BUSINESS AND CHILDHOOD

Last night, over a dinner with some great friends, one friend told me all about her son's new venture.

He has ganged together with some schoolfriends in a new activity which is keeping them all obsessed. They buy bargain food and drink from the Co-op in multipacks, and then sell them to their school colleagues.

I was amazed at how they all seemed to be learning, in practice at an early age, all the lessons I teach in my finance courses!

1. They had decided to stick to bargain purchases only (cost-leading strategy based on purchasing strength)
2. They chose not to pay themselves anything, but to store all their money for future purchases in a money box (nil-dividend strategy due to inventory demands in a fast-growing start-up)
3. They had each taken a responsibility: one managed drinks, one chocolate, and one other snacks (business segmentation and company structure)

There was much more they had learned and planned. For instance, others now wanted to come in on the venture, but they had decided to limit the stakeholders for the moment.

Very wisely, his mum balanced the business interest with social responsibility:

"What are you going to do with the profits?" she said. "Had you thought about making a contribution to charity?"

He paused.
"We haven't really thought about it yet Mum. But it's a good thought."

What a brilliant mini-education!

Maybe eventually they will become competition for the school canteen, and become subject to government regulation!

But, until that time, they have an opportunity to learn so much. They can learn about patiently working hard, and getting back some reward. They can learn about working together, the arguments it can cause, and how to develop some patience to resolve the problems. I wish them lots of luck and success!