So, you want to be an entrepreneur?

Introduction

This booklet is separated into four main sections. In each you’ll see something called Next Steps where you’ll need to do the work!

You could do this on your own, but there will be some things you’ll need to talk through with someone-else. Either way, you’ll need a notebook. It’s best if you can go through each section in order, but if you already have a brilliant name for your business and can’t wait until Section 4 (Go-Create!), why not make that the first thing to write down in your notebook!
 

Disclaimer: This booklet is intended for information purposes only and does not constitute, or is intended to form, any kind of legal or financial advice. Careers Wales cannot be held responsible for any direct, indirect, or consequential loss or damage as a result of the information in this publication. Information relates to the law in Wales only at the time of publishing. External links are provided for informational purposes only and do not constitute endorsements from Careers Wales.

Acknowledgements:

Focus group:  Pupils from Years 8-12, Bishop of Llandaff School, Cardiff

Young entrepreneur films: Gwil, Lloyd, and Joe; Ffion, Caitlyn, Lleucu, Ellen, and Tesni

Videographer and Editor: Emma Drabble

Author:  Lorraine Allman 

Design: Girl & Boy Design Ltd 

This guide has been developed as part of a suite of new resources to support Welsh Government’s long-term commitment to Youth Entrepreneurship.

1. The basics

Can I start a business if I’m still at school and under 16 years of age?

Absolutely you can! In fact, there are some very well-known businesses started by teenagers from their back bedrooms – think of Subway, Yankee Candle, Tumblr, and Apple. 

But there are a few things to consider such as: 

• Making sure the business doesn’t stop you from going to school or affecting how well you do there.
• Getting support from a trusted adult (someone aged 18+ who you trust such as a Parent/Guardian, Teacher, Careers Adviser, or family friend) who may also need to help with some of the legal things. 

The law limits when you can work during school term-time e.g. not before 7am or after 7pm, and sets rules for working hours at weekends during term-time and holidays depending on your age. 

But surely these restrictions don’t apply to someone running their own business? 

We can’t deny it, they don’t apply to anyone self-employed (running their own business), but the restrictions are there for a very good reason – it’s important that any work you do whether self-employed or employed as a young person doesn’t hurt your education, health, and well-being, so be sure to talk through your plans with a trusted adult.

Next steps

• Have you thought about how much time you want to put into starting the business? Will it run during school holidays, or through term-time as well? How are you going to manage your school work and other committments
• Talk these questions through with your trusted adult, and make sure you have their support for what you want to do.

***If you’re nearly 16, and thinking of leaving school but not sure what to do next, have a chat with a Careers Adviser, or Teacher to explore your options.

2. Discover

• All about business

• All about you

We’re going to start by looking at the skills and qualities needed to run a business, and help you think about your own skills and mindset. By the end of this section, you’ll have a better idea of what it means to be an entrepreneur, and whether your business idea could work.

All about business - What is an entrepreneur?

An entrepreneur is someone who starts their own business, but may have to take a few risks to make it happen. Not everyone is cut out to run a business but having the right attitude and a passion for what you want to do will definitely help.

Next steps

• Think about the type of person that would be good at starting their own business.
• What kind of skills and qualities would they need?
• Is there an entrepreneur you particularly admire?
• Watch this video from Big Ideas Wales to discover more about what is an entrepreneur

What makes a good business idea?

To be an entrepreneur you need a business idea. Then, you need to think that idea through:

• Does it solve a problem for people?
• Can I make money from it?
• Is it something different to what’s already out there?
• Will I be doing something I enjoy?

If you’re working around school and don’t have a lot of money you might also need to think about an idea that means you can:

• Work from home
• Do flexible hours around school and other commitments
• Start the business without much money (capital)

Next steps

• Is your business idea a good one? List out why you think it is, and talk that through.
• Is there a space you can use at home to run your business from? How many hours do you think you will need to put in to get the idea off the ground?
• Take a look at the list of Business Ideas at the back of this resource, or check out the Ideas Generator from Big Ideas Wales.

The good and not so good things about starting a business (risks and benefits)

Did we mention it’s not easy starting a business?

It’s not to put you off, just to make sure you know that there will be some challenges along the way. Here are just a few:

• Every year in the UK 1 in 5 new businesses will fail
• Starting a business, even a part-time one will take up time that you might have used to go out with friends, play games or watch TV.
• Running a business can be stressful, there’s never enough time, things don’t always go to plan, and sometimes customers can be difficult.

How do you feel about these statements? Maybe you think there’s no point trying to start a new business if 1 in every 5 fail each year. Or perhaps you look at it differently and focus on the 4 out of 5 new businesses that succeed?

Think about how an entrepreneur might respond to these statements.

Now for some of the good things about starting a business!

• As a young person you don’t have all the responsibilities of an adult (think mortgages and cars) so there is less to lose if things don’t work out, and more money to make!
• Starting a business at a young age can give you a head start when it comes to applying for jobs or college/university because of all the brilliant skills you’re learning (problem-solving, managing money, communication, managing your time, and lots more).
• Your brain works faster than most adults4, which means you can learn and adapt quickly.

Next steps

• What other good things about starting a business can you think of?
• Which is the one thing that excites you the most?

All about you

Don’t skip this section! It’s not easy working on yourself, but it’s a really important part of making your business a success, and working out what or who you might need to help you.

• Do you think you have what it takes to start a business?
• Do you give up easily, or try to work through problems?
• Are you ready to give up some or all of your social life to make this happen?

Even if you’re confident about starting a business, it’s worth having a chat to people around you such as family, friends, or teachers. Ask them about the kind of skills and talents they think you have – you might be surprised, and it may lead you to think about some completely new business ideas.

There’s a brilliant online quiz called Enterprise Catalyst. It’s only takes 10 minutes to do and is completely free. You’ll get a personalised report that shows your attitudes towards enterprise (business) as well as the things that motivate you (makes you want to do things).

Next steps

• Complete the Enterprise Catalyst quiz – it’s only 10 minutes!
• Speak to friends, family, teachers, and careers advisers about your business idea, and the kind of skills and talents they think you have
• If there are gaps in your skills, think about who could support you with those.

You might feel a bit hesitant speaking with people about your business idea, but they will want to help and support you. People who have been in the same situation as you are now, just starting out in business, will also have lots of top tips to share, and insights into particular industries, so make the most of your time with them.

Top tip

Building a business on something you love is such a great way to start

Name: Joe; Business: Eiconig Cy.  Iconic Welsh figures merchandise; Started business: Aged 16.  Learn more about Joe and his business by watching this short film.

3. Explore

• Your business idea

• Your customers

• Let's spy!

Let’s look at your business idea in more detail, including customers, competitors, and pricing.

Your business idea

One of the main reasons a business fails is because there isn’t a plan. Having an idea in your head is fine, but writing things down about your business idea and the goals you want to achieve will help make it real.

In Discover you looked at what makes your business idea a good one. Now let’s look at that in a bit more detail.

Next steps

Look back at Discover to remind yourself what makes your business idea a good one.

• Will you be selling a product (lemonade, cakes, jewellery) or a service (car washing, graphic design, computer repairs)?
• Write down where you are going to run the business from and how often will you run it e.g. in school holidays or all year round.
• Now set some goals about when you want the business to start, and how many sales you want to make.

Don’t worry if you can’t think of specific goals at the moment, just try to imagine the business in a few months’ time and how you think it will look and feel when it is successful.

Let's spy!

Someone selling the same product or service as you is called a competitor. They will also be a competitor if they are selling something very similar to what you are selling.

• Who is selling the same or a similar product or service as you?
• How much are they charging?
• Why will customers choose to buy from you and not them?

Next steps

List at least 2 reasons why someone will buy from you and not a competitor. If you can’t think of any, then your customers probably won’t be able to either!

• What makes your business different from a competitor?
• Ask a friend or family member to help you find out more about your competitors.
  • Visit their web sites
  • Read their online reviews
  • Look at their social media accounts

Find out as much as you can about what they do well, and not so well.

Read ‘Checking out the Competition’ from Business Wales.

Your customers (and pricing)

You could have the best business idea in the world, but without customers (and sales) then there is no business.

• Who is going to buy from you?
• How much will they pay?

Finding out the answers to these two questions is called Market Research.

Let’s look at who is going to buy from you. This is called the demographics.

• How old are they or is there an age range e.g. 16-25 year olds?
• Do they live locally, across the UK, or world-wide?
• How many people of that age in that area are there? This gives you an idea of the size of the market you are trying to reach.

Next steps

• Visit the Office of National Statistics (ONS) website with a trusted adult to find information on population data for your business such as how many people of what age live where.
• Next, list out ways you would like to reach potential customers to ask them information such as how much they would pay for your product or service. This might include online surveys, or talking to them directly

Customer profiling

Customer Profiling is a way to help work out who your ideal customer is. This could include their age, gender, which social media platforms they use etc. It’s also important to try to work out any ‘pain points’ (something that might stop them buying from you e.g. a cost of living crisis could mean they don’t have as much money as usual).

An example of a customer profile could be:

• Aged 14-25 years
• Spend most of their time on TikTok
• Prefer handmade/artisan things rather than mass manufactured
• Pain point – limited money to spend due to cost of living crisis

Next steps

• Write down details about your ideal customer covering areas such as their age, location, gender, the social media platform they like to use.
• Don’t forget to think about any ‘pain points’.

How much will Customers pay for your product or service?

It’s no good charging £5 for something when customers are only happy to pay £1. There are lots of ways to find out how much customers will pay for your product or service such as speaking to them in person, doing an online survey, or looking up information online

Next steps

• Decide how you are going to find out what customers will pay, and make a plan for when you are going to do this. Your trusted adult can help you with a survey sheet or setting up an online survey. Is there anywhere online that may have the information you need?
• When you’re speaking to customers, think about when you’re going to be running the business (e.g. in school holidays) and try to find out if this will suit them. If not, you may need to have a re-think about timings.

The price is right

Now you know how much customers say they will pay for your product or service it’s important to be sure you can make some money (a profit) either for you to keep, donate to charity, or put back into the business. You’ll need to work out how much setting up and running the business will cost, and whether charging what the customer says they will pay will make you enough profit. Here’s an example of a product business:

Business: Lemonade stand, running from home during school holidays 

Charging £1 per glass of homemade lemonade (based on market research) 

To set up the business I need: Lemons, lemon juicer, fizzy water, jugs, glasses, table, bunting, posters, price list. 

Start-up costs: To sell 50 glasses of lemonade, I will need to buy 40 lemons, and 6 bottles of fizzy water. This will cost £15. I can borrow jugs, juicer, table, and bunting from family/friends who will also help me with posters and price list for free. 

50 glasses of lemonade @ £1 each = £50 sales income 

Less costs of £15 

= £35 profit (money for me to keep) for every 50 glasses sold

This example shows that charging £1 for a glass of homemade lemonade will more than cover your costs and make a nice profit. Of course, if you have to pay for any of the items you thought were going to be free, then your profit will be less, as shown below:

£1 per glass of homemade lemonade (based on market research) 

Start-up costs: To sell 50 glasses of lemonade, I will need to buy 40 lemons, and 6 bottles of fizzy water. This will cost £15. I also need to buy bunting (£5), a juicer (£2), and pay for printing of posters and price list (£10) totalling £17. I can borrow a table from home. 

50 glasses of lemonade @ £1 each = £50 sales income

 Less costs of £32 

= £18 profit (money for me to keep) for every 50 glasses sold

Looking at the second example, would you change the price charged for a glass of lemonade so you could make more profit?

How much would you charge?

Do you think the change in price will affect how many customers buy from you?

Pricing (working out how much to charge so you cover your costs and make a profit) is an important part of making your business a success.

Next steps

• Using the examples as a guide, now work out how much you are going to charge for your own product or service taking into account the market research you’ve done. How does this compare to what your competitors are charging? Remember, if you’re offering a service, you’ll need to work out how long it will take you to deliver the service as well as any items you’ll need to buy to be able to offer it.
• There is more information about Costs, Price, and Value at Business Wales.

**Start-up costs are also called ‘capital’ costs – these are things you need to buy just once to help you get the business set up, such as equipment or initial stock. Running costs (also known as overheads) are things that cost money when your business is up and running even if you don’t make any sales. This could include telephone calls, electricity, travel, advertising.

• If you’re starting a business that relies on buying materials in, make sure you check with suppliers what they are going to charge, and whether that includes delivery and VAT.

Here are examples of pricing for a product-based business, and pricing for a service-based business

Pricing for a handcraft, product-based business e.g. jewellery:

1. Supplier costs - Add up all cost of materials to make the product (let’s say £2 per item). Don’t forget to negotiate with suppliers to try to bring costs down if you can, and always check that the price includes VAT and postage
2. Hourly rate – what hourly rate would you be happy with for making the product (let’s say £10 per hour).
3. Now work out the time cost by looking at how long each product takes to make. Let’s say it takes 30 minutes to make one item, so the time cost will be £5.

4. To work out the price per item you need to do the following: 

   Time cost (£5) + Materials cost (£2) = £7 cost per item

 £7 may seem a small amount to charge, but if your competitors are selling the same or similar product for £3, you’re going to have to think about either dropping your price, or coming up with reasons why your product is better. Go lower, or be better is the message here.

 

Pricing for a service-based business e.g. computer repairs:

1. .Work out the estimated running costs of the business over a year. This may include telephone, stationery, marketing tools, and how much you want to earn from the business. Let’s say a total of £1000 per year.

2. Now write down how many available hours per week you think you can work on the business. Let’s say 5 hours per week, over a period of 30 weeks per year, for around 65% of the time (you may not be able to work all of the 30 available weeks due to being poorly, or having extra schoolwork to do). The calculation looks like this: 

   30 weeks x 5hrs per week x 65 (% of time available) ÷ 100 = 97.5 available hours per year
    

3. To work out the price per service hour or day, you need to do the following: 

   Estimated running cost (£1000) ÷ Number of hour available (97.5) = £10.25 per hour or £51.25 for a 5-hour day.

Similar to the handcraft product business, this may seem like a good figure, but it’s important to check what competitors are offering for the same or similar service.

Next steps

Once you have the calculations for your business, consider the following:

• How does the price compare to what competitors are charging?
• Does the price reflect the value of the product or service?
• Will customers pay that price?

Top tip

It’s the excitement when you have one of your first buys, it brings happiness, and you’re like… I can do this!”

Name: Lloyd Business: Neighbourhood services. Helping neighbours with mowing lawns, cutting hedges, and cleaning (but I have lots of other business ideas too!) Started business: Aged 12.  Learn more about Lloyd and his business by watching this short film.

Check the small print

The legal things

We know this isn’t the most interesting part of setting up a business, but it has to be done! Let’s look at the business structure you want, whether you need any insurances or permits, how you’re going to manage money, and something called intellectual property.

Did you notice the Disclaimer on the front page of this booklet? No? Go back and have a quick look… ‘small print’ is everywhere. It can’t be ignored, so here’s the lowdown on all you need to know about staying on the right side of the law when you start your business.

Bank accounts

You won’t be able to get a business bank account until you’re 18, but from age 11 you can open a personal bank account in your name and use that for managing money you make or spend through the business.

You will usually need a trusted adult to give their permission for you to have a debit card if you’re under 16. Some banks will need a signature from a parent/ guardian to agree to you having the account.

Next steps

• Talk to a trusted adult about how you are going to manage the money going in and out of your business
• Do you think you would need a bank account, or can you just keep a paper record?

Business type

No, not the font you’re going to use, but the kind of structure you’ll set up for your business. The two main types are:

• Sole Trader – a business owned and run by one person (that would be you!)

Most new businesses start as a sole trader. It’s really quick to do and you can be a sole-trader at any age.

• Limited Company – a legal structure which may involve more than one person, including people who have shares in the company.

You won’t be able to set up a Limited Company until you’re 18, so we’re not going to say much about it here other than it’s a bit more complicated to run because there are lots of regulations (laws) you have to follow.

Next steps

• Are you happy to be a sole trader to start your business?
• Is there someone you can speak to locally who is a sole trader so you can find out more about what it involves?

** You can be the Director of a Limited Company when you’re 16, but it comes with some legal responsibilities such as making sure the company accounts and reports are filed correctly, so take your time and find out more about what it involves before deciding. You can always start as a sole trader and change to a limited company later on.

Taxes

 Did you just roll your eyes? Pay attention!

Even if you’re running a part-time business as a young person, you may still have to pay tax so it’s important to keep an eye on how much money you make from sales of your product or service. You can make up to £1000 worth of sales through your business each year without having to pay tax on it, but if you go over that magic amount then… read on.

Anyone who brings in over £1000 a year from sales of their business will have to register to (possibly) pay tax, even if you’re under 16. So what does that actually mean?

In a nutshell, you’ll need to register your business (as a sole trader) with the HMRC. The who? His Majesty’s Revenue and Customs (HMRC). This is the organisation that manages all types of taxes across the UK and makes sure everyone pays what they should.

Next steps

• Don’t panic! The main thing is to make sure you keep a record of sales you make through your business.
• Your trusted adult can help you with this and will have lots more information about registering with HMRC.

Did you know you can earn up to £12,570 a year without needing to pay any tax? It’s called your personal allowance.

** When you’re 16 (or just before) you should be given a National Insurance (NI) number. Keep hold of this, you’re going to need it for lots of things including registering as self-employed.

Insurance and permits

Some businesses need special insurances or permits to run, such as if you are selling homemade food or drink, or if you make a product that comes into contact with a person’s skin e.g. bath bombs.

Can I sell from anywhere? If you’re selling your products from home, you shouldn’t need a licence, but if you want to go out and about you may need a ‘Street Trader’s Licence’. 

One last thing – if you are running the business from home, check with your trusted adult that this is covered under the home insurance policy.

Next steps

• Talk with your trusted adult about whether your business idea needs insurance or a special permit to run.
• Learn about the rules for keeping information (e.g. names and addresses) about your customers, and check whether the home insurance company needs to be notified if you are running a business from home.

Intellectual Property

Last bit, we promise

Intellectual Property (IP) is something you’ve created that’s so special it needs to be protected to stop other people from copying it. It’s also there to make sure you’re not copying someone-else! This could be a business logo, some words, an invention, or even computer code, but it can cost a lot of money to protect these, so even if you decide your business name is rather spectacular, make sure you talk things through first before deciding whether to protect your IP.

Next steps

• Talk with your trusted adult about protecting your business idea/logo/words etc.
• Make sure that your business logo, product, etc. isn’t copying (infringing) someone-else’s by checking the registers at the Intellectual Property Office (IPO).

A note about starting an online business

There are lots of ways to start up an online business and take money from sales online, depending on the products being sold and to where. Most established marketplaces will have set a minimum age for a seller, for example with Etsy you have to be 13+ years of age, and for eBay it’s 18+. PayPal offer a good payment gateway service but you must have a trusted adult aged 18+ to set up the account on your behalf, and there will be fees too.

If you’re thinking about having your own website, then you’ll need to make sure this is being run legally, as well as thinking about how people will find you e.g. search engine optimisation.

4. Go create!

• The brand

• The budget

• Shout about it!

This is where you get creative with your business brand, work out your budget, and put a plan together to tell everyone (or your target customers at least!) about your business.

• Did you write down that brilliant business name you had in your notebook at the start? What do you think of the name now you’ve done all the other work on the business – is it still the right name? Should it be tweaked a little, or do you have a brand new idea for a name?

The Brand

A brand could be a memorable name, logo, strapline, possibly all three, but definitely something that gives a good first impression! You can call your business whatever you want but you must not use a name that is already protected (see ‘Check the Small Print’ earlier).

As for first impressions, this is all about how you want your business to be viewed by customers.

• Think about the last time you had a good experience buying something. What was it that impressed you – the speed of service, choice of products, free postage, value for money, friendly staff?
• Did/do they have a strapline that caught your eye?

First impressions count. They make the difference between building a loyal customer base (people who keep returning to you) or not

Next steps

• How do you want your business to make a good first impression?
• What words would you like customers to use about your business? Here are a few: friendly, welcoming, reliable, quality.
• Draw up a list of ideas for your business name and strapline. Show potential customers your ideas and find out what they prefer and why. If you’re going to have a logo, who will design that for you?

The budget

A budget is a plan for how much money you think will come into the business (income), and how much you will have to spend (expenditure) over a block of time such as a month or a year. It helps make sure you have enough money for the things you need to buy, and helps you keep on track.

It’s best not to start a business with debt (money that you owe other people), but you will need to look at how you’re going to buy items to start-up the business (capital), and how you’re going to manage the money. ‘Bootstrapping’ means starting a business with a very small amount of money. Sometimes grants (money given to you that doesn’t have to be paid back) are available, but support from family and friends can help reduce what you have to spend at the start. There is also an option to do Crowdfunding – the UK’s youngest successful crowdfunder was a 7 year old from Wales who raised £746 to help get his charity recipe book published

Next steps

• Look back at EXPLORE. How are you going to pay for the items you said you’d need to get the business started (start-up costs)?
• Talk with your trusted adult about ways to do that and who could help.

Your budget will help you keep track of how the business is doing with money, so it’s worth having a go at putting one together. Here’s an example of a budget for a lemonade stand business:

INCOME (from sales of lemonade, £1 per glass)

200 glasses of lemonade sold over the 4 weeks = £200

Total income -  £200

EXPENDITURE (money out)

Lemons (£1 per bag of 5 lemons), need 160 lemons to make 200 glasses = £32

Fizzy Water (£1 per bottle, 10 glasses per bottle) – 20 bottles @ £1 each = £20

Bunting - £5 (need only buy once) = £5

Printing - £10 (print before business starts and again mid-point to keep interest up) = £20

Juicer, Jugs, Table – on loan for free from friends/family = FREE

TOTAL EXPENDITURE - £77

• What do you think of this budget? Is there anything missing, or anything that concerns you?
• What happens if sales drop part-way through the 4 weeks due to bad weather? Would you buy all the things you need at the start, or spread the purchasing over the four weeks?

Cashflow is about keeping track of how the money (cash) goes in and out (flows) of the business at any given point such as every week or month. For example, with the lemonade business you might decide to buy fresh lemons every week rather than buying them all at the start. That way, you don’t overspend on lemons if sales go down for any reason such as bad weather. Keeping track will also help you understand whether the business is making any money (a profit), or if you need to pause and re-think something that you’re doing

Next steps

• Decide how you will keep track of the money coming in and going out of your business.
• Have a go at writing a budget – you’ll need to work out how many sales you think you’ll make over what period of time (e.g. 4 weeks), then write down what you think you will have to spend over that time too.

Top tip

I had barely any money [when I started my business] so I was inventive. I bought a toolkit for £20… and started in a spare room in the house.

Name: Caitlyn Sheldon;  Business: CVS Technical. Hardware and Software IT repairs; Started business: Aged 21.  Learn more about Caitlyn and her business by watching this short film.

Shout about it!

Moving on from budgets and money now, let’s think about how people will discover your business.

• How will they know what you’re selling and where?
• How are you going to spread the word?
• How will you communicate why people should buy from you and not your competitors?

Marketing is a fancy word for shouting about your business! Social media is great way to do this, and it’s free too! However, if you’re staying local, then ‘word of mouth’ (someone recommending you to someone-else) can be just as powerful. 

The main thing is to spend time promoting (another word for marketing) your business where your potential customers are. If they’re all on Facebook but you’re shouting about it on TikTok, you’re unlikely to make many sales that way.

** If you decide you want to knock on people’s doors to sell your products, make sure you speak with a trusted adult first. There are some laws to be aware of if you want to sell in this way.

Next steps

• Make a list of where you’re going to shout about your business e.g. social media, local newspaper; posters; flyers; word of mouth. Are you happy that these are the best ways to reach the right customers?
• Think about when you will do all these things – do you want to build up some interest before you launch, or let people know in advance by putting posters up a few weeks before you start?

Pause and pull together

Take a break for a moment - look at what you’ve done so far!

Now it’s time to pull everything together to create your business plan - think of it like a map to guide you. If you’ve not already done so, download the editable template and transfer all the information and decisions you’ve made from working through the last four sections (Discover, Explore, Check the Small Print, and Go Create!) 

If you’re not quite ready to complete everything, write down what you can, and make a note of anything that needs to be done and when you’re going to do it by. Setting targets for when you want to complete things, and working out who can help you will make sure it happens.

Next steps

• Now you’ve put your plan together, is there anything you feel unsure about?
• This is the time to talk things through with your trusted adult before you Go For It!

Congratulations

on completing your business plan!

Don’t forget, this is a starting point. You may find as the business develops you will need to make changes, so always be sure to update the plan as you go along.

Next steps

Now give this plan to family, friends, and anyone who might be interested in your business and possibly investing (with money, time, or skills) in it!

Go for it!

You’ve done all the preparation by working through this booklet. Now is the time to set a date to launch your business and go for it!

Next steps

Write down the date you’re going to launch your business. Post it up where you, and anyone-else you want to share this with, can see it.

The do's and don't of starting a business

Do start a business doing something that you love. 

Do your research on customers, competitors, and pricing. 

Do have a plan for how you’re going to shout about your business! 

Do keep your business plan under review and be prepared to make changes. 

Do ENJOY the fact that many people dream about starting their own business, but you’re actually doing it!

Don't be afraid or too proud to ask for help whether that’s from teachers, family, friends, careers advisers, or other entrepreneurs. Most people are happy to share what they know and will want to support and help you. 

Don't see something not working out as a failure. No one ever gets things right first time all the time. When things don’t work out, view it as an opportunity to learn and improve from.

Don't forget to ENJOY your time as an entrepreneur! The skills and experiences will last you a lifetime, and benefit you whatever you decide to do.

Remember

Watch the short films of amazing young entrepreneurs from across Wales aged 12-25 who are already running their businesses, and sharing top tips with you.

30 Business ideas for 12-16 year olds

If you think you’d like to start a business, but not sure what, take a look at these ideas. Most of them need very little money to start up, but remember to check whether special permits, licences or insurance are needed. The main thing is to focus on doing something that you enjoy!

• Pet sitter
• Plant sitter
• Dog walker
• Gardener
• Maker of things* - jewellery, bath bombs, seed balls, greeting cards, candles
• Selling your artwork
• TV/film extra
• Content creator/Vlogger
• Live-streaming gamer
• Pop-up shop e.g. lemonade stand, ice-creams, sunscreen, beach towels (summer hols)
• Entertainer/Magician
• Photographer (friends, family, businesses)
• Reseller – car boots, vintage fashion, music, toys
• Neighbourhood helper e.g. sweeping leaves, shopping, running errands
• Website/app/game developer
• Fixing/upgrading computers
• Roblox Player
• Delivery service for local shops
• Social media consultancy
• Podcasting
• Baker – breads, cakes, custom-made
• Recycling/upcycling items • Voice over artist
• Charity work (Social Enterprise) – homeless/animals/ housebound
• Graphic designer
• Onsite skateboard repairer (tightening/changing wheels at skatepark)
• Tech support – set-up, training, troubleshooting
• Writer or illustrator
• Gift wrapper
• Car washing

UK Business Ideas, Top Trends for 2025

Glossary of Terms (the words we highlighted in bold)

Here’s a list of the business words we’ve used throughout this resource. Use it to check and remind yourself what the words mean.

Bootstrapping - starting a business with a very small amount of money, sometimes no money at all.

Budget -  a plan for how much money will come into the business and how much will be spent over a block of time e.g. a month or a year.

Business plan - a map to guide you through starting-up and running your business.  It will usually have information on your business idea, product/service, price, competitors, marketing, money and legal matters.

Competitor - someone selling the same or similar product or service as you.

Crowdfunding - raising money by asking lots of people to donate a small amount of money (usually in return for a 'reward')

Customer profiling - working out what your ideal customer looks like e.g. age range, interest, where they live, favourite social media platform.

Debt - money that you owe other people.

Entrepreneur - someone who starts their own business, but may have to take a few risks to make it happen.

Expenditure - over a block of time such as a month or a year, it helps you make sure you have enough money for the things you need to buy.

Grant -  money given to you that doesn't have to be paid back.

HMRC - His Majesty's Revenue and Customs.  The organisation that manages all types of taxes across the UK and makes sure everyone pays what they should.

Income - money that will come into the business, mainly from sales but sometimes also from grants or investments.

Infringing - breaking a law or agreement.

Intellectual Property (IP) - something created such as a business logo, words, invention, computer code that is so special it needs to be protected to stop other people from copying it.

Limited company - a legal structure which may involve more than one person, including people who have shares in the company.

Loyal customer base - people who return to your business for more of your product/service.

Marketing -  spreading the word about your business so customers can find you.  This could include social media, newspaper adverts, or word of mouth.

Market research  - finding out who is going to buy your product/service (their ages, location etc.) and how much they will pay for it.

Pain point - something that might stop a customer from buying a product or service due to external facture such as the cost of living crisis.

Personal allowance - the amount you can earn in any one tax year without needing to pay tax (£12,570 in 2024/2025)

Pricing -  working out how much to charge for your product or service so you can cover your costs and make a profit.

Profit - money that you make from sales through the business after you have paid out expenses.  Usually called 'net profit'.

Running costs  (also known as overheads) - the things you need to pay for when your business is up and running even if you don't make any sales e.g. electricity, phone calls, advertising.

Sales income -  money made from sales of your product or service.

Size of market -  how many people there are of the age, location etc. that you want your business to reach.

Sole Trader -  a business owned and run by one person.

Start-up costs (also known as 'capital') - the things you need to buy once to help you get the business set up, such as equipment or initial stock.

Word of mouth  - a person recommending your business to someone else (sometimes called 'referrals').

Remember, starting a business is a journey and it's OK to start small and make mistakes along the way.

Most entrepreneurs have had a go at starting several businesses before they find the one that really works for them. 

Every step is a valuable lesson that will help you grow as an entrepreneur and support you whatever you go on to do in the future.

Stay curious, determined, and enjoy the experience of building something of your own!