How to Turn a Hobby Into a Successful Business As a Teen Colorado

Steps

1. Brainstorm. As is the case with any newborn business, you're going to need a lot of preparatory brainstorming before you even think about peddling your wares. Now is the time to think about big picture issues, like where you will get your supplies and how you plan to advertise. Most important of all is the question of whether or not you really have the time and means to start a small business. If you're keeping your grades up with ease and still have time to kill,have at it! However, if you're already juggling school, friends, part time jobs, and household responsibilities, taking on anything else will burn you out. Small businesses are a labor of love, but are nonetheless demanding of time and resources.
2. Establish your market. Who will be buying your product? How will you get it to them? What's more, how will you inform them that your business exists in the first place? High school is a great market for most crafts, since teenagers seem to go through spending money like water. Just make sure you narrow down your field of potential customers, or you'll be wasting precious time marketing your punk fashions to the Preps, or vice versa. By thinking in advance about your clientele, you'll spare yourself the hassle of working low traffic venues and marketing to the wrong crowd.
3. Mass produce. If you're confident that your product will be profitable, it's time to start mass-producing your product. Get your supplies together (you may need an initial loan from Mom and Dad to get your business of the ground, which is perfectly fine so long as you repay them in a timely manner), then get busy! Come up with several basic prototypes, then replicate them over and over and over again. Once you have a significant inventory, you don't have to worry about crocheting in the wee hours of the morning to fill your orders.
4. Advertise. Come up with a catchy name and slogan for your business, then print up flyers, signs, any ad that's within your means. These can easily be created on most home computers; if you've got a priveleged friend with a color printer, have them hook you up with some nice, professional-looking business cards (make sure they include your name and some sort of contact number, at the very least). This is when you can utilize those computer-wiz friends of yours to their full potential; have them set up a nice website for your business (offer them a nominal reward in return; if you act professional, your friends will treat you like one). Ebay and Craig's List are also options if you don't mind individual piece-work. Make sure you get permission before posting ads in public. Remember, the simplect way to advertise is to carry your merchandise with you. If you make jewelry, wear it!
5. Price your merchandise. Make sure that you price your wares so that each piece is increasing your income. A good way to price is to calculate how much you spend on the materials per each item, then double it. This is a 50% profit margin, which is a good starting place. If you find that your business competitors are getting better business than you, see how they're pricing theirs, and offer a slightly lower price (just make sure you still have a profit margin!). Overpricing is bad, but underpricing is worse.
6. Be patient. Now that you've developed and inventory and your name is out there in the open, all you can do is wait for interest in your product. Hand out flyers, business cards, etc. when you can, but don't be too pushy. You may be raking in the greenbacks in a seeming matter of minutes, or it may take a little longer; every business is unique in this respect.
7. Keep records. Eventually, whether you make money or not, you'll have to face the monetary music sooner or later. This can be a lot less painful if you make an effort early on to keep track of every sale and expenditure you make (this means throwing away receipts is strictly taboo). This way, you won't be suckered into thinking you made $5 grand when it was really more like $50, and you'll know where your money went. Every so often, check the numbers to make sure that your income is greater than your expenditure, or you're in for a lot of trouble when the time comes to pay off your overhead and other debts. Make it a habit of putting 50% of your net income (income minus overhead and expenses)into a savings account, which will help you resist the temptation to blow your entire profit margin in one fell swoop. All you really need to keep is enough to cover your past overhead and another shipment or two of supplies.
8. Congratulations! You've launched your very own business!

Tips

• Consider taking custom orders. Not only will this snag a few more finicky customers, but you'll come up with new prototypes in the process!
• If your friends are confident in your business and happen to have friends with similar taste, put them on promotion duty. Give them discounted merchandise to model, along with oodles of business cards. Offer small rewards or discounts for friends that send customers your way.
• Try selling your product online, like craigslist.org. It's free. Just be careful with dealing with people, especially wierd ones... they bite.
• Dress for success. It's critical that you look and act professional if you want your business to be taken seriously. While this doesn't mean wearing a suit and tie to school, at least make an effort to maintain good grooming habits and look somewhat clean-cut. (The time-tested black trench coat with lots of pockets is still a standby for the closet entreprenuer, but you'll just look silly in 90 degree weather.If you really want to fall into that stereotype, have at it, but it's not necessary.)
• The months preceding prom, homecoming, and Valentine's Day are primetime for anything related to fashion; market like crazy!!!! Around Valentine's Day, you'll want to market to guys, who will be buying gifts for their girlfriends, but before any big dance, you'll want to appeal to the girls. A good way to ensnare them is to offer package deals with a nominal discount.
• If there's enough interest, you might consider selling your wares wholesale to a larger business.

Warnings

• Think twice before going into business with a friend. Often times, this kind of arrangement can strain a friendship to the breaking point, and can be bad for business to boot!
• If you're selling at your school, make sure that there isn't any code against students selling during school hours. Nothing sucks more than getting hauled into the principal's office when someone's making an offer on your merchandise.
• Avoid taking out loans like the plague; if you can't pay them off, you will lose your lenders' business, and respect.
• Don't quit your day job! Chances are, your new business probably won't pay for an early retirement any time soon, so keep your grades up!
• Your business is dependent on YOU. A surefire way to ground a business is to engage in deliquency of any sort. It's not cool, and it doesn't sell.

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