Turning teens into entrepreneurs takes hard work, but is worth it

Teenagers are becoming entrepreneurs in greater numbers after Covid created an environment to go it alone. Here’s how to start.

Starting a business is tricky for people of all ages, but teenagers have more going for them than most.

Enthusiasm, fresh ideas, tech-savviness and lack of financial baggage make them perfect potential entrepreneurs. And their ranks are growing.

The ASE Group chief executive officer Taj Pabari runs three-day school holiday business camps for young people, through businesscamp.com.au, and other training programs, and says the pandemic has produced more teen business owners.

“As a result of Covid-19, we’ve been seeing huge numbers of young people – many of whom lost their job or were underemployed in existing roles – go out and make the switch to start their own business,” he says.

It often takes just one good idea, and being prepared to work hard.

The ASE Group’s Taj Pabari is himself a successful teenage entrepreneur. Photo: Jono Searle

“It’s easy to be fooled by everyone’s highlight reel or Instagram feed – business can look easy and flexible but it’s a really, really hard sport,” Pabari says.

“Get ready for one of the hardest things you’ll ever do but as someone who actually started a business at 14, it’s totally worth it.”

MARKETS AND CUSTOMERS

Small Business Australia executive director Bill Lang says teenage entrepreneurs should understand that all businesses make mistakes, and those that learn from them will succeed.

“This is why starting a business at a young age can be so beneficial,” he says.

“Before you’re old, you’ll become aware of all the little mistakes you made the first time around and avoid them on your business ventures later in life.”

Lang says before settling on an idea, undertake research to better understand the market you are thinking about entering.

“Look for faults in other products and services and try to fill the void,” he says.

Customers are the essence of a business, Lang says. “Remember your product or service should either solve a problem or fulfil a desire – if it can do both, even better,” he says.

FINANCIAL FACTORS

Teenagers can easily open bank accounts and the Australian Taxation Office says they can have their own tax file number at any age, and can sign for it themselves from age 13.

Some entrepreneurs will need an Australian Business Number (ABN), and business.gov.au has tools to help you work this out. You can also search for any restrictions on your business idea or licences you may need.

Lang says one of the biggest financial factors is start-up funding, which is why many first businesses involve selling a service before getting paid.

Crowdsourcing through Kickstarter can be an option, while parents and friends may help, too.

FIND A COMMUNITY

Pabari says microbusiness owners cannot to it alone and should seek out a community of like-minded people.

His firm runs a free platform, space.edu.au, to help people connect and network. “Even if you’re not completely ready to launch, just start a conversation with a potential partner.”

And always say yes to everything, Pabari says, whether it’s an event, meeting or opportunity.

“When we’re young and running a business, we’ve got a unique opportunity to experience everything – we don’t have a mortgage, we don’t have kids … the opportunity cost for doing something really is quite low.”

Blake Tourneur and Lachlan Miegel have started a business. Picture Emma Brasier.

TIPS FROM YOUNG GUNS

Students Lachlan Miegel and Blake Tourneur, both 15, have started their own business HydroSoil, which produces sensors and an app to let people know when their plants need watering.

Miegel says now is an exciting time to be innovating. “The main thing I have learnt is coding skills as well as new marketing strategies,” he says.

Miegel’s top tip: Find something you are passionate about. Don’t be afraid to try new things or put yourself out there, there’s no need to feel ridiculous or silly – own it.

Tourneur’s top tip: Realise you have the potential to make great things. Give your idea a go because earning valuable skills for your future while working on something you love is amazing.

Originally published as Turning teens into entrepreneurs takes hard work, but is worth it