Business Basics
About 14 minutes, plus hands-on activity and discussion.
Think about it
Have you ever had an idea for making or doing something that people would actually pay you for? That’s the heart of a business! Businesses are simply ways of solving a problem or filling a need by offering something people want. Today, we’ll learn the building blocks of a business and explore how both products and services can become real businesses.
Let’s Learn
Running a business isn’t magic. It’s a set of parts that work together. We call these the 7 Building Blocks of a Business. To make them easy to understand, we’ll look at two fun examples: a friendship bracelet business and a dog-walking business. Each building block will be explained using these examples, so you can see how the building blocks fit together in real life.
1. Meet a Need
Every business starts by meeting a need. People are thirsty on a hot day? They need a drink. Kids want something fun to wear? They need a bracelet. Families go on vacation and need help taking care of their pets at home.
Friendship Bracelets: Kids want colorful, wearable gifts to enjoy with their friends.
Dog Walking: Neighbors need someone to help give their dog exercise.
Identifying a need, and how big that need is, is very important. You might have a really fun or creative idea for a business, but if nobody needs it or wants it, then your business won’t last long. Think about it: would anyone buy ice cream in the middle of a snowstorm? Probably not! But on a hot summer day, people line up for it. That’s the power of meeting a real need.
2. Sell a Product or Service
This is what you actually sell to meet the need. A product is something you make. A service is something you do.
Friendship Bracelets: A product made with string and beads.
Dog Walking: A service where you walk or care for someone’s pet.
It’s important to be clear about what you’re offering. If it’s a product, make it with quality. If it’s a service, do it reliably. Then, customers will trust you and be more likely to buy from you again. Other services include mowing lawns, babysitting, tutoring, cleaning, or even selling expertise like design or art skills.
3. Know Your Customers
A business needs people who want what you’re selling.
Friendship Bracelets: Friends, family, neighbors, classmates.
Dog Walking: Neighbors or family friends who have pets but are busy.
Your customers are the heart of your business. Without them, you don’t have anyone to sell to. Knowing who they are helps you decide how to reach them and what price makes sense. You don’t have to know them personally. Your customers may be mostly people you don’t know.
Think about your customers by describing them: their age, whether they’re male or female, their interests and hobbies, what needs or problems they want solved, how much money they might be willing to spend, and even where they live. These details give you a clearer picture of who you think would buy your product or service, and how and where you can connect with them.
Your customers should never be described as “everyone.” Get as detailed as you can when you think about your customer, and your business will be more likely to make money.
When you are planning your business, all of your decisions should consider your customers, since they are the people who will be buying from you. Without customers, your business will not succeed.
4. Know Your Costs & Profit
To run a business, you usually spend something first (money, time, and energy). These are your costs. When customers pay you, that’s your revenue. Your total revenue minus costs is your profit. Profit is the money that you get to keep after you have spent money that you had to spend to run your business.
Friendship Bracelets: Beads + string might cost $10. If each bracelet costs 25¢ to make and you sell them for $2, your profit per bracelet is $1.75.
Dog Walking: You may need dog treats, potty bags, or a leash (if the owner doesn’t provide them). If you charge $5 for a walk and spend $2 on supplies, you keep $3 profit per walk.
Learning to think about costs and profit teaches you to plan ahead. If you charge too little, you won’t make any profit. If you charge too much, customers might not buy. A smart business finds the right balance.
Making Money Matters
If you don’t get to keep any money for yourself after selling your product or service, then you need to think carefully about your business. As much as you may love your idea and enjoy working on it, it’s always important to ask yourself if it’s worth your time.
When you spend hours of your life (your time and energy) running a business that isn’t making money, it’s kind of like being a volunteer—you’re working hard but not being paid. In this case, you may be trading your time for joy, not money. If you truly love what you’re doing and don’t need the money, that’s okay. But if you do need the money, then it may be time, though it can feel sad, to close your business and think and pray about another way to earn money.
Business owners who keep running a business without profit can get themselves into money trouble called bad debt. Bad debt can make it harder to do other important things in life, like buying a car, saving, or investing.
5. Marketing Plan
Even with a great product or service, people need to know about it. Marketing is how you spread the word.
Friendship Bracelets: Wear them yourself, make a sign, or share photos.
Dog Walking: Ask neighbors directly, make a simple flyer with your parents, or let friends know by word of mouth.
Marketing doesn’t have to be expensive. Sometimes just talking to people, sharing your product, or making it fun is enough. The key is being creative so people notice and remember you. Don’t be afraid to remind people what you are selling and why it’s so great!
6. Research Competition
Other people may sell or do something similar. Competition makes you think about what makes your business special.
Friendship Bracelets: Stores sell jewelry, but yours are handmade and customizable.
Dog Walking: Professional dog walkers exist, but you’re local, affordable, and trustworthy.
Competition isn’t necessarily bad. In fact, it can actually make your business better. When there are other businesses selling something like yours, it challenges you to improve your product, service, or price. Your business shines when you focus on what makes it unique.
Sometimes, though, there are a lot of similar businesses, and that can make it harder to sell what you have. If ten kids on your street are selling lemonade, it might be tough to get customers to choose yours. But even in a crowded market, you can still stand out. Maybe your lemonade comes in fun cups, or you add a tasty twist like strawberries. Finding ways to be different and better can help your business succeed.
Researching your competition means learning about their product, pricing, and customers. Then you can use that information to make your business stronger and offer something special.
7. Keep Your Promises
How you run your business matters a lot. As we’ve learned in previous lessons, God cares about honesty, kindness, and serving others. Be dependable, keep your promises, and always do your best.
Friendship Bracelets: Deliver what you promised, be fair with prices, and be understanding if your customer changes their mind.
Dog Walking: Show up on time, treat the dog kindly, and return the dog safely.
Values are what people will remember most. Customers will forget small mistakes, but they won’t forget if you were dishonest or careless. Running your business with integrity makes people trust you, and it honors God.
Words to Know
A business sells a product or service for money.
A customer is a person who buys what a business is selling.
Cost is the money, time, and energy it takes to make a product or perform a service.
Profit is the money that is left after paying costs.
Marketing is how people learn about your business.
Let’s Play!
Memory Game
Instructions: Click to reveal items from the business examples we read about and find all 8 matches.
Bible Time
”Each of you should look not only to your own interests, but also to the interests of others.”
—Philippians 2:4
This verse reminds us that life and business isn’t just about ourselves. A good business pays attention to what other people need and tries to serve them well. When you run a business, it’s not only about making money; it’s about caring for others, solving their problems, and showing kindness. That way, your business isn’t just helpful, it also honors God. When you focus on serving your customers, your business is more likely to succeed.
With Your Grown-Up
If a grown-up or parent is nearby, spend a minute to discuss one or more of these topics.
Hands On
Put learning into action! Download the activity and dive into a fun, practical way to explore today’s lesson.
What we Learned
A business solves a problem and serves people. Every business is made up of the building blocks described in this lesson. Businesses can be fun and creative, and even kids can start them! Most importantly, God calls us to run our businesses with honesty, kindness, and a heart to serve others.
Check Your Understanding
High-Five!
Hit play for your end-of-lesson video!