The T-shirt reads “Caution: Educated African American Male.” Kalief Rollins thinks it will be his next best-seller.

The 17-year-old from Carson, Calif., near Los Angeles, took home a $10,000 grand prize from the National Youth Entrepreneurship Competition this week for his business selling custom T-shirts with inspirational designs. Rollins competed against 27 finalists and 24,000 initial high school entrants for the award, given by the nonprofit Network for Teaching Entrepreneurship. (read the rest…)

There are a couple of things that micro business owner, Kalief Rollins, said that I think are worth noting:

Kalief has a business plan. He started small and manageable and is now expanding his business one step at a time:

In the next year, he says, “we plan to get our shirts into events like fairs, swap meets and farmers markets. … We want to get our shirts into different stores

He didn’t go into debt to upgrade his business. He waited until the money came in-in this case, $10,000 from an entrepreneur  contest!

With the $10,000, Rollins says he plans to make some business upgrades, including stepping up from a heat press to a silk-screen machine to improve the shirts’ quality.

He got professional help from his mother, an accountant. Smart guy!

“I hired my mom as my CFO,” Rollins says. “She worked as an accountant, so she’s good in that field of work.

Most micro businesses do not require a lot of start up funds, making them an attractive way to launch a business. Some entrepreneurs even start micro businesses as a means to fund another, larger business. Try to start your micro business without any debt. Then all your profits can go back into the business or better yet, your pocket!

Save the money first

If you could pay back a loan, then you should be able to save up some money beforehand. Don’t believe that the business will pay for itself. Most businesses fail and frequently because the owner had too much debt.

Start small as a hobby

Aim to break even by covering your expenses at first. You will learn a lot about marketing, pricing and customer service.

Find an investor

Investors are willing to take a risk on a new business and may not expect to be repaid for a long period, if ever.Ask your parents or grandparents to be your first investors.

Sell something

If you have an asset such electronics, books, toys or games, raise cash by selling it. Or have a garage sale and advertise it as a fund raiser to launch a new business. Advertise your business and raise money at the same time.

Work a temporary job

Work retail over Christmas, deliver pizzas for a few months, mow some grass or babysit like crazy to earn some cash. You’ll practice the time management skills you’ll need when you start your micro business.

Carol Topp, CPA