Building a Business
About 15 minutes, plus hands-on activity and discussion.
Think about it
Starting and growing a business takes creativity, but it also takes careful planning and wisdom. In this lesson, we’ll go deeper into what it means to be an entrepreneur, learn about 3 more important building blocks of business, and hear a story about a real kid entrepreneur.
Let’s Learn
What Is an Entrepreneur?
Entrepreneur is a big word, but the idea is simple. An entrepreneur is someone who sees a problem or need and creates a solution. It could be as small as noticing your neighbors don’t have time to walk their dogs and offering to do it for them, or as big as inventing a new product that helps people around the world. Entrepreneurs take ideas and turn them into something real. Entrepreneurs are the people who start businesses!
Three Bonus Business Building Blocks
In the previous lesson, we discussed these building blocks of businesses:
- Meet a Need
- Sell a Product or Service
- Know Your Customers
- Know Your Costs & Profit
- Marketing Plan
- Research Competition
- Keep Your Promises
In this lesson we’re going to learn about three more very important building blocks in business.
- Risk
- Customer Service
- Growth
Let’s dive in!
1. Risk
Risk means there’s always a chance that things won’t go the way you plan. In business, risk is the possibility that you could lose money, waste time, or see your idea not work out the way you hoped. Every business has some risk, and learning how to handle it is an important part of being an entrepreneur.
There are different levels of risk. If a business has a higher chance of failing, we call it a high-risk business. If it has a lower chance of failing (and a better chance of succeeding), it’s a low-risk business. The truth is, every money decision has some level of risk. It might be big, or it might be small, but it’s always there. That’s why it’s important to think carefully about the choices you make with earning, spending, saving, and giving.
When you develop a healthy mindset about risk, you’ll be ready to make wiser financial decisions as you grow. And those choices won’t just help you, they can also bless and serve others in big ways. Now, let’s dive into a story to see what risk looks like in real life!
Alex’s Lemonade Stand Business
Alex wanted to start a lemonade stand, so he borrowed $100 from his parents to buy one month of supplies. He spent his money on lemons, sugar, cups, a table, and a big sign that said, “Ice Cold Lemonade – 50¢ a Cup!” The first week went great—Alex made $40 in sales because the weather was hot and sunny. But then, an early September cold front blew in, and suddenly no one wanted lemonade anymore. Over the next three weeks, Alex only sold $15 total. At the end of the month, he had only made $55 but had borrowed $100. That meant Alex owed his parents $45 that he didn’t have. He had to close his business for the season and do extra jobs around the house, like mowing the lawn and washing the car, to pay them back. In real life, if you can’t pay back money you borrowed on time, you often owe even more in late fees or interest, which makes the debt harder and more costly to repay.
But here’s the good news: Alex also learned some important lessons about reducing risk. One way would have been to save up the $100 himself before starting the business. That way, even if sales went badly, he wouldn’t owe anyone money. Another way would be to save $50 and only borrow $50 from his parents, which means he would only risk half as much. Or, instead of buying supplies for a whole month, Alex could have bought just one week’s worth—spending $25 instead of $100. That way, if things didn’t work out, he wouldn’t lose as much. Smart planning helps lower risk and gives a business a better chance to succeed.
And one more very important lesson: borrowing more money just to pay back the debt you already owe is a big no-no. That usually makes the problem worse, not better, because the debt just keeps growing. It’s always wiser to slow down, work hard to repay what you owe, and then plan smarter next time.
We’ll come back to this story to see how Alex learned from this experience and turned a disappointing business experience into a helpful learning opportunity!
2. Customer Service
Customer service is the way you take care of your customers so they feel happy and want to come back. It’s about being kind, helpful, and respectful so that customers feel good about their experience and want to come back again. You could have the best product in the world, but if you don’t treat your customers well, they may choose to go somewhere else next time.
For example, Maya makes and sells friendship bracelets at school. She always greets her friends with a smile, remembers which colors they like best, and even offers to fix a bracelet for free if it breaks. Her customers feel valued, so they tell their friends, and soon more kids want to buy from Maya. Because of her excellent customer service, her small business grows. In the end, people often remember how you treated them even more than what you sold them.
3. Growth
Growth happens when you learn from your mistakes, improve your ideas, and build on what worked well. A good business doesn’t stay the same, it grows by serving customers better, planning wisely, and adapting to changes. Let’s revisit Alex and his lemonade stand to see how he was able to grow his business.
Alex’s New Lemonade Business
After a tough first year, he didn’t give up. Instead, he made a plan to do better. The next spring, Alex relaunched his lemonade stand. This time, he focused on great customer service. He smiled and greeted every customer warmly, and he remembered regulars by name—like, “Hey, Sarah, want your usual lemonade with extra ice?” Those small touches made people feel valued, and many customers came back again and again.
Because of the warmer weather and his excellent service, Alex’s business really grew. In April, he earned $80. In May, sales jumped to $120. June, July, and August were his best months, with $150, $200, and $180 in profits. By September, he had made over $700 in total! But this time, Alex was smart about reducing risk. Instead of pushing his lemonade business too far into fall, he decided to close it down in September while sales were still strong.
But Alex didn’t stop there. In November, when the air turned chilly, he launched a hot cocoa stand. He already had loyal customers who trusted him, and they were excited to try his new product. Alex’s cocoa stand quickly became the talk of the neighborhood, showing that good customer service, careful planning, and smart timing help a business grow in powerful ways.
A Real Kid Entrepreneur
Entrepreneurship isn’t just for adults. Kids can be entrepreneurs too! One example is Moziah Bridges, who started a company called Mo’s Bows when he was just nine years old. Moziah loved fashion and wanted stylish bow ties, but couldn’t find ones he liked in stores. So he asked his grandmother to teach him how to sew, and he began making bow ties at home. At first, he sold them to friends and family. Then, word spread about his unique designs, and soon he was selling online and even appeared on television. By the time he was a teenager, Moziah’s business was partnering with big companies, and his bow ties were sold all over the country. In fact they are still sold today at mosbowsmemphis.com.
Moziah’s story shows that young people can spot a need, create a solution, and grow a real business. He faced risks, worked hard, and treated his customers well. And just like Alex with his lemonade stand, he learned along the way.
Careers in Business
Not everyone has to start their own business to be part of the business world. In fact, businesses need many different people working together to succeed. Here are some examples:
- A designer makes products look and work well.
- An accountant keeps track of money such as revenue and costs.
- A salesperson helps a business get new customers.
- A manager organizes people and projects so everything runs smoothly.
- A marketer spreads the word so customers know about the business.
Every role matters. Skillful and faithful work in any of these careers helps a business thrive.
Words to Know
An entrepreneur is someone who sees a problem or a need and creates a solution.
Risk is the chance that something might not work out and you could lose money or time.
Debt is money that you owe someone.
Customer service is how you treat your customers so they feel valued and want to return.
Growth is learning, improving, and expanding your business by serving people better and making wise choices.
Let’s Play!
Flip the Cards
Instructions: There are 8 scenarios below. Flip each card to see how important it is to have great customer service.
Bible Time
”Do you see a man skillful in his work? He will stand before kings.”
—Proverbs 22:29
This verse reminds us that when we work hard, grow our skills, and do our best, even in something small, God can open big opportunities for us. Whether you’re starting your own business or working in one, being skillful and faithful honors Him.
With Your Grown-Up
If a grown-up or parent is nearby, spend a minute to discuss this topic.
Hands On
Put learning into action! Download the activity and dive into a fun, practical way to explore today’s lesson.
What we Learned
Entrepreneurship means solving problems in creative ways. Businesses grow when they build upon important building blocks like managing risk, great customer service, and growing wisely. Every business has risk, but smart planning can reduce it, and good customer service can make a business shine. Growth happens when we learn from mistakes and adapt to new opportunities. Not everyone has to be an entrepreneur. There are many careers in business that are equally as important. And most of all, God values skillful, faithful work and can use it to open doors of opportunity.
Check Your Understanding
High-Five!
Hit play for your end-of-lesson video!