If your child wants to be an entrepreneur, think of the desire as a great opportunity for him or her to learn some business skills. It will teach him or her about responsibility, honesty and integrity.
Discuss the steps to running a business. Even a lemonade stand has start-up costs and advertising strategies. Help your child understand these costs and what else goes into starting, operating and marketing a business.
Encourage the child to prepare a budget. Help him understand the difference between gross and net. How much money will she make after covering costs?
Decide how much the child will be allowed to spend and how much he or she should save. If the business venture is ongoing, set up a bank account. You may have to co-sign for the account, but keeping track of the account will be the youngster's job.
Some children want to make money to help pay for summer camp or a ski vacation. Some want to make a major purchase, such as a notebook or a mountain bike.
Earning their own money lets them set goals. Kids can make their own financial decisions and experience the sense of freedom that comes with doing so. They also learn the value of a dollar.
Communication and Safety
Teach your offspring basic communication skills so that they can sell their product or service. They should be able to explain it in clear, concise language and be able to quote fees without hesitation.
Role playing will help your child feel comfortable with the idea of talking to prospective clients. They should learn that if they are refused, it is not personal.
Finally, discuss safety with your child. Remind him or her not to enter anyone's house, unless it's a family friend. If the child is young, an adult should be with them when they are selling lemonade or ringing doorbells looking for leaves to rake or grass to mow.