Q: I
am 16 years old and run a leading online teen magazine. I recently
started receiving advertising payments, but when I took the checks
to my bank, they refused them because they were made payable to my
company and I was trying to put them into a personal account. They
wouldn't let me open a business checking account because
I'm under 18--not even if my parents co-sign.
The only way to do it is to have my parents open the account,
but then it affects their taxes and such--and having advertisers
make payments to me personally looks unprofessional. So at the
moment I hold two checks I can't cash. Is there some way around
this?
A:
You're in a tough spot--opening a business checking account is
one of the best ways to tell the world you're a serious
entrepreneur, and that's particularly important when you're
a teenager. As you know, many people have a tough time accepting
the fact that teens can and do start and run successful businesses,
often even more successful than people twice or three times your
age. With the advantages of youth on your side--a fresh perspective
on business ideas, possibly low overhead (if you're living at
home rent-free), and the ability to make mistakes early in the game
and have plenty of time to correct them--starting a business is a
very attractive option for young people who would rather answer to
themselves than earn minimum wage.
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So what can you do when a bank--or anyone in a position to hold
your age over your head as you attempt to get your business off the
ground--refuses to let you into their circle of friends? In this
case, it sounds as though you are dealing with a bank that
doesn't want to deal with you. That's very unfair, but it
is their prerogative.
You should not let that discourage you, however. As with any
person or institution that won't give you the time of day, you
just need to take your business elsewhere. Start shopping around
for a bank that will work with you to meet your needs, even if it
means having your parents co-sign to open the account. There's
bound to be a bank that will open its doors wide for you. Then, if
you end up finding a teen-friendly bank, be sure to write a
carefully worded letter to the bank that said no, letting them know
that not only did you find a different bank to do business with,
but you are recommending it to all your friends, who also want
checking accounts of their own (business checking or
otherwise).
If enough teens spoke up, perhaps banks would start changing
their policies to make them more friendly to young entrepreneurs.
And perhaps that would also encourage more banks to lend start-up
capital to teens. Anyone who thinks that's a crazy idea might
want to consider that change never happens unless people voice
their discontent. Ten or 20 years ago, I bet not many people
thought any teenager could successfully start a business. But teens
have been doing it for decades--think Fred Deluca (founder of
Subway), Tom Monaghan (Domino's Pizza) and Martha Stewart, to
name a few.
If you really want to be a successful entrepreneur, you're
going to have to get used to being rejected and finding ways to
overcome. If it's worth fighting for, you'll make it
happen.
Karen E. Spaeder is editor of Entrepreneur.com and managing
editor of
Entrepreneur magazine.
The opinions expressed in this column are those
of the author, not of Entrepreneur.com. All answers are intended to
be general in nature, without regard to specific geographical areas
or circumstances, and should only be relied upon after consulting
an appropriate expert, such as an attorney or
accountant.