New fads can also be a source of ideas for young entrepreneurs. For example, if the thing to do is to wear painted high-top sneakers, maybe young entrepreneurs can paint sneakers for a price. Or if fancy T-shirts are in, maybe they can take advantage of this trend to make some extra money. One young girl capitalized on the popularity of dinosaurs in her school and sold wooden models of them to her classmates.

Twelve-year-olds Josh Bashow and Brian Clegg of Winterburn, Alberta, Canada, design and sew their own sportswear. They decided to make their own wild and colorful sweat pants and shorts because they felt that the prices at the local mall were too high. With some help from Josh’s mother, the two seventh graders learned how to modify an existing pattern for sweats to make them as baggy as the latest fashions young people were wearing. They even cut their own fabric and learned how to sew straight seams. When the two enterprising youngsters wore their newly created fashions to school other young people wanted to get their hands on this wild and colorful sportswear that Josh and Brian called BJs. Josh and Brian’s sweat pants sold for $12.50 compared to an average price in stores of $20. The boys made $2,000 last year. By their estimation, this translates to about $6 per hour. This sure beats minimum wage.

A fad can be very profitable. Its biggest drawback, however, is that it is sometimes difficult to determine when the popularity of the fad will wane. Some years ago, "Tickle Me Elmo" was a Christmas fad. Recently, Beanie Babies and Yo-Yos have become fads. But just like Power Rangers toys have faded, these fads will also fade from memory within a few years. When the popularity of these items fade, however, I am certain that a lot of people will have unsold inventory of toys that once looked so promising.

Fads are fine, you just have to be able to gauge when the popularity of the fad is going down so you can get out quickly.