My kids started planning for their lemonade stand on Sunday afternoon. The early plans centered on where to set up, what time to open, and who would be in charge of the money (ie: the critical position of providing change to paying customers). After big sister Vivi emerged as the de-facto C.E.O. of Monday’s Walsh Lemonade Company, the sibling business partners moved on to the next prep work: creating signage.
Lesson #1: Marketing
“How much should we charge, Dad?” Vivi asked, wearing her yellow magic marker down to a frayed tip as she glanced up from her artwork.
“That’s up to you to decide. What are you thinking? That’s an important one.”
Everett, the operation’s C.O.O. (age 8), piped up, “A dollar. Everyone would pay a dollar.”
Vivi wasn’t convinced, though, “How about seventy-five cents? Then, people will give us a dollar and won’t expect the quarter back. It’s cheaper and we get the same money.”
No arguments – three quarters for a glass of lemonade would be the price. Decision made, the kids’ sign creation would continue.
Lesson #2: Pricing
Everett, though, looked suddenly puzzled, asking, “Guys, where do we get the lemonade? Mom doesn’t have that stuff in the house.”
I listened as my three youngest began to brainstorm. Emersyn, my 6-year-old, came to life suddenly, “Dad will buy it. He has money.”
Vivi concurred, adding, “Yep, Dad, if you buy it first, we’ll pay you back with money people give us.”
I nodded.
Lesson #3: Raising Capital
Signs done. Price set. A quick, $20 trip to Walmart later, the Walsh Lemonade Company was set for a ribbon-cutting in the morning.
The kids were anxious to sell some refreshing lemonade, but I was able to hold them off until 11 am. And, with very little oversight from me, my little entrepreneurs set up a folding table, taped their signage in clear view, and cooled their beverages for, what they thought, would be lines of thirsty customers.
Lesson #4: Customers
Within a few moments of opening, a minivan pulled to a stop. A nice lady smiled, “I’ll take one! Here’s $5. Keep it.”
Everett and Emersyn erupted in delight. Vivi, ever the professional, calmly thanked the nice lady, placed the five in the pencil box, and beamed with pride.
For the next four hours, those three would wave at cars, employee friends to help, and smile broadly with each new customers that told them to “keep the change” before returning to their car.
Lesson #5: Exhaustion
By 2:30 pm, the lemonade crew was exhausted. We packed up the remaining supplies, cleaned up the area, and Vivi tightly clinched the pencil box filled with dollar bills.
“Dad, I bet we made $100!” Vivi was exhuberant.
“That would be great. But, please tell me you didn’t count the cash in front of customers, right?”
Lesson #6: Don’t Count Your Money ’till the Day is Done
Vivi was confused and I insisted on explaining that flaunting the money you’re making in front of the customers that are paying that premium, is not a great idea.
She appreciated the lesson, but got back to counting single bills quickly. Emersyn and Everett waited impatiently as Vivi concluded her count.
“Oh my Gaaawwwddd. $178!!!” Vivi’s joy rivaled Christmas morning.
Emersyn shrieked in excitement, Everett fist pumped and smiled through his crocked, new adult teeth.
“That is awesome! I can’t believe you actually made that much!” I interrupted the brief celebration, “But, you forgot about paying for your supplies.”
Lesson #7: Pay Your Debts
The kids’ faces dropped. They’d learned about helping customer and, now, about the difference between sales and profits.
“That’s a tough lesson. You always pay your debts,” my hand now extended. “What else did you guys learn?”
Vivi was the first to provide some insights, “You know. Most people were nice, but some were kinda jerks. I mean, they bought glasses of lemonade, but complained about how much it cost.”
Next, Everett, chimed in, “It was fun today. Especially when our friends came by.”
Emersyn had a subtle insight, “More people stopped when I waved my sign.”
Vivi agreed, “Yep, everyone LOVES cute, little kids!”
Lesson #8: Having Fun at Work is Possible
“You guys learned a lot today – more than most summer days, I think,” all three kids listened intently, “You did it yourselves, did not seem to fight, and nicely divvyed up the money you earned.”
They each nodded.
“So, how about I donate the supplies. You can have all the money you made,” I was winning the room, “And, I’m donating to the food bank for every dollar you earned.”
My two littlest didn’t much care about the charity, but Vivi took notice, “Dad, you don’t have to.”
Lesson #9: Help Others
“I know, but a successful business should help others,” my grin softening as the reality of sending $150 to charity was setting in.
Vivi grabbed her earnings and began to head to her room, “That was fun today.”
It was.
We learned a lot.
