Getting started with a lemonade stand is easier said than done. We must create a business, cost out our ingredients, and make sure we are profitable. "A business can make a profit only if the selling price per unit is greater than the cost per unit. 226" With this, it will help us determine that we must sell more than what it cost to actually make our product or else we won't make profit. Not only that, but we must help reach our "break-even" point. That is determined by how much we must sell to come up with the number that covered the cost of all that we bought. Not only the product that we bought, but also the set-up. "start-up expenses would include stoves, refrigeration, food processors, tables, chairs, utensils, and other items that would not be replaced very often. 227" With the start-up, our start up might include the tables, clothes, and signs for our business name.
When we start up our lemonade stand, it's something that people don't see very often, and we can use that to our advantage. "Younger entrepreneurs can have an advantage here because relatively few young people start their own businesses. The print, radio, and television journalists in your area may want to hear about you 179" No one expects young businessmen to be running their own lemonade stand. This will develop great public relations for the media. Everyone will want to be "in" on this. "the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its public. 179"
One way to attract customers is just word of mouth, but sometimes that isn't enough to get your business out there. Before business even starts, you'd want to set a name for yourself out there. "Hold contests, throw parties, or put together unusual events to attract attention and customers. Contests and sweepstakes can gather valuable names for your mailing list. 180" This way, you're already know, and if you market correctly, everyone will know where we are. Sponsorships, as we talked in class help the community all together, like a sports team, the Green Valley Recreational Center, since it's nearby, an opening for food business, or a public pool or park. "Sponsoring a local sports team is a great way to involve your business in the community and meet potential customers. Sponsorships are a way of advertising. 180"
We want to sell to our customers, but not just them. We want potential investors to recognize us and our business, or to say our "lemonade day". "Entrepreneurs sell constantly, not just to customers but to potential investors, bankers, and people they want to hire. 198" We also want to make sure these customers are satisfied on a minute-by-minute basis. So many things can go wrong that we want to make sure doesn't happen. "customer service is everything you do to keep your customers happy, especially after they’ve bought something. 206" If something goes wrong, like someone being dissatisfied with out product, we've lost a paying customer, who could potentially complain to 7 of their friends. "Policies, practices, and processes that a business uses to manage its interactions with customers to generate maximum customer satisfaction and optimal profitability. 209"
Of course, we will also be attracting customer by calling them over, and the mistake I constantly see are parents making their children go up to strangers to talk to them and some customers just aren't interested in their product, whether they're cookies, or donations to charity. "If the answer to any of these questions is “no,” making a sales call on that person will probably be a waste of time for both of you. 201" We can teach children great people skills to get them out of their shell and develop speech and language to help better their future. there's going to be a lot of people who say "no" and it'll hurt at first, "This brings together the various strategic and tactical components of the marketing efforts into a single comprehensive section. 185" If they can learn to channel what went wrong and learn a different approach to selling lemonade, it'll bring in more customers and they will leave satisfied.
Anyone can sell lemonade. "Many costs are associated with the establishment and growth of a small business. These include start-up purchases, fixed and variable costs, and cash reserves. 226" It's simple, lemon, water, and sugar. "Every entrepreneur has to be able to identify the benefits his or her product can provide and to make an effective sales call. 198" The benefit for our lemonade is the salted rim. Add some water to the rim, and salt the edges, add a thing slice of lemon and you have yourself a faux margarita lemonade! The people of Whole Foods. This will be a higher cost to make our lemonade, but if we're selling at $5 each, and we sell at least 50 glasses, that $250 right there. Even if we spent $50 just for supplies, that's $40 for the kids and $40 for me, and it's split evenly. We broke even and even cashed a little bit for ourselves. "sourcing, procuring, production, and logistics, which go from raw materials to end consumers across multiple intermediate steps 390" These are all for kids, and a little for me, but this will help children grow up into young entrepreneurs to own their own business.
Mr. Virgil,
I would be happy to assist you in starting your lemonade stand with a $50 loan to get you started. Nielsen's Frozen Custard would be proud to help a young entrepreneur like yourself get started in your new business. Good luck and please don't hesitate to ask if you need anything.
Thank You,
Howard Zayon
Nielsen's Frozen Custard
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