Business Overview

People have long enjoyed cold, refreshing lemonades on hot summer days. Lemonade stand businesses specialize in selling lemonade to hot and thirsty passersby. Some stands have fixed locations, while others are operated as mobile businesses.

Who is this business right for?

Anyone who is looking for a business that’s easy to own may be interested in operating a lemonade stand business. Lemonade stands have low costs and are easy to run, yet they can be quite profitable. For these reasons, they appeal to entrepreneurs of all ages -- from kids to retirees.

It helps to enjoy interacting with people. While business owners don’t spend a lot of time talking to any one customer, they will serve and interact with many customers each day.

What happens during a typical day at a lemonade stand?

Business owners spend most of their time service customers lemonade. To provide the freshest possible product and enhance the customer experience, each lemonade is usually made fresh when ordered. Making lemonade involves squeezing lemons, adding sugar water and ice, and mixing the ingredients together. It takes just a minute to make a lemonade.

When not serving customers, business owners order more supplies, clean their stand, and market their business. Business owners who have mobile stands must also spend time researching where to take their stands.

What is the target market?

A lemonade stand business’ ideal customer is a family or group of friends who are hot and thirsty. If someone in such a group suggests getting lemonade, everyone may agree to get one. Thus, a stand might sell several lemonades at once rather than just one to an individual customer.

How does a lemonade stand make money?

A lemonade stand business makes money by selling lemonade. Lemonade is typically sold by the glass or cup.

What is the growth potential for a lemonade stand?

Most lemonade stand businesses remain local businesses that have one location. A few businesses might grow to have several locations in an area, but growing beyond this is uncommon.

There are lemonade stand franchises that have multiple locations, but growing a lemonade stand business through franchises is difficult. Because stands are easy to run, any training a franchise offers has limited benefit to business owners. Also, lemonade is often an impulse buy made by passersby. Thus, any advertising provided by a franchise is of little use to an individual stand.