Cool job: Work for yourself
By Jay MacDonald • Bankrate.com

More fun, more money
But many kids are finding there's more fun -- and money -- to be had by being their own boss right in their own neighborhood.

There's never been a better time to start your own part-time business. With busy two-income households on the rise, the young entrepreneur has more potential customers needing more help than ever before and fewer competitors providing kid-type services.

"Kids starting businesses is not as uncommon as you might think," says Susan E.M. Davis, director of the Center for Women Entrepreneurs at Columbia College in Columbia, S.C. "There are lots of kids self-employed today. I have a student who does odd chores, sort of like a gofer. The only limitation to a young person today is whether they can drive."

Look around you. What are the needs in your neighborhood? Are there a lot of dog owners that might benefit from a reasonably priced dog walking or yard pickup service? Do people in your neighborhood need help with computer skills (look for those cow-colored boxes at the curb)? Could you build local residents or businesses a Web site? Do lawns need mowing, babies need sitting, cars need washing, houses need painting?

If you can drive, your options expand.

"Most adults are coming home kind of tired and there are certain things they just don't want to do," says Davis. "I know two teenagers who are slowly building a concierge business, doing simple chores -- and because they drive, they can take the dog to the vet, run to the dry cleaner, go to the grocery store. It saves busy adults time, and time is money today."

If you can fill an existing need, you've got the start of a business. But make sure you research and recognize a need and don't just decide to do what you'd like -- you may get no takers.

Take good care of No. 1
Be sure to guard your most important asset -- that's you -- before barging ahead, says Adriane Berg, co-author (with her son, Arthur) of The Totally Awesome Business Book for Kids.

"Find out what you can do in the community that is safe," she advises. "Safety is an issue. Don't take it for granted. How are you going to be traveling? Are you going to be knocking on doors? Who are you going to be seeing without supervision? You need to be conscious of those things."

Either you or your parents need to talk with insurance representatives. Things can go wrong in a business, or you may be injured and unable to do what you promised.

Getting off the ground
Found a need in the 'hood? Good. But now what? How do you begin to turn your great ideas into money for movie tickets?

The Small Business Administration can help. The SBA joined with the Center for Women Entrepreneurs to launch Discover Business!. It offers an entertaining crash course on business basics for guys and girls.

Here are a few essentials to get you started:

• Are you solo or a team? If you are teaming with friends, make sure you all agree how the work, and the money, will be divided.
• How do you plan to advertise your product or service? By knocking on doors? Telephone? Newspaper ad? "Study the classified ad section of your local paper and learn how to write one," Berg advises. Even if you don't take out an ad, the exercise will help you describe who you are and what you offer.
• What will you charge? "It's important that you charge properly, not undercharge or overcharge," says Berg. "You can do that by talking to other kids who are doing the same sorts of things."
• Develop a preliminary business budget. In one column, tally what you expect to make (income) based on what you plan to charge and the likely number of customers. In another, tally what you expect to spend on business supplies (expenses). If your income exceeds your expenses, you've got yourself a viable business. If not, perhaps you can charge more, add additional customers or cut expenses to make it work.
• Print up business cards. "A business card makes your mind put together everything that you want to say. It makes you name the business, says where the business is going to be located, what hours you're going to be there and how you can be reached," says Berg.
• Keep records. Detailed record keeping, "the paperwork," is what separates young go-getters from the rest of the pack. Use your fledgling business as a way to teach yourself computer accounting and database programs. They may not be as exciting as Nintendo, but they can pay better!

Then you spend it, right?
Once the money rolls in, the fun starts. If you've worked to earn money for a new stereo or computer software, a bike or a laptop, go ahead, spend it up.

But if you're making it faster than you can spend it, you might want to look into ways to keep those greenbacks working for you. You could open a savings account, but savings rates now are at near record lows.

A better bet might be a money market account. The average account earns a bit more, but you'll need $500 or more to open one and you'll be restricted on how you withdraw your money.

A third option is a short-term certificate of deposit, or CD. Unlike your Metallica CD, a three-month bank version can earn you some cash if you have $350 to open it, but you'll have to leave it there for the term of the CD or pay a hefty penalty. Right here at Bankrate.com you can check out the best rates available where you live.

If you're saving those bucks to tuck away for college, a first home or even that distant retirement horizon, you may want to consider asking your parents to help you open a Roth Individual Retirement Account. It's one way to head down the road to millionairehood.

"You have to have earned money to put into any IRA," explains Nancy Brann, personal banking representative with Bank Atlantic of Jupiter, Fla. "This money cannot be a gift. It's an excellent savings vehicle where you can deposit money into it weekly, monthly or even one lump sum up to $3,000 yearly. Although schools are teaching teens about IRAs, I've never had a teen, or parent for their working teen, open an IRA yet."

Thinking long-term pays

The advantages of a Roth IRA are numerous. Money is taxed going into a Roth IRA and accrues interest until you can withdraw it, completely tax-free, beginning at age 59 1/2. That's a long way off, but you can make certain withdrawals earlier, including a one-time maximum $10,000 for college expenses and $10,000 for a first home. "If you can learn to take money from yourself young, even if you don't put in the maximum amount every year, then saving becomes engrained," says Brann. Let it sit, it would be phenomenal what you would have at retirement.

And if you work to ensure your future by putting some of your hard-earned cash into a Roth IRA, maybe mom and dad will reward you for your foresight!

It's great to get help from your mom and dad, but part of the excitement and satisfaction of running your own business comes from being your own boss. Don't let the fear of failure prevent you from taking a chance on yourself.

"There is so much pressure today on being in the top 10 and getting all As and your SATs being close to 1,600 that kids are afraid to go outside of what they know is sure," says Davis. "Kids need to know it's OK to fail."

Besides, who's going to fail, right? Heck, if you've done your business planning well, your business will soon be growing faster than a July lawn!

Jay MacDonald is a contributing editor based in Florida

-- Updated: May 16, 2003