What Makes A Teen Entrepreneur Successful - Coursework Example

What Makes a Teen Entrepreneur Successful? 2006 Introduction Working after school has always been a teenage activity around the world. Summer jobs in a McDonald outlet in the college campus or babysitting to partly support one’s studies or simply selling lemonade outside the house for 10 cents a glass, children and teens have for a long time worked to earn that extra dollar beyond the pocket money that their parents gave them. The computer age has taken the phenomenon a step ahead. It has provided an opportunity for talented teenagers to put on their entrepreneurs’ hat in addition to that of the students’. Stories of Bill Gates’ garage-to-Microsoft success or how Tom Monaghan started Domino’s Pizza with his brother while in their teens have enthralled teenagers, many of whom have in fact dreamt big and even succeeded. Especially in the computer arena, most pioneers began young – like Marc Andreessen who started Netscape or Jerry Young, who co-founded Yahoo! while in university (Evans,2000). Now, online businesses by even younger people are not rare to find. Especially, the Internet has given a level playing field to talented young men and women who don’t need huge finances to set up a business. As a result, many teens are cashing in on their bright ideas that they use to start and run a business. Teens are not only discovering areas that earn them much more than they could earlier from the after-school jobs, they now have a level playing field where they can bargain and manage a business almost like an adult. However, there are some ground rules that all teen entrepreneurs should follow in order to smile all the way to the bank. Find a niche The most important thing to begin a business, particularly for a teen entrepreneur, is to strike a fresh idea that would not have to face too much of a competition yet would not be expensive to launch. The teens of today are computer-literate from an early age and many of them have marvelous capabilities in web designing, programming and so on. However, the clinching issue is to find a space that would not only be novel but also to cater to the requirements of a significant population. Typically, it is easier for the teen entrepreneur to target the population in the same age bracket. This will ensure that the wavelength of provider of the service matches with the one being supplied. Also, a teen knows the demands of other teens the best. For example, after Andrew Levin, 15, from Chapaqa, New York, had been trying his hand in web sites and programming languages. He registered a domain name and bought some hosting space as a birthday gift for his friend, he realized that this was a business opportunity. In 2002, he began his business of Birthday Domains. Andrew found a niche area where there was not much competition. “I knew I couldn't compete with huge hosting companies already in place," he says. "So I tried to find a niche. Giving a package with a domain name and hosting together, marketed as a gift, isn't something I'd seen before" (Neilson, 2004). Passion As Cathers (2003) says, "Success isn't merely an accumulation of material goods. It may not even be being CEO of a prestigious worldwide company. Success should be redefined as the process in getting there, how one gets there, and earning the right to be there. Success cannot be considered success if one attains the top of his or her field at the expense of others, ethically, morally, or legally." To be a successful entrepreneur, it is essential that one is passionate over the job. Even if one strikes upon a bright idea that earns him some bucks quickly, it might not turn up as a successful business if one is not involved with the job. When Tom Managhan began business in 1960, he and his brother bought a local pizzeria in Michigan for a down payment $75. The two young men had to borrow $500 for the business but after eight months, his brother quit and Tom traded his portion of the business for a used Volkswagen Beetle (wikipedia). Tom carried on, determined to succeed in the business. As a result, he built a $1 billion empire with 8,000 stores round the world in forty years. Thus, to be successful in a business, one not only has to find a niche area but also sustain the passion for it. The internet today has given much more choice to teens to do things that they love and even bring them material success. At 17, Wienna Scott of Miami is the CEO of Switchpod.com that gives its subscribers user space on the internet to upload audio and video podcast programs. She, along with her partner, 16-year old Jack Fischer, whom she met at a internet chat room, sold the company to Wizzard Software for stocks worth $200,000 and annual salary of $40,000 each. Success, however, was not instant. Wienna and Jack had to answer about 100 tech support e-mails every day and devise innovative a business model – charging flexible fees for podcasters or provide free space in exchange of advertisements – before achieving a monthly visitor strike rate of 300,000 customers and getting noticed by Wizzard Software (Martellaro, 2006). Web designing and other online offerings have been a hubby-turned lucrative business for many teens. Pankaj Arora of Minnesota, had been fiddling with his father’s computer since he was a child and wrote a program when he was 12. He floated his companies Pankaj Arora Software and paWare, offering websites and custom-built computers. After he received the PC Computing 1999 award, he was even offered a $100,000 a year consulting assignment. Pankaj’s unique selling proposition is not the product, like Weinna’s, but his pricing. He charges much less than what others in the business do which draws customers to him (Christian, 2004) Hobbies can be turned to businesses in many areas other than the internet but for material-based businesses, family support may become crucial. For example, when Chelsea Doughtery, 15 of Palm City, wanted to capitalize on her talent accessory designing, her mother stood by her. While Chelsea juggles between her school and her business, Sew Preppy, her mother,as the President of the company, takes care of the operations, including handling bulk orders, sourcing materials and so on (Simmonsen, 2006). Confidence The most critical issue that teen entrepreneurs often find is age discrimination. Particularly in internet-based businesses, the first interaction that the client has with the entrepreneur is often online. So when the two meet face-to-face for a business deal, there is always some sort of hesitation on the part of the client. It is not unusual for the teen to be bombarded with things like “You’re too young”, “Call me in a few years” and so on. Therefore, it is essential to be prepared to face to the barrier and take necessary steps. To begin with, it is absolutely necessary to be an authority on the business proposition before one actually goes on a client visit. . "You've got to demonstrate that you really understand the problems, challenges and rewards of the venture you're proposing," says Stan Mandel, director of the Angell Center for Entrepreneurship at Wake Forest University in Winston-Salem, North Carolina (quoted in Torres, 2005). At the same time, one should not be over confident and appear cocky at first appearance. It is tricky to strike the balance between confidence and humility. Even while knowing what one is talking about, the teen should also be ready to learn and open to new ideas. London-based 12 year old Keith Peiris had been designing websites from a tender age. When his application to attend a conference by Macromedia Inc was rejected, he sent an e-mail to the company CEO, along with two of his designs. Keith and his father were then not only invited for the conference, Keith’s websites are highlighted on Macromedia’s online gallery (Evans, 2000). Marketing Most teen businesses are set up with minimum capital and hence have little advertisement budget, which at times just about supports printing some business cards. So, word-of-mouth advertising is all that teen entrepreneurs can bank upon. More often than not, particularly in businesses other than online, parents’ networks play a crucial role. When Camilla Amber White, 15, of Chicago, wanted to make her passion of baking pies into a full-time business, her father’s business partner of an architecture and contracting firm, got her initial customers besides the three she got when she approached the clients of a local hair salon. From then on, the number of customers for her company, Jam-N-Yams, have grown steadily earning her $9,000 in 2002. She bakes 50 pies a week in between her school and homework. Camilla had to be careful about her pricing, not charging as high as the competition while making sure that her costs are covered. Camilla designed a very innovative pricing strategy, charging differently for wholesale and retail customers. Camilla also maintains a detailed delivery schedule so that she does not fail any customer. Along with her pie business, Camilla has now diversified into fresh cut vegetables for pet store owners (Camilla’s Packables) and handmade craft items (Camilla’s Crafts). Not for nothing that Camilla was named for the 2002 Black Enterprise Kidpreneur Award (Kimble-Ellis, 2002). Support However much entrepreneurship qualities that teens have, they cannot succeed unless they have support from their parents. Particularly since minors cannot sign any legal contracts, many big companies are initially hesitant to get into business dealings with youngsters (Business Week, 2000). For example, Weinna Scott’s parents signed the contract on her behalf with Wizzard Software, on the condition that she could work for the company only part time till she completed her college studies (Martellaro, 2006). Besides parents and informal networks, there are various organizations – business incubators - that support teens in their ventures. For example, in Canada, NRG Factory believes in the teens’ business vision. Guidance and support let teens bloom their full potential. As NRG’s CEO, Matthew Saunders, says, "You have to have a combination of young minds who have a vision for how a business will develop, and experienced minds who know how a business is operated, and meld them together" (Evans, 2000). Conclusion Thus, the New Economy has thrown open a lot more business opportunities to the teen entrepreneurs. Beginning from web designing to selling products, teens can now venture into fulfilling business opportunities that they can enter after school. Time has changed a lot since the few dollars that youngsters could earn on summer jobs. However, to be successful in an enterprise is not a bed of roses for a teenager. In fact, times can be much tougher for a teen who wants to compete in the adult world. So, it is usually beneficial to restrict oneself in products and areas that have mostly teen customers. This gives a niche market since the teen entrepreneur knows the teen market best and is most likely to get hold of possible business area. But, to sustain the business, the teen entrepreneur needs a lot of tenacity. Very often, even if there is a sound business proposition, the teen business falls by the wayside simply because of lack of time or motivation. Besides, there may also be a tendency of the adult world to laugh away the teen business venture. One needs to be very confident about the business model as well as the product so that adults take their product seriously. It is most important to be honest in the job and give the best effort in it. Of course, no teen business can success with the support network, whether from parents or an organization. Works Cited Neilson, Amy Rauch, Find a Niche…Create a Business, March 1, 2004, http://www.entrepreneur.com/startingabusiness/teenstartups/article71038.html Cathers, Ben, Conversation with Teen Entrepreneurs, iUniverse, 2003 http://en.wikipedia.org/wiki/Domino's_Pizza Torres, Nichole L, Getting no Respect? Entrepreneur Magazine, February 2005, http://www.entrepreneur.com/startingabusiness/teenstartups/ Martellaro, John, Teen CEO of Podcast Firm Gets Early Start on American Dream, Miami Herald, September 9, 2006, http://www.ecommercetimes.com/rsstory/53182.html Simmonsen, Rachel, Passion for fashion puts teen in business, Palm Beach Post, November 6, 2006, http://www.palmbeachpost.com/education/content/local_news/epaper/2006/11/06/m1b_mcPrep_1106.html Kimble-Ellis, Sonya, Sweet success - entrepreneurship - teen-owned business Jam-N-Yams, Black Enterprise, October 2002, http://www.findarticles.com/p/articles/mi_m1365/is_3_33/ai_92203273 Evans, Mark, The New Economy’s New Face, April 6, 2000, http://www.cyberteks.net/Mediacoverage/GlobeandMail/TWTEEN.htm Christian, Amy Fennell, What is Success, The answer, for at least one young entrepreneur, may surprise you, January 1, 2004, http://www.entrepreneur.com/startingabusiness/teenstartups/ Business Week, The Legal Pitfalls of Doing Business with Teens, 2000, http://www.businessweek.com/2000/00_22/b3683155.htm Read More

In 2002, he began his business of Birthday Domains. Andrew found a niche area where there was not much competition. “I knew I couldn't compete with huge hosting companies already in place," he says. "So I tried to find a niche. Giving a package with a domain name and hosting together, marketed as a gift, isn't something I'd seen before" (Neilson, 2004). Passion As Cathers (2003) says, "Success isn't merely an accumulation of material goods. It may not even be being CEO of a prestigious worldwide company.

Success should be redefined as the process in getting there, how one gets there, and earning the right to be there. Success cannot be considered success if one attains the top of his or her field at the expense of others, ethically, morally, or legally." To be a successful entrepreneur, it is essential that one is passionate over the job. Even if one strikes upon a bright idea that earns him some bucks quickly, it might not turn up as a successful business if one is not involved with the job.

When Tom Managhan began business in 1960, he and his brother bought a local pizzeria in Michigan for a down payment $75. The two young men had to borrow $500 for the business but after eight months, his brother quit and Tom traded his portion of the business for a used Volkswagen Beetle (wikipedia). Tom carried on, determined to succeed in the business. As a result, he built a $1 billion empire with 8,000 stores round the world in forty years. Thus, to be successful in a business, one not only has to find a niche area but also sustain the passion for it.

The internet today has given much more choice to teens to do things that they love and even bring them material success. At 17, Wienna Scott of Miami is the CEO of Switchpod.com that gives its subscribers user space on the internet to upload audio and video podcast programs. She, along with her partner, 16-year old Jack Fischer, whom she met at a internet chat room, sold the company to Wizzard Software for stocks worth $200,000 and annual salary of $40,000 each. Success, however, was not instant.

Wienna and Jack had to answer about 100 tech support e-mails every day and devise innovative a business model – charging flexible fees for podcasters or provide free space in exchange of advertisements – before achieving a monthly visitor strike rate of 300,000 customers and getting noticed by Wizzard Software (Martellaro, 2006). Web designing and other online offerings have been a hubby-turned lucrative business for many teens. Pankaj Arora of Minnesota, had been fiddling with his father’s computer since he was a child and wrote a program when he was 12.

He floated his companies Pankaj Arora Software and paWare, offering websites and custom-built computers. After he received the PC Computing 1999 award, he was even offered a $100,000 a year consulting assignment. Pankaj’s unique selling proposition is not the product, like Weinna’s, but his pricing. He charges much less than what others in the business do which draws customers to him (Christian, 2004) Hobbies can be turned to businesses in many areas other than the internet but for material-based businesses, family support may become crucial.

For example, when Chelsea Doughtery, 15 of Palm City, wanted to capitalize on her talent accessory designing, her mother stood by her. While Chelsea juggles between her school and her business, Sew Preppy, her mother,as the President of the company, takes care of the operations, including handling bulk orders, sourcing materials and so on (Simmonsen, 2006). Confidence The most critical issue that teen entrepreneurs often find is age discrimination. Particularly in internet-based businesses, the first interaction that the client has with the entrepreneur is often online.

So when the two meet face-to-face for a business deal, there is always some sort of hesitation on the part of the client. It is not unusual for the teen to be bombarded with things like “You’re too young”, “Call me in a few years” and so on.

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