Three Ways Kids Can Raise Capital to Start Their Own Business

Previously, we looked at the motivations behind kids and teens starting their own business and some resources that help young entrepreneurs learn about doing business. You might be ready to start making money but faced with the reality “that it takes money to make money!” We’ll look at three ways you can raise capital to get started.

“Capital” means money used to start a business. Kids can raise capital in smart and simple ways without needing lots of money first.

1. Use your savings such as Gift and Allowance Money

Birthday money, holiday gifts, and weekly allowance can become business capital if you save instead of spending it right away. According to Kidpreneurs, “This approach not only teaches kids the value of money and financial planning but also encourages them to take responsibility for their own venture.”

Don’t have much savings? Kids can earn startup money by doing small jobs like:

• Mowing lawns

• Washing cars

• Babysitting

• Walking dogs

• Helping neighbors with chores

Money from small jobs can add up quickly when you save your earnings.

2. Ask family to invest in your business startup

Parents, grandparents, or relatives may help if they believe in your idea. Parents can help in creating a compelling pitch for their business idea and help them present it to potential family (and non-family) investors. The pitch should emphasize that their support will go a long way in helping the child learn and grow.

You can explain:

• What your business will do

• What you need money for

• How you plan to earn money back

This teaches important business skills like planning and presenting ideas.

3. Crowdfunding or raising money from people through the internet

In the article entitled, “10 Solid Ways to Fund Your Kidpreneur Venture”,

“Crowdfunding has become an increasingly popular method for raising funds for various projects, including Kidpreneur ventures.

Websites such as Kickstarter (https://kickstarter.com) and Indiegogo (https://indiegogo.com) provide platforms for entrepreneurs to share their business ideas with the world and collect donations from interested supporters. Creating a compelling crowdfunding campaign, complete with engaging visuals and a clear explanation of the business, can help attract the necessary funds to get the venture off the ground.”

This source may be worth exploring especially if you have a compelling story to tell and can demonstrate the need.

The foregoing was three possible ways to find funding to fulfill your dream to start

your business. Also consider taking out a bank loan, tapping into opportunities provided by local business organizations, and researching and applying for business grants.

I wish you much success!

Written by Terry Robinson, Author's Easel