5 Reasons why you should run an Amazon business with your child

Don’t want your child to spend most of his time watching TV, playing video games, or complaining that there’s nothing to do? Running their own business can be fun, encourage creativity, and learn about business life.

Some would say that these business ventures aren’t about making money; they might start like this but can quickly proliferate, and who would say no to some extra income. Starting a business provides an invaluable life experience for your child, plus it develops efficient skills like organization, money management, problem-solving, and communication. Running an Amazon business can be done at any time and from any place; this will allow your child to focus on school, play with their friends and dedicate enough time for your joint venture.

Child Amazon Business

1.    Learning to set goals and make a plan

Have your child think about all the nuts and bolts needed to turn their idea into a reality. What kind of equipment, supplies, or training do they need? If they are building their brand, what do they need? A name, logo, etc. Should they take a social media training or course beforehand? 

They should write down their goals for the business, including both financial goals and anything else they want to achieve. It will be fun and educational to revisit these goals from time to time. 

2.    Introducing the concept of making money

An Amazon business is a great way to introduce your child to basic money management skills and complex topics like calculating gross profits and managing overhead. Teenagers can keep track of income and business expenses. Younger kids can practice adding up price totals and counting change.

You’ll have an initial investment to kick start the business. Consider having your child itemize all the business upfront costs to know how much is needed. You could offer to fund a certain amount if they contribute some birthday money or allowance. You could even hold an investor meeting where your child pitches their idea to you and outlines their financial needs. 

3.    Work on customer service and communication skills

Being an effective communicator and empathetic listener are essential building blocks for entrepreneurship. Help your child develop how to succinctly explain their product/service and understand their business’ value proposition. Stress the importance of customer service, and encourage your child to listen to and accommodate special requests when needed. 

4.    Teach them responsibility, courage and problem-solving

Responsibility will teach them that they have a role in their business success and that keeping commitments is often rewarded. Any entrepreneur will probably tell you that failure is a step toward success; Courage is the ability to do something in the face of danger.

Accepting and embracing failure and learning from mistakes develops grit, which may predict success. Encourage your kids to problem-solve and learn from a failure before picking themselves up, dusting themselves off, and trying again.

5.    Small investment, a significant gain

Amazon business is one of the few ways to start a business with very little capital. The entry-level allows you to invest $2,000 to $4,000 for the first product.  Depending on how fast you want to scale your business, you can spend more or less, but in general, it’s a meager investment amount compared to other alternatives. The best thing about an Amazon business is that most costs are incurred when a product is sold.  So initially, you are expected to pay for your inventory and any customization or packaging. You are also likely to pay for shipping and other logistics required and get your products to the Amazon warehouse. And that is it for initial costs, can you believe it? 

Summary

It’s never too early to start teaching your child about money management and get them into the entrepreneurial spirit. Start by tapping into their interests and showing them they can turn their passion into a business. Build their confidence by encouraging their ideas, no matter how small or significant.

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