Young Entrepreneurs
Learn what it takes to start a business — from brainstorming ideas and calculating costs to setting prices and making a profit.
What Is a Business?
A business provides a product (something you sell) or a service (something you do for others) in exchange for money. The goal is to earn more than you spend.
Revenue - Costs = Profit
Revenue is the money coming in. Costs are what you spend to make your product or service.
$100
Revenue (money in)
- $60
Costs (money out)
= $40
Profit (what you keep)
Business Ideas for Kids
Lemonade Stand
Buy lemons, sugar, cups. Sell cups of lemonade for $2 each.
Handmade Crafts
Make friendship bracelets, cards, or bookmarks. Sell at school markets.
Dog Walking
A service business — walk neighbours' dogs for a fee. Low costs!
Bake Sale
Bake cookies or cupcakes and sell them. Track ingredient costs carefully!
Understanding Costs
Every business has costs. You need to know your costs to set the right price.
Example: Cookie Business Costs
| Cost | Amount |
|---|---|
| Flour, sugar, butter, eggs | $15.00 |
| Chocolate chips | $5.00 |
| Paper bags for packaging | $3.00 |
| Poster for advertising | $2.00 |
| Total Costs | $25.00 |
This makes 50 cookies. Cost per cookie = $25 / 50 = 50 cents each.
Setting Your Price
Your price must be higher than your cost to make a profit. But not so high that nobody buys!
Cookie Pricing Example
Each cookie costs 50c to make. You sell them for $1.50 each.
Profit per cookie: $1.50 - $0.50 = $1.00
If you sell all 50: 50 x $1.50 = $75.00 revenue
Total profit: $75.00 - $25.00 = $50.00 profit!
Key Vocabulary
Revenue
The total money a business receives from selling its products or services.
Profit
The money left over after paying all costs. Revenue minus costs.
Costs / Expenses
Money spent to run the business — materials, advertising, packaging.
Entrepreneur
A person who starts and runs their own business, taking on risks for rewards.
Worked Examples
Mia's lemonade stand: costs $10 for ingredients. She sells 20 cups at $1.50 each. What is her profit?
Revenue: 20 x $1.50 = $30
Costs: $10
Profit: $30 - $10 = $20
Jake makes 30 bookmarks. Each costs $0.50 to make. He wants $15 profit. What should he charge per bookmark?
Total costs: 30 x $0.50 = $15
Total needed: $15 (costs) + $15 (profit) = $30
Price per bookmark: $30 / 30 = $1.00 each
Zoe's dog walking: She walks 3 dogs per week at $10 each. Her costs are $5/week for treats. Weekly profit?
Revenue: 3 x $10 = $30
Costs: $5
Profit: $30 - $5 = $25 per week
Knowledge Check
Select the correct answer for each question. Click "Check Answer" to see if you are right.
Question 1
A cupcake business earns $80 in revenue. Costs are $35. What is the profit?
Question 2
You spend $20 on materials and earn $15 from sales. Did you make a profit?
Question 3
Each bracelet costs $2 to make. You want to make $3 profit per bracelet. What should you charge?
Question 4
What is the name for money a business receives from selling products?
Question 5
You sell 40 cookies at $2 each. Your total costs were $30. What is your profit?
Key Concepts Summary
- ●Profit = Revenue - Costs. You must earn more than you spend.
- ●Costs include materials, packaging, advertising, and time.
- ●Your price must cover costs and include profit.
- ●An entrepreneur is someone who starts a business and takes risks.
- ●If costs exceed revenue, the business makes a loss.