Little entrepaneur: good idea?

Posted: Tue, Jul 03 2012, 5:14 pm Post subject: little entrepaneur: good idea?

My 8yr old daughter wants to earn some money by making beaded jewlery and selling them in school. she's going into fourth grade. on one hand I think it would be good for her, a learning experience, and on the other im not sure the other mothers would appreciate their kids spending money on trinkets.she's anhigh energy kid who I have trouble entertaining and I think this would be good for my daughter.. I can't decide. what do you think?
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I think it's a great idea! But I hear your concern. Can you ask her teacher?

Platinum Member Joined: Feb 20 2009 Posts: 7583

I think its great as long as the price is really minimal.

Diamond Member Joined: Oct 25 2007 Posts: 4830

I'm hugely in favor of this, although most schools discourage it, and not without reason. Discipline and order are difficult enough to achieve without discovering that students are essentially running kiosks in the hallway between classes!

However, there are all sorts of ways for her to do this without running afoul of the school's rules or good nature.

Start by insisting that she figure out a "business plan" -- albeit on the level of an 8-year-old. Have her visit local shops to see what similar items are selling for as well as note the quality. Have her figure out what her costs will be. Have her think of ways to advertise and market her items to people other than her classmates.

If this sounds like a lot of work for both you and her, you're right! It is! However, successful entrepreneurs do their homework, and it's important that she learn this lesson right up front. Over the years, I've meet tons of very nice frum married ladies who want to start businesses who still haven't learned this lesson!

She will also have to learn how to keep rudimentary books. She doesn't need a full double-entry accounting system, obviously, but she should learn how to write down her expenses and sales, and she should plan to reimburse you -- her investor -- for any outlay of funds for materials, etc.

One of three things will happen: (1) She'll lose interest in the idea; (2) She'll realize the idea isn't practical for some reason; or (3) She'll be successful. Whatever happens, though, she'll learn that "starting a business" means more than coming up with an idea and telling all your friends.

wow fox,ill be honest I don't know if even I can do that. I am terrible at math and bookkeeping, and I know she won't have the patience to do research. I just thought it would be a great way to get her interested in something other than videos. right now she's in daycamp so its less strict and they mioght allow it.

Platinum Member Joined: Feb 20 2009 Posts: 7583

I dont think its necessary to make it a whole project. It's fine if she figures it out as she goes. And if she does lose money, it will still be a learning experience.

Gold Member Joined: Jul 09 2006 Posts: 1934

Instead of at school, maybe she can do it at yard sales, craft fairs, from home, carnivals that are held in the summer, etc

veeerry few of those aorund here,. wish there as. I make jewelry too.

Diamond Member Joined: Sep 18 2004 Posts: 2600

I agree probably better out of school. Maybe she can do it kind of like a lemonade stand outside your street for an afternoon or two? (and if it's successful she can make it a weekly thing)

not so simple. you know how strict the laws are now about street stands? theyve shut lemonade stands down because they didn't have a food lenience, business license, all kinds of stupidity.

I would think day camp would be best, like at lunch or something.

I know someone in exactly this position - but she is about 14. She started like this, then gave chugim (classes) in the afternoons. She is really good.

BUT... it has destroyed her. She doesn't bother with school work, because this is what she's decided she'll do when she's an adult. She is busy all afternoon arranging and giving her classes - she won't help out much at home because of it. Her parents don't have much money so she has a lot of disposable income which they can't give her - and that isn't good, because she feels in charge (I agree some of this could have been helped with better parenting and setting limits, but some of it is because she feels better than her parents since she can buy all kinds of things for herself).
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My son is like this. He started around age 10. He discovered that he could buy really cheap candy wholesale in certain shuks. He asked his dad to buy for him, and then he sold each piece of candy individually at recess. He made a killing until the principal insisted he stop.
He continued with different enterprises in his early teens. Like Shalhevet said, it took over his life, and he neglected school work for several years. But you need to understand that sometimes it is the very kids who have issues and are restless and unhappy at school who do this. The business is a way to feel independent, confident and successful.
I never encouraged it, but let it run its course on its own. I definitely would not write up a business plan for him, although my dh did help my teen when he started competing with local businesses in a certain field. I found that on the whole he is self sufficient.
I would tell op to allow her dd to go ahead, but to try and prevent it from becoming an obsession and overtaking school (not always possible).

The only objection I can think of is that her friends would feel pressured to buy her wares because they are her friends, and since they are young and probably don't earn their own money, it would mean her friends start to bug their parents for cash to buy jewelry from your dd. It could be awkward.

I like the idea of selling them in an off-campus setting. Perhaps she could sell them at a local flea market? Or over the internet? She could post flyers around town to advertise.

Diamond Member Joined: Aug 07 2006 Posts: 2556

It might be a good idea.

She does need a business plan but it does not need to be elaborate at all, just to answer the question "how much will this cost me to do?"

Selling at school is probably not allowed, and with good reason.

There are kids here (slightly older) who have crafts/retail and service businesses, but they place small ads or sell at other venues such as vendor fairs and public events. You mentioned there are very few craft fairs in your area - but are there fundraising events with vendor fairs? Here every shul/organization of every stripe has them; they are the bread-and-butter for a lot of craftsellers. Note that there are costs associated with all these venues; your daughter might not know that now, but she'll learn. Or maybe she could arrange a sale to benefit her school. Hmmmm, the more I think about it, the more I am intrigued by having a group of kid-crafters put together a fundraiser for a joint cause...it's something to think about.

As you mentioned, business licenses are a real concern. It would be best to keep this an informal arrangement between friends, or done legally over the internet (she would probably need an adult front for her business) such as on etsy.

I think it's great to get some solid business experience before finishing high school. At the very least young entrepreneurs earn valuable experience, if not profit, while the stakes are not too high. If a business is "taking over" a child's or teen's life, it sounds like there are probably other real issues there. Not having the business might leave a real void in the same person's life.

Interesting recent article about teen entrepreneurs.

entrepreneur Smile

(actually entrepreneuse... like there's no such thing as a "male masseuse"...)
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I am not worried that it will take over her life. She's an impulsive girl and I don't think she has the personality to dedicate herself so completely to on thing. She will likely get bored at some point unless she makes a lot of money fast. As far as a biz plan the truth is I make jewlery to sell too and while it has generated some interest, I am artistic with zero bisuness sense at all and I myself don't know how to handle the numbers side of things properly and I know it. So I can't rlly help her there. Does she make nice jewlery? She has good ideas I think she struggles to execute them properly in terms of choosing the right materials to make them properly and technique to ensure quality. But I can teach her that. Her school is always looking to get the kids to fundraise. I wonder if they wud let her do it if she gave asome portion to them, as opposed to her selling raffles door to door which makes me very uncomfortable.

also I don't want her selling online. She is a sweet girl but like I said impulsive, not always responsible. I'm afraid she wud procrastinate about shipping things out, fiddle on the internet too much, loose track of the numbers. I like to keep it simple. Cash in hand that she can count and put in a safe, customer walks away with the goods. I don't want her to get overwhelmed by the responsibility of the bussiness and loose the fun. I'm not making it so official.

You really need to find out if the school allows it. I still remember a girl in my class in 2nd grade would buy candy very cheap and sell it at recess. Business was insanely booming until the school said it wasn't allowed and she had to stop.