Tuesday, November 11, 2008
Teaching Children Entrepreneurship
While raking leaves today, my 12 year old son starts talking to me about the his personal business he wants to open. He wants to rake other people's yards in the fall and cut their grass in the spring and summer. Great ideas. Now we rake our yard by hand and don't have a leaf blower. So I ask him how much he is going to pay me to rent the rakes? He looks at me and says half. I said son that I only paid $10 for the rake. He goes "Whoa!" We settle on $1.00 an hour. I then ask him how much he much is he going to pay me for taking him to the job sites. He said $2.00 an hour. Now we live in a very small town and one of us would end up losing. "Micah you pay by", I started. "The mile," he finished. He started thinking about more costs of doing a raking business. I asked him what do most people use in raking leaves. He quickly replied, "A leaf blower." "How much do those cost?" I ask him. "200?" Something else for him to research. Now, if you are a customer, do you hire the guy with the leaf blower or the guy raking? He realized that if he charges by time, then he wouldn't be hired because it would take him too long, and it wouldn't be cost effective to charge by the size of the job. "What can I do?" he asks. How can you raise some capital?