Lesson 2

USS Biz Trek

Lesson 2: Plotting Your Course

Wendy: So, what do you want to do now?

Lalo: I want to fly my way through the vast outreaches of space and find the lost treasure that is my true right as an adventurer to claim.

Wendy: Yeah, whatever. I meant which way do you want to go? Have you chosen a flight path?

Lalo: Oh! Um….no. Not yet. Got any ideas?

Finding Money-Making Ideas

Starting your own business is just like the cartoon. You know you have talents and skills — the hardest part is deciding which way to use them.

For example, what can you do to earn money with your computer and technology skills? You could offer computer tutoring, sell computer parts and accessories, repair computers, start a new eCommerce Website, write software, specialize in graphic design, or do dozens of other things. The YoungBiz Top 100 report for the year 2000 revealed that at least one-third of the most successful businesses for teens today involve using computer skills and the Internet.

Other successful business fields that made the Top 100 were entertainment, publishing, home and office services, and agribiz. Click this link to go to the YoungBiz Top 100 report and see what other ‘treps across the United States are doing to earn money. Then use your browser’s back button to return to this page.

Types of Businesses

In addition to choosing what products to sell, you will need to decide what type of business you want to run. There are four types of business to consider.

Manufacturer: The manufacturer is a company or person who makes a product from raw materials. If you bake muffins or make jewelry, you are involved in manufacturing.

Wholesaler: The wholesaler buys the product directly from the manufacturer in large quantities. The wholesaler earns money by selling (or distributing) the product to stores (or retailers). Another common term for wholesaler is middle person.

Retailer: The retailer is someone that sells products directly to customers. When you buy candy at a warehouse outlet or discount store and sell it to your friends, you are a retailer. Most young entrepreneurs are retailers.

Service provider: A service business is based on selling your ability to do work. Mowing yards, washing cars, and pet sitting are services. Instead of selling goods, you are selling your knowledge, time, skills, and labor.

Make Mine a Combo!

Are you limited to operating only one type of business? Not at all. Young entrepreneurs who invent a product and manufacture it sometimes also operate as the wholesaler. For example, you might publish a small recipe book (that’s manufacturing) and sell packages of 12 to local gift shops (that’s wholesaling). The gift shop (the retailer) sells a book to a customer who takes it home and reads it (the customer is a consumer). This process of moving a product from manufacturer to consumer is known as the chain of distribution. You can fill more than one slot or link in the chain of distribution.

Can you see the advantage of being both the manufacturer and the wholesaler of a product? What about being the manufacturer, wholesaler, and retailer? Manufacturers who sell directly to consumers make higher profits because they don’t have to pay the middle people!

Another way that some entrepreneurs combine business types is to offer both services and goods. A good example is a party planning business. You sell the service of planning and running a birthday party. However, you may also sell goods such as birthday cakes, balloons, napkins, or party favors. That means your business is both service and retail. What advantage do you see with this arrangement? (Hint: You sell the same customer more stuff!)

Entrepreneurs are "Opportunity Seekers"

Most business-minded people practice the habit of watching for money-making ideas everywhere they go. They look at the world around them with their entrepreneurial "radar" tuned into opportunity. One of the greatest signs of opportunity in today’s high-stress society is someone who is obviously too busy. A busy person may hire you to be a personal shopper, gourmet cook, computer consultant, gardener, secretary, or fitness partner. If you want lots of customers, choose a business that allows you to use your talents and skills to help people save time, money, or labor. In other words, find a need and fill it.

One way to locate people that need help is to take a survey in your own neighborhood. Take some time right now to call 12 busy people you know and ask them what goods or services they need most.

Make it a habit to watch for needs that aren’t being filled. Looking for opportunity is not something you do just once. As you practice being an opportunity-seeker, you will begin to see ideas for business everywhere you go.

Time to Get Trekkin’!

The next step in your journey through the outer limits of entrepreneurship is to choose the right business for you. The USS Biz Trek activities that follow will help you make that decision. Just click on the links, carry out the directions for each mission, and use your browser’s back button to return to this page when you’re finished. Happy trekkin’!