Five Business Terms Every Kid Should Know (How They Can Apply to You)

Business is applicable to our lives every single day, when most people hear these words like “revenue” or “profit margin”, they simply look over it. However, business doesn’t have to be boring, confusing, or just for adults. In fact, if you’ve sold cookies or traded slime, you’re already an entrepreneur! 

At Dreams to Business, we believe everyone (yes, even you!) can understand the very basis of business. Whether you’re a middle schooler or a high schooler, you can figure out how to turn your hobby into cash. Here are five business terms that every kid should know, and how they actually show up in your everyday life.

1. Revenue

Revenue is the total amount you make from selling something, before subtracting any of the costs. For example, let’s say you sell 20 friendship bracelets for $5 each. That’s $100 in revenue. However, it isn’t your final profit yet. Training your revenue helps you understanding how much you’re earning, and where you can cut costs, or even just how your business is growing over time. In other terms, revenue is that feeling when you count up all the money you made at your bake sale before you think about how much the ingredients costed you.

2. Profit

Profit is what’s left after you subtract your revenue, it’s what you get to keep! Making money is great, but if you spend too much on materials or marketing, you might not have enough left. Understanding profit helps you make smarter choices, like finding cheaper supplies or how you can raise prices a little bit to sustain your business. For instance, if you made $100 selling cupcakes, but spent $40 on materials like flour, frosting, and packaging, your profit is $60. That’s the money that goes into your piggy bank. 

3. Marketing

Marketing is how you promote your product or business so people know about it, and want to buy it! It’s crucial to your business, you could have the best product in the world, but if no one knows it exists, it won’t sell. Marketing includes everything from making fun Tiktoks to designing a cute logo and posting it on Instagram for people to see. It’s about telling your story that makes people interested, curious, and excited to support you. Like if you make stickers and post a reel showing how you draw them, that’s marketing! Or if your friend shares your online shop with their class, it’s another way of marketing.

4. Brand

Your brand is the “vibe” and how you present your business, it includes how it looks, sounds, and makes people feel. People connect brands not just with the products, but if your business has a fun and bright aesthetic, your brand should reflect that. One example is Pink Palm Puff, the trending hoodies are advertised by rising influencers Embreigh and Preslee, they captivate the audience with their girly energy. Making the entire audience want more of both the influencers and brands!

5. Entrepreneur

An Entrepreneur is someone who creates a business by spotting opportunities, and taking risks. You don’t have to be an adult to be one, if you’ve ever started something from scratch, like selling crafts, tutoring, or baby sitting, you’re just like one. Entrepreneurs solve problems creatively, they aren’t afraid to fail, and they learn and try again. You’re an entrepreneur if you’ve sold things like digital art, slime, or bracelets. It’s that simple! 

Understanding these five terms is crucial because it gives you a big head start, being business smart isn’t about being perfect? Just be curious, creative, and confident enough to start!