That’s no problem
When 11-year-old Riley came up with his business idea of making customised necklaces to sell at the Kids Community Market he worked out he wanted to earn $8 an hour to make his enterprise worthwhile.
Riley’s parents, who run an earth-moving business, regularly discuss their business and the subject of overheads at the dinner table. So it was natural for Riley to work out his own finances by setting out a fairly detailed list of his expenses: beads, cords and clasps. Then he set his prices. He didn’t know how many necklaces he would sell but the first market was a success and he made a $124 profit. After three markets he estimates his profit margin is a healthy 30%.
How did he come up with idea of a customised necklace? His mother Tia likes to make, rather than buy, presents and uses Australian-made silicon beads that are safe for children as they are BPA free. Riley likes people to choose their own beads and he threads them up, knowing he is offering a unique product.
After the third market, Riley decided to plough his profits back into the business and took advantage of cheaper prices for bigger quantities of beads. Realising that he needs to expand his range he now makes dummy chains, tassels, keychains and lanyards as well as necklaces.
Helped by the business workshops run by the market, he is relishing the problem solving that comes with running a small business.
Riley’s top tips
1. Pick something you enjoy and you can do rather than what you think people will like. 2. Research your pricing.
3. Understand customer service and talk to your customers even if you are shy.
4. Don’t sell hot food on a boiling summer’s day; think about selling snow cones instead.