Lemonade Stand Entrepreneur

 Lemonade Stand Business by Katie Jo

 

We all know what a lemonade stand is. 

 

Some kids with pleading puppy dog eyes sitting with an old card table and left over posterboard from their last science project, a pitcher of lemonade and some mismatched paper cups. You stop your car to support your neighbors kids, flies circle around the sun-warmed lemonade and handing them quarters from the cupholder of your vehicle, smile and nod to the kids beaming faces before sipping tentatively, knowing full well that these kids don’t have a food handlers permit, praying as the sour sweet drink touches your lips that those kids washed their hands when they squeezed the lemons. 

 

This type of “lemonade stand” methodology is what I see a lot of “entrepreneurs” do in their startup businesses. Put up a store front or Social Media page and hope that "passersby" give them money. They get a trickle of success and start buying promoter ads and social media billboards. “If I just make the lemonade stand sign bigger- I’ll get more customers.” Is the idea behind it. 

 

Many of us have a dream of running our own business, the accomplishment that it seems to convey- the fun it will be (right?!?) and don’t put much thought into translating how that dream turns into money. 

Set up the stand. Price your lemonade. Hope people notice.

 

Being a daughter of Utah, the state with one of the very highest percentages of stay-at-home parents; I cross paths with countless “businesswomen” who are following their dreams but have no profit or any idea how to make profits. They are running a “business” to keep busy and entertained while being a housewife and mother. Their husband finances their “business” and handles the mechanics. 

 

I was a freelance photographer for many years, and when I became a single mother, I learned hard and fast what it meant to have overhead and compete against other photographers who didn’t have to finance their own business and time. I couldn’t match their discounted prices and keep my own rent paid. 

 

I once asked an amazingly talented photographer what her order fulfillment on prints was and who she used for website and gallery viewing. I was curious to know if I could get a better deal on what I was paying.

 

Her response was this “Oh, I don’t know. My husband handles all of the business side.” 

Her camera, laptop, internet bill, electricity bill, car payment, gas to drive to sessions, editing software, website, fulfillment processes, and even digital contracts were all handled by, and purchased by her husband who had a successful career and wanted to "support" her.

 

This photographer is very talented, and her work was artistry. It would be easy to think she was a successful businesswoman; based on how many sessions she was doing and her portfolio- but in truth; she may not have even been making profits.

 

Knowing your overhead is crucial to knowing how to set your prices and how to hustle and market. 

 

Being the head of my family’s finances for so many years really built my ability to learn how to make a dollar stretch, to do business with a low overhead and greatest return on investment. 

 

I didn’t have the luxury of “seeing if it worked out” to build a lemonade stand and hope that I sold lemonade- I had to create the market, create the result of definite money made, and budget, sell, and survive. 

 

I often worked with other entrepreneurs who had never had their literal next meal depend on whether they succeeded, and that gave me an edge over them. 

I was highly motivated not just to work hard but work smart and learn the fastest way to cash.

 

These are some key questions to ask yourself when building a business:

 

What is my overall mission and legacy? Why do I want to do this business?

 

What is my overhead?

Product, inventory, time, gas, insurance, utilities, savings, repairs, refunds, website, scheduling software, payment processing software and programs, are just a few examples.

 

Knowing my cost/overhead what price point do I need to set to make money, reimburse money spent, and budget for reinvestment in my business?

 

What is my highest overhead item, and how does this make a return? Often, we are spending money on things that don’t bring us a return. 

 

(Story: when running a retail store, an employee suggested we use petty cash to buy matching custom case covers for our jewelry displays after hours for people looking through the windows. We had already had case covers but they didn’t match. When I asked how that would return our money her reply was “I just think it would look nicer when people go by the store.” She was right, it would look nicer- but it wouldn’t translate into money recouped. What we ended up doing was buying bulk lot fabric for $1 a yard at a local shop and cutting the linens to drape over the cases. From a distance they looked great and they all matched. No seamstress needed or logo’d professional covers.)

 

Now that we know what the cost of your business is- the next questions to ask are: 

 

How do I create business? 

 

How do I bring business to me?

 

How can my business be flexible to adjust to trends in my market?

 

How am I unique in my business, what are my golden eggs? The things that set you apart from other people running businesses like you. 

 

How do I guarantee a certain amount of income per month? 

 

 

Finally, I just want to cheer on absolutely every one of you who is going for your dreams. (stay-at-home parent or not!) It takes courage to put yourself out there. I want to support you in being successful and learning simple and easy tips to create a profitable business. 

 

To understand how to leverage your work and possibilities into your favor and to create a self-sustaining and simply managed business to have the freedom you deserve.

 

Cheers. Drink up. 

 

Katie Jo

 

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