Earning 102
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Earning 102
Clarissa was super excited from her chat with Uncle Duke. She had so many options, but decided to start with baking cupcakes, and washing sneakers for her family and community. Even with all her great ideas, she still didn’t really know how to get her first customers.
So, she went straight back to her wise Uncle Duke for some more advise on how to get customers in, and how it would all work with payments.
Uncle Duke had some wise words to share, “Family and friends are a great place to get started, but to truly test the idea would be your potential customers only. It can be tricky when testing your ideas on your family/friends as they may not give you honest feedback if they think would hurt your feelings, and more importantly, their opinion is not helpful if they are not your ideal customer type.
Remember feedback is good, as it helps you get valuable information”.
Uncle Duke then explained, you must do your research, how much will it cost you to make the solution, and then decide what price can you sell it for. You always need to make sure you are charging more than what it costs you, so that your hard work is worth your time.
The two best types of research is online research, and also interviewing your potential customers to ask them how much they would pay for this option, and also what they would expect.
“What about the admin of organising times and accepting payments?”, asked Clarissa. Uncle Duke smiled and said, “Well that is where you parents can step up and help! Get them involved to help you set up times on the weekend for you to do the work/deliveries with the right people, so that they can make sure you are being safe when working with possible strangers.
As far as payment goes, always offer, and take whatever payment is available or convenient to the customer. You don’t want people owing you money when they are happy to pay upfront!”
Before Clarissa left to go home, her Uncle Duke gave her a notebook from his desk. The most important part of any business is keeping track of what money you have going in and out, as well as who owes you money for work you did. If you do not track these payments, you will never know how much you are actually making.
Uncle Duke explained, “Use this book to record all your transactions, money coming into the business and money going out. If you are using online payments, get the bank statements to assist you in keeping track. Your parents can definitely get you set up with a junior bank account.”
Uncle Duke finished off by saying, “There are two very important rules to follow once you have started. Always keep on track of these as part of your work.”
“But as always, hard work and dedication will eventually make you successful”, said Uncle Duke!
Continue with your lesson to find out what happens with Clarissa …
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