Micro Business for Teens: Starting a Micro Business


>>DOMINION WHAT WE DO EVERY DAY EMPOWERS YOUR EVERY DAY. MORE INFORMATION AT DOM.COM. >>FOR FREE BUSINESS START UP KIT, VISIT THE OHIO SMALL BUSINESS DEVELOPMENT CENTER’S WEB SITE. JOBS FOR OHIO’S GRADUATES PREPARING NEXT GENERATION OF EMPLOYEES, LEADERS AND ENTREPRENEURS. >>JOBS FOR TEENAGERS ARE SCARCE TODAY SO HOW IS A TEENAGER SUPPOSED TO EARN MONEY? THEY CAN START A MICRO MONEY. >>THANK YOU EVERYONE. THANK YOU FOR COMING. I’M A CPA, A CERTIFIED PUBLIC ACCOUNTANT, ACCOUNTANTS HELP BUSINESSES BE SUCCESSFUL AND ALSO AN AUTHOR OF A BOOK SERIES CALLED MICRO BUSINESS FOR TEENS. TONIGHT WE’RE GOING TO TALK ABOUT THE FIRST BOOK STARTING A MICRO BUSINESS. I GOT INTERESTED IN HELPING TEENAGERS WHEN MY TAX CLIENTS CALLED ME ABOUT THEIR TEENAGERS NEEDING HELP WITH THEIR TAXES. I FOUND THERE WAS A LOT INFORMATION IF YOU’RE A CHILD AND YOU WANT TO START MAYBE A LEMONADE STAND AND YOU NEED A LOT OF PARENT HELP AND THEN THERE WERE BOOKS FOR SMALL BUSINESS OWNERS BUT THERE WASN’T A LOT FOR IN BETWEEN FOR TEENAGE IS CAPABLE OF STARTING BUT MAYBE CAN’T DO THE THINGS AN ADULT CAN AND CAN DO A WHOLE LOT MORE THAN A LEMONADE STAND. HOW THIS ALL GOT STARTED ONE DAY MY FRIEND CHRIS CALLED ME AND SHE SAID MY SON PHILIP IS GETTING CHECKS FOR THE ADS ON HIS WEB SITE EVERY MONTH. >>I THOUGHT, OH, THAT’S GREAT. WHAT A NICE MICRO BUSINESS. HE’S GETTING A FEW BUCKS EVERY MONTH FROM THE ADS ON HIS WEB SITE. PHILIP WAS ABOUT 15 AT THE TIME. SHE SAID, NO, CAROL, YOU DON’T UNDERSTAND, THE CHECKS ARE FOR A THOUSAND DOLLARS A MONTH, I THINK HE’S GOING TO OWE SOME TAXES AT THE END-OF-THE YEAR. YES, WE NEED TO TALK. PHILIP KNEW A LOT ABOUT HOW TO DRIVE TRAFFIC TO HIS WEB SITE, MARKETING, CUSTOMER SERVICE THINGS LIKE THAT, BUT HE DIDN’T KNOW A WHOLE LOT ABOUT RECORDKEEPING, TAXES, THINGS LIKE THAT WHERE I COULD HELP HIM. AND I REMEMBER ABOUT HIS SENIOR YEAR IN HIGH SCHOOL HE CALLED ME AND HE SAID I GOT AN OFFER ON MY WEB SITE SOMEONE WANTS TO BUY MY WEB SITE AND THEY’RE WILLING TO PAY, READY, $300,000. I WAS LIKE, WOW, PHILIP, THAT IS FANTASTIC. THAT’S MARVELOUS, THAT PAYS FOR COLLEGE. AND HE SAID, I THINK IT’S WORTH A MILLION. I’M GOING TO COUNTEROFFER AND SEE WHAT THEY SAY. I THOUGHT HE WAS NUTS. I’M KIND OF A CONSERVATIVE CPA, I WAS THINKING TAKE THE MONEY PHILIP, TAKE THE MONEY. I WOULD NEVER DO VERY WELL ON THOSE GAME SHOWS I WOULD CASH OUT EARLY. HE KEPT RUNNING THE BUSINESS THROUGH COLLEGE. YOU’RE GOING TO SEE MORE ABOUT PHILIP BECAUSE IT’S A PRETTY NEAT STORY ABOUT WHAT HE ULTIMATELY DID WITH HIS BUSINESS. I WANT TO USE PHILIP AS AN EXAMPLE, THOUGH, OF WHAT A MICRO BUSINESS IS ALL ABOUT. SO MICRO BUSINESS IS A VERY TINY BUSINESS, VERY SMALL. SOMEONE ASKED ME ONCE, IS A MICRO BUSINESS MEANS IT’S COMPUTER. NO, NOT NECESSARILY THAT DOESN’T HAVE TO BE. IT MEANS IT’S A VERY SMALL BUSINESS. THERE’S ONLY ONE WORKER IN THE BUSINESS, YOU, THE BUSINESS OWNER. YOU DON’T HAVE TO START WITH ANYBODY ELSE. AS A MATTER OF FACT IT’S USUALLY BETTER IF YOU START WITH JUST YOU BECAUSE YOU’LL LEARN MORE THAT WAY THAN IF YOU WORK WITH A TEAM OR PARTNER, JUST ONE WORKER, YOU, THE OWNER. MICRO BUSINESSES ARE USUALLY HOME BASED. IT’S SAFER THERE, HE CAN WORK WHATEVER HOURS HE WANTS TO. I USED TO GET E-MAILS ABOUT 1:00 A.M. I’D GET THEM THE NEXT MORNING HE WORKED FROM HOME. >>EVENTUALLY TOOK THAT BUSINESS TO COLLEGE AND IT ENDED UP BEING DORM ROOM BASED. ACTUALLY PHILIP NEEDED TWO ROOMS ROOMS. MICRO CAN BE HOME BASED AND THAT’S WONDERFUL. THEY CAN BE VERY LOW RISK. I DON’T LIKE THE IDEA OF TEENAGERS TAKING ON TOO MUCH RISK. YOU’RE IN IT TO MAKE MONEY NOT LOSE IT. MICRO BUSINESS CAN BE VERY LOW RISK. YOU SHOULD BE ABLE TO START A MICRO BUSINESS WITH VERY LITTLE START UP MONEY, MAYBE NO START UP MONEY AT ALL. YOU SHOULD BE ABLE TO START WITH WHAT YOU ALREADY HAVE, SO LET’S START IT WITH COMPUTERS IN HIS BASEMENT, THAT’S ALL HE NEEDED TO START A MICRO BUSINESS. YOU CAN START WITH WHAT YOU ALREADY KNOW. SO ANOTHER STORY I WANT TO SHARE WITH YOU IS MY DAUGHTER SARAH, SHE HAD AN INTERESTING START THAT SHE WANT TODAY START WITH NO START UP MONEY, SHE LOVED PHOTOGRAPHY SO SHE STARTED A MICRO BUSINESS DOING SENIOR PICTURES FOR HER FRIENDS. SHE OWNED THE CAMERA. IT WAS NO PROBLEM AT ALL. SHE STARTED BY HAVING ONE STUDENT THAT SHE DID ON A VOLUNTEER BASIS FOR FRIENDS. SHE TOOK PICTURES SOMEBODY SAW MORE SENIOR PICTURE AND SAID WHO DID YOU PICTURES, KELSY. SARAH DID IT. LOW AND BEHOLD SARAH HAD BUSINESS. SHE DIDN’T HAVE ANY EXPENSES AT ALL, SHE PUT ON FACEBOOK PAGE FOR PEOPLE WHO WERE INTERESTED TO KNOW WHERE TO FIND HER. THERE SHE HAD A MICRO BUSINESS WITH NO START UP MONEY AT ALL. IT SHOULD BE VERY MANAGEABLE FOR YOUR LIFE BECAUSE YOU’RE BUSY STUDENT AND VERY FLEXIBLE MEANING YOU CAN BE AS BUSY AS YOU WANT TO BE. I KNOW THAT YOU’RE BUSY KIDS AND YOU HAVE SCHOOL AND OTHER ACTIVITIES, YOU SHOULD BE ABLE TO RUN A MICRO BUSINESS AND STILL KEEP UP WITH YOUR HOMEWORK AND STILL HAVE TIME FOR ACTIVITIES LIKE SPORTS. PHILIP WAS INVOLVED IN SPORTS WHEN HE WAS IN HIGH SCHOOL, HE PLAYED VARSITY BASKETBALL AND THE BUSINESS SHOULD BE FLEXIBLE. IF YOU HAVE MORE TIME, RAMP IT UP BY TAKING ON MORE BUSINESS IF YOU WANT TO. VERY FLEXIBLE, VERY MANAGEABLE. BUT ULTIMATELY THE PURPOSE OF A MICRO BUSINESS IS TO LEARN A LOT WHILE YOU EARN SOME MONEY. YOU’RE GOING TO LEARN A LOT, A LOT ABOUT YOURSELF, CERTAINLY A LOT OF BUSINESS SKILLS, PHILIP LEARNED A LOT ABOUT PAYING TAXES, RECORDKEEPING, IMPORTANT THINGS LIKE THAT. YOU MIGHT LEARN CONFIDENCE, RESPONSIBILITY, A LOT OF THINGS, WE’RE GOING TO GO INTO ALL THE THINGS THE ADVANTAGES OF RUNNING A MICRO BUSINESS AND ALL YOU’RE GOING TO LEARN IN THE NEXT SEGMENT. FOR NOW I WANT YOU TO GAIN IDEA THAT YOU CAN RUN A MICRO BUSINESS. YOU CAN START IT ACTUALLY THIS WEEK. I WANT PHILIP TO TELL YOU THE REST OF HIS STORY SO WE’VE GOT A LITTLE BIT OF A VIDEO FOR PHILIP TO TELL HIS STORY WHO HAS ALREADY STARTED HIS MICRO BUSINESS AND ULTIMATELY WHAT HAPPENED WITH IT. >>IN MANY WAYS HE’S LIKE ANY OTHER STUDENT, HE HAS A BUSY SOCIAL LIFE AND WORKS HARD STUDYING FINANCE. HOWEVER, UNLIKE MOST STUDENTS, THE 22-YEAR-OLD HAS A VERY NICE APARTMENT AN OFFICE TO RIVAL AND PROFESSORS AND HE’S ALSO A MILLIONAIRE. >>I FIRST WAS I HAD A PARTNER WHO IS ALSO MY AGE. I DID THE BUSINESS SIDE. HE WAS THE TECHNICAL SIDE. HE WENT ON TO FLIPPING WEB SITES BUYING ONE INCREASING TRAFFIC IN REVENUE AND SELLING IT FOR A PROFIT. HE USED THAT MONEY TO FUND OTHER SALES UNTIL HE COULD EVENTUALLY START FREE FORMS.ORG. HE FOUNDED THE SITE IN 2007 AND IT CURRENTLY HOSTS 50 TO 70,000 ACTIVE FORUMS. >>REALLY THE FIRST 2 WEEKS IS WHEN I KNEW I HAD SOMETHING BIG. I HAD WORKED 3 YEARS AT MY PREVIOUS FORUM HOST AND WITHIN THE FIRST COUPLE OF WEEKS I WAS SEEING NUMBERS THAT WERE JUST EXPLODING. >>PHIL’S DAD SAID HIS SON’S INTEREST IN TECHNOLOGY STARTED AT AN EARLY AGE. AT 12 HE BUILT A COMPUTER FOR HIS GRANDPARENTS FOR SCHOOL PROJECT. >>WHEN HE WAS LIKE 14, IT WAS TIME — 15, IT WAS KIND OF TIME TO GET A JOB. HE WASN’T EXCITED ABOUT GETTING A JOB, YOU KNOW, BAGGING GROCERIES OR WORKING A FAST FOOD RESTAURANT. SO HE CAME TO US AND SAID, YOU KNOW, I THINK I CAN MAKE SOME MONEY DOING SOME STUFF WITH MY WEB SITE, CAN I TRY IT. IT STARTED OUT WITH JUST A LOVE OF FORUMS AND DESIRE TO HELP PEOPLE CREATE FORUMS. AND EVENTUALLY I CAME GOOGLE ADD CENTS WHICH WAS A PROGRAM YOU PUT GOOGLE ADS ON YOUR SITES THEY COLLECT THE ADVERTISERS AND PAYMENT AND THEY GIVE YOU A PER ANTEPASSENGER PERCENTAGE TO PUT CODE ON YOUR SITE. IT WAS PROBABLY ABOUT A YEAR INTO IT I FOUND OUT YOU CAN MAKE MONEY OFF IT. WE SAW SIGNIFICANT AMOUNT OF REVENUE ESPECIALLY FOR 15 AND 16-YEAR-OLD AND JUST KIND OF TOOK IT BY SURPRISE, WOW, WE CAN MAKE MONEY FROM THIS. >>SO WE NEED TO EARN $500, HE CAME BACK, I EARNED $3,000. AND THAT WAS KIND OF START OF, WOW! THIS IS SOMETHING SPECIAL. AND BRINGING THAT KIND OF MONEY IN ALSO MEANT LEARNING HOW TO PAY TAXES ON IT. >>FINANCE IS SOMETHING THAT I’M INTERESTED IN, BUT THE TAX AREA WAS SOMETHING LITERALLY HAD NO EXPERIENCE WITH, SO IT DEFINITELY WAS EYE OPENING TO BE DEALING WITH THAT WHEN I WAS 125, PAYING TAX — 15, PAYING TAXES AND I CAN’T EVEN VOTE. >>HIS PARENTS HAVE ALREADY BEEN SUPPORTIVE AND HELP GUIDE HIM FROM THE BEGINNING. >>YOU KNOW, A LOT OF THE GUIDING IS INTRODUCING PHILIP INTO MENTORS, PEOPLE THAT ARE SKILLED IN AREAS THAT MY WIFE AND I ARE NOT SKILLED IN. >>THE GUIDANCE WAS PUT TO GOOD USE WHEN PHIL RECEIVED AN OFFER TO BUY FREE FORUMS WHILE HE WAS STILL IN HIGH SCHOOL. >>SOMEONE WE MET THROUGH MY DAD MADE AN OFFER AND I HAD ANOTHER OFFER COME IN FROM A CALIFORNIA BASED COMPANY AND SO THE HIGHEST OFFER I GOT WAS ABOUT 750,000 AND BOTH MYSELF AND MY ADVISOR THOUGHT IT WAS — FREE FORUM, BUT NOT ONLY THAT, I SAW AT THAT POINT I HADN’T REALLY — I HAD A LOT LEFT THAT I WANTED TO BRING TO THE TABLE. THIS WAS ONLY 9 MONTHS INTO IT SO THE THOUGHT OF TAKING, YOU KNOW, THREE QUARTERS OF A MILLION WAS PRETTY AWESOME, BUT AT THE SAME POINT I FELT LIKE I WASN’T LIVING UP TO WHAT I COULD DO AND I WAS STILL HAVING FUN AND THAT WAS WHAT WAS MOST IMPORTANT AT THE TIME. >>HE COUNTERED THE OFFER BY ASKING FOR A LITTLE MORE BUT THE BUYER EVENTUALLY BACKED OUT. >>AT THE TIME IT WAS A LITTLE DISAPPOINTING. AT THE SAME TIME LOOKING BACK IT WAS A GOOD THING TO DO, SO GOT A LOT MORE EXPERIENCE, LEARNED A LOT MORE AND ENDED UP GETTING A HIGHER VALUATION. >>MORE IN THE LAST — >>TO LEARN BY REAL LIFE EXPERIENCE. >>RECORDKEEPING IN A BUSINESS. HE HAD TO LEARN HOW TO SERVE HIS CUSTOMERS, WHAT HIS CUSTOMERS WANTED. HE HAD TO LEARN HOW TO DEAL WITH CUSTOMERS WHO WERE UNHAPPY. HE HAD TO LEARN HOW TO MAKE MORE MONEY, ALL OF THESE IMPORTANT BUSINESS STILLS THAT HE’S GOING — LARGE BUSINESS OWNER SOME STAY. WE NEVER KNOW WHERE THAT KNOWLEDGE MAY TAKE YOU. YOU’LL USE IT SOMEWHERE. BUT YOU CAN ALSO PUT TO USE ALL THE THINGS YOU’VE BEEN LEARNING AT SCHOOL, READING SKILLS, WRITING SKILLS, MATH SKILLS. PHILIP UP WRITING THE — HIS COPY FOR HIS WEB SITE AND I REMEMBER VISITING HIS WEB SITE FOR THE FIRST TIME. I COULD NOT TELL THIS WAS A 15- YEAR-OLD WHO WROTE THIS WEB SITE. IT WAS THAT GOOD. SO HIS WRITING SKILLS OBVIOUSLY INCREASED, HIS MATH SKILLS INCREASED BECAUSE HE WAS GETTING TO APPLY WHAT HE LEARNED IN THE CLASSROOM IN REAL LIFE. BUSINESS SKILLS, MATH SKILLS, WRITING SKILLS, BUT THERE’S ALSO SOME OTHER SKILLS LIKE HOW TO MANAGE ALL THE MONEY I MIGHT BE BRINGING IN. YOU’RE GOING TO OPEN A CHECKING ACCOUNT AND YOU’RE GOING TO HAVE TO LEARN HOW TO MANAGE THE MONEY OR IF THERE’S NOT ENOUGH MONEY HOW ARE YOU GOING TO MANAGE THAT. YOU MIGHT LEARN TIME MANAGEMENT SKILLS TOO. SO THERE’S SOME INTANGIBLE THINGS YOU CAN LEARN, THOUGH, FROM RUNNING A MICRO BUSINESS, THINGS LIKE CONFIDENCE. ULTIMATELY I THINK ONE GREAT THING YOU CAN DO WITH A MICRO BUSINESS IS TEST A FUTURE CAREER. ONE STUDENT MEGAN PLAYED VIOLIN WHEN SHE WAS IN HIGH SCHOOL. SHE WANTED TO TEST TO SEE IF SHE CAN BE A PROFESSIONAL VIOLIN TEACHER AND SHE LOVED IT AND SHE WENT ON TO COLLEGE TO MUSIC SCHOLARSHIP. IT’S GREAT WAY TO TEST THE CAREER. AND YOU’RE GOING TO LEARN A LOT, MAYBE MONEY IS THE BENEFIT OF IT. I’VE GOT A VIDEO TO SHARE WITH YOU ABOUT A STUDENT I KNOW NAMED ETHAN AND HE’S GOING TO TALK TO YOU ABOUT SOME OF THE THINGS HE’S LEARNED. HIS MOM IS GOING TO SHARE ABOUT HOW HE LEARNED ABOUT TIME MANAGEMENT AND MONEY MANAGEMENT ABOUT HOW HE RAN HIS MICRO BUSINESS. >>15-YEAR-OLD ETHAN IS A NATURAL AT THE GUITAR. HE’S BEEN PLAYING SINCE HE WAS ABOUT 9 YEARS OLD. HE AND HIS BROTHER WERE INSPIRED BY THEIR DAD WHO HAD BEEN PLAYING GUITAR FOR YEARS. >>I LOVE IT A LOT. THERE’S A LOT OF STYLES IN IT SO IT’S NOT JUST LIKE ONE INSTRUMENT, IT’S MANY INSTRUMENTS PUT INTO ONE. >>SO ONE CHRISTMAS THEY GOT THEIR GUITARS AND WE TOLD THEM THEY HAD TO TAKE LESS SONS. >>NOW, NOT ONLY DOES ETHAN PLAY, BUT HE ALSO TEACHES BEGINNING GUITAR LESSONS. HE LET HIS MOM SUZANNE KNOW IT WAS SOMETHING HE WANTED TO DO. BEFORE LONG HE HAD HIS FIRST STUDENT. >>TEACHING IS PASSIONATE ABOUT IT IT’S HARDER BECAUSE THEY DON’T REALLY WANT TO DO. TEACHING SOMEBODY WHO HAS PASSION EVEN IF THEY’RE A SLOW LEARNER THEY’LL STILL LEARN FASTLY. >>HE LEARNED VERY QUICKLY HIS BUSINESS WAS TAKING OFF. >>WHEN I WAS 14 I REALIZED I WAS MAKING IS HUNDRED DOLLARS A MONTH. I SAID, THIS IS AWESOME, I’M MAKING ALL THIS MONEY AND I HAD NO IDEA THAT I COULD DO THAT. WHEN I FINALLY LIKE CALCULATED IT IN MY HEAD, I WAS LIKE, WOW! I DIDN’T EXPECT IT TO GO THAT FAR, I EXPECT TO MAKE A COUPLE OF EXTRA DOLLARS ON THE SIDE. BUT IT WAS REALLY NICE. IT KIND OF CUT INTO SOCIAL TIME AND STUFF, BUT IT WAS NICE KNOWING THAT I HAD — I WAS MAKING MONEY. >>ONE OF HIS GREATEST LESSONS FROM HAVING THE BUSINESS. >>BECAUSE LIKE BEFORE, YOU KNOW, YOU GET LIKE AN ALLOWANCE HERE IS YOUR MONEY, GO — WHEN I STARTED MAKING A LOT OF MONEY AND I STARTED REALIZING ALL OF THIS STUFF I HAVE TO PAY FOR LIKE CELL PHONE, IT’S A LOT HARDER THAN I THOUGHT IT WAS AND HAVING THIS BUSINESS HAS HELPED ME LEARN. >>IT HAS ALSO TAUGHT HIM OTHER SKILLS LIKE TIME MANAGEMENT. >>WE REALIZE WE USE TODAY HAVE A STUDENT ON FRIDAY ONCE SUMMER CAME AND WE WERE ABLE TO SWAP DAYS I LET FRIDAYS ARE HARD ON HIS SOCIAL LIFE. HE HAD TO REALIZE WHAT AM I GOING TO GIVE UP. >>SHE HELPS HIM OUT WITH THE BUSINESS WHEN SHE CAN. >>HE’S IN SCHOOL FULL TIME AND HE CO-OP AND DOES SOME THINGS. HE’S — HE HAS A VERY ACTIVE SOCIAL LIFE. >>HE HAS ONE STUDENT BUT IS GETTING A FEW MORE SOON. EVEN THOUGH HE’S TEACHING HE’S ALSO STILL LEARNING MORE ADVANCED GUITAR SKILLS HIMSELF. AND ENJOYING BEING ABLE TO PAY FOR SOME THINGS HIMSELF THANKS TO CASH-FLOW HIS CLASSES ARE BRINGING IN. >>I’M TRYING TO PAY FOR MYSELF RIGHT NOW. I THINK I’M PROBABLY GOING TO SAVE UP FOR INSURANCE FOR A CAR BECAUSE I’M GETTING CLOSE TO THAT. >>SO HOPE YOU’RE INSPIRED — WE TALKED ABOUT WHAT A MICRO BUSINESS IS, ALL THE ADVANTAGES TO STARTING A MICRO BUSINESS RIGHT NOW WHILE YOU’RE A TEENAGER. WHEN I TELL PEOPLE ABOUT TEENAGERS AND MICRO BUSINESSES THE FIRST QUESTION THEY ASK ME IS WHAT ARE SOME OF THE THINGS TEENAGERS DO. THAT’S WHAT THIS SEGMENT IS ABOUT. GETTING AN IDEA. THERE’S A LOT OF DIFFERENT WAYS YOU CAN COME UP WITH AN IDEA FOR MICRO BUSINESS. ANY GOOD BUSINESS TRIES TO MEET A NEED, THEY SEE A NEED AND TRY TO MEET IT. FOR EXAMPLE EDGAR IS A STUDENT WHO IS BILINGUAL. HE SPEAKS SPANISH AT HOME AND SPEAKS ENGLISH EVERYWHERE ELSE. THERE’S A NEED IN OUR SOCIETY FOR BILINGUAL PEOPLE WHO KNOW SPANISH AND THE OTHER WAY AROUND, SPANISH SPEAKING TEACHING ENGLISH. SO HE HAS A MICRO BUSINESS TUTORING YOUNGER STUDENTS IN WHAT COMES NATURALLY TO HIM, SPANISH. THE OTHER KIND OF NEEDS THAT PEOPLE ALMOST ALWAYS HAVE ARE NEEDS TO TAKE CARE OF THEIR CHILDREN, THEIR PROPERTY, THEIR HOUSES, THEIR PETS, SO A TRADITIONAL MICRO BUSINESS FOR BUSINESS HAS BEEN BABY SITTING. THEY HAVE BEEN BABY SITTING FOR A LONG TIME. BUT YOU MIGHT TRY A LITTLE TWIST. SHE THOUGHT, WELL WHAT KIND OF THINGS DO I REALLY LOVE. SHE LOVES TWO THINGS, CHILDREN AND BOOKS. AND SHE PUT THE TWO TOGETHER AND SHE RAN WHAT SHE CALLED A BOOK CLUB ONE SUMMER FOR 6 WEEKS SHE GATHERED CHILDREN TOGETHER FOR ABOUT 3 HOURS ON TUESDAY MORNING. READ THEM STORIES AND DID A CLASS. IT WAS SO POPULAR THAT THE PARENTS STARTED SAYING CAN YOU RUN A BOOK CLUB. IT WAS REALLY BABY SITTING. COULD YOU RUN YOUR BOOK CLUB FOR OLDER STUDENTS IN THE AFTERNOON. SO THERE WAS A NEED FOR SOMEONE TO TAKE CARE OF CHILDREN AND SHE MET IT. THERE WAS ALSO A NEED IF YOU CAN DO IT, CLEAN PEOPLES HOUSES, TAKE CARE OF PEOPLE’S LAWNS, IT’S NOT THE MOST PLEASANT JOB IN THE WORLD, NO ONE LIKE A JOB WHERE YOU’RE — IF YOU DON’T MIND DOING THAT. IT’S A GREAT MICRO BUSINESS. YOU’RE IN THE GOING TO DO THIS FOR THE REST OF YOUR LIFE IT’S ONLY FOR A LITTLE WHILE TO MAKE SOME MONEY. DON’T SAY I DON’T WANT TO DO THAT. IF YOU CAN DO IT FOR A LITTLE WHILE AND MEET A NEED, SOMEONE IS GOING TO HIRE YOU TO DO IT. TAKING CARE OF THEIR CHILDREN, MOWING THEIR GRASS, TAKING CARE OF THEIR PROPERTY. ANOTHER WAY TO COME UP WITH A MICRO BUSINESS IDEA THOUGH IS TO CONSIDER YOUR INTEREST YOUR TALENTS AND YOUR SKILLS. SO YOU MIGHT HAVE A TALENT OR A SKILL LIKE EDGAR DID WAS SPEAKING SPANISH, SHE MIGHT BE GOOD AT SOMETHING ELSE, MAYBE YOU’RE GOOD AT ALGEBRA OR MATH, YOU CAN TUTOR THOSE SKILLS. THINK ABOUT WHAT KIND OF THINGS YOU’RE GOOD AT WITH SKILLS YOU HAVE, MAYBE EVEN MAKE UP A LIST. THESE ARE ALL THE THINGS I’M GOOD AT. HOW CAN I MAKE A MICRO BUSINESS DOING THAT. IT’S EASY TO TAKE PEOPLE’S OTHER IDEA. BORROW IT, TAKE IT, RUN WITH IT. ONE GREAT IDEA, THOUGH, IF YOU CAN’T COME UP WITH OTHER IDEAS SO TO GATHER PEOPLE TOGETHER AND START BRAINSTORMING. THAT’S WONDERFUL WAY TO COME UP WITH AN IDEA. HERE IS HOW YOU DO IT. EITHER BY YOURSELF OR A LOT MORE. START WITH A WORD, SOMETHING THAT INTERESTS YOU, SAY, CARS OR CLOTHES OR PETS OR FASHION OR FOOD AND THEN SEE WHERE THAT TAKES YOU AND JUST START DRAWING LINES OFF OF THAT IDEA AND GO FROM THERE. SO LET’S TAKE THE WORD PETS. I DID THIS WITH A GROUP OF STUDENTS. WE STARTED WITH THE WORD PETS. THINK OF ALL THE THINGS THAT MICRO BUSINESS COULD BE RELATED TO PETS. YOU CAN SEE PETS, WALK PETS — CLEAN PETS AND A GIRL WHO DOES CUSTOMS. FOR HORSES, THAT’S HER LOVE, HORSES. THAT’S A GREAT MICRO BUSINESS. SO THINK ABOUT BRAINSTORMING, GET IT TOGETHER, START WITH A WORD AND SEE WHERE IT TAKES YOU. YOU NEVER KNOW. BUT YOU NARROW IT DOWN TO ABOUT TWO OR THREE IDEAS. I REALLY STRONGLY RECOMMEND YOU DO WHAT I CALL A MINIMARKET SURVEY. THAT MEANS YOU GO TO YOUR POTENTIAL CUSTOMERS AND YOU SAY TO THEM, I’VE GOT THIS IDEA FROM MICRO BUSINESS, WOULD YOU HIRE ME AND WHAT WOULD YOU PAY. JUST TO SEE HOW IT FLIES BEFORE YOU PUT SO MUCH TIME AND ENERGY INTO IT. SO I HOPE THAT GIVES YOU AN IDEA OF SOME OF THE WAYS YOU CAN COME UP WITH AN IDEA, BE INSPIRED BY SOME OF THE STORIES YOU’RE GOING TO HEAR IN THESE VIDEOS, TAKE THEM, COPY THEM. READ ABOUT OTHERS. THE MOST UNUSUAL MICRO BUSINESS IDEA I EVER HEARD, THOUGH, WAS FROM A MAN WHO KNEW A KID — THIS WAS A WHILE AGO. THIS WAS KIND OF THE WEIRDEST ONE I EVER HEARD. IT WAS A STUDENT WHO HAD PET THAT TARANTLA. PUT IN THE CASES AT NIGHT AS A THEFT DETER RENT AND THEN HE HAD TO PICK THEM UP THE NEXT MORNING, BUT THAT KID MADE MONEY MONEY. YEAH. BECAUSE WE HAVE ELECTRONIC SECURITY SYSTEMS AND THINGS LIKE THAT. IT WAS A GREAT, ALTHOUGH UNUSUAL IDEA. YOU KNOW THERE’S A MARKET FOR CHICKEN DIAPERS THAT SOME PEOPLE KEEP PET CHICKENS. I DIDN’T KNOW THAT. BUT CHICKENS ARE KIND OF MESSY SO THERE’S A NEED IF YOU KNOW HOW TO MAKE A CHICKEN DIAPER, OKAY. THAT’S A GREAT MICRO BUSINESS, SO THINK ABOUT IT. WE’VE GOT A GREAT STORY NOW THOUGH WHO IS A WONDERFUL WHO USED SOME OF HER NATURAL TALENTS AND ABILITIES TO START A MICRO BUSINESS. SHE’S GOT A WONDERFUL STORY TO TELL ABOUT WHAT SHE DID WITH HER BUSINESS. >>20-YEAR-OLD GREW UP IN AN ORPHANAGE IN A SMALL CITY IN NORTHERN CHINA. 6 YEARS AGO SHE WAS ADOPTED BY A FAMILY NEAR CINCINNATI, OHIO. >>IT’S VERY EXCITING AND ALWAYS — BECAUSE I DON’T HAVE ANY IDEA WHAT AMERICA WILL BE LIKE SO THE CULTURES. >>SHE FOUND OUT SHE WAS ADOPTED FOUR MONTHS BEFORE MOVING TO THE UNITED STATES AND AT THAT TIME SHE SAID SHE DIDN’T EVEN KNOW ENGLISH. >>MY PARENTS AND MY SISTERS THEY ALL SPEAK ENGLISH AND I HAVE FRIENDS WHO WILL HELP ME WITH ENGLISH TOO, SO. >>IN 2008 SHE DECIDED SHE COULD USE HER NATIVE LANGUAGE TO TEACH CHILDREN CHINESE AND START HER VERY OWN MICRO BUSINESS. >>IT WAS — STARTED OUT WITH FIVE KIDS. THERE ARE — BETWEEN 8 TO 5 TO 8. ALTHOUGH SHE SAYS TEACHING CHILDREN CHINESE IS VERY REWARDING SHE HAD A BIG GOAL IN TIME. TO RETURN TO CHINA AND PAY FOR THE TRIP HERSELF. >>FOR BUYING THE AIRLINE TICKETS WILL BE $1,500 AND THEN TO BE ABLE TO. >>TOOK 4 YEARS OF SAVING MONEY, TWO FROM TEACHING AND TWO FROM SMALLER JOBS LIKE BABY SITTING. >>YOU KNOW, IT’S HARD WORK AND SOMETIMES I GET STRESSED. BUT IT WAS DEFINITELY A CHANCE THAT I REALLY ENJOYED BECAUSE EVERYTHING IS SO WORTH IT. LIKE I WON’T CHANGE ANYTHING FOR THAT, YOU KNOW. >>DURING HER TRIP SHE GOT TO VISIT WITH OLD FRIENDS AND ALSO SPEND TIME WITH HER FOSTER GRANDMA, WHO TOOK CARE OF HER AS A BABY AND STAYED IN TOUCH WITH HER OVER THE YEARS. >>I WANT TO GO BACK BECAUSE I WANT TO SEE MY FOSTER GRANDMA. SHE RAISED US — RAISED ME WHEN SHE FOUND ME AND SHE JUST TAKE CARE OF ME AND EVER SINCE THEN WE REALLY HAVE CONNECTION. SO I WANT TO GO BACK AND SEE HER AND THEN TO TELL HER HOW MUCH I APPRECIATE TO HAVE HER WHILE I WAS IN CHINA AS A OR FAN. >>AND TO GIVE HER A GIFT FROM PART OF THE MONEY THAT SHE SAVED FROM HER MICRO BUSINESS. >>SHE WASH CLOTHES BY HAND. IN WINTERTIME. I SHOULD GET SOMETHING VERY USEFUL. SO I USE THE MONEY THAT I SAVE UP AND JUST BOUGHT HER A WASHING MACHINE AND ALSO JUST A SMALL TV SO SHE CAN WATCH WHATEVER SHE WANTS. >>AFTER 2 MONTHS IN CHINA SHE RETURNED HOME. SHE THINKS SHE WILL TEACH SOME STUDENTS IN THE FUTURE BUT ALSO HAS OTHER PLANS. >>I AM GOING TO SCHOOL LEARN ABOUT HAIRS, MAKE UP, STUFF LIKE THAT. I REALLY ENJOY THAT. >>BUT SHE SAYS SHE WILL ALWAYS HAVE THE SKILL LEARNED FROM HER MICRO BUSINESS TO GUIDE HER IN THE FUTURE. >>THIS WILL HELP ME TO NOT GIVE UP TOO EASILY, YOU KNOW, AND JUST THE WORK IS HARD, BUT I KNOW — >>WHEN YOU START THE MICRO BUSINESS THERE ARE TWO KIND OF BUSINESSES YOU CAN RUN, A PRODUCT BASED BUSINESS WHERE YOU SELL A PRODUCT OR A SERVICE BUSINESS WHERE YOU SELL BASICALLY YOUR TIME GIVING A SERVICE TO A CUSTOMER. HERE IS AN EXAMPLE OF A TEENAGER IN OHIO WHO STARTED A PRODUCT BUSINESS. THIS IS CALLED A MAN CANDLE. HE WAS INSPIRED BY HIS SISTER WHO WAS SELLING CANDLES THEY HAD GIRLLY SCENTS. HE WANTED CANDLES THAT HAD MAN SCENTS LIKE SAW DUST, DIRT, AND THIS ONE IS NEW YORK STYLE PIZZA PIZZA. NOW, THERE ARE CERTAINLY SOME CHALLENGES WHEN HE STARTED HIS PRODUCT BUSINESS. I DON’T WANT TO DISCOURAGE YOU BY TALKING ABOUT THE POTENTIAL PROBLEMS AND PITFALLS THAT BUSINESSES BRING BECAUSE EVERY PROBLEM OR PITFALL IS AN OPPORTUNITY TO LEARN MORE. SO THINK ABOUT THE WONDERFUL DIFFERENT WAYS YOU CAN TAKE A PROBLEM AND TURN IT INTO SOMETHING GOOD, MAYBE SOMETHING CREATIVE. THIS DAY AND AGE IT’S SO EASY TO CONSIDER THINGS LIKE ORDERING ON DEMAND, FOR EXAMPLE, BOOKS AND MUSIC CAN NOW BE ORDERED DIGITALLY IN AN ERA YOU COULDN’T DO THAT BEFORE. BUT THINK ABOUT THAT. YOU’RE NOT DEALING WITH INVENTORY. SO I HOPE THAT GIVES YOU SOME IDEA AND SOME OF THE POTENTIAL SOLUTIONS TO SOME OF THE PROBLEMS. AND WITH THAT A WONDERFUL VIDEO OF SOME SISTERS WHO TOOK WHAT WAS A GREAT BUSINESS OFFERING A PRODUCT AND HOW THEY MANAGED IT SO THAT THEY DIDN’T GET OVERWHELMED AND HOW THEY COULD SATISFY THEIR CUSTOMERS IN A GREAT WAY. THIS IS THE SISTER FAMILY. THE SISTERS. >>YOU CAN SAY FASHION IS IN THEIR JEANS. >>IT LOOKS PRETTY NICE. >>WELL, MY MOM TAUGHT US HOW TO KNIT ONE TIME AND WELL WE WENT TO OUR GRANDMA’S NURSING HOME AND WE GAVE OUT SCARVES THERE AND THEN WE WERE LIKE, OH, WE CAN MAKE SOME MONEY ON THIS. AND AT THE TIME I WAS SAVING UP FOR AN IPOD. SO I JUST KIND OF WORKED IT OUT. >>THAT WAS 3 YEARS AGO. AND SINCE THEN 11-YEAR-OLD CARLY AND HER SISTER 14-YEAR- OLD HANNA SAVED UP ENOUGH TO GET THAT IPOD WHILE STARTING THEIR FIRST MICRO BUSINESS. >>WHAT WE DO IS WE KNIT SCARVES AND PEOPLE — BUT PUT THEM LIKE IN A PLACE WHERE A LOT OF PEOPLE GO BY AND THEY JUST STOP BY AND BUY IT AND STUFF LIKE THAT. >>WE’VE ALWAYS BEEN KIND OF CRAFTY. WHEN WE BROUGHT HANA HOME, SHE DIDN’T SPEAK ENGLISH, SO I — A REAL EASY WAY WAS TO GIVE HER THINGS TO DO AND TO MAKE HER FEEL LIKE SHE IS LEARNING AND THAT SORT OF THING WAS TO TEACH HER TO KNIT BECAUSE OF THE FAMILY WE READ BOOKS OUT LOUD EVERY NIGHT AND I FELT FOR HER. I THOUGHT OH SHE’S GOING TO PULL HER HAIR OUT IF SHE’S SITTING HERE HAVING TO LISTEN TO THIS. >>SHE IMMEDIATELY SAW THAT HANNA WAS VERY GOOD AT KNITTING METICULOUS AND DETAILED ORIENTED. MY OTHER DAUGHTER CARLY WHO IS THE OUT OF THE BOX THINKER DECIDED SHE WAS GOING TO GO AHEAD AND MAKE THIS A BUSINESS. >>YEAH, AFTER I GOT MY iPOD THEN I SAVED UP FOR KINDLE AND THEN I SOLD BOTH OF THOSE AND GOT AN iPOD TOUCH. >>AS A PARENT, ONE OF THE STRESSFUL THINGS IS KNOWING, DO YOU GIVE YOUR KIDS EVERYTHING THEY ALL THE OTHER KIDS HAVE OR THIS WAY THEY CAN EARN IT THEMSELVES AND IT FEELS BETTER. I THINK THEY FEEL BETTER ABOUT IT. SO ALL AROUND I THINK IT’S A WIN WIN SITUATION. >>YEAH, I THOUGHT IT MIGHT BE FOR YOUNGER GIRLS. >>ALL ACCOMPLISHED AT AN AGE WHEN MOST KIDS AREN’T WORKING AT ALL AND WHILE BALANCING SCHOOL WORK. >>WELL, I JUST ALWAYS BRING MY KNITTING AROUND LIKE WHEREVER I GO. I CAN KNIT IN THE CAR OR WHEN MY CAR IS READING IN THE EVENING AND STUFF LIKE THAT. >>JUST A FEW MONTHS AFTER THE GIRLS STARTED MAKING SCARVES THEY BEGAN TO GET REQUESTS FOR CUSTOM MADE ITEMS WHICH CARLY SAID KEEPS THEM BUSY. >>IF IT DOESN’T SELL I PUT THE PRICE DOWN AND THEN IF IT STILL DOESN’T SELL I CAN GIVE IT TO A FRIEND OR SIBLING OR SOMETHING. >>THAT BRINGS US TO 17-YEAR- OLD LIBBY. HANNA AND CARLY’S OLDER SEASON WHO IS. >>I WAS INSPIRED BY A LOCAL STORE. IT GEARED MORE TOWARD OLDER WOMEN. AND THROUGH MY MOM AND STAYING HOME WITH ME, YOU’RE REALLY GOOD AT FINDING THE COOL STUFF IN BIG STORES AND THEN PEOPLE ARE CONSTANTLY ASKING ME, YOU WANT TO GO SHOPPING WITH ME. >>SO SHE DECIDED TO START A BUSINESS OFFERING CONSIGNMENT CLOTHES. CURRENTLY STORED IN HER OWN CLOSET AT LOW PRICE POINT TO GIRLS BETWEEN 15 AND 20 YEARS OLD. >>SHE’S BEEN INTERESTED IN DRESSING WELL AND REALLY HAS A PASSION FOR FEMININE DRESSING. SO SHE’LL GO AND FIND THE PIECES THAT ARE TRULY FLATTERING TO THE FEMALE FIGURE AND SHE HAS A KNACK FOR THAT. >>SHE JUST RECENTLY STARTED THE BUSINESS BUT THINKS IT CAN WORK WELL WITH HER SISTER’S KNITTING BUSINESS AND SHE ALREADY HAS PLANS FOR THE FUTURE OF HER MICRO BUSINESS LIKE HELPING TO FUND COLLEGE WHEN SHE GOES TO MED SCHOOL. >>IT WILL GROW TO LIKE HOME PARTIES AND ONLINE AND THEN MAYBE SOME DAY HAVE A PARTNER WHO WOULD BE FUN BRICK AND MORTAR WITH. >>I THINK IT’S REAL LIFE APPLICATION OF WHAT THEY LEARN IN SCHOOL, REAL LIFE LIVING LIFE IN A REAL WAY. THAT’S WHAT I LIKE ABOUT IT, THAT THEY’RE TAKING CONTROL OF THEIR DESTINY AND LEARNING WHILE THEY’RE DOING IT. >>AND WE TALKED ABOUT STARTING A MICRO BUSINESS, ALL THE ADVANTAGES, HOW TO COME UP WITH AN IDEA, HOW TO TEST THAT IDEA MAYBE WITH MINIMARKET SURVEY AND HOW TO AVOID SOME OF THE PITFALLS YOU MIGHT RUN INTO. NOW, WE’RE GOING TO GET TO THE POINT WHERE THE RUBBER REALLY HITS THE ROAD. I’M GOING TO WALK YOU THROUGH HOW TO WRITE A BUSINESS PLAN. IT’S JUST A WAY FOR YOU TO THINK ON PAPER ABOUT YOUR BUSINESS BEFORE YOU START IT SO YOU CAN AVOID ANY OF THE MOST POTENTIAL PROBLEMS AND PITFALLS WE TALKED ABOUT AND ASSURE SUCCESS. NOW, A BUSINESS PLAN FOR SMALL BUSINESSES CAN BE QUITE A LONG DOCUMENT AND USUALLY IT’S TO GO GET FUNDING A BANK LOAN OR FUNDING FROM VENTURE CAPITALIST OR SOMETHING LIKE THAT. THAT’S NOT WHAT WE’RE TALKING AB, IN GENERAL MICRO BUSINESSES SHOULD BE ABLE TO START WITH NO START UP MONEY AT ALL. USING WHAT YOU ALREADY OWN OR ALREADY KNOW. SO A BUSINESS PLAN FOR A MICRO BUSINESS IS JUST A WAY FOR YOU TO THINK ON PAPER SO THAT PLAN TO SOMEBODY GET SOME FEEDBACK, TWEAK IT A LITTLE BIT AND BE ON YOUR WAY TO SUCCESS. SO BUSINESS PLAN FOR A MICRO BUSINESS HAS BASICALLY 3 PARTS, THE BUSINESS CONCEPT, A MARKETING PLAN, AND A FINANCIAL PLAN. LET ME START WITH THE BUSINESS CONCEPT, THAT’S WHERE YOU JUST DISCUSS IN YOUR PLAN WHAT YOUR BUSINESS IS. YOU SHOULD BE ABLE TO EXMAIN TO ME WHAT YOUR BUSINESS IS AND WHAT’S CALLED AN ELEVATOR SPEECH, WHICH IS THE TIME IT TAKES TO RIDE AN ELEVATOR BETWEEN FLOORS SO A SENTENCE OR TWO AT MOST. MIGHT WANT TO PRACTICE SAYING IT. ANOTHER PART OF BUSINESS PLAN WHEN YOU THINK OF A MICRO BUSINESS SHOULD BE HOW AM I GOING TO MEASURE SUCCESS. AND THERE’S A LOT OF DIFFERENT WAYS YOU CAN MEASURE SUCCESS. A LOT OF — WHEN THEY READ A CERTAIN DOLLAR AMOUNT THEY THINK THEY’RE SUCCESSFUL BECAUSE THEY HAVE A GOAL, MAYBE IT’S TO PAY FOR A CAR, MAYBE IT’S TO HAVE A TRIP LIKE SHE TOOK TO CHINA. WHATEVER IT IS YOU MIGHT HAVE A FINANCIAL GOAL AND THAT’S GREAT. BUT YOU MIGHT ALSO HAVE SOME OTHER KIND OF GOALS LIKE MAYBE NUMBER OF CLIENTS. SO IN YOUR BUSINESS CONCEPT PUT DOWN HOW YOU WILL MEASURE SUCCESS, MAYBE IN TERMS OF DOLLARS OR CUSTOMERS YOU WANT TO SERVE OR MAYBE IN TERMS OF SOMETHING YOU WANT TO LEARN, MAYBE AN EXPERIMENT YOU WANT TO TRY. SO THAT’S YOUR BUSINESS PLAN, THE CONCEPT DEVELOPMENT WHICH YOUR PRODUCT OR YOUR SERVICE MIGHT BE, BOTH, THE SECOND PART OF THE BUSINESS PLAN THIS IS WHERE YOU’RE GOING TO TALK ABOUT WHO YOUR POTENTIAL CUSTOMERS ARE. WHO ARE YOU GOING TO SELL TO. DESCRIBE THEM IF YOU CAN, YOUR AGE, GENDER AND WHERE DO THEY HANG OUT, WHERE ARE YOU GOING TO FIND YOUR CUSTOMERS, WHERE ARE YOU GOING TO FIND THEM ON LINE OR ARE THEY IN YOUR NEIGHBORHOOD OR IS THERE ANOTHER WAY YOU’RE GOING TO BE ABLE TO REACH THEM. BUT AN ANOTHER IMPORTANT THING TO CONSIDER IS WHO IS YOUR COMPETITION, FOR MY DAUGHTER EMPLOY, SHE OFFERED PATIO LESSONS, HER CUSTOMERS WERE BEGINNING PATIO STUDENTS. SO WHEN YOU’RE MARKETING PLAN YOU ALSO NEED TO TALK ABOUT HOW ARE YOU GOING TO BE UNIQUE OR DIFFERENT. IN THE BUSINESS WORLD THEY CALL IT YOUR UNIQUE SELLING PROPOSITION. THINK ABOUT HOW YOU COULD BE DIFFERENT AND UNIQUE. EMILY WAS DIFFERENT BECAUSE SHE PUT HALF OF WHAT THE PROFESSIONAL WAS. SHE WAS ALSO A LITTLE LESS INTIMIDATING FOUND IT EASIER TO TAKE LESS SONS FROM EMILY, SO THINK ABOUT THE WAYS THAT YOU HAVE AN ADVANTAGE OF BEING A TEENAGER OVER YOUR COMPETITION, YOU WOULD BE SURPRISED. I’VE GOT A GREAT VIDEO TO SHOW YOU NEXT WITH EMILY WHO RAN BALLET STUDIO AND SHE HAD A VERY UNIQUE WAY THAT SHE WANTED TO STAND OUT AND BE DIFFERENT BECAUSE OF COURSE BALLET STUDIOS EXIST ALL OVER. BUT EMILY WANTED TO BE A LITTLE BIT DIFFERENT, WANTED TO OFFER HER CUSTOMERS SOMETHING THAT ONLY SHE COULD OFFER IN A VERY UNIQUE WAY AND SHE’S BEEN QUITE SUCCESSFUL AT IT. I THINK YOU’LL REALLY ENJOY HER STORY. >>15-YEAR-OLD EMILY HAS BEEN DANCING FOR NEARLY 5 YEARS. BUT SHE RECENTLY DECIDED TO TURN THAT PASSION FOR DANCE INTO A MICRO BUSINESS. >>I TEACH BALLET IN MY BASEMENT FOR YOUNG GIRLS. IT BRINGS ME A LOT OF JOY TO FILL THESE GIRLS WITH THE LOVE FOR DANCE THAT I HAVE AND TO BE ABLE TO PROVIDE THEM WITH A PLACE — >>SHE WAS INSPIRED WHILE TAKING CARE ABOUT MICRO BUSINESS FOR TEENS. >>AND SO I STARTED TEACHING THE NEXT SEMESTER TO A FEW GIRLS IN A CHURCH GYM AND WORK OUT FROM THERE. >>EMILY’S PARENTS HAVE SUPPORTED AND HELP GUIDE HER THROUGHOUT THE PROCESS OF STARTING HER OWN BUSINESS. >>WHILE SHE WAS TEACHING FIRST OF ALL IN THE CHURCH AND THAT CHURCH SITUATION THEY NO LONGER WERE AVAILABLE ON FRIDAY AFTERNOON AND SO WE LOOKED AROUND WITH EMILY CHARGING MINIMAL COST AND NOT HAVING THE RESOURCES TO PAY OVERHEAD OR TO RENT ANYTHING, WE LOOKED AT HER BASEMENT AND THOUGHT, WELL, LET’S GO AHEAD AND CLEAN OUT THE BASEMENT AND SEE WHAT HAPPENS. AND SHE’S GOT BETWEEN 10 AND 15 STUDENTS I BELIEVE NOW. THEY COME EVERY WEEK. >>AND HER MOM IS HAPPY SHE DOESN’T HAVE TO GO FAR. >>JUS THE FACT THAT SHE’S RIGHT HERE IN THE HOUSE. SHE’S ONLY 15 SO SHE CAN’T DRIVE HERSELF ANYWHERE RIGHT NOW. IT’S WONDERFUL WIN WIN SITUATION TO HAVE IT HERE AT THE HOUSE. >>EMILY’S MICRO BUSINESS IS PROVIDING HER WITH VALUABLE WORK EXPERIENCE, YEARS BEFORE MOST PEOPLE WOULD EVEN CONSIDER STARTING THEIR OWN BUSINESS. >>I THINK A MICRO BUSINESS THAT YOU CAN DO BY YOURSELF IS A REALLY GOOD IDEA BECAUSE IT TEACHES YOU A LOT MORE THAN IT WOULD IF YOU WERE JUST WORKING AT LIKE A TACO BELL OR BAGGING GROCERIES AT A STORE. >>SHE SAID SHE’S LEARNING ABOUT TEACHING YOUNG KIDS INTERACTING WITH ADULTS AND WORKING OUT PAYMENTS FOR CLASSES. >>AS SOON AS THOSE CHILDREN ARRIVE SHE NEEDS TO GET DOWNSTAIRS AND TEACH. SO I’M KIND OF HER ACCOUNTANT AT LEAST THIS FIRST YEAR AND SHE’S GOING TO TAKE OVER MORE. >>ACCORDING TO EMILY, SHE TRIES TO MAKE HER CLASSES STAND APART FROM OTHER DANCE CLASSES BY TEACHING WHAT SHE CALLS MODEST DANCE. >>IT’S HARD IN THE DANCE WORLD TO LEARN BALLET IN A MODEST WAY, SO WITH THE MUSIC AND THE CHOREOGRAPHY, THERE’S A LOT OF THINGS THAT GO INTO IT AND IT’S REALLY HARD TO FIND THAT IN A CHRISTIAN OUTLET. I LIKE PROVIDING THAT FOR THESE YOUNG GIRLS TO HAVE A PLACE WHERE THEY CAN GO AND BE COMFORTABLE WITH WHAT THEY’RE DANCING AND LISTENING TO AND ALSO GIVING THE FAMILIES A MODERATE COST AND CONVENIENT LOCATIONS. >>EMILY SAYS SHE DOESN’T HAVE SPECIFIC PLANS FOR THE MONEY SHE’S MAKING RIGHT NOW. KNOWING SHE’LL HAVE IT TO FALL BACK ON IN THE FUTURE. >>WELL, I’M A REALLY BIG SAVER AND SO I AM TRYING TO DEBT FREE ROUTE. I WOULD LIKE TO START SAVING NOW. >>WITH A FEW YEARS LEFT IN HIGH SCHOOL, SHE’S ALREADY THINKING ABOUT WHAT HER FUTURE WILL HOLD. >>WELL, I KNOW I’M AT LEAST GOING TO TEACH THROUGH HIGH SCHOOL AND THEN SEE FROM THERE. I WOULD LIKE TO GO INTO PERFORMING ARTS IN COLLEGE, BUT AFTER THAT I’M NOT SURE I’LL GO INTO TEACH OR JOIN A CHRISTIAN BALLET COMPANY. I’M STILL DECIDING. >>I DON’T THINK I COULD HAVE STARTED MY OWN BUSINESS AT 15. FIRST OF ALL I DIDN’T HAVE A SKILL LIKE SHE HAD AND SHE’S BRINGING TO A GROUP OF PEOPLE THAT ARE REALLY LOOKING FOR SOMETHING THAT SHE’S OFFERING. MODEST DANCE AT A MINIMAL COST IS WHAT SHE’S PROVIDING, SO I’M REALLY PROUD OF HER AND SHE’S TAKING INITIATIVE TO DO IT. >>I HOPE YOU LIKE EMILY’S STORY. DID YOU PICK UP ON HOW SHE’S BEING UNIQUE, IF SHE HAS A CONCEPT FOR HER BUSINESS PLAN AND UNIQUE WAY TO MARKET IT. THE THIRD BART OF YOUR BUSINESS PLAN FOR YOUR MICRO BUSINESS IS FINANCIAL PART. THIS MIGHT BE THE MOST DIFFICULT PART OF THE BUSINESS PLAN BECAUSE YOU’RE GOING TO HAVE TO DO QUITE A BIT OF RESEARCH. FIRST OF ALL YOU NEED TO START OFF THINKING ABOUT WHAT THE START UP COST ARE. I SAID A COUPLE OF TIMES YOU SHOULD BE ABLE TO START WITH WHAT YOU ALREADY HAVE. LISTING THINGS LIKE MAYBE A WEB SITE OR MAYBE BUSINESS CARDS OR FLYERS, MAYBE A LITTLE BIT OF WOMEN OR IF YOU’RE SELLING A PRODUCT INITIAL INVENTORY. YOU NEED TO DO SOME RESEARCH AND THINK ABOUT WHAT IT MIGHT COST TO START IT UP. I DON’T LIKE TEENAGERS HAVING TO START WITH ANY DEBT. YOU’RE IN MONEY BUSINESS TO MAKE MONEY, NOT TO LOSE IT. AND WHEN YOU START WITH DEBT YOU’RE GOING TO HAVE TO — PAY BACK THAT PERSON WHO LOANED YOU MONEY FIRST INSTEAD OF PUTTING MONEY IN YOUR POCKET FIRST. SO WHAT IF YOU HAVE START UP EXPENSE THAT IS YOU DON’T WANT TO TAKE OUT ANY DEBT OR YOU DON’T HAVE ANY MONEY YOURSELF, WHERE CAN YOU GET THE START UP MONEY FROM. THERE ARE A COUPLE OF SOURCES, ONE YOUR OWN SAVINGS IS A GOOD PLACE. MANY STARTED THEIR MICRO BUSINESS BY TAKING MONEY OUT OF THEIR OWN SAVINGS. WHERE SOME OF THEM MIGHT GET A VERY SMALL LOAN, MICRO LOAN FROM MOM, DAD, MAYBE GRANDMA, GRANDPA OR SOMEONE WHO WANTS TO ENCOURAGE YOU TO START UP. MAKE SURE IT’S VERY SMALL AND MAKE YOU PAY THOSE PEOPLE BACK FIRST OUT OF YOUR POCKETS BEFORE YOU PAY YOURSELF SO THEN YOU CAN OPERATE DEBT FREE AS QUICKLY AS POSSIBLE. WHAT IF YOU HAVE BIGGER AMBITIONS AND BIGGER PLANS AND YOU NEED SIGNIFICANT MONEY TO START YOUR MICRO BUSINESS IDEA. WHAT I MIGHT RECOMMEND INSTEAD OF TAKING OUT A BIGGER LOAN MIGHT BE TO START A SMALL MICRO BUSINESS DEBT FREE AND TAKE THAT MONEY TO LAUNCH A NEW ONE. HEY, SO YOUR FINANCIAL PLAN NEEDS TO TALK ABOUT YOUR START UP COST IF THERE’S GOING TO BE ANY AND THEN YOU NEED TO DISCUSS WHAT YOU’RE GOING TO CHARGE YOUR CUSTOMER. I ALREADY TOLD YOU THAT MY DAUGHTER EMILY PATIO LESSONS SHE HAD TO DO A SURVEY TO FIND OUT WHAT THE OTHER PEOPLE THAN CHARGED FOR PATIO LESSONS AND THEN DECIDE WHAT SHE’S GOING TO CHARGE AND MAKE SURE SHE COVERED ANY COST THAT SHE MIGHT HAVE AS WELL AS MAKE IT WORTHWHILE FOR HER TIME. THINK ABOUT WHAT YOU’RE GOING TO CHARGE YOUR CUSTOMERS AND HERE IS THE KICKER, MAKE SURE YOU SET ASIDE SOMETHING TO PAY TAXES. YES, TEENAGERS HAVE TO PAY TAXES. BUT YOU ALSO NEED TO CONSIDER WHAT KIND OF — EVEN ANALYSIS, LET — THAT’S A FINANCIAL TERM YOU MIGHT HELPFUL WHEN YOU START, BREAK EVEN ANALYSIS THAT’S THE POINT AT WHICH YOU HAVE COVERED YOUR COST AND YOU’RE INTO THE PROFIT. OKAY, SO IF YOU HAVE START UP COST YOU WANT TO MAKE SURE THAT YOU SELL ENOUGH TO COVER THOSE START UP COSTS, MORE PURELY PROFIT, THAT POINT FOR WHICH YOU’VE GONE FROM COVERING YOUR COST TO MAKING PROFIT THAT’S CALL THE BREAK EVEN. FIGURE OUT WHERE THAT BREAK EVEN IS AND IF YOU CAN SELL THAT MUCH. ULTIMATELY YOU SHOULD GET FEEDBACK ON YOUR BUSINESS PLAN BEFORE YOU LAUNCH IT. I STRONGLY RECOMMEND YOU SHOW IT TO YOUR PARENTS, THEY HAVE YOUR BEST INTEREST AT HEART AND YOU MIGHT FEEL AS THOUGH THEY’RE CRITICIZING YOU, THEY’RE NOT. SHOW IT TO A TEACHER. SHOW TOYOTA YOUR FRIENDS. SHOW IT TO ANOTHER SMALL BUSINESS OWNER BECAUSE THEY’RE GOING TO HAVE LOTS OF GOOD ADVICE AND OPINIONS TO GIVE YOU. THEY NEED TO HELP FIND YOUR CUSTOMERS OR BECOME YOUR BUSINESS ADVISERS. DON’T BE EMBARRASSED TO SHOW YOUR PLANS TO PEOPLE BECAUSE THEY’RE THERE TO ENCOURAGE YOU AND GIVE YOU GOOD A ADVICE. THE NEXT STORY I WANT TO SHARE WAS ABOUT LUCAS. I REMEMBER WHEN HE CALLED YOU KNOW, HOW I TOLD ME IF I EARNED MORE THAN ABOUT $5,000 A YEAR I COULD OWN, HE SAID, I EARNED ABOUT DOUBLE THAT. LUCAS STARTED HIS BUSINESS QUITE SLOWLY, STARTED WITH NO DEBT AND HE BUILT IT UP OVER TIME AND HE LEARNED A LOT AS HE WENT ALONG. I THINK HE’LL BE — YOU’LL BE VERY INSPIRED BY HIS STORY HOW HE KEPT HIS BUSINESS MANAGEABLE BUT HELPED IT GROW. >>THIS IS HOW A TYPICAL WORKDAY STARTS FOR LUCAS RICE. >>AS HE DRIVES HIS PROFESSIONAL GRAIN EQUIPMENT FROM ONE EXIST CUSTOMER’S HOUSE TO ANOTHER. GETTING TO THIS THIS POINT HAS TAKEN SOME TIME. >>SAVED UP MONEY. ALWAYS LOVED BEING OUTSIDE AND DOING THINGS WITH MY DAD OUT IN THE YARD AND SAVED UP MY MONEY AND EVENTUALLY FOUND A SMALL RIDING MOE WE ARE AT A GARAGE SALE, 12-HORSEPOWER, REAL OLD AND PURCHASED IT. HE SAID HE HAD ALWAYS MOWED HIS FAMILY’S YARD AND HAD THE PRACTICE AND EXPERIENCE THE NEXT STEP WAS GETTING CLIENTS. >>SO WE MOVED INTO A NEIGHBORHOOD, GO TALK TO THEM, WELCOME THEM TO THE NEIGHBORHOOD. WOULD GIVE THEM A LITTLE BROCHURE OR FLYER JUST TO SHOW THAT, YOU KNOW, I DO MOW GRASS IF YOU’RE INTERESTED IN IT AND TRIED TO KEEP IT WITHIN A BLOCK OF OUR HOUSE JUST, YOU KNOW, SMALL SCALE SO THAT I DIDN’T HAVE TO INVEST IN IT. >>AS HE GROW HIS BUSINESS AND GOT MORE AND MORE CLIENTS HE BEGAN TO REALIZE THAT SMALL RIDING TRACTOR WAS GETTING OLD. >>IT COULDN’T HANDLE THE AMOUNT OF MOWING I WAS DOING, SO, AGAIN, AS SAVING OF MY BUSINESS, MY EARNINGS FROM THE BUSINESS, I PURCHASED — MY FIRST COMMERCIAL X SMART RIDING MOWER. IT WAS USED. I’VE ALWAYS FELT THAT WHEN YOU MEET A CUSTOMER INTO UNDERSTANDING THEM, UNDERSTANDING WHO THEY ARE, WHAT THEY DESIRE BECAUSE THEY’VE HIRED ME OR YOU TO DO THE JOB THAT IS IN THEIR YARD OR WHATEVER IT MAY BE AND IT’S PLAYING TO HOW THEY WANT IT AND DEVELOPING THAT RELATIONSHIP SO THAT AN ISSUE DOESN’T ARISE AND IF THERE IS YOU KNOW HOW TO SOLVE IT AND HOW TO REACH OUT TO THEM. >>THAT ISN’T THE ONLY LESSON LEARNED AS YOUNG MICRO BUSINESS OWNER. >>I LEARNED THE IMPORTANCE OF WORTH ETHIC AND INTEGRITY AS WELL AS COMMUNICATION AND FOR FUTURE EVEN OUTSIDE OF THE WORK WORLD AND PERSONAL LIFE JUST THAT DEDICATION COMMUNICATION AND CLEAR COMMUNICATION CAN GET YOU SO FAR IN THE WORLD, JUST ALONE. >>ONE OF THE BIGGEST IMPACTS OF THIS BUSINESS HAPPENED WHEN THIS ARTICLE WAS PUBLISHED IN U.S.A. TODAY. >>IT WAS ACTUALLY THAT MORNING PICKED UP THE PAPER AND IT WAS MY PICTURE ON THE FRONT OF THE COVER, ABSOLUTELY SHOCKING, ABSOLUTELY SHOCKING. >>HE WAS INCLUDED IN THE ARTICLE THANKS TO A FRIEND OF HIS TEACHING DRUM LESSONS OUT OF HIS HOME. >>AND HIS MOM WORKED FOR LOCAL NEWSPAPER AND U.S.A. TODAY THAT IN REGARDS TO HIS LITTLE BUSINESS. >>AFTER THE ARTICLE RAN, HE SAYS IT WAS GREAT TO HEAR FEEDBACK FROM HIS FRIENDS AND FAMILY ALL ACROSS THE COUNTRY. >>THE MOST AMAZING THING WAS THAT THE COMPANY I WAS ON THE PICTURES ON THE PAPER, I WAS ON A MOOR, THE ONE I HAD PURCHASE TODAY HELP GROW MY BUSINESS AND THEY ACTUALLY ENDED UP GIFTING ME WITH A NEW RIDING MOWER. >>BUT BESIDES WORKING ON HIS MICRO BUSINESS, LUCAS IS ALSO A JUNIOR AT THE UNIVERSITY OF CINCINNATI, STUDYING MECHANICAL ENGINEERING TECHNOLOGY. >>AND YES I TAKE CLASSES YEAR AROUND, SO IT’S CERTAINLY A BALANCING ACT. THERE ARE TIMES THAT I GIVE UP A LOT OF MY FREE TIME IN ORDER TO DO WORK, BUT HAVING EMPLOYEES THAT ARE DEPENDABLE. I HAD A GENTLEMAN THAT WORKS FOR ME THAT’S JUST EXTREMELY LOYAL AND DEDICATED AN IT’S HAVING THOSE PEOPLE THAT CAN MAKE IT TO WHERE YOU CAN RELY ON. BECAUSE I CAN’T DO IT ON MY OWN. >>AND AS FOR THE FUTURE — >>AS FAR AS MY BUSINESS IS CONCERNED, IT’S — I HAVE GREAT DESIRE TO GROW IT WELL BEYOND JUST LANDSCAPING, POSSIBLY GOING INTO REAL ESTATE CONSTRUCTION PROPERTY MANAGEMENT, THINGS OF THAT NATURE. I REALLY WANT TO STEP INTO MORE MANAGERIAL ROLE. >>AND THANKS TO MONEY COMING IN TOWARDS HIS BUSINESS, HE’S ABLE TO WORK TOWARDS THOSE PLANS. >>IT’S GOING TOWARDS COLLEGE SAVING SAVING FOR MY FUTURE FOR WHATEVER THE FUTURE MAY HAVE. FEELING BLESS TODAY HAVE THE BUSINESS FOR WHATEVER, WE’LL SEE. >>CONGRATS. DID YOU HEAR HOW HE TALKED ABOUT HOW HE STARTED SMALL AND IT GREW SLOWLY OVER TIME. HE STARTED WITH NO DEBT AT ALL FROM A SMALLER MICRO BUSINESS AND IT GREW. HE ALSO EMPHASIZED HOW HE KEPT IT MANAGEABLE. LUCAS DID EVENTUALLY HIRE AN EMPLOYEE AFTER HE HAD BEEN RUNNING THAT MICRO BUSINESS ABOUT 2 YEARS WE TALKED ABOUT THE RESPONSIBILITY OF HIRING EMPLOYEES BEFORE HE HIRED HIS FIRST ONE, THAT’S VERY WISE BECAUSE IT IS A BIG RESPONSIBILITY TO TAKE ON. I ALSO ENCOURAGE YOU TO KEEP LEARNING. I THINK YOU THE PARENT OR STUDENT TALK ABOUT ALL THE THINGS THEY HAVE LEARNED — THINGS THEY NEVER EXPECTED. ALSO PERSEVERE, I THIS YOU’LL HEAR A LOT OF THE STORIES THE STUDENTS SHARE WITH YOU. THEY TALK ABOUT SOMETIMES THEY MAKE MICRO — SACRIFICES AND THEY PERSEVERED AND YOU PUSH THROUGH THINGS. >>SPENT YEARS TRYING TO FIND THE RIGHT FILAMENT THAT WORK. HE SAID I HAVE NOT FAILED, I’VE JUST FOUND 10,000 WAYS IT DIDN’T WORK. SO DON’T THINK OF YOUR PITFALLS OR YOUR PROBLEMS AS FAILURES, THEY’RE NOT. THEY’RE REALLY JUST NEW INFORMATION THAT YOU TAKE AND YOU MAKE YOURSELF SUCCESSFUL THE NEXT TIME. BUT ULTIMATELY I WANT TO ENCOURAGE YOU TO THINK ABOUT PAYING IT FORWARD. I ENCOURAGE YOU IF YOU’RE BUSY THAN YOU WANT TO BE, PASS ALONG THE BUSINESS TO SOMEBODY ELSE. IF YOU MAKE MORE MONEY THAN YOU NEED. BE GENEROUS WITH YOUR KNOWLEDGE, GENEROUS WITH YOUR MONEY. SOMEONE HAS HELPED YOU OR ENCOURAGED YOU AND YOU CAN PASS IT ALONG. WE’RE GOING TO CLOSE WITH A GREAT STORY ABOUT PHILIP. I WANT TO WRAP UP TALKING ABOUT HIM, YOU KNOW, YOU MAYBE GOT A HINT FROM EARLIER THAT HIS WEB SITE BECAME VERY POPULAR AND HE WAS VERY SUCCESSFUL THAT HE TURNED DOWN THAT VERY GENEROUS OFFER BECAUSE HE THOUGHT IT WAS WORTH MORE. YOU KNOW, IT DID EVENTUALLY GOT HIS OFFER OVER $1.2 MILLION. PHILIP DIDN’T START OUT AT AGE 15 I WANT TO BE A MILLIONAIRE BY THE TIME I’M 21. HE JUST WANTED TO FIND A MICRO BUSINESS AND SEE IF HE WAS GOOD AT IT. >>TO FINANCIAL — THINK ABOUT BEING GENEROUS WITH THAT WEALTH, THINK ABOUT PAYING IT FORWARD BECAUSE IT’S NOT ABOUT ACCUMULATING MONEY FOR YOURSELF, IT’S ABOUT PASSING IT ON. I THINK YOU’RE GOING TO LOVE HEARING THE END OF THE STORY, HOW HE ENDED UP USING SOME OF HIS MONEY TO DO GREAT THINGS. >>PHIL DECIDED IF HE EVER WASN’T LOVING 90% OF THE WORK WITH 3 FORUMS HE WOULD AGAIN LOOK INTO SELLING IT. THAT TIME CAME 2-YEARS IN COLLEGE I WANTED TO FOCUS ON LIVING A MORE BALANCED LIFE, I WANTED TO FOCUS ON. I HIRED A BROKER IN BOSTON. WITHIN ABOUT A MONTH I CLOSED $1.2 MILLION DEAL WITH A PUBLIC COMPANY IN LOS ANGELES. >>HE GOT 60% CASH, 40% STOCK, AND WAS PAID IN STOCK AS WELL AFTER 12 MONTHS. HE ALSO STILL CONTINUES TO WORK FOR THEM PART TIME. >>IT STILL HASN’T HIT ME COMPLETELY BECAUSE I’M SO — I’M STILL INVOLVED WITH IT. I THINK ONCE I MOVE ON COMPLETELY IT WILL KIND OF SINK IN MORE. I’M STILL — I STILL THINK ABOUT IT EVERY DAY, EVERY NIGHT BEFORE I GO TO BED. >>AND AS HOWEVER REALLY IMPACTED HIS PARENTS HE USED PART OF HIS EARNINGS TO GIVE THEM GENEROUS GIFT. >>I WAS SO UNBELIEVABLY SURPRISED WHEN PHIL WANTED TO PAY OFF OUR MORTGAGE AND ON ONE HAND I REALLY DIDN’T WANT HIM TO AND ON THE OTHER HAND I WAS JUST SO PLEASED AND PROUD THAT HE DID WANT TO. I MEAN, HOW MANY PEOPLE HAVE A TEENAGER PAY OFF THEIR MORTGAGE. >>HE’S NO LONGER THAT TEENAGER BUT HE STILL HAS A BIG HEART AND EVEN BIGGER GOALS. >>MY DREAM IS TO GET MY MGA FROM STANFORD I DREAMED THAT SINCE I HEARD ABOUT GOOGLE AND THE GOOGLE FOUNDERS WENT TO STANFORD, THAT’S MY DREAM. I HAVE ANOTHER FULL YEAR AT THE UNIVERSITY OF CINCINNATI AND HOPE TO MOVE OUT TO PALO ALTO. >>WOW! WASN’T THAT A GREAT STORY ALWAYS KIND OF CHOKES ME UP WHEN I REALIZE HOW GENEROUS PHILIP WAS WITH HIS WEALTH. YOU KNOW, HIS MOTHER CALLED ME AFTER SHE FOUND OUT, SHE SAID, YOU KNOW, I THINK PHILIP MIGHT BE THE KIND OF KID SOME DAY THAT STARTS A CHARITABLE FOUNDATION WOULDN’T THAT BE MARVELOUS. AIM FOR THOSE KIND OF THINGS WHEN YOU THINK ABOUT STARTING A MICRO BUSINESS. THINK ABOUT WHAT YOU CAN USE WITH YOUR TALENTS TODAY TO START SOMETHING, LET IT GROW SLOWLY, KEEP IT MANAGEABLE. BULLET HATLY THE GOAL IS FOR YOU TO LEARN A LOT AND TAKE WHAT YOU LEARN INTO YOUR ADULTHOOD AND BE A GREAT EMPLOYEE, MAYBE LARGE BUSINESS OWNER, WHY NOT. LET’S START A CHARITABLE FOUNDATION. THANKS SO MUCH. I REALLY ENJOYED TALKING TO YOU ABOUT STARTING MICRO BUSINESS AND I HOPE YOU’VE BEEN INSPIRED TO START YOUR OWN.

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