfully, I already finished the book proposal), I will be putting together some free content to help others with entrepreneurship.  I also have a few ideas for a kindle book which we also learned could help build your platform.  So, what are you doing to make an impact and build your platform?