Today’s teenagers are poised to turn the tide of employment. In a 2022 survey, Junior Achievement USA found that 60% of teens aged 13-17 would prefer to start their own business over working a traditional job. That’s why it’s never been a better time for young folks to learn how to start a business as a teenager.

Being young brings unique benefits to business ownership. Young entrepreneurs are energetic and optimistic, ready to take on risk, and eager to challenge the status quo. It’s also an endeavor that sets them up for future success: Not only does running a small business bring in extra cash, but it also teaches invaluable problem-solving, time-management, and communication skills—all while boosting self-confidence, autonomy, and innovation. No matter where teens land in their future careers, these traits can only help them flourish.

If your teen wants to start a business—or you are a teen looking to start a business—the opportunities abound. Here’s how to set a plan in motion.

Why Start a Business as a Teen?

Starting a business as a teenager offers a multitude of valuable benefits. Some of the most compelling reasons why you should consider taking the entrepreneurial path include:

• Early exposure to real-world experience: Starting a business at a young age exposes teens to the realities of the business world. It gives them a unique opportunity to hone essential skills like managing money, building networks, and decision-making. These skills are critical in shaping both personal and professional growth.
  
• A path to financial independence: By starting a business, teenagers can take charge of earning their own income and become financially independent. This is also an invaluable opportunity to learn about money management, budgeting, and saving.
  
• Enhanced creativity and problem-solving skills: Entrepreneurship requires thinking outside the box and finding innovative solutions to problems. With a business, teens can tap into their creative potential and develop problem-solving skills that transfer to various aspects of life.
  
• Networking opportunities: Starting a business as a teenager opens the doors to networking opportunities with like-minded entrepreneurs, mentors, and industry professionals. Building relationships at a young age can pave the way for future collaborations, partnerships, and learning.
  
• Cultivation of self-confidence: Entrepreneurship often means facing challenges and setbacks. By starting a business, teens can build resilience, develop self-confidence, and learn valuable lessons from failure.

How to Start a Business as a Teenager: 6 Steps

Starting a business as a teenager can be an exciting and rewarding experience. If you’re interested in taking the plunge, all it takes is six steps to get off the ground.

1. Chat With Your Parents
2. Make a Business Plan
3. Choose Your Business Structure
4. Register Your Business
5. Raise Money
6. Spread the Word

1. Chat With Your Parents

Getting the go-ahead from your parents is the first step in starting a business as a teenager. Discuss your plans with them to ensure they are fully aware of your intentions and can provide guidance and support along the way. Their permission is necessary if you need to use any family resources, like your house or car, in certain aspects of your business. It’s also necessary if you’re under the age of 18, as in many cases, minors cannot enter into a legal contract by themselves.

What’s more, having your parents on board can help you navigate challenges that may arise. They can provide valuable advice based on their own life experiences. Their support can also lend credibility to your business as potential customers—and even investors—may seek their approval.

Once you have your parents’ permission and support, you can decide what kind of business you want to run, how it will be run, and what it will be named.

2. Make a Business Plan

You’ve got a great business idea and you’re all set to start your venture. What’s next? Before you dive headfirst into the excitement, take a moment to make a business plan.

A business plan is like a roadmap that helps you define your business goals, strategies, and the steps you need to take to achieve them. This plan is essential as it will guide you through the process of starting and running your business successfully.

A business plan doesn’t have to be complicated. For a teen-friendly template, simply break things down into the following components:

• Executive summary: Give a brief overview of your business, including what it offers and why it’s unique.
  
• Business description: Dive deeper into your business idea, explaining what products or services you will be offering, who your target market is, and how your business will stand out.
  
• Market analysis: Research your industry and competitors, and identify opportunities and challenges that you might face.
  
• Marketing and sales strategy: Outline your marketing and sales approach, including how you’ll reach your target audience and promote your products or services.
  
• Operations and management: Describe how your business will be structured and who will be responsible for what. This may be just you.
  
• Financial plan: This section includes your startup costs, projected revenue and expenses, and how you plan to fund your business.

A business plan isn’t just a formality; it can help you make informed decisions, secure funding, and attract customers. It’s an essential step in turning your business idea into a reality. 

3. Choose Your Business Structure

Now that you have a business plan, the next step is to choose a business structure. This may sound complicated, but don’t worry; it’s actually quite simple.

There are a few different types of business structures you can choose from, and some may be better suited to teenagers. The first option is a sole proprietorship, which is the easiest and most common type of business structure. This means that you are the sole owner of the business and you have complete control over all decision-making. It’s a great choice for small ventures, especially if you’re just starting out.

Another option is a partnership, which involves teaming up with one or more people to share both the responsibilities and the profits of your business. This can be a great way to leverage different skills and resources among a group of friends, your parents, or other like-minded individuals.

If you’re planning for a larger-scale business or thinking long-term, you might consider forming a limited liability company (LLC). This structure provides personal liability protection for its owners, which means your personal assets are separate from the company’s debts and liabilities.

Ultimately, the choice of business structure depends on your goals, the size and nature of your business, and your personal preferences. It’s always a good idea to consult with a legal or financial advisor to make sure you’re making the right choice.

4. Register Your Business

Registering your business establishes it as a legal entity separate from yourself. This means that you’ll have certain rights and obligations as a business owner, and it will also make it easier for you to open a bank account, get a business license, and even apply for loans or grants.

The process and requirements for registering a business can vary based on your state. Typically, you’ll need to register your business with the appropriate government agency. This could be your local city or county government, or it may be a state or federal agency, depending on the nature of your business. You’ll typically need to fill out some forms and may pay a small fee. 

If you’re under the age of 18, you will likely need to involve a parent or guardian in this step. 

5. Raise Money

Now that you’ve got a lot of the administrative legwork out of the way, it’s time to secure funding for your new business. Look for opportunities to earn extra cash, whether it’s through odd jobs around the neighborhood, babysitting, or selling items you no longer need. By setting aside a portion of your earnings each month, you’ll slowly but surely build up the money you need to fund your business.

Another option is to ask your parents or other family members for help. Talk to them about your business idea and explain how passionate and committed you are. They might be willing to invest in your venture and help you get started. You should present a well-thought-out plan and a clear vision for your business, as this will increase your chances of getting their financial support.

If those options don’t work for you, don’t worry: There are businesses you can start that don’t require any upfront investment costs. For example, you could offer services like tutoring, pet sitting, or social media marketing. These types of businesses allow you to start small and grow over time, using the money you earn to reinvest in your business.

6. Spread the Word

Once your business is up and running, you’ll need to start spreading the word about it. This is where marketing comes into play.

First off, you’ll need a professional website. This is where people can find information about your business, see what you offer, and even make purchases. Make sure your website is visually appealing, user-friendly, and optimized for search engines so that potential customers can easily find you online.

Next, tap into the power of social media. Platforms like Instagram, Facebook, and X (formerly Twitter) can be incredibly effective in reaching a wide audience. Most social media platforms require users to be at least 13 years old. Create business profiles on these platforms and start posting regularly. Share engaging content, promote your products or services, and interact with your followers. This will help build brand awareness and potentially land new customers.

Another great way to market yourself is by encouraging testimonials. Positive reviews from satisfied customers can go a long way in establishing trust and credibility. Encourage your customers to leave reviews on your website or social media pages, and highlight those testimonials on your website. Word-of-mouth is another powerful marketing tool, so don’t hesitate to ask your customers to share their positive experiences with others. You could even set up a referral program where customers get a freebie or discount on future services if they refer you new business.

Don’t forget about the power of traditional marketing tactics, either. Handing out flyers or business cards in your local neighborhood can go a long way in getting the word out.

12 Small Business Ideas for Teenagers

With a little creativity and initiative, there are plenty of small business ideas that teenagers can explore. Here are 12 ideas to get you started.

1. Babysitting

Babysitting is a fantastic small business idea for teenagers that can easily accommodate school and extracurricular commitments. You can choose to work evenings, weekends, or even during school holidays, allowing you to balance your work and personal life.

Babysitting requires minimal startup costs. Many teens already have the necessary skills and experience to care for children, and there is no need to invest in expensive equipment or inventory. Plus, word-of-mouth is a powerful marketing tool in the childcare niche, so you can rely on referrals from satisfied parents to grow your business.

In terms of requirements, it’s essential to have a genuine passion for working with children and a responsible mindset. Parents will trust you with their most precious asset, so you need to be reliable, trustworthy, and capable of handling emergencies. Additionally, you might get more business (or fetch a higher rate) if you’re trained in basic first aid and CPR.

Taking a babysitting course or obtaining a certification can increase your credibility and give parents peace of mind. Additionally, consider registering with a reputable babysitting agency or website as it can help you find clients and match you with families that suit your skills and availability.

2. Dog Walking

If you love animals, nothing beats getting paid to spend time with them. 

The requirements for starting a dog-walking business are relatively simple. As long as you have a love for animals and are responsible, reliable, and trustworthy, you’re off to a good start. You should also have a solid understanding of local leash laws, how to properly dispose of waste, and be comfortable handling dogs of all breeds.

There are many benefits to running a dog-walking or pet-sitting business. Not only will you spend your time outdoors, getting exercise and fresh air, but you’ll also have the opportunity to interact with and care for your furry companions. Plus, as you build trusted relationships with pet owners, you could expand into pet sitting, too. Many pet owners need someone reliable to take care of their pets while they’re away or at work.

3. Car Washing

It’s relatively easy to start a car washing business as a teenager. You don’t need a lot of capital or fancy equipment: All you really need are some cleaning supplies, like soap, sponges, and towels. Plus, you can offer different packages to cater to your customers’ preferences and budgets.

Car washing is a flexible business. You can set your own schedule and work around your school commitments. You could offer your services on weekends, after school, or during school breaks. This way, you’ll be earning some extra cash while still having time for your studies and other extracurricular activities.

Apart from the obvious financial aspect, you’ll also gain valuable skills in customer service, organization, and time management. Plus, this is a great opportunity to meet new people and build a network for future endeavors.

4. Landscaping and Yardwork

If you’re a teenager looking to start your own business, landscaping and yardwork can be a smart option. It’s a relatively low-cost business to start, and it can be both profitable and flexible.

To get started, you’ll need some basic equipment like a lawnmower, trimmer, rake, and hedge clippers. You may also need to invest in a small trailer or truck to transport your tools between job sites. If you don’t have the funds for that upfront, you can save up the money you earn from your first few jobs to put toward these expenses.

Apart from this being a great summer job for teens, consider expanding your services so you aren’t just a seasonal business; consider offering things like gutter cleaning in the fall and snow removal in the winter. This allows you to keep your business running year-round and maximize your income potential.

5. Tutoring

Tutoring has become an increasingly popular small business idea for teenagers, and for good reason. First, tutoring costs nothing to get started with. Second, as a teen, you likely already have advanced knowledge and skills in a particular subject that you can share with others. 

To run a successful tutoring business, you need a strong grasp of the subject you plan to teach along with excellent communication and interpersonal skills. You should be able to break down topics into easy-to-understand concepts that other students can follow. 

Tutoring, like any teaching gig, can be incredibly rewarding. On top of making some extra money, tutoring helps other students improve their grades, boosts their self-confidence, and inspires them to work harder in school. As a tutor, you’ll get to play a key role in shaping the educational future of your peers, which can be very fulfilling. 

6. Photography

Do you have an eye for a great photo? If so, photography is an excellent small business idea for teenagers who want to turn a creative outlet into something more. With smartphone cameras being what they are today, most teens already have an eye for composition, lighting, and posing. All they need is a camera and they can get their new business off of the ground.

To get their foot in the door, teens can offer photography sessions to friends, family members, neighbors, or other members of their community. Consider starting with family or senior portraits, or shooting events like birthdays, graduation parties, or family gatherings to build a portfolio.

Besides being a fun and fulfilling hobby, photography also teaches several valuable entrepreneurial skills. Marketing, creating a website, managing bookings, and handling payments are key skills needed to run any business effectively. These skills can be transferable to other ventures teens might undertake later in life.

As teens build a portfolio and gain experience, they can increase their rates and attract more clients. This income can be saved for future investments, like a higher-quality camera, or growing their skills through workshops or courses.

7. Graphic Design or Web Design

Another business idea for creative teens is graphic design or web design work. You don’t necessarily need any formal education or training in these fields, although it can help. There are countless online resources, tutorials, and design software options available, some of which are even free. This makes it easy for young entrepreneurs to develop their skills and learn on their own.

Businesses of all types and sizes need visually appealing graphics and well-designed websites to stand out from the crowd. From creating logos, brochures, and social media graphics to building websites and designing user interfaces, there are a lot of opportunities for teens to put their creative skills to use.

Like photography, plan to start small with clients you may know personally or small businesses in your local community. Once you build a larger portfolio, you can attract new clients and expand into bigger projects.

8. Blogging

Blogging is a simple small business idea for teenagers that offers a wide range of benefits. First and foremost, starting a blog requires very little to no upfront investment. All you need is a computer or smartphone and an internet connection, which most teens already have.

Blogging provides a fantastic outlet for expressing your creativity and sharing your passions with the world. Whether it’s fashion, sports, travel, or even advice on school and relationships, blogging gives teens a platform to showcase their expertise and connect with like-minded individuals. And, it serves as excellent writing practice, which is a skill that can go a long way in future endeavors.

To start a blog, you simply need to choose a blogging platform, like WordPress or Blogger, create an account, and start publishing your content. To be successful, you’ll need to find your niche, build a consistent readership, and engage with your audience through comments and social media. Blogging is not a fast path to earning income, but as the blog grows, you can monetize it through advertising, affiliate marketing, and sponsored content.

9. Social Media Marketing

If you already know the ins and outs of major social media platforms—and most teens do—you may have what it takes for a budding social media marketing business. 

All you need to start this type of business is a computer or smartphone with internet access. You’ll also need a strong understanding of social media platforms like Instagram, TikTok, or Facebook, including how to read their analytics, how to capitalize on trends, and how to create unique content. You don’t need any formal qualifications or extensive experience, making this business accessible to anyone with an interest in the field.

The demand for social media marketing is continuously growing. Businesses of all sizes understand the importance of having a strong online presence, which makes them willing to hire young social media marketers who are in the know. 

10. Selling Homemade Crafts

Starting a homemade craft business is one of the best ideas for teens with a knack for jewelry making, pottery, painting, crocheting, candle-making, or any other hand-crafted good. Selling homemade crafts can be exciting, creatively fulfilling, and, best of all, profitable. It’s also perfectly suited to being both an in-person and online business, giving you plenty of options for how and where to sell your goods.

The easiest way to get started is by setting up an online store through a platform like Etsy or Shopify. While Etsy is a global online marketplace, Shopify allows you to make your own eCommerce website. Both of these platforms make it easy to showcase and sell crafts to a huge online audience. With an online store, it’s important to focus on marketing your products, especially through social media platforms, in order to bring in customers.

Online isn’t the only avenue for selling homemade crafts, though. Teens can also set up a booth at local craft fairs, art shows, and farmers’ markets to showcase and sell their creative works.

11. Errand Running

Errand running can be a profitable business idea for teenagers to launch their entrepreneurial journey. It’s also a simple and inexpensive business to start, letting you tap your existing network of friends, family, and neighbors to build a client list. All you need is a mode of transportation, be it a bicycle, scooter, or even just your own two feet. After a few happy customers and some positive word of mouth, you can expand your services to other members of your local community.

Running errands can take many forms. It can include grocery shopping, package delivery, dog walking, dry-cleaning dropoff, and other routine chores. This business gives you the opportunity to interact with a diverse range of people, letting you practice your communication and customer service skills. You’ll also gain experience in managing time and prioritizing tasks. These skills are not only valuable for running a business, but they will also benefit you in various aspects of life.

12. House Cleaning

House cleaning services are always in demand, which makes this an excellent small business idea for teenagers. Everyone wants a clean living space, but not everyone has the time or energy to do it themselves. With some basic supplies and equipment—like a mop, vacuum, duster, and cleaning solutions—you can start offering your services tidying up people’s homes.

With a cleaning business, testimonials from satisfied customers go a long way in securing new clients. Make sure you are employing good marketing strategies and asking for word-of-mouth referrals or reviews that you can publish on your website. This will help you quickly build a client base and make a tidy profit.

How to Start a Business as a Teenager: FAQs

How do you start a business after high school?

Starting a business as a teenager after high school requires some planning and a few key steps. First, identify your passion and talents. Think about what you like doing and what skills you possess. What were you good at in school? What subjects or pastimes do you enjoy? This could be anything from baking to graphic design or even math tutoring. Use this as a springboard to form a business idea that will make the journey more enjoyable and fulfilling.

Next, develop a business plan. This involves conducting research to understand your target market and competitors and defining your products or services. You’ll also need to determine your pricing, marketing strategies, and goals for what you hope to achieve. It’s essential to have a clear roadmap that outlines your vision and the steps to achieve it.

Once your business plan is in place, start building your brand and online presence. Create a professional website and/or use social media to showcase your products or services. Engage with your potential customers by uploading regular content and responding to comments or questions promptly.

You may also need some financial support to get started. This could mean applying for small business grants or loans, or asking family and friends for help. Alternatively, you can start small with minimal (or no) investment and reinvest your profits to expand gradually.

What are the best kinds of businesses for teens to start?

There are several kinds of businesses that are perfectly suited to teen entrepreneurs. Tutoring, dog walking, car washing, and babysitting are a few popular options that many teens have successfully leveraged into profitable businesses.

For those with a more creative flair, photography, graphic design, web design, or blogging can be fun and fulfilling ventures. If you have a green thumb, starting a landscaping or gardening business can be a great way to work outdoors and beautify people’s yards. Are you a master of social media? Consider social media marketing. Known for keeping a clean space? Try a house cleaning business.

These are just a few examples, and there are so many options to choose from. The key is to choose a business that aligns with your skills and interests. Starting a business as a teen can be a stepping stone to future success and additional business ventures.

What’s the youngest age for a kid to start a business?

Generally, there isn’t a specific age minimum for kids to start a business in the U.S. But, there may be restrictions on certain activities due to labor laws and safety regulations. It’s critical that you do your due diligence in researching state and local laws regarding permits, licenses, and sales restrictions.

It’s also important to note that while you may not face age restrictions for starting a business, you might need parental consent or supervision, especially if you’re under 18. This helps ensure that you have the necessary support and guidance to navigate the challenges that come with running a business.

To get more specific information tailored to your location and business type, it’s always a good idea to check with your local government agencies or consult an attorney who specializes in small business law.

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