Determined to make a buck, my kids have set up shop in our front yard and sold everything from lemonade to hot cocoa, seashells and even spools of yarn. Cashing in on the cuteness factor, they pulled out all the stops — which included an actual STOP sign (hand-painted on cardboard) and stopped at nothing until they reached their goal. My oldest even took to lying on the side of the road to grab the attention of passersby. Do not recommend!
But it begs the question, are these the signs of budding entrepreneurs? Do the same principles that drive success among children’s lemonade stands apply to Fortune 500 companies? As it turns out, yes.
The same tenets apply to both: Product, Price, Promotion, Place, People. And when things aren’t going your way, “PIVOT!” as Ross Gellar would say.
Product. Having a good product is key. As it turns out, the spools of yarn my child was hawking were not a hot commodity. Check the forecast, go with lemonade if it’s gonna be a scorcher, hot cocoa if we’re expecting snow. And check the price. Does the grocery store have a great deal on lemons? Scoop ‘em up! This is exactly what the big companies do when sourcing inventory. If you ever come across a crazy good deal, be thinking, could I turn this into profit? It doesn’t have to be beverages. Homemade jewelry, friendship bracelets, and services like lawn care are all ways your kids can earn spending money during their free time.
Price. Setting the price can be tricky. Too low and you’re going for broke. Too high and they’re passing you by. There was a commercial that aired during the pandemic featuring kids selling lemonade at a steep price, and when their customers seemed surprised, they casually noted everything from supply chain issues to inflation. “Supply chain got us, too,” one child said with a shrug.
Covering costs is a must. One major issue often overlooked in the roadside stand industry is ways to pay. How many people have driven by the sweetest little lemonade stand because they had zero dollars in their wallet? No cash. No coin. Savvy stand entrepreneurs can avoid this by grabbing their Sharpies and drawing a giant QR Code on their roadside poster. That way, even if you’re on your way to a game with no time to stop, you can scan the code from the comfort of your car and donate to the kiddos when you get a minute. It also gives the signal that the stand is tech-savvy and likely to accept payment other than cash.
The kids can take it a step further and set up a free website that pops up when you scan the QR code, letting potential customers know what their dollars are going toward (especially if it is a charitable organization or something noble like guitar lessons).
Promotion. Social media is not to be overlooked when it comes to spreading the news about literally anything. It’s a great way to let your neighbors know about the lemonade stand so they can grab a few dollars before heading out the door. If you really want to sell a product, you must create a buzz! Give customers a chance to win free lemonade if they can successfully toss a lemon into a bucket, or some clever marketing tactic. Add-ons like crushed ice and fancy little umbrellas go a long way.
Place. It goes without saying that no one is stopping for lemonade on the side of a busy street during rush hour. Set up shop somewhere with a convenient pull-off area during mid-morning or late afternoon. Certain downtown businesses may even let the kids set up a table out front. Product sales are heavily tied to location. In a high-traffic area, it may be difficult for the supply to meet the demand. Be prepared with lots of lemons, or go somewhere a bit less populated.
People. Speaking of the population, customers are the heart of any successful business. Good workers draw good customers. And the customer is always right!
Text by Emily K. Alberts
Emily K. Alberts has the best neighbors in the world for always supporting her kids and their wild business ventures.
