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American Morning
Teen Entrepreneurs Discuss Businesses
Aired July 08, 2002 - 09:37 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
PAULA ZAHN, CNN ANCHOR: This morning, we want you to meet two young entrepreneurs who have learned at an early age how to be a whiz in biz.
Seventeen-year-old Neal Ely has been marketing his pickled asparagus spears under the family name. They were recently chosen as the best new food product in Nebraska. He joins us this morning from Lincoln, Nebraska.
Good to see you. Good morning.
NEAL ELY, TEEN ENTREPRENEUR: Yes, good morning.
ZAHN: Also with us this morning, from West Palm Beach, Florida, another biz kid, 16-year-old Melody Moher, who started her own business, Beautiful Braids and Beads by Melody, when she was just 10 years old.
Delighted to have you with us as well.
MELODY MOHER, TEEN ENTREPRENEUR: Thank you.
ZAHN: Congratulations to both of you.
So Neal, before we get into the specifics of exactly what you are making, can you share with our audience how much more you might be making this summer than, let's say, if you were a lifeguard or working at a local restaurant on an hourly basis?
ELY: Well, I'm definitely glad where I'm at with my business right now, compared to a lot of my friends and what they're doing.
ZAHN: Is it going to send you to college?
ELY: Yes. That's my goal, is to have it pay my way through college.
ZAHN: Good for you. That's a great goal to have, and I'm sure your parents are thrilled that you're passionate about this as well, so they won't have to foot the bill.
Let's talk about how your business got started. You started off turning 500 jars of the stuff the first year. And then what happened? ELY: Yes, I started out with 500 jars. Entering my freshman year of high school, I was looking for an FFA project. And there were other FFA members who were very successful as entrepreneurs in my chapter, in Sutton, Nebraska. And I saw how successful they were, and I wanted to do the same thing they did. So I started out with 500 jars. And this year, I've upped my production to 5,500.
ZAHN: Good for you.
ELY: And I plan on doing that every year.
ZAHN: So you're selling this stuff for, what, $6.75 a jar -- is that right?
ELY: Yes, that's my retail price. The wholesale price is $4.60.
ZAHN: OK, now, I understand you're using your mother's recipe to pickle these asparagus spears.
ELY: Yes.
ZAHN: What percentage of the take are you giving her?
ELY: Well, actually my parents and I formed a limited liability corporation, and so even though it's actually my idea and my business, for certain legal reasons, we had -- we both own the business, between my parents and I. And so...
ZAHN: Well, it's only fair that you probably spread the wealth around, right?
ELY: Exactly.
ZAHN: Let's check in with Melody now.
Now, you started your business when you were 10 years old, and I understand you are at a point which you have four employees and you're making $600 a day. How are you doing it?
MOHER: Well, actually, we have three girls at the Marriott Ocean Pointe -- and it's really interesting: Everybody wants to get their hair done. That's how -- I go every week, and I check on them, and I give them beads, and I make sure that they have all of their supplies. And then I pick up my percentage profit.
ZAHN: And are you allowed to share with us what percentage profit that is for every head that gets braided?
MOHER: Sure. Yes, I have ceramic beads, and I have to go to Peru to get them. So that profit goes to me. Every bead is $2; so anytime they sell a ceramic bead, I get the profit. Anytime they do any braiding, they get 75 percent of what they do. And my 25 percent cut is basically because they use my name and my products and everything.
ZAHN: So Melody, I'm just curious why -- and I don't want to sound disrespectful here -- but clearly these kids see you making a lot of money, and they're probably thinking, Boy, maybe I should do this and I'll get 100 percent of it. Why do they need you in the middle? Do you help promote where the braiders are going to be?
MOHER: Yes. I'm basically the personality behind it. I go to the hotel, and I make sure everything's good. I make sure the guests are happy, and I advertise it to the hotels. And basically, I get them everything they need, so all they have to do is show up to work.
ZAHN: And I also notice that 10 percent of everything you make goes to charity, which is a laudable goal to have.
Back to you, Neal. When you go off to college, do you still plan to run the business?
ELY: Yes, I do. That's one of my goals, is to continue to grow larger every year and continue to expand my business, and, you know, hopefully, go to college for something that I could come back home after college and run my business. So that's my long-term goal.
ZAHN: Neal, what is it like when you have to boss around people that much older than you are? Has that been a problem at all?
ELY: It's not a problem. It's actually true, a lot of older people I have hired to help pickle the asparagus. It is kind of intimating walking into the stores where maybe there's a store manager that you have to talk to. But it's definitely something I've grown into, and I'm definitely getting used to it. So it's been a good experience.
ZAHN: I know you're in the corporation with your parents, but how often have you had to tell mom and dad what to do?
ELY: Well, actually, I've learned a lot of what I know right now from my parents. I really haven't had to tell them that much. But who knows? As I continue to grow in this, that might come about yet. So...
ZAHN: At least you're warning them now.
ELY: Exactly.
ZAHN: Neal Ely, congratulations to you. Good luck at college.
And Melody to you as well.
I think it's terrific that you all have found a way to do something on your own and help take some of the burden of the cost of college education off your parents' shoulders. Congratulations, and continued good luck to both of you.
Thank you.
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