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Eve Tahmincioglu

Primary author Eve Tahmincioglu has been covering small business and entrepreneurship for more than a decade. She regularly writes about small business issues for the New York Times and BusinessWeek's SmallBiz magazine. She also writes the Your Career column for MSNBC.com. She is the author of "From the Sandbox to the Corner Office."



Telling your kid her idea’s a dud

Posted: Thursday, August 21, 2008 4:27 PM by Eve Tahmincioglu
Filed Under: , ,

My eight-year-old daughter Circe and her neighborhood buddy Taylor decided to launch their own business venture recently.

I had nothing to do with this, I swear.

The firm is called "TC Patches," and the idea is Circe and Taylor will sell patches they cut out of old jeans and then design with butterflies, flowers, etc.

You all remember patches, right? People used to buy them to mend holes in their pants.

And there's the problem with their business model. People used to buy patches to mend clothing. Today, with our disposable society, consumers are more apt to throw away a pair of $20 jeans they got from TJ Maxx, or some other discount store, and buy a new pair.

But should I share this little piece of entrepreneurial reality with Circe and Taylor?

No.

Why? Because I don't have the heart to tell these enthusiastic little girls that their idea is doomed.

I've often heard entrepreneurs complain they have difficulty finding honest feedback about their business ideas, especially from friends and family. It's the type of feedback that's critical for every budding entrepreneur.

So where do you go to get a brutal dose of honesty?

Elizabeth Gordon, who coaches small business owners and is president of the entrepreneur advisory firm Flourishing Business, says one of her occupational hazards is hearing a lot of really bad ideas.

But she feels compelled to be honest with people, especially her clients: "I feel it's a disservice to say, 'that sounds great, good luck with that,' and send them on their way."

What she recommends to her clients and all of you out there is to put together a peer advisory group. This could be a collection of business owners you respect in non-competing industries that are all looking for constructive, honest advice.

'It's not a support group," she stresses. It's all about giving "objective advice."

There's a good site called Meetup.com where you can find like-minded entrepreneurs in your town, or you could go to your local chamber of commerce and find business owners that are looking to brainstorm ideas.

Friends and family, Gordon found, can be useless when it comes to honing your idea. They are definitely more likely to keep their negative thoughts to themselves and feel an obligation to pump up Uncle Fred's ego.

I guess I'm guilty of this to a degree with my daughter. I figure she's only eight and this patches venture is probably just a passing fancy, just like her Wiggles fixation.

And who am I to judge anyway? Maybe patches will make a comeback.

Circe and Taylor have already made over $20 selling patches to friends, family, and even one construction worker who happened upon their patches stand on the driveway. He bought the patch that had the skull and cross bones on it.

They had enough money to give me so I could buy them the Web domain TCPatches.com.

Of course, they don't have enough capital, or knowledge to actually create a Web site. I did tell Circe she could give her software engineer father a percentage of the business in exchange for him designing the site.

The two young entrepreneurs rejected this option flatly. They want to maintain control, and they have grand plans for the profits.

Turns out Circe and Taylor will share 50 percent of the proceeds, and the remaining money will go to the American Lung Association.

When I asked why she had chosen that organization, Circe said: "Well, both our grandfathers died of lung cancer."

As you can imagine, I got a bit choked up when I heard that, still feeling the sting of having lost my father to the dreaded disease.

Now you know why I can't say anything negative about the great patches venture.

Would you? I look forward to your comments.

 

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Comments

Success/fail mindset isn't the belief-system for budding entrepreneurs.  It's important to gain as much well-rounded business experience as possible in the early businesses.  

I don't advocate putting their heads in the sand either.  Let them process that it's kinda like kid's art.  Hey, you might love it, have a tremendous outcome right out of the chute, you might not.  You take the clay, turn it back into a lump, and make a new one.  You might make a lot of money your first time around, you might not.  Just learn.

Have fun, take care of your customers/stakeholders (ALWAYS), and learn as much as you can about the various facets of running a business, let the chips fall where they may.  

Going into it with a succeed/fail mindset will often short-circuit learning and growth.  For every successful new business, their are thousands of people that can convincingly argue why it wasn't going to work.  Let them evaluate your honest feedback, both pro and con, go into it with their eyes open - but not with a belief that if they don't make a lot of money, they've failed.  It takes a lot of experience (usually) to really succeed at making money, but you'll probably never get there if you don't experiment a lot.
Eve,

I see your dilemma and your point is valid.

Patches are no longer used to fix clothes and we are indeed not a thrifty society. Here in lays the problem as well as an opportunity for the TC Patches business model.  There is a chance to change the way one uses and understands patches.  It all lays in the marketing and branding of the patches.  Instead of marketing them as a solution to 'holes in the knees' put a spin on it and sell them as accessories, a way to enhance, beautify and personalize an otherwise common piece of clothing.  Everyone, even little girls can appreciate a bespoke piece of clothing.

Other than that I think the business model and idea look good.  TCPatches, at this point, has minimal overhead costs.  The raw material comes from old clothing, which I assume is free to them.  Buying trinkets and other items to decorate the patches is also cheap. Once sales blow threw the roof its time to start taking advantage of economies of scale and purchasing things in bulk.  Start ordering little plastic beads, etc from somewhere in South East Asia or India. Even buying them in bulk domestically in bulk will lead to great cost savings.  To get more free clothes go the Salvation Army tell them about your business and the charitable nature of the cause and I'm sure they would agree to give a 500lb bundle of clothes.  You can also organize a clothing drive at the local school. If every kid in school donated one piece of clothing I think you be up to your eyeballs in patch making material.  

Another attractive thing about this venture is the plan to donate 50% of proceeds.  That opens a bunch of doors directly to grant money, tax breaks, tax write-offs and other discounts.   Register TCPatches as a non profit. If the girls still want some pocket change to indulge in whatever fad comes along next, just state that "all proceeds after taxes and salaries are donate to charity".  

Websites are expensive but for the time being that can be can overcome by taking advantage of eBay and other websites of that nature.  That way the product is out there on the open market getting significant exposure.

I think instead of telling the girl that market fundamentals have shifted and the path foreword for TCPatches is unsure, tell them you hired a management consultant to revamp the business, adjust the strategy, and turn TCPatches into a cash machine.

Good luck Eve.

Best Regards,
Steffen

P.S. If you have trouble pitching this to our young entrepreneurs, I can have a PowerPoint presentation on your desk by Monday.
Sometimes a little common sense advice can work wonders. You don't have to be the hammer that destroys their dream but some objective questions and comments may get them thinking about the reality of their venture. These thoughts could inspire a new idea. Honesty can be a hard hand to offer but is almost always welcome.
I don't think it is such a bad idea, but you could help them improve on it, so that they can reach a wider market. For instance, they could apply adhesive to the back of the patches, and kids could decorate their notebooks, lockers, etc. with these patches. They could hand out a few of these sticker patches to a couple of "the popular" girls in their school, then see if the trend picks up.
There may be many bad ideas out there for businesses, but there is an even more egregious error than a bad idea. It is that people don't know who their target market is. There may be a whole bunch of sticky, patch loving girls who would just *die* for one of these patches, but it takes marketing research to find out who and where they are. I mean, who in his or her right mind, would have funded pet rocks, hula hoops, slinkies, or slime?
On behalf of the American Lung Association, I thank Circe & Taylor and I wish them the best of luck!

Bob Moffitt
Communications Director
American Lung Association of Minnesota
http://www.lungmn.org
I actually think it's a pretty good idea! Obviously, there is some interest from their friends. When my daughter was eight, she had a class assignment where they were required to invent a new product. She came up with an attachment for a cordless drill that was basically a mini-auger, designed for digging holes to plant flowers. I told her all the reasons it wouldn't sell. I had to eat crow when 12 years later we both saw an infomercial for the exact same product!!
You never know, they might start a fashion trend. Patches on your jeans was popular in the 1970's, it could return.
Marketing the patches as accessories would be the way to go, in my opinion.  And don't just make them normal rectangle patches, either.  Cut them into hearts, stars, ovals, circles...  That would be cool.

I also agree putting an adhesive backing on them would make them much more versatile for school notebooks, lockers, etc.

Experiment with different textures, buttons, puff balls, silk flowers, crocheted do-dads.

There's lots of ideas out there to make her patches stand out from the crowd and not just be for "patching jeans".  Heck, if you're going to go with the adhesive backing, you could do long strips as well as patches, that could decorate the outside seams of pockets and such.  

My advice is don't tell your daughter it's a bad idea, rather encourage her imagination to do bigger and better things with these patches.  I know MY daughters would love to have frilly things that would dress up their current clothing.  If it was made by kids marketed to kids, you could really have something there.
A brain dead monkey could design a website.  You should let her try it. Maybe that could become the real lesson as it is a real marketable skill.
I think that a business selling recycled patches could work for them. Recycled items are becoming more popular.

If they put a spin on it as someone else already mentioned, they might be able to find a market.

There are probably lots of crafters who would like to purchase bags of recycled denim patches for crafts.

Also, they may be able to create a business supplying patches for particular artist/designers who create/sell recycled items. If they could do this, they would have a ready and stable market for their goods.

They can start a free blog at blogspot.com to help them advertise. No need for high priced web designers.

They can also try to sell their patches on Etsy.com for very minimal fees. An adult would need to open the store because it requires a credit card on file to pay your fees. But the fees are very minimal.

We need more green future entreprenuers! Much success to them!
The problem with being an adult is that we self-edit. The advantage of being a child is that they haven't learned what can't be done.

My first thought was the same that several other people had...don't market them as "patches to cover holes", market them as "patches to make your items unique". These two kids have a great idea and show that their principles are already forming as they plan on donating 50% of their proceeds to charity.

What an awesome idea. Good luck to them!
Patches are perfect product for a failing economy.  People can't afford new jeans.  Your 8 year old is on to something :).  Also being that they are decorative, your jeans don't need a hold to use those.  

Keep in mind that some very successful modern day business people got their start doing similar things as children, such as selling address painted rocks or expanding by aquisition with paper routes.

Is it really that case that budding entrepreneurs hear too much good news?  The stories I hear most of the time go along the lines of "I ignored all the naysayers".  
Learn from failure earlier rather than later.  Sounds like a success for them, though.  I was successful even when I was in debt and homeless.  It's all attitude (but now I have the window dressing to prove it).
Have the girls post their products on Etsy.com. The costs are very minimal, uploading photos would be a cinch for your husband.

Best of Luck!
I would definitely share the info about throw away society, but add that our society should be less wasteful and maybe they are ahead of the curve.

Then I would have to tell them that it's not what you know but who, it takes money to make money, and if you aren't in the club... chances are slim to get any money.

Is that a harsh enough reality for you?
I think you are right not to criticize!!  They have the rest of the world to do that for them.  I think parents are so afraid to let their kids fail at something or be sad.  As a mother of 4 and an expert at seeing my kids fail.....there is nothing more satisfying than loving them through that experience and seeing them pick themselves back up and try again!!!  They will learn excellent lessons in life from failure....and when they do succeed (and they will)...then you are the one who believed in them all along.  That's what they need more than a successful marketing strategy....a parent who believes in them.
No way should anyone tell them their idea is a dud.  This process could be a great experience for them, beneficial in a way that internship might be.  And I disagree with the statement of 'we are a throw away' society.  Society is leaning strongly towards 'green living' awareness.  That includes recycling, energy efficiency, consignment clothing, etc.  This project could be the start of something huge for these girls, particularly solidifying an awareness that consuming has reached its peak and its time to start living another way.  
Thanks for listening.  
I agree that these patches might do better marketed as accessories, not only kinds that are sewn on clothing, but with adhesives.  Just think about how kids a certain age are crazy about stickers.  Same idea.  And instead of one or two patches on pants, market them with cool patches all over the pants.  The more the better.  Kids have made hobbies of collecting pins from different countries, etc. and decorating jackets.  Market some of them as limited edition to encourage collecting.  In fact....I would take this one step further and stop calling them patches.  Come up with some cool new name.  Yes, they are patches, but don't call them that.  Something more exotic, hip, cool.  I also think your target market is girls age 5-11.
Actually, and if this has already been made clear then ignore it, patches are part of a trend in clothing *decoration.* What was once a "punk" thing has largely gone mainstream in the female teen/tween (And even 20 something) demographic. They are not necessarily sewn onto clothing, some people pin them on. They decorate and individualize everything from jeans to shirts to bags.

Individualization of consumer products (old and new) is THE newest trend.

You are so far out of date on your "trend" forecast it amazes me. Seriously, do you do ANY work with this sort of thing? We aren't even talking about the "alt craft/crafter" tie-ins.

Yeah they most likely won't make anything out their business (since it'd be unusual for their experience) but they are dead on with the idea.

FIRST RULE OF BUSINESS: KNOW YOUR MARKET!!!!! And you so very plainly don't know theirs.

Far too many self-important tycoon wannabe's think they have a god's eye view of everything business. You don't. Successful business people are the ones who keep their advice and decisions solid by always learning and ALWAYS researching - NOT by applying their knowledge of shoe sales to car sales.

Your smug opening to this "article" is nothing more than a standard issue middle manager's view of new ideas. Your kids know their market because they ARE the market.

A wise manager listens to that sort of input and values it like the gold it is. Not sit back and shoot it down based on 40 year old ideas about clothing repair.

Do they have an article about telling their mom she's clueless somewhere here?
One more thought (I sent another response.)I think you are right to encourage your daughter.  Whether she succeeds or not in her patch business, the fact that she wants to try her own business shows an interest in entrepreneurship.  I believe it is our job as parents to pay attention to what our children are naturally drawn to and encourage that.  It would be nice for her to succeed with her business.  Even nicer to focus on the process of developing a love of entrepreneurship, if that is her talent.  Successful entrepreneurs have had many failures, but they love the process, the game, enough to come back with other creative ideas and succeed.  Failing is just an opportunity for her to learn valuable lessons.  Far worse to develop a fear of failure.  Let her get her feet wet and see what she learns.
First, I think this is great that they have taken the initiative to do this.  It shows responsibility, maturity and an understanding of how the world works.  But, let's be clear, they are kids, having fun but also learning...At this critical time in their lives, they need the support of their family regardless of whether the idea is going to succeed or not.  The important part is that they TRY AND LEARN from it.  I plead with you, don't snuff out that entrepernurial spirit in them by saying it's a bad idea....in 10-15 years, those kids will hopefully have other ideas for successful businesses and you as her parent should be cultivating that in her.  They will remember this business that they started as little kids and use that as a proving grounds for ideas in the future.  Good for them.
Sounds like the idea has already begun to prove itself - sales made. As far as a website, there are plenty of templete options available for creative minds to have fun with and pre-assembled for success.

Few people "know what they're doing" or have a truely proven idea for starters. Drive and passion don't make up for all bad ideas, but seems to me patches aren't for fixing holes in pants, but making them more fun and personalized to wear.

I'd buy some patches from your daughter and friend and wear them to spread the message using "word of pants".
I wish them luck. There are not to many children out trying to start their on business and giving back to a cause at the same time.  I say let them go for it and lend a hand. Help them sell. They have already made $20 that's a start. Don't forget to throw some promotion behind it all. Maybe a website even.
Good Luck!
Decorative patches are a great way to jazz up your plain old jeans, jeans and coudorouy jackets, T-shirts, sweaters, backpacks, etc.!  Surely there is a market amongst school aged kids.

It is awesome that they are using it as a fundraiser and the most important learning experience is in giving to others!  Bravo, Mom, for encouraging these kids in their venture, regardless of whether or not it's a good idea!  It sounds like they have pretty good heads on their shoulders so far and isn't that the very least we can wish for our children (along with good physical and emotional health!).

Good luck and enjoy!
Great children...creative, talented, and civic-minded to boot. A little encouragement with these budding entrepreneurs will go a long way. Today's producers of TC Patches can become tomorrow's inventors who will change the world. Congratulations! You must be doing something right.
I think your daughter gets it just fine.  The patches are a fashion statement and not a fix for torn jeans (like it was back in the day).  Even if this idea as a flop, I HIGHLY recommend that you support her and provide her with the guidance that she needs to get this up and running.  The skills that she will pick up (i.e. selling, planning, etc) cannot be taught anywhere else.  Allow this business to run it's course and then if it flops, let her move the next.  Always promote her entreprenuerial because this will help her excel in other areas of life.  My daughter (10 years old) runs a dog treat business (www.petloversorganic.com) and she makes about $20-$40 a week with this business.  I helped her get her website up, but I walk her through as many steps as possible so she learns everything I'm doing.  Don't miss out on this opportunity to help your daughter grow.  
Let them try. One idea, tested and found wanting, will engender another. And if the idea hits the mark even if you believe it won't (it might) - what fun!

I had my first business, a cookie business, at 10. My mother encouraged me, very, very quietly with her ever-present support. I loved it! It gave me a chance to experiment, find out what customers liked and what they didn't and keep adjusting to improve the business.

I bought my first nice bike with the money I earned - which was my goal. I liked the bike. I loved the business. At 14 I figured out that my long-held dream of being a doctor was not right for me (during a summer as a candy striper, I found out I hated, hated, HATED working in a hospital environment). In the years that followed, seeking the career that was right for me, I found my way back to the challenge and fun of being an entrepreneur.

I think your daughter and her friend are showing strong entrepreneurial signs. Let them try. They'll learn more than if they don't.
I'm in marketing and I have to tell you that I don't think you are qualified to decide whether her idea is good or not. I know you are a financial expert, but handling money and being an entrepreneur are two different animals. The second is part luck and vision.  Let me tell you why you might have trouble judging her idea fairly: 1) you are not the target 2) you are looking at her product the wrong way. The target is other girls her age. There must be something about the patches, both her and her friend, who know about what little girls want, seem to think so. And this why you are making the mistake of not looking at her product the right way. When you see "patch" you think "fix", she on the other hand thinks "personalize". Open your eyes and look around towards the tendency of her age group and those slightly above them and you see they expect to make everything their own. They personalize their iPods and cell phones with colorful skins, they put little things in the holes of their crocks. She has actually already made some money (which is more than some of the ventures that other people put their money on can say) and you are ignoring this evidence because you are so sure you are right.

And talking about you being right, what is it so bad about letting her do this even if it’s the “wrong” idea? So she doesn’t make any money and uses up some of her spare time. Maybe loses some of her allowance money. She’ll learn how to do a website, and what how hard it is to have a company be successful because just ‘case you are selling something there is no guarantee there’s someone buying it.

So frankly I think you should back off. Let her have this experience with as little interference as possible.  Be proud that you have a daughter that on her own willing to try things like that and is civic minded enough to want to use some of the proceeds for something good. Who knows, she might surprise you (I bet she will!)
:-)
Here is some brutal honesty: Your Kid's idea is great and she is more tapped into the current market trends than you are. The fact is, we are smack-dab in the middle of the golden age of things made from already existing things, i.e., we are turning abandoned factories into high-priced condos, yoga studios and churches into movie theatres and music venues, recycled paper into new paper, soda cans into trendy bags, trash into art (you get the picture?).

Tell your daughter: You're on to something! Help mommie see outside of my box...show me what you see.

Really, kids almost always get it...adults can be so jaded and numbed by our experiences that it is way too difficult for us to give truly creative and constructive feedback in the first place.
I didn't realize patching jeans was so out of fashion!  When spring comes around and my kids only have a few weeks left of jean wearing I patch them if need be.  The fall always finds me needing to buy new jeans anyway because the children have grown.  I prefer to wait until the end of summer so those old jeans need to make it till then.  My daughter has yet to complain so I guess kids her age don't find it out of style and she is in middle school. Let us know when that web site comes up, I just might become a customer!    
i think it's a good idea. young folks like to be unique and distintive, and their idea seems to be a great way going about that.

help them improve the idea though keep in mind that we're not young and hip anymore :)
Get real, all of you.  These are kids.  Their interests will change in few weeks if not minutes.  Encourage them yes, discourage them, no.  But don't pin YOUR hopes and expectations on them.  Let them be kids.
It seems to me that you are trying to promote their business in a underhanded way (nice casual mention of their web domain).  I own two clothing stores that sell to young people and for minute there I almost bit.  Then you got to the part about the grandfathers dying of lung cancer and the donations - that was a bit over the top.
You are in no position to judge this.  You are too close to them and cannot see the light of what is really happening here.  

The one thing that an entrepreneur does NOT need is yet another person around them telling them that they will fail.  Who are you?  What idea have you brought to the table?  You are a journalist living inside the safe world of salaries and benefits......

Unfortunately, you dont contribute anything to society.  Entrepreneurs do......

Be proud of her. If she fails, so be it.....she is creating something and it is YOU that have things to learn from her and not the other way around.....,
Your local library is an excellent source to investigate for ways to enhance and promote the ideas of these innovative children.  Patches for clothing may not be in vogue but quilts are. And what are quilts, but 'patch-work?' How about a quilt to represent patching up society? Piggy-backing off the election campaign's theme "Time for Change" may be a great idea.  Or, center your quilt's theme around something like 'Eradicating lung cancer one patch at a time.' I also like the idea of patches that stick to notebooks.  Or book-bags.  Or sneakers.  

Your show of confidence in these little girls far outweighs their need to completely understand the long-term commitment requirements. I think that you should give them a frank but sensitive talk about the pros and cons of patches, and them allow them to decide what they want.  If they decide to go forward, allowing them to participate in the research will help them to understand a little of the behind-the-glory story of success, while building their self confidence and igniting their entrepreneurial spirit.

As adults, we absorb and act out the fears and intimidations heaped on us by society.  But a fresh, untainted mind and approach to an old concept is the stuff that many successes are made of.  

God bless you and your little, business women in their endeavor.
As the mother of Taylor, the other little girl involved in this venture, I appreciate everyone's ideas and support.  I will definitely encourage her to think outside the box.  I think this has the potential to be a great lesson in marketing.  To Dan Luchin, I'm sorry you think it was a scheme.  However, I can assure you my father died of lung cancer 7 years ago at the age of 56.  As someone who had to watch this happen to a strong, proud man and still wish I had someone to call on Father's Day each year, I can only hope you don't doubt everything you read.
Eve,
Very thought provoking. I, of course, can't wait for my daughter to start her first entrepreneurial venture. Would I tell her that her idea is weak? I probably would sit down with her and tell her what I know, and maybe give her some pointers on how to do things a little differently than some others before her. But I would let her fall down a few times, if needed, before I would jump in. But, then again, maybe I wouldn't have to jump in. Maybe she would surprise me.
After all, isn't the surprise part, the successful entrepreneur in us all?
Joel Libava
The Franchise King Blog
It's a great idea. Do they have a website??...seriously!!! They don't necessarily have to go on jeans (i.e. backpacks, jackets, caps, etc.)
Never discourage another human being from doing anything positive. When I say positive I mean, doing something that gives them great joy, determination, and an inner success that no money will ever be able to whether they make it financially or not.
Why didn't girls do a market research first in perhaps a mall.  Make up the patches and ask individual prospective consumers questions...  Do you use patches? Do like these?  Where would you use them? Accessories?,  etc.   The comsumer will tell them what they like.  Any new product is first research before it goes into production.


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