Featured Entrepreneur – Jason “Biz Kid” O’Neill – Pencil Bugs

by smallbizbee · 9 comments

Our latest Featured Entrepreneur has built a booming retail business over the last three years, is in the early stages of finding a manufacturer to mass produce his product for national distribution, started his company with little to no debt, has been in the black since day one, uses his free time to help kids in need, donates a portion of his profits to good causes, and is working on his first book which chronicles the experiences he’s had with his business so far.

Impressed?

I was certainly was after reading a resume like that.

Now what if I were to tell you he started his company when he was 10 years old, and has accomplished all the above by the ripe old age of 13!

In a word, remarkable.

Jason O'Neill is not only is a remarkable person, he is a model of extremely sound business practices. As you’ll read in his interview below, his advice on starting a business and running it successfully is grounded in fundamentals and best practices for any startup. Let him serve as an example to anyone out there who still thinks they have too many obstacles in front of them to actually start their own business. If Jason can start his biz at 10, I’m sure you’ll figure out a way to start yours!

Call to Action

I feel as entrepreneurs we get what we give. Give Jason a little bit of your business.

Go to Jason’s website and order a couple sets of Pencil Bugs. Get some for your kids, or grandkids. Grab a set to donate to the local school, or community center…heck, just get a set for yourself and let the people at the office talk.

I'm a firm believer in supporting entrepreneurs such as Jason. By the time you read this, my Pencil Bugs order will have been placed!

Special Offer: When you order your set of Pencil Bugs before Jan. 31, 2009 enter promotion code BIZ BEE and you will get a FREE set of Pencil Bug bookmarks!

What is Pencil Bugs?

Pencil Bugs are colorful, bug-like pencil toppers that I handmake, with the help of my parents of course. They come in eight different colors on top of a standard #2 pencil along with a Certificate of Authenticity which includes their birth date, given name, and care and training instructions. They are removable from the pencil so you can put them on another pencil when that one runs out or they also fit on pens, markers, or crayons.

When did you start the business?

In 2005 right before I turned 10 years old.

How did you get the idea?

My mom was painting some wooden doorstoppers for a craft fair. I figured if I would help her paint them, then I could get half the money from the sales. She didn't want to share her profits so told me I had to come up with my own idea. I knew I wanted to make something for kids that could be used for school or homework so after drawing a few designs on paper and then making a couple of prototypes, Pencil Bugs were born.

What sources did you use to fund your biz?

Because I started out with a small quantity to sell at the craft fair and wasn't really thinking about making it a real business at that point, I didn't need any funding. My initial expense was only $10. I made enough money from the craft fair to be, as I like to say, "in the black" and have been profitable ever since. The good thing about being a kid with a business is that you don't have to make a living yet from it so you can afford to go slowly. We are trying to find a manufacturer to mass produce the Pencil Bugs and then I'll probably need to get a loan for that but it will be from my parents. They don't charge interest like the banks do.

What was the biggest startup challenges?

I've been lucky and didn't really have any startup challenges mostly because my idea became a business kind of by accident. Starting out slowly made it much easier to manage things especially since we handmake the products.

How did you overcome those challenges?

My parents have always taught me to be organized, plan ahead, and not expand too quickly which has kept everything going without getting overwhelmed.

What has been the response/reaction?

In the beginning when friends at school found out that I had a business, many teased me saying it was a dumb idea or things like that. They also didn't think it would last but here I am, three years later and have done more things than many grown-ups never get to do. There was one kid from school that offered to buy my business in the beginning. He brought two $50 bills to school and offered them to me. I could see already that I was going to make more money than that from my business so I turned him down.

Since about 6 months after I started my business, I've been speaking at schools, libraries, and community organizations encouraging kids to try their own ideas. Now I think they look at me differently because I've been successful for three years but I'm sure there are still people out there that think it's a dumb idea. It doesn't matter to me because the guy that created the pet rock made tons of money and people probably thought that was dumb too.

Adults have been very supportive of me and have said I'm an inspiration to people no matter what age. That makes me feel really good. Lots of people are also glad to see I give part of my money to help other kids.

Best advice you can give to a new startup?

Use common sense. Do your homework and see if there's a market for your product first. Listen to people who know more than you to help because it's very hard to do it alone, even if you are an adult. Don't expand too quickly.

Of course, I didn't figure out these things myself. Luckily, my mom and dad have lots of business and marketing experience and were willing to support my ideas and teach me what they know.

Biggest lesson you've learned from all of this?

Have patience because it's not always fun and easy. There were many times I wanted to quit especially during the first two years when we were doing many, many sidewalk sales outside stores like Wal-Mart and Albertson's grocery (with permission, of course). My mom would say, "find that extra 10% and try just a little more." Sure enough, it usually worked even though I didn't always like it. But now that my business has gotten to this point and I've had some really terrific opportunities, I'm so glad my parents didn't let me give up.

What's the future look like for Pencil Bugs?

We've been trying to find the right manufacturer to mass produce my Pencil Bugs so they can be in retail stores around the country. That will get me to a whole new level. I also have the first book done in an early chapter book series about my Pencil Bugs that I collaborated on with my mom. We're starting to send the manuscript out to publishers. I have a working prototype for a board game and designs for a video game plus I'd like to have a plush toy version of Pencil Bugs for babies.

One of the things I enjoy a lot is public speaking and giving interviews. I've been speaking at schools, libraries, and community organizations but I'm getting the opportunity to speak with Mark Victor Hansen on stage to help promote his new book about young entrepreneurs which I'm featured in. I'm working on my own book about the experiences I've had so far with my business and I can see myself going around promoting that too.

In one word, what's the key to success?

Persistence

What inspires you to do what you do?

I want to earn enough money while I'm young so that I don't have to work when I'm older. I will still probably work but will be able to work for fun. Plus I know the more I earn, the more I can donate to help other kids.

Jason O'Neill- 13 years old