The simplicity of a lemonade stand fails to grab the attention of most budding entrepreneurs.
Lemonade stand tips on entrepreneurship
It’s not as sophisticated or as intriguing as, say, a tech startup, investment firm, or an auto dealership.
There’s no frills, no moving parts, no complex transactions – you buy a cup of lemonade for a fixed price.
But even the humble and classic lemonade stand can be a source of wisdom for entrepreneurs who are looking to start their own business soon.
Here’s what you can learn from a lemonade stand:
8. Prioritize your product
A lemonade stand has nothing else on its table but lemonade.
There is no confusion nor is there any wasted space for other product lines that aren’t selling.
As a starting entrepreneur with limited financial runway, you should prioritize on your core product at least until your business starts taking off and you can afford to launch new product lines.
7. Spread your resources
Spreading your resources too thin can be the quickest way to your business’ demise.
Not only does it divide your budget by half, but it also divides your attention, time, and manpower for research and development, manufacturing, sales and marketing, and accounting.
6. Keep it simple
A successful business doesn’t necessarily have to be complex.
You can make a decent living off of a business that sells a simple product.
When thinking of ideas to start as a business, keep the list simple.
5. Your product
What matters is that you deliver a product that solves a problem.
If enough people care about that problem, then you have the opportunity to make money off it.
Use automation programs and technologies, such as a workflow management system, to simplify tasks and conserve resources.
4. Timing is crucial
Unless you are selling a product with a perpetual demand, such as water, electricity, or fuel, you’ll want to time your startup so that demand complements supply.
If you launch a lemonade stand during the wintertime, chances are you won’t have a lot of customers walking by.
However, if you sell crisp, cold lemonade during the humid summer season, sales are guaranteed.
Look at the current market and identify products that will potentially be in high demand in the next few months or so.
Foresight is as crucial as timing when it comes to entrepreneurship.
You need the vision to foresee what the market might need months or years from now.
Again, this all boils down to preparation and market research.
2. Seek help from family and friends
Many lemonade stands in the past were launched thanks to funding and support from family and friends.
Family and friends are a great source of funding when you’re starting out.
Not a lot of angel investors, venture capitalists, or financial institutions will want to do business with you, especially when you’re just starting out.
Yet while these individuals and institutions perceive you as risk, family members, close friends, and relatives won’t think twice of funding you.
That being said, make sure you treat this as a business loan and prioritize repaying them as soon as possible.
1. Work on your people skills
Kids who manage lemonade stands and work on other businesses, such as lawn maintenance, are much better at dealing with people than those who just plop down on their couch and watch TV after school.
People skills are one of the hallmarks of any successful entrepreneur.
Dealing with employees, business partners, investors and customers requires you to navigate different personalities, cultural upbringings, and beliefs.
Just as how a kid identifies a lemonade stand as a good way to make money, you should identify what’s most important to you when starting a business.
Unfortunately, “making money” is not a good enough reason when you start a business.
Be honest with yourself and pursue an idea that you are truly passionate about, whether it’s arts and crafts or software as a service.