>> Production funding and educational outreach for Biz Kids is provided by a coalition of America's credit unions, where people are worth more than money.

A complete list of individual credit union funders is available at wxxi.org.

>> Every day, America's credit unions help members with their financial needs and with programs like Invest in America.

It's only fitting that credit unions support Biz Kids because financial education is what we do.

Learn more at lovemycreditunion.org.

>> Monkey.

>> Business.

>> Monkey.

>> Business.

>> Hey, what's in that package?

>> It's an instant business kit.

>> An instant business kit?

>> Yeah, I guess you put it together, add water, and you've got a business.

>> Really?

I thought there'd be a little bit more to it than that.

>> Me too, but here it is, the Amaze-O Do It Yourself Instant Business Kit-- does not include goods or services, income expenses, ownership, model, or profit.

Step one: enlist help of one or more Biz Kids.

Now, that we can do... we can do... we can do... we can do.

>> Monkey.

>> Business.

>> ♪ When making money is the aim ♪ These kids they bring their game ♪ They're the Biz Kids Can you dig it?

♪ They know what's up and let you know ♪ Just how to make that dough ♪ They're the Biz Kids Right on!

♪ So learn a little more about bringing money through the door ♪ They're the Biz Kids Right on!

♪ >> Brought to you by goods and services.

You gotta have 'em to have a business.

>> Businesses have been evolving and changing for over 1,000 years, but one thing always remains the same.

>> A business has goods and services to offer people.

>> And you guys know what that is.

Goods is what you're buying.

>> Ah yeah!

>> Cotton print travel suit... Italian straw pixie hat.

>> ♪ Goods!

♪ >> ...and services is what the business is doing for you.

>> Painted hairdos to match mademoiselle's ensemble.

>> ♪ Services!

♪ >> And you have to have one or the other.

If you don't have them, you ain't got a business.

>> And then you don't have customers and no money.

>> No cheese.

>> Mo-mo.

>> No moolah.

>> No dough.

>> No coco.

>> Bling.

>> Lamborghinis.

>> Gwop.

>> Corporate helicopters.

>> Zebra fur.

>> Private jets.

>> No rhinobacks.

>> No lettuce.

>> We're taking it to the streets to ask what is a business?

>> The definition of a business?

>> A business would be a... >> A business is... >> An establishment where people work at?

>> Kind of a setup to sell or provide something.

>> Uh... >> A self-proprietorship.

>> Get cash or some type of trade for their... >> Various things.

>> Specific things.

>> Services.

>> Goods and services.

>> Business is to help people and kind of make money.

>> No, no, no, no.

Wait a minute.

No, I remember.

>> Mind your own business.

Mind your own business.

Everybody's always yelling that at me.

And the thing is they don't even know what business is.

Do you know?

No, no, you don't.

Do you?

That's my point.

That's my point.

See, do you?

No, no.

See, a business supplies goods or services for money-- for money.

>> What's a good?

>> What?

>> What's a good?

>> What?

>> A good what?

A good what?

>> No, okay, a good is a thing.

It's a thing.

It's like the pencils and papers that we buy in the school here.

It's our paste.

We buy a lot of that.

You know why?

Somebody's eating it.

You, stick out your tongue.

All right, it's not you.

Anyway, we buy all that, and then the money that they get, that's their revenue.

They subtract... they subtract their expenses.

What's left over is their profit.

They invest that, and their business gets bigger and bigger and bigger and bigger and... ( bell ringing ) When I find out what kid is eating all that paste, I'm going to give him the business.

>> ♪ Oompa-Loompa >> You pay money for goods and services.

You wouldn't pay money for bads and services, would you?

No.

>> A business can be anything, as long as it provides goods or services for people to buy.

>> The dairy farmer provides milk as goods.

This man loves to deliver the milk as a service.

>> So a business could be a store or an auto dealership or a factory.

>> Sure.

They all provide goods for sale.

>> So a business could also be a credit union or a hospital or an auto mechanic shop.

>> Yep.

They all provide services, and that's a business.

>> It's goods and services.

>> So Tex and Edna's Museum of Cauliflower could also be a business.

>> Tex and Edna's Museum of Cauliflower?

>> Yeah, I said it was a business, not a good one.

>> Vegetables such as cauliflower.

>> Passion for business... for business.

>> Hey, I'm here to tell you how not to start a successful business, and I should know, because I'm Surly Joe.

>> In this restaurant, patrons could order nutritious food but don't.

>> The first thing to remember is to never make a business plan.

What is this, a business plan?

What did I just say?

>> In this restaurant, too many people eat without pleasure.

>> When you plan, it is very dangerous, because when you plan, there's a much greater likelihood that your business will be a success.

And you know what that means: happy customers, repeat business, and worst of all, profit.

>> Quick lunches are the order of the day, and most of these are inadequate.

>> Never give good customer service, because if... >> Excuse me?

Could I get some more coffee over here?

>> Oh, absolutely, your highness, without further ado.

Do you notice that I'm talking?

I'm talking here.

I'm the one who's talking.

You listen when I talk.

>> Well, I can't take this one back.

>> Do you mean to tell me that I have to send it off somewhere?

>> Yes, ma'am.

That's the procedure.

>> Now, bad customer service is one of the best ways we have of... oh, oh.

>> I'm out of here!

>> See, it works every time.

>> Ma'am!

Ma'am, your purse!

>> Whoa, whoa!

What are you doing?

What are you doing?

Look, finders keepers, losers weepers.

>> You could buy another clock.

>> Certainly not in this store.

>> Ah!

Oh, oh, oh, oh, oh, oh, oh, oh.

Get it off.

Get it off.

Ah, ah, ah, ah!

>> I'm Gina.

>> I'm Nica.

People get us mixed up all the time.

I get called Gina.

She gets called Dominica.

Like at school, teachers can't tell the difference between us.

Like, I could go into her Spanish class and take a test for her.

>> The name of our business is Twin Sweets, and we bake and decorate cakes.

>> It's just a small business out of our home.

We try not to get really big.

We always liked cooking, loved baking.

>> We like to bake crème brûlée, and we asked for a blowtorch for Christmas.

For Christmas, my aunt, she got us a cake decorating kit, and we didn't really know how to use the stuff.

I mean, we tried, but our frosting didn't turn out right.

It was kind of gloopy.

So she decided to sign us up for these cake classes so we could learn how to use it, and we loved it.

We took three courses, and now we have a business.

>> We just started the business just, you know, making cakes, dinky little ones, you know, for birthdays and things.

But once we got into it, it's like we want to get better.

Here's some of the cakes we made.

Owning a business really turned out to be a lot harder than we thought.

>> There's a lot of stuff that you have to think about when you make a business plan.

It takes a lot more work to, like, budget money and find out where it's going.

We need to make sure that we're making more money than we're spending on making the cake.

And we also have to figure out how much money we want to be paid for the time that we put into the cakes.

>> We have to sit down and calculate how much money we're spending on the ingredients and things and on the materials and utilities like the oven and mixers, you know-- how much money that cost to make the cake.

And then we subtract that from how much money we actually charge the people, and we do usually make a little bit of profit.

>> We're using the money that we're saving to expand our business after we graduate from college and study abroad.

Eventually, we plan to have our own bakery.

I love making cakes.

It's fun.

I like working with my hands.

You get to be really creative.

Sometimes people, when they order a cake, they'll be like, "Oh, I don't really know what I want; just do something," and I love that.

I get to come up with whatever I want.

>> I'm really passionate about our business.

I really want it to succeed.

I think a lot of people have told me our cakes taste really good.

People who hate cake end up liking cake after they taste our cakes.

Our cakes look really good.

So if we have good taste and they look good, what can go wrong?

>> Cake, cake.

>> Not only are they doing what they love, but they found a way to make it into a profitable business.

They found out how much it cost them to make the cakes and then set the price to cover the cost of cakes and make money too.

Smart.

Hey, whatcha doing?

>> Oh, uh, writing the business plan for the Lauren Project.

>> The Lauren what?

>> That Lauren Project.

>> The Lauren what?

>> My business venture.

Oh, okay, so tell me what you think.

Should I do it on my own or get investors?

>> Well, it depends on what you want achieve.

See, if you're the sole proprietor, you get all the profits and rewards.

>> Well, the profit part sounds good.

>> Oh, you could join up with someone and make a partnership.

That means you share all the work and liability.

>> Well, who do I know?

>> Um, you could incorporate your business and make it a corporation.

That means you get money by selling parts or "shares."

>> I like that.

>> It also means that your plan there has to convince these people that the Lauren Project is worth their risk.

>> Well, it sounds like I need to do some more thinking.

>> Well, what exactly is the Lauren Project?

>> Oh, uh, well, that's kind of why I need to do some more thinking.

>> That's kind of an important part, you think?

>> Right, uh, well, back to the business plan.

>> Yeah, first things first.

>> Okay, you know what?

I'm going to prove you wrong!

>> ♪ No business plan could be tragedy... ♪ >> Hey, Financial Genius here, and you're in the right place, because I know business.

You want to see?

Okay.

Business is the buying and selling of goods or services.

And if you got a business, that means you're selling goods, which are things, or services, which are actions.

See?

I know business.

I make it my business to know business.

And now I've given you the business about business.

( laughing ) A little business humor there.

Hey, wait!

I got more business.

>> Secretary of the treasury... >> The American/Canadian prairies.

>> One of the finest products... >> Grandpa!

Thank goodness I found you.

You know you're not supposed to leave home without telling anybody.

>> Well, I can't very well start my business sitting around at home; that's for sure.

>> What?

>> My business, the prairie store.

>> What do you sell?

I don't see anything.

>> I sell the prairie.

>> What about the stuff people need, like beans, nails, lumber?

>> I got prairie grass.

Now, it's a lot more versatile than you might think.

There's a lot of things that you can do with the grass.

>> Have you stopped taking the medicine the doctor gave you?

>> Don't step on the merchandise.

>> Grandpa!

People in the prairie don't need prairie grass.

A successful business sells goods or services people want or need.

That's what a business is!

How will you ever turn a profit?

>> My expenses are very low.

>> That's it.

I'm moving to the city!

>> Take some prairie grass with you!

>> Ripe fruit of the prairie.

>> Profits are the money left over after all the bills are paid.

>> What you have left over is your profit.

>> It's lemonade.

Lema-lema-lema lemonade!

Lemonade for you!

>> What is profit?

Well, let's say that you have a lemonade stand, and this is the money that you make from your business.

Each business has to pay expenses, like lemons... >> Hey.

>> ...sugar, materials to make your stand... >> Enjoying my lemonade, Miriam?

>> Mm, it's great.

Paper cup.

Ah.

Expenses for running a business.

And once these expenses are paid for, the money that you have left is your profit.

Congratulations, you've made yourself a profit.

>> I don't feel very profitable, Miriam, but thanks for the lesson.

>> Revenue is the money that comes in.

Expense is the money that goes out.

>> Monkey.

>> As you know, a business supplies goods or services for money, such as the business that I run-- a business that is getting criticism.

It's called Larry's Big and Plenty Soda in a Cup.

People are saying that, yes, it is soda in a cup, but it is neither big nor plenty.

Maybe that's why Larry's Big and Plenty Soda in a Cup hasn't been making much of a profit.

Okay, that's fair enough, I guess, but I hope you'll try my other product: Larry's Really Good Looking Thin Ties for Men in Brown Suits.

>> Monkey.

>> Hello.

>> All right, guys, we're almost done.

Good job.

I love dogs.

They trust me.

They love me.

They listen to me.

I can do a lot of tricks with them.

You're being so good.

Come on, Watson.

This is definitely my most favorite part of the dog walking.

People had discovered what a great dog walker I was through our neighborhood newsletter.

I started charging by the size of the dog, and I started making money, and I was doing great.

I had a great idea that we should help dogs by making all- natural, low-fat biscuits that have healthy ingredients.

The first batch of dog cookies that we actually made were the "Herbalisious" ones.

They turned out pretty large, lumpy, burnt, and horrible.

The third batch that we made turned out much better.

I believe that improving a dog's breath actually does improve a dog's social life.

So we would add things like oregano, garlic powder, and rosemary to help freshen dog's breath.

Let's say you're at a dog park, and the dog is running around with other dogs and had eaten my dog cookies with the garlic in it.

I think it would have actually helped the attraction to the other dog because dogs love the smell of garlic.

Before I had my dogs try their cookies to makes sure that they liked them, I actually ate them myself.

Mm, tasty.

I sold my first dog biscuits to my dog-walking customers.

I would give them samples weekly so they could try all my different variety of eight flavors, and it turned out great, because the dogs loved them, and that's how I started.

>> They do love your biscuits, though, and if you get a chance, can you bring by another bag of those tomato biscuits?

We're all out.

>> Okay, cool, okay.

In order to arrive at the price when I first started making my dog cookies, I got out my calculator to calculate the amount of ingredient that I was using in one batch of dog cookies-- and the price of the gas, the price of my labels, the price of my boxes.

And I divided it by the amount of time that I spent with the dog cookies as well, and I figured out that I actually wasn't making a lot of money.

I was only making about 50 cents per box or so.

And so I raised the price to $7.50 per box, and it worked out great, and people love my dog cookies.

>> I love Briant's biscuits.

>> In order to actually put my dog cookies in the Civilized Nature store, I developed a dog cookie called "Grain Free Liver Crunchies" that didn't have any wheat, because dogs are allergic to whole wheat flower.

And I got in the store, and it's great retail.

>> It's a good product, so we decided to bring it on in and say, "Hey, this is a local young man that's doing this."

So it's impressing our customers, as well.

>> I'm Briant Allen, and I'm a Biz Kid.

>> Briant's expenses were eating his revenue as fast as the dogs were chewing up his biscuits.

>> And that's not the right recipe.

>> For a business to succeed, the revenue has to grow faster than the expenses.

>> It doesn't matter how much you like puppies.

If you can't keep your expenses down and your revenues up, your business will go to the dogs.

>> And Briant put out a high- quality dog biscuit, and that allowed him to raise the price of his biscuits without the demand falling off.

>> That raised revenues while keeping expenses at the same level.

>> And that made for a healthy business so Brian could keep selling healthy biscuits for dogs.

>> Now, that's a biscuit.

>> Biscuit?

>> And that's a Biz Kid.

>> That's what I said.

>> Biscuit?

>> No, you didn't.

>> That's what I said.

I said "Biz Kid."

>> No, you said "biscuit."

>> Biscuit?

>> Biz Kid.

>> No, you didn't.

You said "biscuit."

>> Biz Kid, Biz Kid.

>> A biscuit?

>> Any of these lamps will go well with your modern furnishings.

>> ...with 67 million people gainfully employed.

>> Well, maybe you'd like to buy a business, be your own boss.

>> Now you're talking.

>> All businesses try and make a profit, but not all of them do.

>> That's because profit comes not just from the money you take in but also from the money you pay out in expenses.

>> So let's say you were raking your neighbors' lawn.

It's just you and the rake.

There's very little expenses, and the money that's coming in is mainly profit.

The problem is you can only rake so many leaves in one day, unless... >> ...you get a leaf blower.

>> Now you can blow all the leaves down the street in the same amount of time it'll take you to rake one yard.

You're going to have a lot more money.

>> But you have more expenses.

Now you have to pay for the leaf blower and the gas that makes it work.

So even though you're making more money, more money is going out.

>> But if you work really hard, you can get the leaf blower paid off, and because it's a one-time thing, you won't have to keep throwing money at it.

>> And in the fall, it's all profit.

>> And now it's time for another Biz Kids Biz Quiz.

Money left over after a business pays for its expenses is called, A, profit; B, an adding mistake; C, a pizza party in the making.

If you said "A," that's right!

Congratulations!

You're thinking like a Biz Kid.

>> Hi, my name is Cory Kossack, and I'm a Biz Kid.

I got the idea to start Koss DVD a few years ago when I was sitting in my college dorm room.

I didn't really think of myself as an entrepreneur; I just thought of myself as this guy who happened to start selling stuff on eBay.

I decided on DVDs for a couple reasons.

One is that DVDs would never go out of style, because people were always watching and buying movies, and there would always be new movies coming out, so I'd never run out of supply.

So what I did when I first started was I needed to sell products slightly below what I'd normally sell them at so that they'd move faster.

And it worked.

So after selling a half million dollars on DVDs in my first year with Koss DVD, eBay had called me and invited me to come speak at their annual convention training event, eBay Live.

I had a huge line of people in the audience waiting to talk to me after the presentation, and that's when I decided to write eBay Millionaire or Bust.

And then one day I walked up and saw it sitting here, and I almost cried, honestly.

I've been featured in Entrepreneur Magazine, Young Money Magazine, and in Entrepreneur Magazine's eBay Start Up Guide, with many more to come.

The biggest issue with selling on eBay is that when you list an item for sale, you're charged a fee.

That's why I created profitbuildersoftware.com.

>> Hi, I'm Seth.

Correy asked me to develop a program that makes simple calculations to help people on eBay make more money.

>> There's no point in going into business unless you're either going to help people or make some money at it.

So I actually own a patent pending on this product, which means that nobody else can offer this exact product for sale.

To get a patent on a product, you actually have to talk to a patent attorney, who will help you through the process.

To start an online business, there's a few things you need to do, one of which is extremely important, more important than the rest.

You need to identify products that people want to buy and are going to buy, or else there's no point in offering them for sale.

So your profit is going to depend on how quickly the item sells and which listing format and features you chose on eBay, which is why you need eBay Millionaire or Bust and profitbuildersoftware.com.

Now, don't expect to start with $1,000 and do, you know, millions in sales in your first year.

But I was able to do a half million dollars in my first year, so anything is possible.

>> A business can be most anything, from the largest of multinational corporations with thousands of employees and offices around the globes, to small, simple establishments run by a sole proprietor, like me.

I have a small business.

>> A business can be owned by one person or a group of people.

My dad owns a construction company.

So he has employees, but he is the only owner and operator.

He is the sole proprietor, which means that he's his own boss and he owns his own company.

>> My mom is an accountant, and she runs an office with four other people.

>> My dad and one of his friends has a real estate office.

>> Those are two examples of partnerships.

Now, a partnership is where two or more people share ownership and management of a business.

They also share the profit that the business makes.

>> My mom is a senior manager of a really big company.

She's worked there for a long time.

>> Big businesses are also called corporations, which are companies that are owned by a lot of people called shareholders.

Now, they're managed by a board of directors and then run by a set of executives or big wigs.

>> You've heard of Mr. Cunningham, the big boss.

>> Yes, I know who he is.

>> Well, I was in his office.

He owns the whole place, and I was in his office.

>> I know it.

>> No matter what the size of the business, the definition of success stays the same, right?

>> Yeah.

A business is generally considered successful if it makes more money than it spends.

>> So my lemonade business, which I am sole proprietor of, is very successful.

>> Uh, so have you ever considered a partnership?

>> Nope.

>> Uh, shareholder?

>> Nope.

>> Board director?

>> Nope.

>> Janitor?

>> Nope.

>> So you want to start a business?

To figure things out, one of the best places you can go is your local library.

Come on, let's go.

>> Hi, may I help you?

>> I'd like to know what kind of resources you have for kids like me who are trying to start a business.

>> We have all kinds of resources.

Of course we have the books, but we also have electronic resources, the Internet, databases.

We have videos.

We can refer you to agencies in the community.

What is it you want?

>> I want to start a business making and selling cookies.

Where should I begin?

>> Do you have a business plan?

>> No.

>> No?

Well, let me show you some books where they are.

>> Cool, thanks.

Let's see here.

Let's see.

Art glass studio.

>> Shh.

>> Bridal salon.

>> Shh.

>> Chiropractic office.

>> Shh.

>> Cookie shop.

What's this?

The ABCs of Making Money for Teens.

Cool.

>> Shh.

>> Now let's find some Web sites for recipes, like chocolate chip or peanut butter or all that kind of stuff.

Let's see.

So I've got a sample business plan, some books, some recipes, and some online information.

I've got everything I need.

Come on.

See you!

>> Monkey.

>> Science and business.

>> Monkey >> Business.

>> My name is Sam, and I made this cookbook.

I love cooking.

Me and my mom have always cooked together, and I wanted to do something for the MS society.

My mom has MS, and she's had it for almost five years now.

MS is short for multiple sclerosis, and it's a disease in your brain.

Luckily, she has the non- progressive form.

This is the cookbook, called Can I Have That Recipe?

This book turned out amazing.

We have appetizers.

We have main dishes.

We have desserts-- anything you could imagine.

I had no clue that this cookbook would turn into a business.

It takes a lot of work to put together a cookbook.

First I had to email my friends and family for recipes.

Then I had to type up recipes into the computer.

And after we had that, we had to send them off and choose the layout of the book, all the styles.

( doorbell ringing ) And then I had to sell them.

We placed our first order for 200 books, and we didn't think we'd sell any more than that.

Those books were gone in presales.

It was a lot more work than I ever expected it would be, but it was worth it.

I was really proud of my accomplishments.

I sold my cookbook in so many different ways.

I did it just at little gatherings at women's houses and sold them at a table.

I did it through the MS Society.

I went on Tom Douglas's radio show.

>> I'm Tom Douglas, and I'm a chef and entrepreneur.

My sister Mary Lou has had multiple sclerosis for over 30 years now.

One of my passions is to try and help the research to make her life better.

Sam sent me a little note saying she had this book.

I said, "Come on the radio show.

Let's promote this and see if we can sell some, raise some money."

>> We've sold almost 1,000 copies so far.

It's been a great success.

I've raised $16,000 for the MS Society.

Business used to be some big, grownup thing, but I've realized that kids can do it too if they put their mind to it.

>> Okay, here we go.

You've got 20 seconds on the clock-- and go!

How do you tell if an activity is a business?

>> A business has goods and/or services.

>> Correct.

Income minus expenses equals?

>> Profit.

>> Good job.

And a company can be run by individuals or a group of individuals-- true or false?

>> True.

>> Good job.

And the last question is who won the World Series in 1905?

( buzzer ) Everyone knows it was the New York Giants over the Philadelphia Athletics four to one.

>> We wanted so bad to get this... you know, to get Wormpoop out to everybody.

>> I own a company called Don't Fret Productions.

>> I have a company called EDEN BodyWorks.

>> We have a knitting business called the Knitted Sheep.

>> The name of my company is Techmaster Computer Works.

>> So I created my own company, and it's called Be It.

>> I invented a baseball bat company.

>> I am in a business.

>> We string racquets.

>> I make bath salts.

>> We make cheese here.

>> I started this business when I was 15.

>> When I started the company, I was 12.

>> When I was 13 years old, I wrote a book called The Teenage Investor.

>> I have a better appreciation for money now that I've started my own company.

>> We have our own business.

We're going to Costa Rica with it.

>> We have to figure out of a way to get Wormpoop out there.

We discovered a whole new way of doing business.

>> Hey, do you know a successful business?

>> Maybe you're a Biz Kid.

If so, we want to hear about it.

Got some video?

We want to see it.

>> So check out bizkids.com to find out all the details, and maybe we'll see you on the show.

>> Yeah, like us.

>> What's so special about us?

>> We're on TV.

>> Does make us pretty special.

>> Yeah.

>> Just check out the Web site, because if you're a Biz Kid, we want to hear from you.

>> Production funding and educational outreach for Biz Kids is provided by a coalition of America's credit unions, where people are worth more than money.

A complete list of individual credit union funders is available at wxxi.org.

>> Every day, America's credit unions help members with their financial needs and with programs like Invest in America.

It's only fitting that credit unions support Biz Kids because financial education is what we do.

Learn more at lovemycreditunion.org.

Captioned by Media Access Group at WGBH access.wgbh.org