The Lemonade Stand Business Model

Last year I saw this kid in the park selling lemonade. Come to think of it, this was the only real American lemonade stand I had ever seen. As I watched his customers come and go I begin to ponder how something as simple as a child’s lemonade stand would look if it were ran using today’s business model. So if I could go back in time and run a lemonade stand using today’s corporate business model this is how my business would have progressed

In order to cut cost and increase production, I’d water down my lemonade to the point it was barley recognizable as lemonade. Next, I would open my stand in the second best location in the neighborhood to cut cost on the location expenses. Then I would employee other kids to sell my lemonade in other locations paying them a base salary that is just be high enough to keep them from quitting, and on top of that I would offer them five cents a glass for every glass they sold over their target plan, which I would make slightly unobtainable.

Once I had operations in place, I would start buying my product in bulk, and then finding a way to outsource production of lemonade to Asia. Then I would venture into other refreshment markets and offer spring water and soft drinks. Perhaps, even private labeled bottle water for my lemonade stands.

Finally, I would launch a massive marketing campaign, and when my Lemonade stand revenues were at their peek I would sell the business, write a book about it, and become a Lemonade stand consultant.