Kids Learn the Basics of Small Business Finance by Doing

One of the best ways to build a lemonade stand is to keep it really simple. So simple in fact, you don't even technically need to worry over building a lemonade stand. One of the best ways to make money from a lemonade stand or to help your kids make money is to NOT spend all the profits before they're even made by building an expensive stand.  So, if you want to know how to build a lemonade stand, think cheap and use a card table, large boxes, or even better, a picnic table from the back yard.  Don't take one from the park this could be misconstrued by onlookers.

First Rule of Thumb:  Don't Build A Lemonade Stand

Let the kids do it!

And begin with "found", "free" objects.  This way you save money by using resources you already have or that are available to use for free.  Also, think very decorative, using colorful signs, balloons and sidewalk chalk; this is an inexpensive and fun way to draw the attention of each passerby.  And potentially the wrath of neighbors who have no children.  Or whose children are selling encyclopedias for the summer.

What better way to teach your children the value of hard work and money than by suggesting they start their own mini business running a lemonade stand? When you suggest this make sure to add in, that it's something fun that you guys can do together and you'll let them keep all the profits.   No kid will be able to argue with this coming from a parent.  You may be surprised at the child's reaction, especially those of you with future bankers on your hands. Now you have a chance to help your kids learn the basics of small business finance, and hey, you might even learn a few things yourself!

Making lemonade and making money

So, now that you have that settled, there is the question of how to run a lemonade stand. Well, once you've decided what you want to use for your actual 'stand', you must start with deciding your location and advertising it. These two things are key components, because if you aren't in place that is in full public view, then no one's going to be able to find you to purchase your product, even if you do advertise. Now, that you have your location decided, make up some cool posters or fliers and put them up around town. Advertise it in the same way you would a yard sale, meaning you put the signs wherever you know people are going to look, an eye-catching spot.

Now, the whole point of running a lemonade stand, other than to have fun and spend time with your kids, is to, of course, to make some money. As far as making lemonade, there are tons of great, creative recipes you can find online. Also, add some variance to your products; in fact this is one of the best ways to make more money than if you were to sell strictly lemonade. Give your customers the option of regular lemonade and pink lemonade, or better yet get some cheap snack type products from the local dollar store; like Icy Pops and Little Debbie's snack cakes. Having a couple of traditional drink items such as soda pop, or juice boxes is also a good idea. This will attract more people to your stand because people like to have a choice, and you can have a variety to offer them.

One of the most important factors is for sure, pricing. Teaching your kids how to run a lemonade stand doesn't necessarily have to mean that you know how to yourself, it can be a learning process for both of you. Remember that if you inflate your prices just because it's a hot day, you'll lose to the competition. Don't worry; people will be more likely to buy if you sell each of your items for 25 to 50 cents each. During these hard economic times, people will readily buy your refreshing lemonade if it's cheap and since they'll be on foot, you can be sure that the word will spread to other people they pass by.

You are almost ready to get out there and sell some lemonade! Just run through this quick checklist of items to make sure you've got all your areas covered.

• Lemonade - if you make it ahead of time this doesn't apply of course, but you'll need sugar and lemons.
• When lemons fail to materialize buy kool aid

• Other refreshments (soda, juice boxes, etc.) Today's customers are tough customers

• A cooler, to keep your lemonade, sodas, bottled water, and other refreshments cold

• Ice and plenty of it

• Pitchers

• Cups, unbreakable

• Some extra cash and spare change

• A cash box and a tip jar

As you can see the essentials of how to run a lemonade stand really don't have to be all that complicated. This is one that can become a great summer activity for the whole family. There is no better way to cultivate family bonding then by participating in a fun activity that not only allows you to spend time together, but also gives you the opportunity early on to instill in your children the values of a hard earned dollar. This can pave the way for properly instructing your children how to effectively manage their money, which is an invaluable lesson that will have a direct impact on your child's future. Who knew lemonade could have such far reaching effects?