The biggest reason you might want to consider a service based business over a product based one is because they are easier to support and much more manageable.
As I explain below, product based businesses can be very successful, sometimes too successful. This can lead to a major problem, keeping a stock of inventory.
Watch the video below as I discuss to a group of parents and teens at the Cincinnati Home School convention, the differences between service based businesses and product based businesses:
Have you ever had a great idea and thought about starting a micro business? If so, you should check out my book series, Micro Business for Teens. In my books, you’ll gain valuable insight for starting a micro business.
A micro business is a small, simple and fast to start-up, sole-proprietor business that usually consists of one worker, the owner. Micro Businesses are usually low-risk and easy enough for a teenager to manage along with schoolwork and other extracurricular activities.
Carol Topp CPA