Get Creative With Your Location These teens found unique solutions to the age-old question of where to locate a business for maximum profits.
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(YoungBiz)- What are the three most important factors to consider whendeciding where to open a business? Location, location and location!But if you're a teen business owner, location can be a realproblem. You may, for instance, have little start-up cash, sothere's no way you can afford the high monthly rent of a primelocation. And if you did have the money, you're too young tosign the contracts required to rent a storefront or office. Andbesides, who would mind the store during all those hours you'rein school?
Never fear, say our teen 'trep experts. With a littlecreativity and a lot of determination, you can find a way to solvethe location problem and get your business off the ground forlittle or no upfront cash.
A Place forEverything
While most adult entrepreneurs grapple with the stress of coming upwith cash for rent and utilities, office furnishings and salariesfor employees, these are areas in which starting small can actuallybe an asset. All four of our young experts found they could producetheir products from home--they just needed to find a good place tosell them.
Next Step |
What makes a location great isdifferent for every business. Find out why here. |
For Daniel White, the 20-year-old owner of DEWIE Chairs forChildren in Houston, where to find his target customers was ano-brainer. "I had a lemonade stand at the soccer field,"he explained. "I brought the chairs I had for sale, and I setthem out by the stand."
That worked well for a while, he said, but then he realized heneeded to reach more kids (and their parents). His solution?Striking a deal with a local day-care center, White was able todisplay pictures of his chairs, constructed out of PVC pipe andcanvas, as well as an order form on the front desk. Some businessowners need to be close to their customers, but not White. Hesimply picked up the order forms once a week and delivered thechairs back to the day-care center when they were ready.
Very Crafty
Perfect, huh? White thought so, too, until he discovered craftshows. "Craft shows don't take too much money to getin," he said. "The average fee for a table is only$40." Not too shabby, considering White sometimes made as muchas $1,000 per show during the holiday season.
Erica Gluck, 16, owner of Erica's Pasta in San Diego, cameup with a similar solution to sell her fresh pasta, gourmet breads,pesto and flavored oils: farmer's markets. Like craft shows,farmer's markets charge minimal fees for space and get a lot offoot traffic. Gluck sells her products at three different marketsin her area.
"I could have opened a business with permits andeverything, but this is so easy," she explains. "It'soutside, and, unlike a store or shop, it isn't 10 hours aday."
Let's Make aDeal
Like White, Maggie and Allie Cawood-Smith, the 15-year-old twinowners of Beet Lips in Auburn, California, found the best way tosell their herbal lip and skin balm was to make agreements withother local businesses. The biggest factor was transportation toget to and from the other stores. Luckily, their parents were happyto chauffeur.
"We hopped in the van and went store-to-store in town tosmall businesses like produce stores, gift shops, coffee shops andsmall grocery stores," Allie says. "Some stores pay usupfront, and others prefer consignment. We put the product on thecounter next to the cash register with fliers and a small signsaying how much it costs."
The PerfectSpot
These creative solutions all work well, but Gluck and theCawood-Smith sisters agree that there is another perfect businesslocation out there: the Web. Some thought it was odd when Gluckbegan selling her food products at www.pastapress.com several yearsago, but with the number of gourmet food sites around now, turnsout she was just a little ahead of the trend.
The twins, who sell their balm at www.ourfamily.beetlips.com,also offer a glowing endorsement of Web sales. "We made $700in one month the Christmas before last," Maggie explains.
So if you can't afford a traditional location solution likea storefront or an office, think about some nontraditional oneslike these entrepreneurs chose. And remember, location really isone of the most important factors in getting your product into thecustomer's hands.