Recognizing a sweet opportunity for a financial gain
If the thought of finding ways to make money is overwhelming for you, then let this kid show you how easy it is to capitalize on an opportunity.
My first taste of business
It was another beautiful, sunny day in southern California, yet there I was, trapped in a modular building due to my schools attempt of handling the growing population, while maintaining a budget. It took all my inner strength to sit still and maintain my focus. I was in the advanced math class for us, 8 students in 8th grade, that showed potential and an interest in math. Don’t worry, high school math the following year, rejected any possibility that I was somehow gifted in this field.
In between daydreaming of being outside, and attempting to follow along with the algebra the teacher was convincing us would change our lives for the better, I noticed one of my classmates eating a starburst. “Hey, let me get one those.” I say with the most enthusiasm I’ve had all day. “No, but I’ll sell you one.” he replied. A light bulb lights up in my mind! And so it began.
Learn from someone already doing the things you want to be
As it turns out, my classmate was already ahead of the game. He explained how he would go with his mom to Costco on the weekends, buy candy in bulk, and then gouge innocent children out of their daily allowances with inflated prices. It was my first education in the basic economic principle of supply and demand. It was brilliant!
Consider the resources you have available
But what could I do? My mom didn’t shop at Costco, and he clearly was running a monopoly on the candy market. The idea of competition didn’t cross my mind at this time. Hmmm, what do kids want that they can’t get at school? I thought. What do I want, and what do I have access to?
I remembered this hole in the wall doughnut shop on the main street in town. It was a little out of my way on the way to school, but I could make up time by pedaling faster. I had graduated from needing a ride to school from my mom, or another friend’s parent, to being independent and riding my bike on my own a few years earlier. I was never good at depending on others, even then.
Test your idea
The following day I decided to give it a test run. I made my morning detour to the family run shop I’d passed by so many times before. Huffing and puffing and in a slight panic that I wouldn’t make it to school on time, I bought my first dozen doughnuts for the full retail price $4.25 plus tax. I crunched the box into my Jansport backpack and was off to work, I mean school.
Day one
I took my seat in home room, pulled out that eye catching pink box full of sweet heaven, sat it on my desk and waited. “Where’d you get those? Can I have one?” Ahhhh yes, demand was brewing. “Sure, I’ll sell you one for a dollar.” “Ok.” I was in business! Yup, yours truly was an entrepreneur before being a teenager. My first day I more than doubled my money selling in between classes, and even had one or two doughnuts for myself. Hey, I earned it after all!
Day two
Word had gotten out that I was moving doughnuts on campus. Kids were coming to me as soon as I parked my bike asking to buy. “Hey, I got $2. Can I get one?” Woah $2! Quickly doing the math in my head (remember I’m basically a math prodigy at this time). I would gross $24 if I could sell the full dozen. I would be rich with that kind of money!
“Sure, $2 it is!” Greed quickly set in as $2 was the new standard rate I was asking. Unfortunately the amount of kids with that amount of expendable income appeared to be a very limited few. The price quickly went back to $1, as a dollar was easy to come by for most, but I still managed to sell out; pocketing around $9 after expenses. Life was good.
Day three
I start my day the same as I had the last two. The store owner welcomes me with a smile and I buy my goods. Selecting the ones kids had been asking for – sprinkles and chocolate twists, yum!
I park my bike and brace myself for the rush of sugar craving school children. Hmmm no one waiting at the bike rack. Not to worry, they’re probably hanging out in the grassy area. Bingo! I find two frequent customers. “You guys want any doughnuts today?” “Naw, my mom says I can’t spend my money on doughnuts anymore. I have to use it for lunch.” “How bout you?” “I don’t have any money today.” the other replies.
The excitement was over. Demand had been met and buyers were waiting it out, if only due to end of week cash shortage. Either way it was affecting business. My first lesson of inconsistent revenue streams was underway. Also worth noting that some kids got their money for the week in a lump sum on Monday. So timing of marketing and management of supply were things I realized I needed to adjust for.
Fortunately I still managed to cover my costs for the day, but I went home with over half a dozen doughnuts. Breaking even on ones third day of business, looking back that was still pretty impressive. But that just wasn’t sustainable in my mind as a business model or from a health standpoint. As you can imagine no doughnuts went to waste, and I couldn’t give them away for fear of cannibalizing my own market. Naturally, they all ended up in my belly.
Day 4
Still full from eating half a dozen doughnuts the day before, I decide I don’t want to see another doughnut anytime soon. I’m sweating on the way to school, not from rushing, but rather the sugar from the prior day, trying to flush itself out of my system. It was Friday. I had a few extra bucks in my pocket and had learned so much about business without actually realizing it. I had the entrepreneurial itch and it gave me a new excitement to pursue it for years to come.
Opportunity is everywhere and has no limitations on age or location. I didn’t have a mentor or guidance. All I had was an idea, my lunch money, and a willingness to try. I hope you find the next opportunity in your life and capitalize on it!
Were you a young entrepreneur or someone who found a not so typically way to earn some extra money? I’d love to hear from you in the comments below!
Jerry
I started with affiliate 5 years ago. In my country it is very few people knowing what this is. So not so many poeple to aks. But if you dont fail - you can not get a success. And I failed a lot of times....
"All I had was an idea, my lunch money, and a willingness to try. " - Same for me !!
I feel so late to game. Wish I had gotten into online focused ideas years ago. I guess better late than never for me. It's slow going, but so much new things to learn! Maybe I can learn a thing or two from you?!
Well. Some have a bakery. Some make money online. But of course I can write about my company and help you if I can. Never to late to start. Good work with your blog. Keep up the good work.