How to be a kid millionaire or entrepreneur?

Killer Queen

Sep 13, 2008 at 10:39 pm

Good for you!!! I love to see teens who are so focused. Starting now is really going to give you an advantage. I wasn’t a kid millionaire but I built my businesses from the bottom up and I can tell you what I did.

The very first thing is to find a need and fill it. Something that is a trend will make fast cash but is very risky. Too many fail but you don’t hear much about those. Go with something for the long term. At least semi long term as you have to keep up with marketing trends.

Your SBA (small business administration) should have tons of info to get you started and may even offer free classes. If not, the classes don’t cost that much. See if your parents can finance that for you as you definitely need to know some of the basics. You’re a smart girl and can take what you learn and research further on your own.

Then start your research as to who will be your target market and what the demographics are for the location you want to target. You need to start working on a business plan and the SBA will help you with that too. You can take your plan to them and they will go over it and help you improve it.

Then you look for investors and/or funding. This is tricky. It depends on what you want to do. If you have an item that isn’t on the market, you need to get it copyrighted first, then start researching a patent. That can be expensive and it’s usually where people stop. Apply for a patent so you have patent pending rights. Don’t use one of those commercial companies that promise to get patents for you. It’s a waste of money. You will need to find someone to research the patent though eventually.

There is other funding available too. Hit the library for the best help. Private investors are out there but they will want to take control of your business. You may have to let them for a first business in order to learn from their expertise. Private investors will only go with a sure thing so if you get one (or more) then you know you hit on something.

However, there is other funding to be had and so you will need to research all resources to see what criteria you fit. I did not have rich parents or much cash but it can be done. The first rule in business is you never invest your own money. It’s worked for some but that’s the fastest way to lose it too. You have no way of knowing if you will get a return. If you have other sources of funding, they aren’t going to give it to you unless they think you have a great chance of succeeding.

Then you can take your item to trade shows where companies go around and look at new items. Find the shows in trade journals related to your item. You need to set up a really nice presentation and work your behind off getting contacts. Be really outgoing and talk to everyone. Print up your own business cards to save money and hand those out to everyone. Then ask for theirs. You will need to make follow up calls and letters to those you think might be able to help you.

Unless you have the money or can find the investors, your best bet is to sell off your mfg rights to someone else. Then you need a lawyer to negotiate for you. Get the highest price. With that money, you can work on your next project and look for mfg yourself.

If you have an item that you can produce yourself, such as an online business, then you can skip some of those steps. But first go to the SBA and get their help. It will be invaluable to you. And good luck! I shouldn’t say luck. lol It takes knowing what people need, coming up with something to fill that need, developing the idea, and working as hard as you can. Believe in yourself and don’t give up. My first two businesses failed ( from lack of planning and know-how, I let others take my ideas and they ran with them) but I now own 3 and want to start 2 more. The ideas just keep coming but I abandon 100 times as many.

Edit: If you plan to go into anything like fashion or jewelry or accessories, it helps immensely if you can get a well-known person to wear your item. This takes a lot of grit unless you know someone. You can’t just write to magazine editors, they get 1,000s of these kinds of letters and you will waste too much money sending free products. Try smaller like radio stations. Get to know the people there. They might now someone or be affiliated with a larger station. Try to get invited to parties, promotions, etc. As a teen, you would make a good story so go with that angle and try to get interviews on radio and in newspapers. Hopefully a larger station will pick it up. Then you will have the opportunity to meet some well-known people and ask if they would consider your item as a gift. Never just flat out ask if they would wear it. You put them on the spot and make them uncomfortable. If they like it, they WILL wear it. If they don’t, then it’s back to the drawing board. If no one is wearing your item or wants to use them, get their feedback as much as possible so you can fix any issues.

Edit2: There’s so much I could tell you but it would take me much longer than this. But I’m trying to hit the biggest points. If you have an item that can be sold in stores, try the smaller stores first. Family owned businesses or one-owner ones. Ask if you can consign a few of your items. If they sell, they will want more. Once you have a few months track record, you can take that to larger stores. Ask for the buyers. Present your product and your sales reports. Again ask if you can either consign a few or if they will buy them outright. And again if they sell, they will want more. Then you keep moving up. In that way, someone WILL notice your products and want to get in on the action. This is where you have to be very careful and not sign away your business if there is a chance you can do it on your own. You need a lawyer to help you with this part. On the otherhand, you can’t have your business stop right there either. So there is always some risk. That’s the fun part for me.