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Chapter 1 – Work hard, plan hard – Do your homework, it pays!

First, you have to decide on a game plan. How and what you are going to do?  In other words, you will have to outline a business plan to run the Lemonade-Stand Company.  For the business plan you will have to decide on the following-

Business Plan

1. Products/Services – What are you going to sell?  

• • Type of lemonade – Pink or regular lemonade.
    Serving size – small, medium, or large, or all of the above.

    To keep it simple, you decide to sell medium size lemonade with freshly squeezed lemons from your mom’s secret recipe.  
    

2. Customer Needs – Is there a need for such a product?  How many do you plan to sell in a week?

• • Let us say, your house is on a busy street where your Lemonade-Stand Company is going to be visible to the neighborhood.  You estimate that you can easily sell at least 10 lemonades per day for one dollar each.  On a nice warm sunny day, you could even sell 20 lemonades.

• • To start, you decide to sell 10 lemonades a day for a dollar each.

3. Intellectual Property(IP)- Your mom’s super secret recipe (the business secret)

• • For 6 servings, mix 1 cup of freshly squeezed lemon juice, 1 cup of sugar, and 5 cups of water. Serve it with ice and a sliced lemon.
    

4. Material – What do you need to make 10 medium cups of lemonade?

• • Lemons, Sugar, Water, Ice, Serving cups, Straws, and Napkins

• • You may want to buy these for a month in bulk from stores like WalMart, Sam’s Club, or Costco to save on material costs.

• • We will estimate material cost in the next Chapter. 

5. Fixed Assets – What items are needed to set up a lemonade stand?

Let us say, you make a wise decision of delaying to buy the major expensive items.  For now, you decide to borrow from home.  For example, 

• • Chairs borrowed from home = 2

• • Table borrowed from home = 1

• • Umbrella borrowed from home = 1

• • Cooler borrowed from home = 1

• • Jugs borrowed from home = 2

• • Cash box = 1

6. Financing – How will you finance the operation of the Lemonade-Stand-Company – Money, Money, Money!

• • You will need to decide how to get the money, say $100 (or in other words secure the financing) to start the Lemonade-Stand Company.
    

• • Can you get money from your friends, family, and of course parents?