Jason O’Neill started his business Pencil Bugs when he was just 9 years old with one product. With the help of his parents, Jason has expanded the Pencil Bugs product line to include bookmarks, greeting cards, and birthday invitations. Jason also speaks at schools and events to inspire other kids to try their business ideas. In this interview, learn how Jason began is inspirational journey into entrepreneurship.

What is the name of your business?

The legal business name is Pencil Bugs Plus but most people just know it by the product name, Pencil Bugs. When my parents helped me set up the business officially, we tried to think of something that could be expanded on but still used the Pencil Bugs name. So adding the Plus seemed to make sense.

What does your business do?

I hand make and sell a variety of products which started with original Pencil Bugs — the colorful, bug-like pencil toppers.

When did you start your business?

I started Pencil Bugs in 2005 at the age of nine.

How did you come up with your business idea?

A lot of people wonder if my plan at nine years old was to start my own business. I kind of laugh every time I hear that because having a business was the farthest thing from my mind. My mom was painting some crafts to sell at a craft fair. I had the idea that if I helped her paint them that she would split her money with me. She didn’t like my idea too much and told me I should come up with my own product so I did. After a few designs on paper and seeing what materials I could use, Pencil Bugs were finally born. I took $10 of my own money and bought the supplies I needed and made 24 Pencil Bugs for the craft fair. When they all sold out, I was pretty happy and at that point, I still hadn’t thought about starting a business. After Christmas break, I made a few more and took them to school. Other kids started ordering them so I was making the pencil toppers on a regular basis which became very time-consuming after school. One day a classmate offered to buy my business for $100. I still don’t know why a fourth grader had two $50 bills in his pocket but I turned him down. I knew that I could make more than his hundred dollars so with the help of my parents; we got the necessary legal documents for the business.

How has your business evolved since the start of your business?

Since the business sort of started by accident, I didn’t have a long-term goal at that point but I knew that having just one product to sell wasn’t going to be enough. The next product I added was Pencil Bugs bookmarks which had photos of the characters on them. Most bookmarks are just cheap paper, but my bookmarks are on heavyweight, glossy cardstock and laminated so they last a lot longer. Adding bookmarks made sense — School, writing, homework . . . “Pencil Bugs.” Books, reading . . . “bookmarks.” Next came greeting cards. My mom and I designed eight different cards for various occasions, each with a Pencil Bugs character on the front and a message inside. Last Christmas I added a ninth card with a Santa Pencil Bug and verse. Customers can buy individual cards from my website as a “send-out” option or buy a whole set which they can mail out themselves. Lots of people buy original Pencil Bugs for birthday party treats so creating birthday invitations and thank you cards were the next products I added. In addition to these products which can be purchased directly from my website, people can also shop at my CafePress online store for things like t-shirts, coffee mugs, mouse pads, and even fun things for the family pet, all with the Pencil Bugs characters and/or logo. Besides the products, I have collaborated with my mom on several books (a business tips book, a picture book, and an early reader chapter series). I never realized just how long something like that takes – lots and lots of editing and then you still have the publishing and marketing parts.

Have you always been entrepreneurial?

I have always liked creating things, whether it was a gadget made of toy parts or a craft of some sort but those were usually just for fun like most kids do. When I was five, I had my first lemonade stand during a neighborhood community garage sale. Another neighbor kid saw how well I was doing so the next year, he set up his own and I had my first experience with competition. But when I heard he was going to do that, I asked my mom to make cookies so I could sell more than just lemonade. Even though he probably got more business that day since his house was at the beginning of the neighborhood, I was selling homemade products whereas he had store-bought juice boxes and candy. When I was about eight, our neighborhood had another garage sale but it was in December for some silly reason. We live in southern California but the winters still have some pretty cold days. So instead of selling lemonade which I knew no one would buy, I made hot chocolate and sold that. I even had Christmas music playing and wore my Santa hat to get people to stop. It was a really cold day and many people didn’t even want to get out of their cars if they didn’t have to, so I moved my table closer to the street and basically had a drive-up hot chocolate stand which worked out really well. The next year was when Pencil Bugs happened and here I am today.

How have your parents helped in the starting and growing of your business?

If it weren’t for them, I wouldn’t be where I am today. No matter how smart you are, no one can do it alone, especially a kid. My dad is a VP of Sales for a food broker and has a financial background so he helps me with the big financial decisions and coaches me on making sales calls and investing. My mom is the creative one so does the marketing, PR, website design/maintenance, and handles to day-to-day business while I’m in school. Even though school comes first so I don’t always have time to do my own accounting, or box up orders, or update my website, I have learned how to do all of those things. The key to staying balanced is to not get overscheduled, learn how to prioritize and stay organized. With my parents’ help, I still am a normal kid who just happens to have a business too. The good thing about being a young entrepreneur is that you don’t have to earn a living just yet so you can afford to take things slower and enjoy childhood.

You have received many honors. What are they and how have they helped you grow as an entrepreneur?

I have received many honors and with each one, I am still surprised and very excited. It never gets old. Some of the more notable ones are: Young Entrepreneur of the Year Award (I was the youngest at age 11 to win), Young Philanthropist Award, Forbes Top 10 List of Role Models 18 & Under, and the Kohl’s Kids Who Care Scholarship Winner. Because I started my business so young, there have been many times that I have wanted to quit. Receiving recognition for my efforts has helped keep me motivated and reinforced my decision to stick with the business. I have long-term goals and quitting wouldn’t get me there.

You are an inspiration in that you give a percentage of your earnings to the Kohl’s Kids Who Care Program. What made you decide to do this?

I actually use part of my proceeds to buy toys, games, books, etc. and donate them each quarter to kids at Rady Children’s Hospital in San Diego, California. The Kohl’s Kids Who Care Program was a contest that Kohl’s sponsored for kids doing different types of charity work. I won at the local and regional levels in 2008 which earned me a small college scholarship. To answer your question about how I picked Rady Children’s Hospital . . . I wanted to find a way to help kids who were in less fortunate situations. I’ve never been hospitalized so I could only imagine what it would be like to be in the hospital. Even though kids have families that I’m sure take in their favorite toy or blanket, I wanted to donate new items so the hospital could distribute them to the kids when needed. We don’t have a children’s hospital where we live so Rady Children’s was the closest one and I wanted to deliver the donations personally.

You are a great mentor for other kids. How are some of the ways you inspire other kids to start their business?

I speak at schools and events telling how I started my business and remind kids that creating a product doesn’t have to be complicated. I encourage people of all ages to at least try their ideas because doing nothing will guarantee nothing and you’ll never know what could have happened if you don’t try. Some kids say their parents don’t know how to help them or don’t have time or think their ideas are dumb. The good thing is, if a kid really wants to try an idea, there are other people besides parents that can help. Sometimes it means asking a teacher, older sibling, maybe a neighbor, someone at a church, or even another biz kid. I’ve received lots of emails from kids asking my advice on different ideas and I always write back to try and help.

What advice would you give other kids who may have a business idea and are ready to start a business?

Start by writing down your ideas. If it’s a product, draw out your ideas because it’s easier to explain your concept to other people. Research online and in stores to see if there are other products similar to yours and/or what makes yours different. If it’s a service business like offering tech support or web design which many kids are doing now, do the same research online to see what other businesses are offering. Whatever your business idea, you need to know your competition and it’s important to do that BEFORE you get too far into it. Having a goal or an idea is great but you need to be willing to revise it if necessary. Once you decide your business idea is good to go, get help from someone that has business experience. You could try to do it yourself and with enough determination, could make it work but if you can avoid making a lot of mistakes by having someone’s help, you’ll save a lot of time and energy and be farther ahead in the long run. One of the biggest business mistakes people make (and this includes adults) is they are in a hurry so spend too much money or expand too fast. I started my business on just $10 and took it very slowly. One thing to remember as a young entrepreneur is that we don’t have to earn a living at our business just yet so there’s no need to rush things and make big mistakes, which could end your business before it even gets started.

What are your plans for the future of your business?

I have short-term plans to add new products as well as get my books published. For the long-term, I envision Pencil Bugs as well-known as SpongeBob or any other cartoon character. I see the Pencil Bugs characters on all kinds of products and someday a cartoon series. This is a long shot but it’s good to think big because you just never know what could happen.

Is there anything you would like to add?

I think I covered everything but people can always visit www.pencilbugs.com for other information.

Julie Barnes is a Freelance Writer focusing on her passion of entrepreneurship. Julie published “So You Want to Start a Business…Now What?” (http://www.so-you-want-to-start-a-business.com/ ) in December 2009. Julie lives and works in the Kansas City suburb of Overland Park, KS with her husband Ron and lovable dog Hank. You can visit her site at http://www.onewhowrites.com.