Lemonade Stand Economics
I still have the first dime I ever made. It's a mercury head coin that I received as payment for the first sale at my sidewalk lemonade stand. Our elderly neighbor, Mr. Landry, was my number one customer on that hot summer day about 35 years ago. I was proud that my lemonade was made with real lemon juice and was refreshingly cold, and my neighbor's response to it told me I had made the right choice regarding product quality.
Entrepreneurship is a fantastic way for children to learn broad lessons. Becoming a successful young businessperson includes not just understanding money and budgeting, it also consists of developing concern for quality, creating a market, learning to sell yourself and your product, communication skills, and the ability to stick to the task. It may even involve creating a partnership or hiring others, and the wider issues that come with those.
The 2002 statewide Conference and Curriculum Fair hosted by The Organization of Virginia Homeschoolers featured young entrepreneurs. It was wonderful to see the children's ideas and products: hand painted items, herb plants started from seed, pet treats, and, most imaginatively, a board game that teaches the legislative process in our state. I was so impressed by these children and their entrepreneurial spirit that I invited the young businesspeople in my area to present their wares at our local Not Back to School Picnic and Curriculum Swap/Sale that fall.
Maybe some of the products weren't the highest quality, but the kids were still learning, and their selling methods endearing, so I couldn't stop myself from buying from them with some of the cash I'd made from selling my unneeded homeschool supplies. The transparent glycerin soaps with plastic bugs inside were too fun to pass up, and I was sure my friend's dog would enjoy a pack of the handmade peanut butter dog biscuits. Seeing the children's excitement at making their sales was more than worth the expense.
I clearly remember selling my first cup of lemonade--an event that occurred over 3 decades ago--which means that interaction was significant in my life. As an adult, I vowed to never pass up a child's lemonade stand. Indeed, my children were startled when, passing a stand on a lonely country road two summers ago, I turned the car around and bought 3 glasses from the two little children behind the table. Their product was...well, made with one of those insipid mixes I can't stand. So, while I still do not pass up a lemonade stand, I ask about ingredients before I buy more than one glass. And if the answer isn't "lemon juice, sugar and water," I give them my tip for success.
-Shay
There are surprisingly few resources for kid-run businesses on the Web, but here are the best I found:
Tips on Preparing Your Lemonade Stand Business- Complete ABCs on lemonade stand businesses.
What Can Elementary School Age Kids Do to Earn Money & Learn Business in Summer?- Scroll down about 1/3 of the way to "WORK FOR MONEY (10-14 yr olds)" for some ideas on kid-run businesses. There are also ideas for "working for stuff" (suggested for younger children) and working for "the greater good" (volunteering) with links.
"Junior Achievement is passionate people inspiring kids to learn the economics of life through free enterprise education. JA enables caring business professionals to share their experience with students to show them what it takes to be successful."
Frontyard Fortunes- Fleet Financial's "Fleet Kids" site offers young businesspeople the opportunity to post stories of their business successes. These may inspire your budding entrepreneur.
© 2003, 2005 Shay Seaborne. All rights reserved. Originally published in the July 2003 issue of HEM's Online Newsletter