Frequently Asked Questions

FREQUENTLY ASKED QUESTIONS
Teen Entrepreneurs

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1. What is an Entrepreneur?

An entrepreneur is a person who organizes and manages a business undertaking, assuming the risk for the sake of profit.
An entrepreneur: Sees an opportunity. Makes a plan. Starts the business. Manages the business. Receives the profits.

2. What are some ideas for a teen business?

Babysitter Broker, Birthday Party Planner, Computer Teacher, Curb Address Painter, Dog Walker, Face Painter, Game Designer,.Homework Helper, Mother's Helper, Photographer, Webpage Designer, etc...

3. What is a mentor and how can I find one?

A mentor is a caring, experienced individual who volunteers as your guide. Your mentor can help you focus your talents and create a successful business. You can have more than one mentor. National mentor organizations can assist you in finding a cyber-mentor or a mentor in your community.

4. How do I get started?

You need to list reasons for wanting to go into business. Some of the most common reasons for starting a business are:. Be your own boss. Financial independence. Creative freedom. Utilizing your skills and knowledge.

5. What is a business plan and why do I need one?

A business plan precisely defines your business, identifies your goals and serves as your firm's resume.Its basic components include a current and pro forma balance sheet, an income statement and a cash flow analysis.It helps you allocate resources properly, handle unforeseen complications, and make the right decisions.
Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan package.
Additionally, it can tell your sales personnel, suppliers and others about your operations and goals.

NOTE: An area has been devoted to helping you with your business plan. Additional resources in completing a business plan can be found at Develop Your Business.

6. What legal issues do I need to consider before starting my business?

Patents, Copyrights, etc. Business Structures. Business Tax Forms. Insurance. Bankruptcy. Bill of Rights. Teen Safety. Child Labor...Additional information on these resources can be found in Legal Issues.

7. How do I protect my business from being stolen?

There are several ways to protect your business. They include:

Patents - a property right granted by the government to the inventor to make, use and sell the invention for a given period of time.

Copyrights - protects your literary or artistic work, allows you to sell, give away or show your work, and copyrights must be tangible and physical.

Trademarks - name, mark, symbol or motto, legally restricted to the use of the owner or manufacturer, that identifies your company and/or its product.

Trade Secrets - information that you do not want known by your competition because your business would lose significant advantages.

8. What do I need to do to organize my business?

The importance of structuring your business is for both legal and tax purposes. How you structure your business depends on the management style and financial needs you desire. Your business can be classified under the following business structures:

Sole Proprietorship
Partnerships
Corporations
Franchises

9. What type of insurance do I need to protect my business?

The following types of insurance are to be considered when starting your business:

Business Interruption
Liability
Product Liability
Fire

10. How do I know when my business is in trouble?

You can't pay your bills.
You are not keeping business records.
You are selling equipment and inventory to get cash.
You agree to a business deal for less money than you normally would.
You need to keep borrowing money from the business just to get through the day.

11. What are my rights under the Youth Labor Bill of Rights Act?

The right to a fair and full day's pay for a fair and full day's work.
The right to a safe workplace and the right to file a complaint if the job is unsafe.
The right to overtime pay for every hour work beyond 40 hours a week.
The right to equal employment opportunity without regard to race, color, religion, sex, national origin or disability in an environment free of sexual and physical harassment.

12. What are some of the different types of jobs that are hazardous for youth/teens under age 18?

Manufacturing or Storing Explosives.
Coal Mining.
Logging and Sawmilling.
Power-driven Hoisting Equipment.
Power-driven Bakery Machines.
Roofing Operations.
Excavation Operations.

For additional listing of hazardous jobs, check out the Youth & Labor.
(www.dol.gov/dol/topic/youthlabor/index.htm)

13. Where can I find out how some individuals started a successful business?

We have found some success stories on the web. Listening to the story of how someone started a business and made it succeed can give you ideas about how to run your business.

14. Where can I meet other teens interested in business in my community?

Many national youth group associations have local chapters in your community where you can meet other teens with interests similar to yours and also participate in fun activities.

15. Where can I learn how to turn my hobbies and interests into a business?

Welcome to Camp &tart-Up, a DollarDiva program presented by Independent Means. Camp &tart-Up offers teen women fun, new friends, and a chance to learn how to become a DollarDiva! Discover how your interests and dreams translate into enterprise and independence.

You'll work with teens from around the world, meet successful women business owners, and return home feeling fit, confident, and filled with entrepreneurial ideas for your own future. The skills you learn and apply at Camp &tart-Up will help you take charge of your life – in school, in business, and in the world.

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