16 years old, interested in starting a small business next year

[Penguin]

Hi there! I am 16 years old, turning 17 later this year. I've always had this idea of opening up a bottled juice business. Since I was younger, I've always loved juices and the idea of juicing and working around fresh vegetables and fruits and such. I am lucky enough to live in a city where there is a great demand for juices-- namely cold pressed, and organic juices. My goal is to get a stall at a farmers market, and sell my product there -- and if I see that it is doing well then I would try to expand to other farmers markets, and eventually maybe have an actual warehouse to produce these bottled juices in bulk! Ok, I am getting a bit too carried away here. Moving swiftly along.. Most likely, I wouldn't be able to do this on my own-- so I would have to get a partner. I will be starting college next year, and will hopefully be taking some business courses in my freshmen year where I can maybe and hopefully meet someone who wants to start a business with somebody.

I know this idea is nowhere near original, and it doesn't seem like it has much to offer. However, in the future if it ever does grow-- I would want to donate 3-10% of all proceeds to penguin conservation, as I would want the brand to be called "Penguin Juice" or "Penguin Liquids". My main question for you guys is: how can I get started? I have $1200 in my savings currently, and I know for the most part what I need in terms of supplies and such: a heavy-duty cold pressed juicer which would most likely cost me anywhere between $400 and $700, eco-friendly plastic bottles which I'd order in bulk from AliBaba, and some graphic which I could stick onto the bottle.

I've dreamed of doing this for as long as I can remember, and I hope that I can get this done. Responses would be appreciated!

[Freelancier]

The first step you need to do is research what your state/local governments require of people who produce food for immediate and/or bottled consumption. There might be a size of business that you could stay under and not be licensed, but it might be quite small (or non-existent). If you need to get licensed, then you need to see what you need to do to comply with the licensing requirements (first thing is that you likely can't get licensed because of your age, so you might need to drag one of your parents into this). You'll also need a sales tax number and collect and remit sales taxes to the state/county/local governments (depending on where you live).

It's a grand adventure starting a business, but make sure you have your ducks in a row before spending on product or items to inventory.

[David@ZeroZen]

Sounds great! Do this and you will save yourself your savings, and likely a lot of money in the long-run. Start small, dream big. When I started ZeroZen, I focused on building websites for cheap as hell and getting my feet wet. I hired an Indian developer and I went to all the major marketing firms in town and said I was a web design company. Here we are 4 years later, over 500 clients worldwide, and a full, in-house team.

I would actually start by first getting your product out to the market however you can. Test the market first-hand and listen to what people have to say. Here in our town, there is this little fresh Ice Cream Sandwich cart. I've never had anything so good. An absolute marketable retail product. They are smart though. They sell out every night, working the same spot. They are getting another cart started in another busy part of town. Their cost right now is next to nothing and their profit is great! The most important thing this allows is for them to test the market AND get that track record. Track record will go a long way. Whether you are looking to build retail partnerships or trying to raise capital. If you have a product that has been in the market and is a winner with your audience, it will go a hell of a lot further.

Another thing you should always say is "WILL". Not "if" it grows. If you use the world if when you refer to growth milestones, you are 50% out of the game already. I always told myself that I would keep working at my startups until I was broke, living on the street. I would learn a lot of lessons, start over, and make much better decisions. So far, I'm still off the street.

So - for now, start small. Think micro and your operation will grow organically. That will build a great foundation underneath you and when you get in there with big-dog retailers, you will have already gotten your feet wet.

Good luck!

[FullTiltBusiness]

This is really awesome! Make sure you have everything in a row. I would set up the business entity as an LLC or Corporation the day you turn 18 and then start looking at the laws. You can contact your County Board of Health (the people who do restaurant inspections) to find out exactly where they are. They are in the business of educating people for foodservice and preparation for sanitation issues. If it's not handled at the local level, they will know who to contact at the state level. It will be one-stop shopping for you.

Financing is a different story.

Good luck!

[Penguin]

Sounds great! Do this and you will save yourself your savings, and likely a lot of money in the long-run. Start small, dream big. When I started ZeroZen, I focused on building websites for cheap as hell and getting my feet wet. I hired an Indian developer and I went to all the major marketing firms in town and said I was a web design company. Here we are 4 years later, over 500 clients worldwide, and a full, in-house team.

I would actually start by first getting your product out to the market however you can. Test the market first-hand and listen to what people have to say. Here in our town, there is this little fresh Ice Cream Sandwich cart. I've never had anything so good. An absolute marketable retail product. They are smart though. They sell out every night, working the same spot. They are getting another cart started in another busy part of town. Their cost right now is next to nothing and their profit is great! The most important thing this allows is for them to test the market AND get that track record. Track record will go a long way. Whether you are looking to build retail partnerships or trying to raise capital. If you have a product that has been in the market and is a winner with your audience, it will go a hell of a lot further.

Another thing you should always say is "WILL". Not "if" it grows. If you use the world if when you refer to growth milestones, you are 50% out of the game already. I always told myself that I would keep working at my startups until I was broke, living on the street. I would learn a lot of lessons, start over, and make much better decisions. So far, I'm still off the street.

So - for now, start small. Think micro and your operation will grow organically. That will build a great foundation underneath you and when you get in there with big-dog retailers, you will have already gotten your feet wet.

Good luck!

Wow that is pretty inspiring! That would be a true dream of mine to start out small and then move up like your company! I obviously don't want to live on the street, but if I felt as if my business had a lot of potential -- I would take a risk financially. Jim Cramer (a notable investor and TV personality on CNBC is annoying, but he always encourages young people to start investing at an early age and I see why he says it). Often times, you have to ask yourself: "what do I have to lose and what do I have to gain from this endeavor?".

[Penguin]

This is really awesome! Make sure you have everything in a row. I would set up the business entity as an LLC or Corporation the day you turn 18 and then start looking at the laws. You can contact your County Board of Health (the people who do restaurant inspections) to find out exactly where they are. They are in the business of educating people for foodservice and preparation for sanitation issues. If it's not handled at the local level, they will know who to contact at the state level. It will be one-stop shopping for you.

Financing is a different story.

Good luck!

Thanks! I haven't looked into all of these details yet, but I will be soon. At the moment, I am nowhere near close being equipped to start this little business in terms of finances -- however if I keep saving, I think I can do it. What would you say would be a good amount to start with? I'd of course would like to have money on the side too.

[vangogh]

First welcome to the forum Penguin. You're way ahead of where I was at you age. At 16 I was barely interested in a job, let alone running my own business. Congrats to you for wanting this in the first place. Keep that spirit more than anything else. You may find your first attempt at this doesn't work the way you hope, but if you keep that entrepreneurial spirit, the next business or the one after that will succeed.

I agree about looking into the licensing and other requirements first. I also have a feeling your age will put up some roadblocks and you might need your parents for a few things until you turn 18. You might benefit from working on a business plan. It sounds like you've thought a lot about this business already and you have some good ideas for getting started, but there are probably some things you haven't thought about given this would be your first business. The act of working on a business plan can help you figure out a lot in regards to how to start and run your business.

The site I used to recommend for sample business plans doesn't seem to be offering them anymore. You'll probably have to search a little, but I'm sure you can find some sample plans online. You don't need one, but I found it helpful when I was starting to look through some sample plans, mainly because they got me to think through some things I hadn't.

As far as how much money you need to start, it depends on the business and the costs you'll have in starting it. Your costs and how much capital you need to start are sections in a business plan. One of the reasons I recommend a plan is because it will get you to think about, research, and list all the costs you can think of to help you know how much money saved you'll want. It also depends on you and how much money you need and want personally. At 16, you shouldn't need a lot of money. I assume your parents aren't charging you rent or asking you to pay your share for utilities of food. That's good because you probably won't need the business to make as much as someone who's 35 with a spouse and a couple of kids. It'll give you more time to make the business successful.

Hope that helps.