How to explain the concept of business to kids

A teen with some idea of how businesses work will find it easier to face the more competitive atmosphere of college, and will ultimately also find it easier to join the workforce after college. Whether your child is fated to become an entrepreneur or employee, understanding how business work can be of great help. We’ve got some suggestions on how you can make it simple and comprehensible to school kids.  

Introduce kids to your workplace 
Many corporate offices have special days set aside for employees to bring their kids to work. While this is fun, the atmosphere at office is more like a party on these days, and does not give an idea about the average day at work. Try bringing your kids over on a normal workday evening, in the weekend, or when they have a school holiday. If you are working from home, depending on your children’s age and the nature of work you do, let them see what you are doing on the computer. Even a virtual office visit will demystify things for them.  

Try to explain what each department does 
Understanding dependencies is a great way to realise that businesses are made up of several connected functions. Explain to them how new business is brought in by marketing, managed by concerned departments, how finance, HR, facilities, and upper management work. If you are running a business, explain the role of supplier, partners, buyers, and other connected with you.  

Open them to everyday business models  
Set your kids mini projects. They need to observe a familiar business closely, perhaps a grocery shop or an online delivery platform, and figure out how it works. Nothing is better than learning through observation.  

Explain business insurance and disaster management 
Being prudent is part of all successful businesses. Explain how businesses protect themselves – through insurance, disaster planning, dividing responsibilities, and backing up data – and how that comes in handy.  

Ask your kid to draw up a mock business plan 
This is a fun exercise irrespective of age. Let the kids take it seriously though, and present all aspects usually covered in a plan, from concept to scaling. And of course, they need to present it to you. Whether they are planning a dinosaur park or an actual business, this might be a good beginning.