In this article I’m not going to go into detail on any one type of business. Instead, I’m going to give you a general overview of what it takes to be successful in business as a teenager. All the information in this article is going to be very useful when designing your own business. It will also be very beneficial to apply these concepts to the business designs I have listed on this site. Well enough chit chat, let’s get down to business.
Neighborhood Business 101 Intro
In any kind of business, the first thing you need to do is decide what kind of product or service you will be offering. Are you going to wash cars? sell lamps? fix people’s computers? When deciding on a product or service to sell, try to see through the eyes of your customers. How will they benefit from your service? What specific things or qualities will they be looking for in your business? Why should they choose your business instead of your competition? Your only a teenager, why should I accept your business? What separates you from other business? These are all good questions to ask yourself when starting a business.
Another thing you need to understand about your business is ‘demand’. People will say that your product or service is in ‘demand’ if it is needed or desired by a large number of people. For example let’s say you have a lawn care business. During the summer months your business is going to be in ‘demand’ because everyone’s grass is growing fast. During the winter months, people won’t need your services as much. Let’s take another example of this lawn care business and apply it to someone living in the city. If you live in downtown New York where there aren’t any yards to cut, then you won’t be needed. This would put your business in low ‘demand’. If you live in a suburban area where everyone has a yard that needs to be taken care of, you would be in high ‘demand’. Remember…the higher in demand your business is, the more customers you will have and the more money you will make. This is very important to think about when choosing a business plan. Should you have a car washing business in an area where everyone takes the subway? Certainly not. Should you be a computer technician in an area where a lot of old people live? Hmmm that would work seeing as how computer illiterate our elders are these days. You’re probably getting the hang of this ‘demand’ concept by now. Being able to see ‘demand’ or a need for a certain service of product is crucial in being successful in business. Congratulations you just got one step closer towards making money.
Assets
The next important step in creating a business is identifying what assets you will need. When I talk about assets, I’m referring to anything that you will use to make your business better. Whether it’s a team of employees(aka, your underpaid friends) or equipment needed for a specific job, you need to find out what stuff you will need in order to satisfy customers. Let’s use the same lawn care example we used earlier. If you decide to start a basic lawn care business, what are some things that you MUST have? How about a lawn mower for starters, an edger, a weed-eater, and a leaf blower. These items are all necessary for you to get the job done and completely satisfy your customers. What are some other things you need for a lawn care business? Do you really need ‘employees’? This is something you should consider if you want to maximize your business. A team of people can get things done a lot faster than one person alone. However, you do need to realize that you will have to pay your employees. Now you need to start “Evaluating your Assets”. Begin weighing the pros and cons of an assets to determine whether it is necessary or not. Take the ‘employees’ asset for example. Some pros of having a team would be: 1) you would be able to serve more customers in little time. 2) each individual could focus more on their own task, enabling them to do a better job. 3) doing a better job could satisfy customers and keep them around for the long run. Now lets look at some cons: 1) You will have to pay your employees, thus deducting from your own pay. 2)You will sometimes have scheduling conflicts(one of your employees may have a baseball game the day you scheduled work). When creating a business, it is very important to analyze your options like these. You need to decide if an asset is worth keeping or not. In the above example it could go either way. If you have employees, you will have more customers, be doing less work, and getting paid less. If you work alone, you will have to do all the work which takes up more time, you would have less customers, and you would get to keep all the money you make. This is a great example of how to weigh the pros and cons of an asset.
Another asset you will find valuable to any business is flyers. These are small pamphlets that advertise your business. They can be used to widely market your service or product…which brings me to my next topic. Marketing!
Marketing
Marketing is a simple concept really. All you need to do is tell people about your business and convince them why they should hire you. Sounds easy right? Well about 95% of teen businesses are marketed the wrong way. Many teenagers think it is adequate to simply put up some flyers on peoples’ doors. Listen, I don’t care how good that flyer is… you will NOT get your maximum number of customers from throwing around a few flyers. You see, you are a teen. Commonly looked down upon when it comes to responsibility and maturity, your going to have to prove your credibility to your potential customers. A flyer alone will not prove that you are a responsible kid capable of completing a job to satisfaction. The second most effective way to get customers is by face to face interaction. This doesn’t necessarily mean going door to door advertising your business(this can be done effectively and I will show you how in just a second). Let’s say you have a neighborhood get-together/cookout/party/.…whatever. This is a perfect time to discretely advertise your service. Why? Everyone is in a great mood, the atmosphere is light, people are more likely to listen to you and take you up on your offer. Now of course you don’t want to stand up on the table and make a big announcement that you have a business and are looking for potential customers. But if you can discretely mention your services while your mingling with people, they will be more likely to hire you. The other type of face to face interaction is door to door selling. A lot of people hear me say this and immediately go..”No! door to door selling just annoys people!”. Well yeah it annoys people when some adult shows up at your door wanting you to buy his cheap little product. Remember you are a relatively young person(most people reading this site are ages 14-22). You have a definite advantage when you talk to someone face to face. People usually like seeing young people take the initiative to earn money on their own. This fact alone will often convince them of your maturity. In another article I will go in depth on how to sell yourself going door to door. Ok so I think you’re ready for this. The absolute most effective method of marketing….(drum roll please) is “Word of Mouth”. Word of mouth is simply your customers telling other people how great your services are. Usually they will tell close friends and family about your business if they are pleased. The people they tell will trust their judgement, and you have instant credibility in their mind. The only thing you can do to increase your “Word of Mouth” marketing, is by completely satisfying your customer. Over deliver on your work. Do everything perfect, and then some!
Pricing
When you first start your business, you need to keep your pricing much much lower than you think it needs to be. You have to remember that you are a teenager. No matter how mature and responsible you really are, other people will not see your credibility right away. In order to have a chance at drawing in the most customers, you need to start out pricing as low as you possibly can. Let’s refer back to the lawn care example again. Let’s pretend that the average professional lawn care service chargers $40 per yard. You would need to charge no more than $20. Now I know your thinking…dude! That’s freakin half! Well yeah, and that’s the point. You wan’t your customers to see the price as virtually nothing compared to the professional rate. Now don’t get discouraged, you won’t be working at half price forever. Once you do your first job for a customer, and you OVERdeliver with your service. I mean do everything to perfection in a timely manner. The customer will see that it is nearly as good as the professionals. They will feel BAD only paying you half the price, and they will be moved to give you a generous tip. In past business that I’ve run, I averaged $15 tips because customers were so pleased. This compensated for the low wage and allowed me to make more than I would have if I charged almost as much as the professionals. This pricing method will also allow you to gain a much larger customer base very quickly. People will be less skeptical to pay you considering the low price. Over time customers will start to realize how great your service is. Now you will be able to raise your prices. Cha-ching!
Organization
Running a well-organized business is key in knowing what you need to do, when you need to do it, and where you need to do it. I’ve seen many business fail because they lack proper organization. In the beginning when your business is still small and growing, organization may not seem that necessary. Especially if you only have a few customers or clients. But you shouldn’t take any chances. There is always a possibility that you will miss something. And besides, if your following this website your business will be taking off in no time. Better get prepared. What happens when you have 10 customers or clients in one day? Can you really keep up with appointment times and locations in your head? This is a chance you can’t afford to take. By organizing your schedule and business, you equip yourself with the tools to maximize customer service and minimize your chance of screwing up! For basic organization of your business, I recommend that you get a notepad and make 4 columns. Label one “Customers”, another “Location, “Time”, and “Leads”. The first 3 are self explanatory. Simply fill in the information of the customer. In the “Leads” column, record any potential customers. Potential customers could be someone that said, “Well..maybe…..I’ll think about it.” when you offered your services. Be sure to record their name, phone number, and location or address. You will need this information to call and “follow up” on them. These organization tips are pretty general, but it’s a good place to start. If you want to know more about how to optimize your organization, check out my article on that.
Customer Care
So at this point you will have some clients that wan’t to hire you. Awesome, time to make some money! But wait, don’t rush off just yet. Let me warn you about “adults” when they hire a teenager. More often than not, the people that hire your business are going to wan’t to supervise you while you work. Especially if you are servicing something at their home(car washing, house cleaning etc.) Now I know this might be extremely annoying. Just remember one thing, they are paying you. You want them to be as happy as possible. Don’t get fed up and suggest to them that, “I’m a mature teenager, I don’t need you to watch over me while I work! Thank you very much!”. They will realize this after they see the great work you’ve done. Your main goal is to PLEASE your customers. Don’t forget that. Why should you make this your main goal you ask? Well you don’t want to have to go scavenging for new customers every week right? Of course not! If you completely satisfy your customers by being as friendly as possible and doing your job to perfection, they will tell you to come back next week. Boom! You’ve just build a long term customer. Doing this is key in having a profitable, long term business that has the ability to grow.
Congratulations! You have just learned the basics of neighborhood business and are on your way to financial success. The knowledge you have just acquired is fundamental to everything on this site. By knowing what you now know, your are a step ahead of the game. As you journey through the rest of this site, keep these basics in mind. They will be KEY to your success. And there is nothing I want more than for you to succeed. That’s why this site exists! So if you have any questions at all, feel free to send me an email at Blakedavis93@gmail.com