Kids Kreative Korner

Large Companies Are Constantly Testing the Markets 
for Their Products.  You Can, Too.

When Cathryn Murray had the idea that kids in her Pittsburgh neighborhood would buy candy, she needed a way to see if her plan would work. To cut down on the risk, she used her leftover Halloween candy to test the market. Once she found out kids would buy candy, she invested money in the business.

Other kids hand out survey sheets that say, "We care what you think of us!" On the surveys are questions about their prices, their service, and whether the customer would hire them to do additional work.

Big business spends a lot of money on market tests before a new product is released. It tests the color, packaging, prices, size, smell, texture--all aspects of the product. Big companies save money by knowing what will sell before they manufacture and mass-market their product.

Most testing methods used by young entrepreneurs are low-cost and simple. Here are some ways you might test before starting a cookie-baking service:

1. Take a survey of prospective customers, asking what their favorite cookies are, where they buy them, and how much they pay.

2. Make a list of six different cookies you can bake and ask friends and neighbors to vote for their favorites.

3. Set up a table at your next scout, 4-H, or youth meeting, and offer a choice of bar cookies, drop cookies, or rolled cookies. See which variety is most popular with the youth market.

Make a list of ways you can test the market and make better business decisions. Each time you conduct a market test, the results should be used to update your business plan.

Bonnie Drew is the author of FAST CASH FOR KIDS (2nd edition), published by Career Press (1-800-227-3371). She is also the creator of the KIDS BUSINESS software for young entrepreneurs, available from Homeland Publications (713-332-9764).

Drew is also Editor of YoungBiz online magazine, published by Kid's Way, Inc., a company that helps youth prepare for business and the workplace of the 21st century. For more information, write to Kid's Way at 5589 Peachtree Rd, Chamblee, GA 30341 or call toll free 1-888-KidsWay (1-888-543-7929). YoungBiz magazine can be found at http://www.youngbiz.com