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Table of Contents

Lead Story

New federal watchdog eyes prepaid cards

News

Industry Update

Heartland nearing closure on breach after favorable ruling

Forensics expert, Google differ on Wallet security

The future of contactless payments

Payment predictions for 2012

Features

PCI SSC rolls out new SIGs

Highlights from Inside Microfinance

Patti Murphy
ProScribes Inc.

Show us the money! - Growing business online by accepting more forms of payment

Brian Crozier
UseMyServices.com

Research Rundown

ISOMetrics:
Online shopping up for holiday season 2011

Lessons from the lemonade stand

Selling Prepaid

Prepaid in brief

Banks exhibit 'appetite for prepaid'

The game card opportunity beyond U.S. borders

Education

Street SmartsSM:
The Durbin Amendment: Bust or boon for the industry?

Bill Pirtle
C3ET Credit Card Consortia for Education & Training Inc.

Kick off 2012 with a plan for success

Peggy Bekavac Olson
Strategic Marketing

Keep it honest in 2012

Jeff Fortney
Clearent LLC

PCI: The year in review, the year to come

Tim Cranny
Panoptic Security Inc.

Company Profile

RocketPay LLC

PAX Technology Inc.

New Products

Going global with online payments

Global Gateway e4
First Data Corp.

A platform for multichannel retailers

Multi-Channel Retail Management Suite
Retail Anywhere

Inspiration

Work through discomfort, expand your reach

Departments

10 Years ago in
The Green Sheet

Forum

Resource Guide

Datebook

Miscellaneous

2012 Calendar of events

Skyscraper Ad

The Green Sheet Online Edition

January 09, 2012  •  Issue 12:01:01

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Lessons from the lemonade stand

A freckle-faced child selling lemonade at the roadside is reminiscent of a Norman Rockwell painting. But the image happens to represent entrepreneurship at its most basic level. Imagine the setup.

The business is nothing more than a stand made of a used produce crate, a red wagon to transport pitchers of lemonade and plastic cups, a lawn chair to sit in, and a cardboard sign saying, "Lemonade - 25›." Of course, the "startup" is parked on the sidewalk at a busy intersection.

First of all, admire its simplicity. The overhead costs are minimal - a few dollars for cups and instant lemonade mix, no rent and no 1099-K forms to fill out. Then recognize the clear-cut pricing and the equally straightforward product. The young go-getter is not trying to reinvent the wheel; it's a tried-and-true product that has inherent value for consumers, especially on hot summer days.

Simplicity with a twist

But the lemonade is not simply water and lemon-flavored sugar mix. The child has incorporated freshly squeezed lemons into the drinks - the key attention-grabber. And notice that the business supports a local charity. A discreet jar placed on the stand is there to collect donations for school supplies for cash-strapped local schools. When customers break dollar bills to purchase lemonade, they often drop the leftover change into the jar - and feel good about it.

Because the entrepreneur is an exceptional math student, accounts receivable is assiduously kept in a notepad, with the proceeds deposited in a shoebox for the nightly batch to the child's sock drawer. Profits are then poured back into the business to pay for more cups and lemons, and maybe an assistant for expansion to a second stand.

The basics of business never change. This four-foot-tall lemonade vendor is essentially in the same business as ISOs and merchant level salespeople selling sophisticated services with complicated pricing to merchants. At the beginning of a new year, the example of a child's lemonade stand can serve as a reminder of the fundamentals that make a business successful.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

North American Bancard | Harbortouch | USAePay | IRISCRM.COM | Humboldt Merchant Services