How To Start a Business as a Kid: Guide for Parents and Teenagers

You’ve stumbled upon one or more small business ideas that could change the world (or at least your high school). What now? If you’re under 18 years of age, bringing that idea to life and starting your own small business is possible. But there’s a catch. Young entrepreneurs often need parental support or sign-off to complete many steps leading up to launch.

The good news is that—with the blessing of a parent or guardian—kids and teens can manage most of the day-to-day operations of a thriving business—even if they don’t have any of their own money to start a business with. Becoming an entrepreneur at a young age can open up doors later in life, teach skills outside the classroom, and generate extra cash for entertainment or college.

Here, we show you how to start a business as a kid, including practical steps and real-life examples of teens who launched business ventures. 

Can kids start a business?

Absolutely! Kids and teens can start their own businesses, and it can be a fun and rewarding experience. Note that in most places, you’ll need the help and support of a parent or guardian if you want to set up your own business, and there are some legal hoops you have to jump through. For starters, you have to make sure your business is legit and that you do all the boring stuff like pay taxes.

Parents and guardians can provide valuable advice and help with planning, but they can also assist with tasks like setting up a business bank account or creating a website where there are often age restrictions. You might also need a parent or guardian to help you meet legal requirements, register your business, pay taxes, and get permits. 

Why start a business as a young entrepreneur?

Thinking about starting a business as a kid but have hesitations? Here’s why it can be a great idea:

You have a built-in audience for your idea

Classmates become the best springboard for testing a product idea, and a school’s built-in network of potential customers makes powerful word-of-mouth marketing easy. Use your experiences as a kid or teen to solve a problem or create a product geared toward your peers. Then ask your peers for feedback so you can make your idea that much stronger.

You have access to a wealth of free resources and support

After high school, your education is going to cost you—and so is everything else. You’re bound to pay more for pretty much everything from bus passes to entertainment. Many schools are beginning to address the need for practical business skills for young entrepreneurs, offering elective classes as part of the curriculum. 

The skills you learn now will help you later 

Small business owners learn a lot in their first year of business. That’s because they usually wear many hats, from driving sales to developing products to managing customer service. The same is true for entrepreneurs of any age. In starting a business, you can build a skill set that will pay dividends later—and look great on college applications.

Make extra money for fun or college

Hobbies are ideal business ideas for young people. Turn a love of animals into a local dog-walking business, or an affinity for sewing into a clothing brand you sell online. Earn extra spending money while doing something you already enjoy doing. Save up for a gaming system or sock it away for college—your own business gives you financial independence. You can even start a business with no money. 

How to start a business as a kid in 7 steps

1. Ask for permission
2. Find and validate your idea
3. Decide on a business name
4. Decide how you will fund your business
5. Work with a parent to get set up
6. Market and sell your products or services
7. Monitor customer feedback and improve

Young entrepreneurs usually get their start by hosting a front-yard lemonade stand or spearheading a neighborhood babysitting empire. These starter ideas don’t have high barriers to entry, but if you’re looking to take entrepreneurship to the next level, it’s time to get a parent or guardian involved. 

With the help of an adult, follow these steps to start your business:

1. Ask for permission

Before you start writing a business plan or designing a logo, get the support of a parent or guardian. They will, after all, be responsible for co-signing anything resembling a contract (like legal documents, financial software, and your online store account). Your adult sponsor may also need to sign up for and monitor social accounts if you are below the minimum age for certain platforms.

2. Find and validate your idea

Think big! Ideas can come from anywhere—a desire to solve a problem impacting you and your peers, a fresh take on an existing product, or something entirely new.

“Start an idea book or a journal where you can write down all your ideas for your business,” says 22-year-old Maya Penn, who started her business, Maya’s Ideas, at the age of eight. “Whether it be a small thought that crosses your mind or the next big idea, it’s important to have it written down. Even if it doesn’t seem important, it may be very useful in the future.”

There are plenty of business ideas for kids, from starting a lawn care service to selling products through an online business or building a nonprofit around a cause. When coming up with an idea for your small business, be sure to keep your target market (the people you want to sell to) in mind. Engaging this group in your idea will help you collect feedback and validate that it’s a viable idea.

3. Decide on a business name

Choosing your business name is one of the most fun parts of starting a business—you can be as creative as you like. But remember that you’re not going to be a kid forever, so it’s important to choose a name that has longevity and can grow with your brand. 

A great business name is:

• Memorable. Choose a name that is short and easy for people to remember. 
• On-brand. Use words that reflect what your business does or your personality. 
• Unique. Think about names that are different from other businesses. Before you get too attached to a name, make sure no one else is using it. You can ask parents to help check online.
• Family-approved. Share your ideas with friends and family to see what they think. They might have great suggestions or ideas you hadn’t thought about. 
• Fun to say. Say the name out loud and see how it sounds. If it feels good to say, it’s probably a good choice.
• Expansive. Choose a name that can grow with your business. If you plan to expand your products or services, make sure the name still fits.

4. Decide how you will fund your business

Young people can easily start a business with a parent’s support, but some business ideas will require start-up money as well. Do you have your own savings to draw upon? Will your parents lend you the funds? 

Once you have the money required to start up, you’ll also need an adult’s help to handle other financial aspects of the business. Talk to your parents about whether you need a business bank account (with them as the authorized signer). When starting up, you and your parents should also discuss your respective roles around business finance, including paying taxes.

5. Work with a parent to get set up

To reiterate, a parent or guardian’s involvement is critical to starting a business when you’re under the age of 18. In most cases, you’re not old enough to enter into a legally binding agreement or hold a credit card in your own name. In Canada and the US, minors under 18 cannot sign contracts. But your parents can, on your behalf. 

Country and state regulations vary, but most financial, ecommerce, and social media products have minimum age restrictions. Local governments can provide guidance on these rules. The US Small Business Administration advises that parents seek the counsel of an accountant and an attorney.

You should also get a parent’s help with other tasks like:

• Determining pricing. Look around at your competitors. What are they charging for the same product or service? If what you’re offering is of comparable value, price it accordingly. Have a parent or mentor assist you with pricing, or consult online resources.
• Setting up an online store. You’ll need to use a parent or guardian’s account to log in to a tool like Shopify, but the rest is up to you! Choose a theme and customize your design.
• Creating social media accounts. A parent may need to sign up for the account and monitor activity, but when it comes to social media, you’re the content expert. 

6. Market and sell your products or services

It’s time to make money selling to your audience! Launch your website or online store, start marketing, and wait for the cha-ching notification on your phone. You can also explore other sales channels like local craft fairs or events at your school. 

Here are some ideas for marketing your business: 

• Create a website. Use a store builder like Shopify to set up your online store.
• Showcase your products. Take clear, attractive photos of your items and write good product descriptions so customers know what they’re buying.
• Share on social. Use social media platforms like Instagram, Facebook, or TikTok to post pictures, videos, and stories to show what you’re selling and how it’s made.
• Engage with followers. Respond to comments and messages, and ask your friends to share your posts to reach more people.
• Craft fairs and markets. Look for local craft fairs, farmers markets, or community events where you can set up a booth to sell your products in person.
• School events. Check if your school has events like bake sales or fairs where you can sell your items. This is a great way to reach your classmates.
• Discounts and deals. Consider offering special discounts or deals to attract more customers. For example, you could have a “buy one, get one free” offer or a discount for first-time buyers.
• Loyalty programs. Create a simple loyalty program where customers get a discount after making a certain number of purchases.

LeiLei Secor shows the behind-the-scenes of her business on Instagram. 

7. Monitor customer feedback and improve 

Your customers are the most important part of your business—so you’re going to want to know what they think about your products! 

Here’s how you can monitor customer feedback and use it to make your business even better:

• Ask for opinions. Simply ask your customers what they think. After selling a product or providing a service, follow up with a quick question like, “How did you like it?” or “Is there anything we could do better?” 
• Pay attention to comments. Customers often share their thoughts without being asked. When someone mentions they wish the lemonade was a bit sweeter or their dog could’ve used a quick brush after its walk, these are pieces of free advice you can use to make improvements.
• Make changes and test. If customers suggest improvements, try them out and see if they work better. For example, if people say your homemade cookies are too small, you can make them bigger next time and see if customers like them more. It’s all about trying new things and seeing what works best.

When you treat running a business like an endless opportunity to learn and make improvements, customer feedback becomes a major asset. 

5 examples of successful businesses 

Here are some real-life examples of kids running successful ecommerce businesses: 

1. Gunner & Lux
2. Kettle and Fire
3. Locker Board
4. My Pipers
5. Designed by Lei

1. Gunner & Lux

When Riley Kinnane-Petersen got into jewelry, her parents helped her out by collecting old necklaces from friends and family. She took those necklaces apart and made her own cool designs, which she sold at lemonade stands.

Fast forward seven years and those early creations turned into Gunner & Lux, a successful business that now has big-name clients like Nordstrom and J.Crew. Riley and her parents also focus on empowerment, selling t-shirts with powerful messages like “All of my heroes are women” and “My dad is a feminist.”

2. Kettle and Fire

Kettle & Fire is a well-known brand that specializes in high-quality, shelf-stable bone broth. It was co-founded by Justin Mares and his brother Nick when they were still teenagers. The business idea came from Justin’s personal struggle to find nutritious and convenient bone broth that fit his paleo diet. Realizing there was a demand for a better product, he and Nick decided to create their own.

3. Locker Board

Carson Kropfl was 11 when he came up with the business idea for his product Locker Board, a short skateboard that would fit in his locker. “I first started selling them at my school for $20 a piece,” he says. “I made an Instagram account, and I posted a video of me riding it to school and putting it in my locker. I woke up the next morning and I went from zero to 300-something followers. My mom and I quickly made a website and started selling them.”

4. My Pipers

When Piper Williams was just four years old, she realized she didn’t like wearing girls’ underwear. Instead, she preferred her brother’s boxers. This sparked a great idea: Why not create a clothing line that sells boxer shorts for girls? With the help of her older brother and her parents, Piper turned her idea into reality, launching a family business called My Pipers that keeps the whole family involved.

5. Designed by Lei

LeiLei Secor began her jewelry journey in 2012 and has been creating ever since. Each piece is designed and hand-made with care by LeiLei. She originally had to balance her business, Designed by Lei, with high school, and when she got to college, she treated it as if it were any other part-time job or work study. She set aside a few hours a week to fulfill orders and still has a thriving business today. 

Your business idea can’t wait

Kid and teen entrepreneurs are in the best position to build for the next generation of consumers—their own peers. Don’t wait until you’re 18. Talk to a parent and bring your business ideas to life today—then, learn how to start a business as a kid. The lessons you learn by starting your own successful business will carry you into adulthood.

“There will be some obstacles trying to stop you, people doubting you,” says Esma Ilyas, the young founder of social enterprise brand Ivory Ella. “As long as you continue to do what you started and love, it will all be worth it in the end.”