Lemonade is a lemon-flavored beverage commonly consumed by people across the globe especially in warm and hot places. Lemonade drinks have been very common and traditionally consumed by people all across the world.

Drinking lemonade has a soothing effect on the body as it recharges and refreshes the whole body that is tired, exhausted and dehydrated due to hot weather. The lemon and sweetener which can be sugar syrup, honey or sugarcane refills the lost starch, provides flavor and energizes the whole body.

Lemonade, though very common and popular, lost its relevance in the world of soft drinks especially that of soda and carbonated drinks but it has again gained relevance into the popular cosmopolitan world due to its benefits and side effects of carbonated drinks.

You can very easily spot a lemonade stand in your surroundings, especially in busy streets, sidewalks, market and office places in the summers. It has become a go to drink for everyone these days especially due to its soothing effects, a good alternative for carbonated drinks and benefits on health.

Therefore, if you are planning to start your own lemonade stand business then this article lays down a comprehensive business plan showing you the ways of starting one such stand. It covers all the aspects of a lemon stand business which an ideal person will face while opening one such stand. 

Make up a Strategy:

Firstly, thing should come up in your head and only then you can write them down. There can be an idea, an experimental design, something you want to add with difference, a different shade and much more. Think about such ideas and plans and then apply your mind regarding its implementation.

The second step is to explore and research more. Read more about lemonade stand businesses working around you. You can just go to the market and have a glass of lemonade and have general or specific conversations with the customers as well as the owner.

Try to enquire more about the business, their perspective, why they find this business working, what’s the reason their stand is in that particular place, how many customers they get on average, peak hours or season, what alternatives do they have and how much money they make. 

If you visit ten to twenty shops around you have a conversation with 100-150 people around, then you will get a detailed and comprehensive outlook regarding the lemonade market and how it works. 

Also try to look at the hidden side of the business which generally people do not notice. For example, during winters, the sale of lemonade falls therefore what alternative business or product the owners offer during this season? 

If necessary, prepare a series of questions that you want to know about and just write down short answers during conversation so that later on you can reflect and find a strategy.

Thorough and Comprehensive Business Plan:

A business plan will cover all the details of your business that is required to be achieved and done in the course of starting your business. It should be comprehensive and should also cover minute details. A business plan is not only required for official purpose but it also works as a guide for you when you start. 

It provides and outline and roadmap which keeps you in line avoiding divergence and wrong moves that may be time consuming and costly. 

So, what should you be covering in your business plan? What points and aspects are necessary to be covered? Here are the outlines.

There will be firstly some broad points and then sub points in them that will be specific. What would be the broad points then? 

  • Resources required to start the lemonade business
  • Startup Cost and return on investment
  • Your Target market and other ancillary and incidental topics
  • Official formalities like business name, license for operation, etc
  • Place of Business, space for business and similar topics
  • Growth of your business, marketing and other important aspects

Resources Required to Start the Lemonade Business:

You need to have certain resources in order to start your lemonade stand business. Some of these resources are:

  • A lemonade stand, a cart or storefront
  • Lemonade making machine along with accessories and other ancillary equipment
  • Lemonade makes raw materials like sugar, water, lemons, additional flavors, etc. 
  • Cups, glasses, straws, napkins, and other such utensils necessary during the course of lemonade making
  • Apart from this, if required, you might also require tables and chairs for your customers to sit if you have that space. 

Based on the size of your business you can decide how many items you require for your lemonade stand. You might need different machines or more than one, utensils, cleaners, filters, etc. 

The consumable items are something that you will have to purchase on a daily basis and therefore you can get them right before the start of your business. Rest of the items last for a longer duration and can be purchased in advance.

Startup Cost and Return on Investment:

Well, a lot depends on how you are starting your business. It also depends on the scale of business, the standard you want to have and much more. Be pragmatic in your approach when it comes to expenditure. 

Don’t get carried away in the luxury and fanciness of your stand. It should be simple, standard, clean and working, that is what is important. The resources you use must be of standard quality so that they perform efficiently under all circumstances.

This is where you must liberally spend your money. Avoid getting into unnecessary expenditure that has nothing to do with your product. So, what will be the startup cost?

On Lemon Stand infra: Depends how majestic you want your stand to be. If you go for a simple stand then it will be quite cheap costing you not more than a few hundred dollars. 

Machines and Equipment: You can cut the standard machine and use manual ways of making lemonade. Machine also doesn’t cost much. Rest of the resources can be bought at a reasonable price. Add another few hundred dollars here.

Raw Materials and Servings: Raw materials like sugar, juices, syrups, lemon, etc. don’t cost much and you can easily get the idea for this cost. Not more than a few dollars. 

Other Expenditures: Won’t be much apart from documentation and license cost. If you are renting a space then it can cost you based on location and space size. Some other taxes might be needed to be paid to local authorities. 

Return of Investment: 

The early expenditures are the ones that will cost you much in starting and that too can be reduced if you want to. Apart from that, the only other expense is the raw material that is very cheap, the operating cost, if you have rented a place then that cost, some kind of rent or fees paid to authorities and cost of labor is you hire someone. 

All this can be calculated and determined when you have observed other such lemonade stands in your locality or where you want to set up your shop. 

Your Target Market:

You will have to determine your target market and only then you can plan things accordingly. Your target market will definitely be people moving around your lemonade stand but who exactly will be your potential customer?

It depends on the place of operation. If you have chosen a busy place like a supermarket, a subway, a crowded zone, then your target will be a regular passerby. If your stand is at some designated place like school, offices, colleges, etc. then your target market will be the people or visitors there.

The important point to remember is the fact that lemonade is a beverage that people don’t really search to drink but generally make up their mind when they see such a stand in front of them. Therefore, your stand must be visible to people passing by. 

Another point here is the fact that your stand doesn’t need to be a cozy space with AC and fans but just a decent space since people are going to consume your drink to quench their thirst and to get relief from hot weather. 

Make sure your stand is visible and accessible to people around.

Legal Formalities:

To start a business you need to do the paperwork necessary. You will be required to register yourself as a business of a certain kind. Mostly a proprietorship with a bank account of your own.

You will also need to register yourself as a tax paying business entity. Regarding renting a space for commercial purpose, you will be required to get a rent or lease deed for which you will have to furnish documents as required along with certain fees.

If you are operating on street or walking space designated for vendors, you might need to register yourself with local municipal authority for permission. Different states and areas have different laws on this that may require license, fees of registration and regular fees or taxes.

Based on your scale of business, the permission and taxation policy differ. A small lemonade stand doesn’t have to be a formal company with too many regulations. Just simple registration and taxation.

Place of Business and Space along with Business Name and Brand:

Lemonade stand business doesn’t require you to be very fancy and gigantic in your business brand. Nobody really cares about your brand. The only thing they care about is your product.

Give a decent name to your lemonade stand and find a suitable space for the same. It should be determined based on the cost incurred for getting the designated space. Don’t go for expensive rented spaces that will take a toll on your business.

A small space roadside will suffice. The only thing is that your stand should have a standard and decency. People should find it clean and attractive.

The place of business is important since it determines the sales you will have. Nobody is going to search for your shop or a lemonade stand. People go for drinks only when they see such stands and they immediately make up their mind.

Choose a crowded and rusty happening place that is surrounded by people moving too and FRO. A busy market, a government office, public places like shopping markets, transport stations, recreational parks, cinema halls, stadiums, outdoor places, colleges, schools and offices.

Be visible and accessible to people. You should be easily available so that people can approach you with ease.

Growth of your Business:

The growth of your business will take place based on the people around whom you are surrounded. A busy and crowded place has bigger chances of sales in comparison to calmer streets. 

Secondly, much also depends on word of mouth especially at places where people regularly visit like offices and colleges. Many people like to visit certain places again and again if they are regular to that place. Once you make a reputation of serving them well then it is possible that they will come regularly and bring others with them as well.

You can also add other products based on your observations of what people feel like having while having a lemonade juice. It can be other types of juices, some kind of snacks or any other thing. 

But do ensure that you remain good with your lemonade juice as it is your priority. Be stable and consistent with your product and don’t run for short profit. Make sure that your product has all the standards and quality that customers look for.

Other Aspects of Lemonade Business:

Be consistent and regular with your business so that you remain visible to people around. Always be consistent with the quality of product you are offering. Be efficient and quick with your service.

Also, it is important to be polite and hospitable to your customers. Charge a reasonable amount for the product you are offering with a decent margin. Keep the market prices in mind so that you remain a challenging competitor. 

Also, always offer something different to customers so that people remember your taste and visit you regularly. You can have wide varieties of lemonade juice with some complementary items.

Use your presence of mind to plan accordingly for future sets of actions necessary to enhance your business.

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