enterpriseforkids.com

Inspiring kids to be entrepreneurial.

Flynn’s Honey Turns to Gold!

July 5th, 2012

When we last visited Flynn and his Honey Enterprise, he had just acquired 90kgs of quality raw honey from his Grandad’s bee hives in Geraldton. Flynn had also placed a bulk order for plastic honey pots. He was now ready to fill them up and make his first sale!

Warming the honey.

Honey pots ready to fill.

 

 

 

 

 

 

 

 

 

 

His honey was held in buckets that weighed over 10kgs. To get the honey from the buckets into the 400gm honey pots was not going to be that easy. Firstly the honey was very thick, making it tedious to decanter into the pots, and secondly it required strength to hold the honey bucket for pouring.

The production line.

Quick! Gimme another pot!

 

 

 

 

 

 

 

 

Flynn called on his mates to help. He poured the buckets into a large pot and heated it to 50 degree Celsius. This temperature wasn’t high enough to destroy the enzymes that make raw honey so beneficial, but it was high enough to make the honey fluid.

Mmmm... smells good!

Giving each pot a rinse in fresh water.

 

 

 

 

 

 

 

 

 

The kitchen table was wiped down and set up for the honey pot production line. The team were excited about finally seeing the product in the pots. I helped pour, whilst Flynn and his gang filled and capped jars. The jars were washed on the outside to ensure there was no stickiness and then labelled with Flynn’s “Howitt’s Honey” labels.

First batch stacked and ready to label.

The labels!

 

 

 

 

 

 

 

 

 

 

 

 

Flynn’s product looked clean, pure and professional. He understood that to get a market edge and to be able to sell his honey for a premium, his first class product needed to be well packaged and hygienic.

Flynn carefully drew up a poster pointing out the benefits of his product. This he attached to the boxes containing the honey pots. He had researched what honey sells for in the shops and online. He worked out what he could sell his honey for and still make a decent return. To provided an incentive to customers, he offered a special price if they bought more than one pot at a time. Marketing his honey required little effort. In fact visitors to our home took an interest in his honey and his honey began to sell. He gained permission from his school Principal and left a box in their staffroom. He organized with a teacher friend of ours from another school, to place a box in their staffroom, and he approached the local General Store where he was allowed to sell his pots of honey for a small commission.

Developing the brand "Howitt's Honey".

Flynn's first sale!!

 

 

 

 

 

 

 

 

His honey was selling well and it wasn’t long before he needed to re-stock all his boxes. As word got out about his product, people even began placing small orders via the telephone.

Flynn’s “Howitt’s Honey” business went very well except for one problem which I’ll explain here…

Raw honey has many health benefits that you would be hard pressed to find with processed honey. However, a downside with raw honey is that, over time, it will candy (begin to solidify). This occurs especially when the room temperature drops, like during winter. Flynn’s honey that had been waiting to be sold began to candy in the honey pots. People don’t generally want to buy honey that has hardened (hence why commercial honey producers process their honey using heat, as this stops it from candying).

Luckily this problem only happened to the last remaining pots that had been awaiting sale. He brought these home, opened them up and scraped the honey into a pot and heated it back to 50 degrees. This again, liquidized the honey and he returned it to the pots. We bought those last pots for our family. The lesson learned was that Flynn needs to sell his raw honey product before it shows signs of candying and he needed to inform his customers as to what to do if their honey does so.

Profits from Flynn's Honey Enterprise

Flynn’s net profit from his honey enterprise was outstanding!! He achieved his goal that he set before he embarked, plus much more. He learned many lessons along the way and recognized that it was a lot of work, but satisfying work! Flynn has become an expert in the honey business and has gained enormous skills and understandings of how to run an enterprise.

Flynn may now be ready to take his honey enterprise to another level. We hope to guide Flynn to move from being a small business owner to being an entrepreneur! How we do that will be shared in another Enterprise for Kids blog!

For those of you interested in having your own honey enterprise, or you would like your own bee hive for a regular supply of raw honey for your family and friends; then you could seek out an expert (such as Flynn or his Grandad) to get you started, or do a course. Or you could simply download an ebook written by a professional to your kindle. Here is one I found that looks like it covers everything anyone would need to know.

Our next post will definitely energize you! We met an inspirational man who presented “tips to being highly successful” that are well worth thinking about!

We would love to hear from you all, so please leave a comment!

Who Teaches Your Kids About Money?

June 20th, 2012

If you don’t teach your kids about money, then there are plenty of people out there who will! And not all of them will teach your children what they really need to know.

Kids are conditioned by media and celebrities.

Our kids are educated financially from many sources whether we like it or not. Everywhere they go and everything they look at is conditioning our kids around money.

Teenage kids, for example, are very influenced by their peers, TV and social media. They are pressured to want to have all the latest and greatest of everything! AND…they have to have it now! If you have a teenager in your house (or even a preteen!), you will understand this very well. They will tell you that they are the “only” ones in the “whole world” who doesn’t have one! And if you try to compromise with a cheaper version from Target,… well, forget it! Brand name or nothing!

Many parents fall into the trap of giving into their kids’ persistent demands. We have…..more times than we should have!… and the older a kid gets, the better they are at arguing their point. Some parents may lend their child the money with the view of having them pay it back when they can afford it, or some simply pay for the item fully and don’t expect their child to pay anything back.

But what is this teaching children?

Our son Flynn was preparing to go on a camp with his school. He claimed that ALL the kids would have iPods and that he wanted to buy one to take on camp.

He counted up his money and found that he was short about $100. He was very persistent in his request and we decided to sit down and have a conversation with him around the value of money.

Our dilemma was this – If we were to say an outright “NO, we can’t afford it” then we would be conditioning him with a mindset around “lack of money.”

If we said “YES”, then we would be conditioning him with the mindset to “borrow, then spend!”….and probably not appreciate it too much.

So……………we came up with a solution we had been taught in our mentoring course.

We said “YES”. He could buy an Ipod……however, we weren’t able to pay for it. We brainstormed ideas with Flynn on how he could raise $100. Time was of the essence as he was going on camp in three days.

We came up with ideas such as increasing the marketing of his honey that he was selling through his Honey Enterprise; sell some of his unwanted things such as his surf board; or do a deal with his sister and buy the items she had lined up to sell as part of her “New from Old” enterprise and then resell them with mark up.

The discussion gave him motivation, and we took the punt that if he was really keen for the iPod, then he would make it happen.

The point of all this is that we didn’t automatically say “No, we can’t afford it”…… and we didn’t say “Yes, and we will pay for it”. Rather, we put the onus on Flynn to work out a way to achieve his goal without getting himself into debt. We used this opportunity to teach Flynn about money.

Our Money Mindset Mentor, Paul Counsel, says that in our society, kids are conditioned to “earn, spend and borrow” from a very early age. This conditioning carries through to adulthood and ties people to a job. They need this job to pay for the interest payments on their “things”.

Sporting heros are used to condition people.

It is hard for our kids to avoid this type of conditioning. Their sporting idols appear on TV advertisements telling them what a great investment they are making if they buy x,y or z……and finish with a trusting wink!

Celebrities promote all sorts of things from insurance and jewellery to holidays. Retailers offer low cost, easy monthly payments for expensive items that people really can’t afford. There goes the “earn, spend and borrow” cycle again. Even airlines offer credit these days!

The education faculties don’t teach your kids about money either. In fact they will also put young people into tremendous debt by financing their higher education courses. Young people who spent five years working hard for a qualification, come out at the end with a massive debt!

Locked into debt before you can even begin!

Here is a hard fact… this year the total amount of student loan debt in the US hit the $1 trillion mark. Back in 2010, the amount of U.S. student loan debt surpassed the total amount of credit card debt, and it continues to grow. The trend in Australia is following that of the US.

We can look at life as being a game full of experiences! We are here on earth to play the game. Yet from an early age the odds are stacked against us to achieve personal and financial freedom when we are “conditioned” to earn, spend and borrow for unproductive things.

Can this change? Absolutely.

And who is the best person to teach this change to your children?

Well, if you have already achieved financial and personal freedom, then the best teacher is YOU!

And if you haven’t, then find someone who has achieved the type of financial or personal success you would like for your kids. You may even learn something in the process. 🙂

Flynn’s Honey Investment Continued……

June 1st, 2012

You may remember from a previous blog that Flynn’s Enterprise for Kids plan was to buy honey at wholesale and sell at retail. All he needed was a good source of cheap quality honey that he could buy in bulk.

Flynn’s Grandad has kept bees for over twenty years and had a number of hives which he regularly harvested honey from. The honey produced from his bees is very light in colour and tasty as the bees forage over the Mid West fields of Paterson’s Curse and coastal gums. Flynn knew that he had a good quality product.

His plan was to pay a visit and strike up a deal with his Grandad!

Flynn’s Grandad saw that Flynn had thought through his plan. He was more than willing to support Flynn with his new honey enterprise. Flynn negotiated a  good price per kg, however, the deal included Flynn having to help his Grandad rob the honey from the hives. Listen to Flynn explaining the deal he has made with his Grandad by clicking this link!

Flynn donning his gear.

Flynn with Grandad

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Flynn was up for the challenge! He donned a pair of overalls, gloves, boots and bee veil. Then he and his Grandad disappeared for the morning, returning later in the day with a heavy load of honey supers in the back of the ute. They were carted around to the rear of the house and quickly stacked in the garage. Already the local bees were honing in on the honey, hoping to pinch it for their own hives. The garage door was closed to keep the bees out.

Flynn slotting the honey combs into the honey extractor.

Extracting the honey from the honey combs.

 

 

 

 

 

 

 

 

 

 

 

 

Grandad sliced the caps off the honey combs with a hot special purpose electric knife and Flynn slotted them into a honey extractor. The extractor uses centrifugal force to extract the honey from the combs. It was Flynn’s job to spin the extractor, which proved to be a lot of fun. Although everything nearby became sticky with escaping honey, including Flynn!

Checking the temperature of the honey

Yummy raw honey - a great enterprise venture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Flynn’s brother Jai, and a family friend Jack, stopped by to lend a hand. Many hands made light work and before long, after warming and sieving the honey, it was sealed into 10kg buckets.

Angry bees don’t take too kindly to people robbing their hives. It was pretty amazing that Flynn managed to do all this work without getting stung! His Grandad and Dad weren’t so fortunate though!

Enterprising Flynn paid cash for 80kgs of honey from his Grandad. He loaded it all up in our car to take it back to his home. It was a large investment for a twelve year old and Flynn, knowing its value, took great care to ensure that the honey was well sealed and cushioned for the long trip home. He didn’t want it spilling, nor did he want any ants finding their way into his containers.

Pouring the honey into tubs.

Filling tubs with Grandad

 

 

 

 

 

 

 

 

 

 

 

Flynn wanted to sell his honey at retail. He had done his research and found that honey generally sold in shops for around $12 or $13 a kg. He had a unique product. It was tasty, raw and full of enzymes, which are generally destroyed during commercial pasteurization processes.

He had also searched online for plastic honey pots. We discussed with him that people would pay a premium for his product if it looked professionally bottled and not sold in recycled jam jars. New plastic honey pots weren’t cheap! The larger the order, the better the price.

Flynn made his order over the phone and bought five hundred 500ml pots. These were delivered by mail within a few days, arriving in a massive cardboard box.

 

Flynn ordered honey jars and lids...

....ready to be filled

 

 

 

 

 

 

 

 

 

So now he was all set to go with his enterprise for kids project. He had his honey and honey pots and had spent every cent that he had. It was a huge investment and Flynn had no choice, but to make it work. He had overcome fear and had taken a calculated risk with his business. All he had to do now was bottle, market and sell his honey. … and this will all be revealed in a later blog!

In our next Enterprise for Kids blog we check back with Candy Man Chayse and see how his enterprise has been progressing.

enterpriseforkids.com

Inspiring kids to be entrepreneurial.