Staying Involved
Staying involved in your teen’s business is key to keeping everything on track. “If your teen is going to succeed, it will take your sponsorship, involvement, guidance, support, and likely some investment,” McDonald says. “Meet with your teen weekly to check status, and always be sure that you have access to all financial, domain, and business partner accounts that are part of the venture.”
With your guiding hand, building a business will be an enriching experience for you and your teen. “According to the Small Business Administration, nearly two-thirds of new businesses survive at least two years,” McDonald says. “These are decent odds that can make for a compelling argument for starting a new business.”
Down to the Details
Your teen’s business impacts your entire family—here’s how to ensure it’s a positive experience for everyone.
Get committed to the project. Make sure your child understands the time commitment she’s making. Your participation is key, so help your teen develop this business.
Keep it legal. In most states, minors can’t enter into contracts, so you will be the signatory on all legal documents.
Stay on the right side of the IRS. You must file and pay taxes on your teen’s online business. Have a professional tax preparer complete your forms.
Business Plan 101
A solid business plan is the foundation of a successful venture. Here are the questions you and your teen should answer before he leaps into entrepreneurship.
What business would you like to start?
What interests you about it?
Who is your competition?
How can you set your business apart?
How much time and money will it take to get your business off the ground?
How will you accommodate that in your schedule, and how will you acquire the money for startup?
What aspects of the business will you handle yourself?
How can we help you?
Lisa Milbrand's work has appeared in Parents, Conde Nast Traveler, Budget Travel and Modern Bride. She is the author of The Modern Bride Survival Guide and her blog, the Mamahood.
Eleanor Farrell 03/06/08
Our daughter started a babysitting business online, and she can barely keep up. She had to get other kids to help, which is terrific. I see it’s a lot of responsibility for her, though, so I have mixed feelings. She is only 14, and I didn’t want her burdened with the problems of screening the parents, negotiating the money, working out transportation, etc. so young. But she loves it; she says she wants to own her own business someday. I think the benefits far outweigh the risks of this.
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