LUSCIOUS

LEMONADE
BUSINESS PLAN
2009 - 2010
 Table of Contents
Page

1. Strategic Direction 3
• Vision
• Mission

2. Goals and Objectives

• Goal One 3
• Goal Two 4
• Goal Three 4
• Goal Four 5

3. Issues for Consideration 5

4. Capital Budget 6

5. Operating Budget 7

6. Operating Expenses 8
 Luscious Lemonade Strategic Directions

Vision Long line-ups at local lemonade stand helps local students.

Missio To create a beautiful lemonade stand that provides huge customer

n satisfaction with the lemonade served, while providing six to eight
Grade Ten students with a summer job and a unique business
experience.

Goals and Objectives

1 Find an outstanding and acceptable location to set up a first class

lemonade stand.

Objectives:
• Location that has both pedestrian traffic, bicycle and
jogger traffic and is visible to vehicle traffic (Safeway
Parking lot on 4th Street and Elbow Drive for example.)
• Contact possible owners such as Safeway, Co-Op, Sunterra
to identify both location and possibility of support.
Supermarkets could supply lemons, ice, and other
necessary equipment as potential sponsors or at
discounted prices.
• Location must be available from June 1st, 2010 to August
30th, 2010 at little or no rent. Stand will utilize space of
one parking stall.
• Seek approvals from owner and tenant (if not he same)
and City of Calgary for temporary location of lemonade
 stand.

2 Engage two teens from Grades Ten or Eleven who are interested in a
summer job and business experience.

Objectives:
• Two “partners” must be personable, ambitious and
enthusiastic about the concept.
• Contact local High Schools through Guidance Counselors to
obtain possible candidates and post notices on bulletin
boards.
• Initial two students will identify others to support this
project.
• High School shop could be utilized to construct the actual
lemonade stand.

3 Design and build an appealing lemonade stand with bright white and
yellow exterior, clean and crisp appearance.

Objectives:
• To attract passers by and to give an image of a stand that
is clean, healthy and professional looking.
• Students will have bright white T-shirts and yellow shorts
or slacks.
• Hours of operation will be 7:00 A.M. to 4:00 P.M. (morning
bikers and joggers through the hot afternoons)
• Clean and crisp look is critical. Most lemonade stands look
 grubby and the lemonade looks questionable. Appearance
is critical.

4 Secure needed financing for Capital needs.

Objectives:
• Use existing $50.00 of equity to secure additional $880.00
of required capital.
• Determine detailed capital needs based on this budget.
• Create operating budget to include repayment of the loan
and payout of equity.

Issues for Consideration

1. Students must feel part of the success by receiving both an hourly

wage and a percentage of revenues. Probably $7.00 per hour plus
fifteen (15%) percent of gross divided based on total hours worked.

2. Location and construction of stand is critical to success. Without

proper location and attractive facility, business will fail.

3. Getting permissions and permits will take considerable time.

Design and construction of stand will also require time. Preparation
will be from September 2009 to the opening on June 1st, 2010.

4. Financial planning is an issue. With only $50.00 of equity, it will be

necessary to obtain some additional financing. A capital budget is
 attached.

Capital Budget

Design of Project:

Submit to high school design class as a contest offering $150.00 prize

money.

T-Shirts and Shorts:

Twelve sets at $40.00 per set = $480.00.

Initial Supplies:

Signs, lemons, sugar and ice (if not able to find sponsor for these) =
$200.00

Marketing:

Promotional flyers, etc. = $100.00

Total Capital Budget: $930.00

<Equity of $50.00>

Financing Required: $880.00

 Operating Budget
June 1 , 2010 - September 6th, 2010 (Labour Day Weekend)
st

Total Operating Days:

98 including 31 weekends and holidays and 67 regular week days.

Revenues:

Estimated sales of 20 large lemonades at $4.50 per glass and 20 regular

lemonades at $3.00 per glass on weekdays.

Estimated sales of 70 large lemonades at $4.50 per glass and 50 regular

lemonades at $3.00 per glass on weekends and holidays.

Total Revenues:

Weekdays - $150.00 per day x 67 days = $10,050.00

Weekends - $465.00 per day x 31 days = $14,415.00

Assume 15% loss due to weather etc. = ($3,500.00)

Estimated Total Gross Revenues = $20,965.00

 Operating Expenses

Wages:

1.5 staff on weekdays and 3 staff on weekends:

1.5 x 8 hours x 7.00 = $84.00 per day on weekdays = $5,628.00
3 x 8 hours x 7.00 = $168.00 per day on weekends=$5,208.00

Total Wages = $10,836.00

Supplies:

Lemons: 60 lemons per weekday = 4,020 lemons

190 lemons per weekend = 5,890 lemons
9,910 lemons at $.10 per lemon
Total Lemons = $991.00

Sugar: 100 pounds at $4.50 per pound

Total Sugar = $450.00

Ice/water: $500.00

Gross Profit: $ 8,188.00

Bonus Payments to all students (based on participation and hours)
($3,145.00)
Repayment of Capital Loan + Interest
($2,150.00)
Rental Payment to Parking Lot Owner ($ 750.00)
Miscellaneous Contingency Costs
($643.00)

Net Profit: $1,500.00

Put your stand away until next spring and do it all over again!!!

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