Fresh Squeezed Entrepreneurs
Now that summer is upon us and the school year is coming to a close, do not be surprised to see neighborhood children setting up shop on street corners trying to sell you a cup of fresh squeezed lemonade.
More and more children are using the opportunity to run a lemonade stand as a means of learning valuable lessons about business and finance. If your children are anything like mine, their first venture with a lemonade stand may result in an empty cash register and a sugar-high as they consume the lemonade while sitting in the hot sun waiting for a customer.
Or maybe they will give a *discount* to their friends and end up without any money at the end of the day. But as they experiment with the lemonade stand, they will begin to learn that they cannot consume all of the product themselves if they want to make any money at the end of the day.
One very valuable lesson to be learned in running a lemonade stand is the importance of location. I’ve witnessed the neighborhood kids set up a stand in a location where not a single car or person walking by will stop to purchase a cup and I have seen the kids select a location where the traffic is ideal and they run out of lemonade in no time at all.
When I was a kid in junior high and high school, I had quite the booming business of selling Blow-Pops to my classmates. This was shortly after Sam’s Club stores had opened in our area and I took advantage of my parent’s membership to buy the bulk size boxes of Blow-Pops for about $12 if I remember correctly.
I’d purchase a few boxes of suckers and sell them to the kids at school. It was rather surprising at first as I wondered why the kids did not just go and buy their own box of suckers, as I was making a handsome profit. From what I remember, I sold the Blow-Pops for $0.25 each or 5 for $1.00. After selling suckers for awhile, I began to realize that certain flavors were preferred and began to sell those at a premium and the money continued to roll in day after day.
While I didn’t earn a ton of money in this entrepreneurial endeavor, I do believe that I learned valuable lessons that have served me well throughout life.
The next time you see a few kids that have taken the effort to set up a lemonade stand, make an effort to stop by and purchase a cup or two. It is very gratifying to think that your simple transaction with these kids could very well be planting the seed for some of our country’s future entrepreneurs. And if nothing else, you should feel rewarded just by the pure excitement from the kids as they earn a little bit of money.