hen 17-year-old Jen Keller decided to open Strung Out Beads and Wiring, a make-your-own-jewelry store in downtown Somerville, NJ, she got a crash course in business she wasn't expecting.

Now that she's had 18-months' experience, it all runs smoothly, but Jen says getting the idea for her shop and deciding to open in time for the Christmas shopping season forced her to learn a lot in only 10 weeks.

Before opening her business, Jen enjoyed bead embroidery and handcrafted jewelry as a hobby. Then her parents went on a trip to Canada and visited a bead store where customers could make their own necklaces, bracelets, and earrings. When they told her about the shop, Jen loved the idea and wanted to open a bead store of her own.

Setting Up Shop
Checking around for a location, Jen and her parents decided that the best place for her business would be a vacant 3,200-square-foot store on Main Street. Her father had offices next door, so he could help oversee the store when Jen was in school. Her mother, who is an accountant, agreed to help Jen set up the legal side of the business.

"Right away, we knew we would need employees," says Jen. "Before the store opened, we hired people to build displays, unpack boxes, and help set up." The initial inventory included African beads, silver and gold beads from Bali and Nepal, seed beads from the Czech Republic, vintage glass beads, crystal beads, and art glass beads. Jen reserved the back of the store for teaching classes and hosting jewelry-making parties.

Fair Hiring Practices
At first, Jen hired friends from school to help, but soon realized she knew very little about being an employer. Her mom recommended the book Starting and Managing Your Own Business in New Jersey, published by the Service Corp of Retired Executives (SCORE). An uncle loaned her a copy of the operations manual his company gives all new employees.

From these resources, Jen learned about the legal responsibilities of an employer to follow fair hiring practices, avoid discrimination of any kid, provide a safe work environment, and handle payroll correctly. These are some of the steps she took next.

1. She started using a standard job application form for all applicants.

2. She set the beginning wage for all employees slightly higher than the federal minimum wage requirement.

3. She hired a company to handle her payroll.

4. She decided to carpet the store to protect employees and customers from slipping and falling if beads were dropped on the floor.

5. She installed security cameras in several key locations.

6. She created a handout outlining operating procedures for the store, and required employees to read it and sign a statement saying they would abide by the terms.

Problems Crop Up
Even though Jen did everything possible to hire good employees and train them properly, she wasn't able to avoid all problems. Last year, one employee in particular kept arriving late for work almost every morning or calling in sick. After a few verbal and written warnings, Jen knew she had to let her go. As it turned out, Jen was in an early-morning class at Raritan Valley Community College, when the employee again showed up a half-hour late and was given notice that the company no longer need her services.

Looking back, Jen says she should have followed early clues and not hired the girl in the first place. "It's a hard process, hiring people. You need someone who's dependable — someone who will care for your business as much as you do."

Value of Mutual Respect
She believes it's essential to create a positive and creative working environment where employees feel respected and valued. For the most part, Jen's employees follow the store rules.

When hiring, Jen looks for people who are interested in making jewelry and working flexible hours. Since she's still a teen herself, Jen knows not to expect a long-term commitment from most teenage employees and to be prepared for short-notice requests for a day off or for termination of employment. Fortunately, Jen's store is popular with jobseekers, and it's relatively easy to replace employees within a week.

"Employees are great because they offer another pair of eyes," Jen says. "They come up with great ideas and offer wonderful insight."