How to Build a Business in High School - 7 Ways
If you’ve ever wanted to explore the world of business and see what it’s like to be an entrepreneur, you don’t need as much time as you might expect. Many people assume that starting a business requires years of experience or a certain age, but entrepreneurship is really about having the right mindset.
Running a business as a teenager can be a challenging yet rewarding experience. Whether you dream of launching your own company, pursuing a career in the corporate world, supporting a nonprofit, or strengthening your college applications, gaining business skills will always be an advantage.
If the idea of starting a business excites you but also feels overwhelming, don’t worry—we’re here to help. This guide will break down the process into straightforward steps to get you started.
Before you check out our guide to building a business, take a look at some of the pros and cons associated with the process.
Pros & cons of building a business in high school
Pros
You will build a ton of transferable skills: Running a business teaches you communication, problem-solving, and financial management skills—all essential for future success.
Your resume can receive a solid boost: Colleges and future employers value entrepreneurial experience because it demonstrates drive, skill, and the ability to manage time outside of your school hours.
You could scale your business to be profitable: Many high school businesses turn into profitable ventures, giving you financial independence.
Building a business teaches you about personal growth: You’ll develop resilience, creativity, and confidence as you tackle challenges. Not only will these experiences help you in future research or professional experience, but also make for great talking points on your college essays or SOPs
Cons
You will need to invest a lot of time: Balancing school, extracurriculars, and a business can be overwhelming, and will require a lot of effort, especially in the early stages.
As a high school student, you will have limited resources: Access to funding and tools may be challenging for students without VC-backed funding, or other support!
You will have to learn to manage your priorities: Managing a business while maintaining grades and personal life requires strong time-management skills.
Need to consider practical business risks: It’s important to note that only a small percentage of businesses succeed financially, and failure carries the weight of financial losses. Make sure you are ready to handle those.
Pro tip: If you’re interested in developing a business idea first, you can take a look at our list of 12 awesome business ideas for teens!
How to start a business – 8 steps to follow
1. Research the market
Instead of jumping straight into an idea, begin by studying your target market—whether physical or digital—to understand what people truly need. This could range from something as straightforward as an app that promotes healthy habits to a more complex solution like making education more affordable. The key is to identify pain points first, as people are often willing to pay for solutions that address their challenges. Entrepreneurship is about staying open-minded and spotting opportunities. If you uncover a significant customer pain point, you have the foundation for a valuable product.
With that being said, don’t dismiss your original idea outright if you have one. Instead, treat it as a hypothesis and validate its relevance. Ideas that seem promising on paper may not gain traction for various reasons. Conducting market research helps identify potential gaps early on. If your interest lies in tech projects that could evolve into independent research, you might consider research mentorship programs in AI, such as Veritas AI.
2. Ideate
Simply having an idea isn't enough—it needs time to develop and refine through a structured process. This ensures your efforts later aren’t wasted. Ideation can take multiple approaches. You could pursue a familiar route, like designing apparel or launching a content-streaming service, or you could venture into something novel and disruptive. Here are two tools to help streamline your ideation process:
Mind Mapping – A visual method that helps you draw connections between a problem and possible solutions. Begin by writing your problem statement or a key related word in the center of a paper or digital whiteboard. Surround it with potential solutions, connecting them with lines. Add another layer detailing how you might implement those solutions. This technique organizes your thoughts and fosters innovation. Websites like MindMup can help you experiment with mind maps.
Storyboarding – This technique creates a visual storyline to illustrate your idea and predict potential outcomes. Mapping out your customer’s journey lets you spot areas for improvement. A storyboard functions like a comic strip, with boxes containing text or images that depict each step of the process, linked by arrows. As you analyze each step, consider the emotions and interactions involved, then refine your solution accordingly. You can experiment with storyboarding tools like Miro or FigJam on Figma.
3. Find a mentor
While mentorship isn’t mandatory for launching a business, it can be invaluable in helping you navigate challenges and avoid common mistakes. Seek guidance from a teacher, an experienced entrepreneur, or a business professional—anyone who can offer constructive feedback and insights. A mentor can provide a fresh perspective, help you refine your approach, and support you in making informed decisions. If you're interested in researching business strategy or entrepreneurship under expert guidance, you may want to explore programs like the Lumiere Research Scholar Program.
4. Develop your business plan
Now that you’ve analyzed the market, tested your ideas, and sought feedback from a mentor, the next step is crafting a business plan. This document should outline your goals, strategies, and financial projections, serving as a roadmap for your venture. While no plan is immune to change, having a structured approach increases your chances of success. Your business plan should include the following:
Competitive Analysis – Study your competitors to identify their strengths, weaknesses, and gaps your business can fill. A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is a simple yet effective tool for this.
Marketing and Sales Strategy – Define how you’ll promote and sell your product or service, covering aspects like pricing, distribution, and advertising. Whether through social media posts, early-bird discounts, or paid promotions, platforms like Shopify and Hootsuite offer useful marketing resources.
Financial Projections – Include income statements, balance sheets, cash flow statements, revenue forecasts, and expense estimates. If this sounds complex, simplify it: determine how many units (or subscriptions) you plan to sell at what price, factor in expenses, and assess when you’ll break even. Basic spreadsheet tools like Google Sheets or Microsoft Excel work well for this.
Operations Plan – Detail how your business will function, including suppliers, equipment, and logistics. While essential for product-based ventures, service-based businesses also benefit from having clear workflows.
Risk Analysis – Identify potential risks and create contingency plans. Think of this as a backup plan in case things don’t go as expected.
Milestones and Timelines – Set measurable goals and timelines to track progress. This keeps you focused and allows you to celebrate achievements along the way.
5. Register your business
Choose a legal structure for your business, such as a sole proprietorship or LLC, and register it with the appropriate authorities. While registration ensures legal compliance, it also offers benefits like access to low-cost loans and tax credits. Navigating the paperwork may seem tedious, but it provides valuable experience in handling government processes while unlocking financial advantages. Keep in mind that if you’re under 18, you may need a parent or guardian to register the business on your behalf.
6. Secure funding
Not all businesses require upfront capital. Many tech startups, for instance, are built with minimal investment, aside from the time spent developing the product. However, some ventures need initial funding to cover expenses. Explore financing options such as personal savings, support from family and friends, small business loans, or grants. Remember, you need money to grow your business, but that doesn’t necessarily mean seeking venture capital right away.
7. Focus on sales before branding
A common mistake entrepreneurs make is prioritizing branding over product or service quality. The best way to establish a strong brand is to deliver exceptional value, engage with customers, gather feedback, and continuously improve. Instead of pouring resources into logos and slogans, focus on making your product or service the best it can be. Your most effective branding will come from satisfied customers who recommend you to others.
8. Monitor and adapt
Markets evolve, and so should your business. Keep an eye on industry trends, customer feedback, and competitor activity. Likewise, track your marketing strategies and adjust them as needed. The most valuable skill for any entrepreneur is adaptability, and the best way to develop it is through experience. Stay engaged, be willing to pivot when necessary, and continuously refine your approach while maintaining a balance to avoid burnout.
In the list below, you can check out the 7 best ways to build a business in high school - some of these may resemble business “ideas”, but have been included in the list below as a general way/method to build a business in a field of your choice. You can customize your business idea as you see fit once you pick one of the items in the list below.
7 ways to build a business in high school
1. Start a service-based business
If you’re looking for a relatively simple and cost-effective way to start a venture of your own, service-based businesses are a great choice. Offer services like tutoring, lawn care, pet-sitting, or babysitting in your neighbourhood or community. These businesses require minimal upfront investment and are always in demand, especially if you’re willing to commit to offering these services in the long run.
Why it works for high school students:
Flexible hours allow you to balance schoolwork.
Local services help you build a network within your community.
2. Sell products online
With platforms like Etsy, Depop, and social media, selling products online has never been easier. Whether you’re making handmade crafts, designing T-shirts, or curating thrifted items, these platforms give you access to a global market without having to set up complicated storefronts or listings on platforms like Shopify.
If you’re facing a challenge with selling physical products, then digital products can be a low-cost, scalable business model. You can design ebooks, templates, or printables, which can be sold repeatedly without needing to manage physical inventory or stock.
Steps to get started:
Identify a niche you’re skilled in and for which sufficient demand exists or can be generated.
Source or create your products - keep in mind the price point of your products when you do this. Handmade products demand more investment but can be sold at a higher price point. Digital products have minimal costs but are
Digital platforms like Gumroad or Canva make marketing and selling simple.
Market your products on social media platforms such as Instagram, TikTok, or Snapchat
3. Leverage social media for monetization
Social media platforms like Instagram, TikTok, and YouTube allow you to become a content creator or influencer, and monetize on views, likes, and shares! By building a following around your passion, whether it’s fitness, art, or fashion, you can also monetize engagement on your channel via brand partnerships, ads, and affiliate marketing.
Note: The journey to landing brand partnerships can be quite demanding, so be prepared to put in consistent effort for a few months before you start seeing tangible results!
Tips for success:
Be consistent with posting.
Engage with your audience authentically.
Use tools like analytics to understand your growth and reach.
4. Organize events or workshops
Are you skilled at planning and organizing? Host events or workshops in your area of expertise. For instance, if you’re good at coding, organize coding boot camps for your peers. Not only does this help others, but it also builds your reputation as an expert.
How to get started:
Plan small, affordable sessions open to your community or schoolmates.
Use school or community spaces to minimize costs.
Promote through flyers and social media - free tools like Canva are super helpful here!
5. Develop an app or software
If you are interested in technology, why not create an app or software-based product? In a more technical sense, these products are called SaaS services, or Software-as-a-service. Students have been able to launch successful apps for everything from studying to fitness tracking. Start with a simple idea, and use platforms like Scratch, Codecademy, or Young Founders Lab to learn coding basics.
Why this works:
Coding is a highly marketable skill and can be applied to a wide range of fields, ranging from marketing to art and design.
Apps can help generate passive income through ads or in-app purchases once you scale.
Your product could serve as a solid addition to your portfolio if you’re considering an undergraduate degree in computer science
6. Build or manage a subscription box business
Subscription box businesses are booming, and you can create one tailored to your interests. For example, assemble boxes with art supplies, snacks, or self-care items and deliver them monthly to your customers.
Steps:
Find a unique theme (such as Japanese or Korean snacks) that appeals to your target audience.
Source affordable, quality items - this might require a lot of research for vendors or suppliers and some knowledge of supply-chain systems and database management systems.
7. Launch a nonprofit
If you’re passionate about a cause, starting a nonprofit can be both fulfilling and impactful. Focus on addressing issues in your community, such as environmental conservation or mental health awareness.
Why it’s ideal:
You can create lasting change while building leadership skills.
Nonprofits look impressive on college applications.
Partnering with local organizations can amplify your efforts.
Starting a business in high school is a unique and rewarding journey. Whether you’re launching a service, creating digital products, or working with a startup incubator like Young Founders Lab, the experience will shape you into a more capable and confident individual. By choosing the right idea and committing to your goals, you can make a significant impact while still in school.