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‘By May I’d made over £1,000’: teen entrepreneurs defy the Covid slump | Consumer affairs



The pandemic has made life difficult for teenagers who want to earn some cash. Many of the weekend jobs in retail and hospitality they would traditionally have looked for have fallen by the wayside as new coronavirus measures restrict opening hours and customer numbers. Meanwhile, babysitting gigs are less frequent as parents have fewer opportunities to leave the house.

Saturday jobs were already on the wane, with teenagers increasingly prioritising their schoolwork over weekend employment. But those who want to work may face competition from older teenagers and adults for the casual jobs that are out there.

Rising to this challenge is a new generation of teen entrepreneurs who have set up their own businesses. We spoke to some to find out how the pandemic had spurred them to go it alone.

‘I spend money as if I don’t have a lot of it’

Laurence Moss says his business snowballed in lockdown.
Laurence Moss says his business snowballed in lockdown. Photograph: Laurence Moss

When 16-year-old Laurence Moss heard that his GCSEs had been cancelled as a result of the Covid crisis he decided to throw himself into the social media marketing business he began two years ago. After working several hours a day during lockdown, the Kent-based teenager is on target to hit £20,000 in revenue this year.

“I had so much time I thought it would be a shame not to,” he says. “Growing the business by winning new clients takes up the time, rather than maintaining it. In lockdown it snowballed and by May I hit over £1,000 for the first time and it almost doubled the next month.”

Moss’s business, Greedy Growth, grew out of a hobby he began when he was 13, curating content he found on Instagram. “I had pages about motorbikes, niche travel, cars, cats and dogs. I gathered viral content and pushed it on to the pages. It was purely for the fun of it,” he says.

While his peers were “playing Fortnite” Laurence found himself being approached by brands that wanted to buy sponsored posts to reach the 350,000 followers he had built up in his Instagram communities.

Rather than settling for earning the occasional £100 here and there, Laurence decided to launch his own company to offer Instagram-specific marketing services. He offers advice to firms that want to increase their reach on the platform.

At the age of 14 he launched Greedy Growth’s website and began earning a few hundred pounds a month, paid into his personal bank account. About a year later, at the end of 2019, he was earning £500 to £1,000 a month.

Now back at school studying A-level philosophy, maths, history and economics, Laurence hires freelancers via the gig economy platform Upwork and the jobs site Indeed to do the operational work while he focuses on securing new accounts.

He is honest with his clients about his age but has put measures in place to ensure he is viewed as credible.

The age at which you are allowed to be a company director is 16, so when he became old enough he made a change. “I’ve been operating as a sole trader but recently registered Greedy Growth as a limited company,” he says. “I have also recently managed to open a business bank account.”

The majority of his earnings are reinvested into the business, meaning he has not profited enough to pay tax. Although he may occasionally splash out on a pair of shoes, he says: “I spend money as if I don’t have a lot of it and I would never tell my friends the amount of money I’m making.”

‘I went on to YouTube and looked at making T-shirts at home

Sidney and Ozzy O’Neill turned their doodles into a T-shirt business.
Sidney and Ozzy O’Neill turned their doodles into a T-shirt business. Photograph: Sidney O’Neill

Brothers Sidney, 17, and Ozzy O’Neill, 15, from Brighton, began designing and making T-shirts when the work they had planned for over the summer dried up.

“I was supposed to have paid work experience but it fell through,” Sidney says. “It is a lot harder to get jobs these days, so it was definitely motivation to start something ourselves.”

After months of boredom during lockdown, the pair decided to turn their doodles into a business.

“I showed a design to a mate and he said: ‘That would look really good on a T-shirt’. I went on to YouTube and looked at making T-shirts at home and launching a T-shirt brand. It seemed really easy,” Sidney says.

In August the brothers launched Sapiens Clothing selling T-shirts printed with three designs they created on Adobe Photoshop. A monkey on a skateboard was the central brand concept.

Using £100 saved from birthdays, pocket money, babysitting and selling clothes, they bought 40 plain T-shirts for £80 and spent £20 on packaging, shipping stickers, heat-press paper and tags. Using their home printer, filled with ink by their parents, kept costs down.

Next they borrowed a heat press from a friend, set up Instagram and Facebook pages and an online Shopify website, charging £20 for each T-shirt and an additional £1.99 for first-class shipping. To create a buzz around the brand they offered giveaways and discounts on social media, working closely with local skaters.

The made-to-order stock sold out within a month, creating a profit of £500 from £620 of revenue. “Shopify is free for the first month, then it’s £30 a month, but we haven’t had to pay it yet because we sold out. The money goes straight into my bank account and then I move half to my brother’s account,” Sidney says.

The boys, who are now back at school doing A-levels and GCSEs, plan to invest £200 to buy a heat press and spend about £175 on more T-shirts.

“Now we have got a lot of schoolwork it is a really good way to passively earn money as it only takes 20-40 seconds to press a T-shirt and the post office is 30 seconds down the road.”

‘I set up a Facebook group and started selling toys in mid-August’

Olivia Bassett
Olivia Bassett sells her dog toys for between £2.50 and £8, plus shipping. Photograph: Andrew Fox/The Guardian

Spotting a gap in the market, 17-year-old Olivia Bassett started selling affordable fleece toys for dogs in August. Since then she has made and sold more than 75 through her brand, Knot Normal, making more than £230 profit.

“I have been a dog trainer all my life,” says Olivia, who has four dogs of her own and is currently fostering two more. “We go to shows and I was always looking at the dog toys and the ridiculous prices. I thought there was no need for them to be so expensive, one toy can be £20.”

After competing at Crufts at the beginning of March, Olivia decided to try to make her own toys, researching the process on YouTube. “Fleece is really good because the toys don’t snap, they stretch,” she says. “The way I braid them, if the dog pulls on either end it becomes tighter.”

Olivia sourced fleece from her local market in Birmingham and soon found interest from other dog trainers. With one £5 metre of fleece she can make three long toys.

“I set up a Facebook group and started selling them in mid-August. I also started advertising on different pet Facebook groups and went to dog club events to sell directly.”

Olivia makes five varieties of toys ranging from £2.50 to £8, plus shipping, and accepts payments via PayPal or cash. The toys can be made to order, allowing clients to specify the colours.

“People typically ask for reds and blues or colours of football teams. One guy said the toy was not going to the dog, it was going in his West Bromwich Albion room,” she says.

Now in her second year of A-levels, studying biology, chemistry and psychology, Olivia is able to fit her business around her schoolwork. “I make the toys while watching TV, or even while I am having an online college lesson from home. They take between 10 and 45 minutes to make depending on the design.”

She hopes orders will grow in the run-up to Christmas, as she continues to save for driving lessons. “It’s been hard because of Covid. I haven’t got any work experience, which makes it harder to find a job, and anyway there aren’t any jobs going in my area.”

Rules for running a business as a minor

Girl using laptop
The minimum age to be a director of a limited company is 16. Photograph: Alamy

• Under-18s have the same annual tax allowance and liabilities as adults. You can earn up to £12,500 in the current tax year and will pay tax on everything above that. The rate will depend on how much you earn – from 20% of the first taxable income to 45% if business booms.

• You can set up and operate as a sole trader at any age and have to do so once you are earning £1,000 a year. You will need to inform HMRC and fill in a self-assessment tax return.

• The minimum age to be a director of a limited company is 16. A limited company has tax advantages over being a sole trader, and it can be easier to borrow money, but there are also more responsibilities.

• Applying for credit or finance is difficult if you are under 18. Credit cards and loans are not available. You may be able to apply for grants to help your business expand or have to turn to family to help.

• Most business bank accounts require a company director or sole trader to be 18. However, the challenger bank Monzo accepts applications from age 16 upwards without a parent or guardian acting as guarantor.

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U.S. Covid cases likely to peak after Thanksgiving




The latest upswing in U.S. coronavirus cases is unlikely to reach its peak until after Thanksgiving, Dr. Scott Gottlieb told CNBC on Thursday, a stark prediction for a nation that is already seeing record levels of diagnosed infections.

The country’s seven-day average of new cases reached a fresh high of almost 74,200 on Wednesday, according to a CNBC analysis of Johns Hopkins University data. That represents a 23.6% increase from a week ago.

Gottlieb, a former U.S. Food and Drug Administration commissioner under the Trump administration, said that in previous Covid-19 surges, transmission rates really only started to come down when Americans in hard-hit regions started to “express more caution” by going out less and wear face masks more regularly.

“And I think it’s going to take more infection until we get there, unfortunately,” he said in a “Squawk Box” interview. “I think after Thanksgiving, that’s going to be a turning point when the infection levels get high enough in many parts of the country that we start to see a policy reaction and also consumer behavior start to change. The month of December is really spent probably hunkering down a bit more, and hopefully we turn the corner as we get into the new year.”

New cases of Covid-19 are growing, based on a seven-day average, in 47 states, according to CNBC’s analysis of Hopkins data. Hospitalizations have reached record highs in 16 states, including many Midwestern states such as Wisconsin, Ohio and the Dakotas.

Overall, the U.S. has nearly 8.9 million confirmed cases of the coronavirus and at least 227,703 deaths, Hopkins data shows. On Wednesday, the country saw 78,981 new diagnosed infections, according to Hopkins data. “We’ll cross 100,000 infections at some point in the next couple of weeks probably,” Gottlieb said. “We might do it this week if all the states report on time.”

Gottlieb expressed concern that families getting together around the Thanksgiving will contribute to further spread of the coronavirus, making December “the more difficult month.” He said his family won’t be gathering this Thanksgiving because of Covid-19.

The nation’s top infectious disease expert, 79-year-old Dr. Anthony Fauci, has expressed similar plans, saying his three children will not be traveling to see him since it would require them to fly and use public transportation.

“I have older parents. I’m not going to be bringing together a large group of people and risking older individuals who we have so far been able to protect through this virus,” Gottlieb said. “I think we’ll be celebrating together in 2021, Thanksgiving of 2021. We need to get through the next couple of months. This is the hardest point in this pandemic, the next two months. … We can’t give up our guard right now. I think we need to continue to be vigilant.”

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Yum Brands (YUM) Q3 2020 earnings top estimates




Signage is displayed outside a Yum! Brands Inc. Taco Bell restaurant in Lockport, Illinois.

Daniel Acker | Bloomberg | Getty Images

Yum Brands on Thursday reported that its quarterly revenue rose 8%, fueled by Taco Bell’s return to positive same-store sales growth.

Shares of the company fell less than 1% in premarket trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1.01, adjusted, vs. 80 cents expected
  • Revenue: $1.45 billion vs. $1.42 billion expected

Yum reported third-quarter net income of $283 million, or 92 cents per share, up from $255 million, or 81 cents per share, a year earlier.

Yum’s investment in Grubhub lifted earnings per share by 2 cents this quarter due to changes in its fair value. The KFC owner, which had disputed the terms of the agreement with Grubhub this summer, also said it sold its 3% stake for $206 million. The investment gave Yum a seat on Grubhub’s board, giving it a front seat to watch how third-party delivery companies operated. Executives said that the sale didn’t impact their view on the delivery space in general.

Excluding expenses from items including a voluntary early retirement program and restructuring, the company earned $1.01 per share, topping the 80 cents per share expected by analysts surveyed by Refinitiv.

Net sales of $1.45 billion was 8% higher than a year earlier, beating expectations of $1.42 billion. Same-store sales across Yum fell 2%, but the company’s digital sales set a record for a quarter, reaching $4 billion.

Taco Bell reported same-store sales growth of 3%. Last quarter, the chain saw its same-store sales fall 8%, hurt by lower demand from early morning and late-night customers.

Yum’s other brands reported same-store sales declines in the quarter. KFC’s and Pizza Hut’s results were dragged down by lagging demand in their international markets. KFC’s global same-store sales fell 4%, despite U.S. same-store sales growth of 9%. Pizza Hut reported global same-store sales declines of 3%. The pizza chain’s quarterly same-store sales rose 6% in the United States.

Habit Burger Grill, which Yum bought earlier this year, saw same-store sales fall 3% in the quarter.

Yum’s third quarter also included 267 net restaurant closures. Compared with the same time a year ago, its restaurant footprint was up 2%. Pizza Hut’s restaurant count fell 4% from the year-ago period after closures that included hundreds of stores owned by NPC International, its largest U.S. franchisee, which filed for Chapter 11 bankruptcy earlier this year.

Read the full earnings report here.

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Firms planning for remote work through 2021




ServiceNow’s McDermott: Firms planning for remote work through 2021