We want our kids to make money, but should we tell them to get jobs or start businesses? Here’s what you need to know.

Should we tell our kids or teens to get jobs? Or should we encourage them to run small businesses and get a head start on the basics of achieving world domination? Well, the second option at least has the potential to provide flexibility for activities like studying and softball games. So rather than push our children to work at the mall, perhaps we should show them the steps of entrepreneurship.

They are:

1.  1) Identifying a problem. People who work in offices aren’t home to walk their dogs in the middle of the day. That’s a problem. People who jog in the park are thirsty. Again, a big, sweaty problem that could really use a liquid-yet-lemon-infused solution.
3. 2) Figuring out how to solve the problem. Chances are, this will require your parental supervision. For safety’s sake, kids can’t leash up other people’s dogs alone. They cannot sit in parks with even small piles of cash. This could be hard on your time. But it’s an investment in both the local economy and also a future industry mogul with the power to move markets. Sacrifices must be made, people.

3) Determining price and profit. This is called a business plan and it involves a little math combined with a little guesswork – which professionals call “economics.” Costs can be calculated, sure. But you have to make up (determine) your price — which should be low enough for people to pay and yet high enough to be worth the effort. Sometimes lower prices mean more sales, which could mean higher profits at the day’s end. Let the kid experiment. This is a life lesson, not a race to buoy stock prices before an upcoming earnings report.

4) Find an investor. This is going to be one of us, their parents. (Unless of course you can recruit grandparents…) Anyway, let’s all make a deal: we force them to pay us back. Not because we want the money – even though we totally want the money — but because it teaches one of life’s business lessons.

5) Advertising the business. Telling people about this product or service is the best and cheapest way to spread the word. Posters might also help – don’t put your name and phone number; over-protective parents parents raise safe entrepreneurs. Free samples are also pretty effective. One per potential customer, please.