What is entrepreneurship? It is essentially selling something to someone for money. A product, a service, or an idea. Kids are pro salespeople. Think about this: they know how to convince you that they need that extra pancake; or that a trip to the beach is pending. What you should do is harness this innate trait and convert it into something entrepreneurial. Imagine if they could use those same skills to raise investment or sell more products.
According to an analysis by Startup Grind, the median age for launching a business is 27, with 80 per cent of founders choosing to launch their startup before hitting age 30. With so many young people deciding to startup on their own, it is never too early to begin the entrepreneurial journey with a few parenting cues at home.
Teach them financial literacy
The first step to understanding entrepreneurship is through financial literacy. Basic math lessons at school may cover some aspects of it, but rarely do they ensure end-to-end knowledge of handling money. “When you start teaching your children how to manage money, it is a life skill,” says Shraddha Goenka, Delhi-based Company Secretary. “Whether they want to be future entrepreneurs, or run an efficient home, or go through life with a retirement plan, it is important to teach children the value of money as early as possible. These are a few age-appropriate lessons I’d recommend:
1. The difference between wants and needs, between essentials and extravagances. Children should learn to prioritise their needs over wants and let go of the frills whenever they can’t afford it. Initially, they may not be able to make this distinction, so you can help them out.
2. The concept that money is a finite entity should be taught. Don’t treat it as an unlimited pool of resources, even if you can afford whatever they want. Put your foot down and allot a certain budget. If they’ve spent it all on a toy, well, too bad. They can’t have an ice cream or a book.
3. Delay gratification. Making money is never going to be a cakewalk. So when everything comes too easily, they aren’t able to handle the wait. Don’t rush to buy them the things that they want. Let them learn that making money takes time, effort and patience. Give them a reality check; for instance, “it takes mummy 10 days of hard work to earn the money for our weekend trip”.
4. Credit lessons should be taught early on. If you give them ₹1000 to buy something, deduct it out of their pocket money with interest so that they learn to think of the consequences before borrowing.
5. Lastly, not many people do this, but start telling your kids about taxes. Running a company isn’t just about making money; it is a well-oiled system that is part of the economy. Paying taxes is something they should factor in.”
Enhance their communication & organisational skills
Whether you like it or not, entrepreneurship means dealing with people -- from your employees to your clients; from your auditors to your landlord. Leaving a positive impact on the people you interact with requires excellent communication skills. Whether it is answering the phone or drafting a letter, it is important to ensure a confident but polite tone and voice. You will also have to ensure that your kids grow up to be empathetic individuals who are able to see things from another person’s point of view. Being organised is another key aspect of entrepreneurship. Right from administrative duties to overseeing staff and managing finances -- everything needs structure. Teach your child to use schedules and planners to keep track of their life early on. This will hold them in good stead later on.
Let them take responsibility for their decisions
“There is no need to micromanage small aspects of your children’s life,” says life coach Radhya Shekhar. “Entrepreneurs often need to think for themselves, be creative and have a spark of individuality. If you’re going to smother them with your own decisions, they’re not going to blossom or grow. Let them make a few small decisions – how to spend their pocket money, how to resolve a fight with a schoolfriend, etc. Perhaps they won’t get it right at first and will make a few mistakes, but it is better that they learn now, rather than later. Of course, it is important to intervene for major decisions where safety, wellbeing and happiness are concerned.”
Expose them to failure
The road to entrepreneurship is fraught with ups and downs. In a world where we drive children to excel at everything and shield them from failing, they are becoming less resilient at coping with failure. “Failure has two benefits,” says Radhya. “The first is that kids learn from their mistakes and find alternate ways to approach their goals on their own. The second is that they know they have to keep working hard when the going gets tough. It takes tremendous strength and endurance to build a successful business; failure will only help them build these effectively.”
Develop common sense
It is great to pursue one’s passion, but it is even better to pursue profitable businesses. Ask your kids to write down their ideas for a new business. Go over them and gently explain why some of them are more conducive than others. Also, give them simple steps to achieve each goal. Encourage them to work towards their aptitude and also recognise opportunities wherever they can. However, if they must take risks and are hell bent on chasing impossible goals, encourage them to do it sooner rather than later. After all, as Mark Twain said, “Twenty years from now, you will be more disappointed by the things that you didn’t do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbour. Catch the trade winds in your sails. Explore. Dream. Discover.”