Looking for a great summer activity for kids?
Setting up a lemonade stand and turning it into a business lesson is an awesome way to teach kids important entrepreneurship skills.
However it can turn into a pricey project if you’re not careful.
Not long ago, I helped my nephew set up his very own neighborhood lemonade stand and it turned out to be a huge success!
With our budget-friendly lemonade stand ideas, he managed to rake in an impressive $254.70 in profit!
Stick around, and I’ll share some tips to help you create a successful lemonade stand too!
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What do Kids Learn from a Summer Lemonade Stand?
Starting a lemonade stand is like a rite of passage for kids, but it’s more than just a fun way to pass the day.
It’s a great opportunity for kids to learn some important money and life skills that they’ll carry with them for years to come.
The hands-on experience introduces them to the basics of financial literacy, something that unfortunately is not often taught in schools.
By running their own little business, kids can gain valuable insights into managing money, setting goals, and understanding the value of hard work.
Does Your Kid Need a Lemonade Stand Permit?
So let’s first address the elephant in the room.
Will your kid need a permit for their one-day lemonade stand startup?
Whether your child needs a permit depends mostly on the state and city you’re in, and who you’re planning to sell to.
Many states will not require you to have a permit, but other places will.
To prevent being unexpectedly shut down by the police and avoid having a disappointed child, be sure to check your local requirements ahead of time.
(Hey! Before you dive into this post, **PIN THIS IMAGE** so you can come back to it again!)
7 Tips for a Successful Lemonade Stand
These next lemonade stand ideas helped my nephew earn $254.70 in just 3.5 hours.
It also taught him valuable lessons about the importance of validating a business idea before splurging on expensive supplies and setup.
Tip #1: Set Up in a Prime Location
Location is everything. Without foot or car traffic, you can’t expect much in the way of sales for your lemonade.
Setting up in a prime location was key to my nephew’s lemonade stand success.
Instead of setting up in front of the house, we decided to set up on the busy street corner, where there was much more foot traffic.
Thankfully, we have awesome neighbors who let us use part of their lawn to set up the stand, giving us the perfect spot to attract customers!
If your area doesn’t get much traffic, try using social media to spread the word about your upcoming lemonade stand.
Then have family and friends join in and help you share the post to attract more customers.
Another idea that my friend tried with her kids was setting up shop alongside a friend who had an outdoor vendor stand in the city.
That worked out well since the pop-up shop was already being advertised around town and drew in a steady stream of customers.
Otherwise, you can ask to join as a vendor at church events or team up with neighbors who are already planning a yard sale.
Tip #2: Charge Higher Than You Think
When you search for ‘how much to sell lemonade for at a lemonade stand,’ you’ll find answers ranging from $0.50 – $2.00 per cup.
I found those prices a bit outdated, especially with grocery inflation and the cost of basic supplies like cups.
Of course, it’s a different story if you’re just using powdered packets and water to make the lemonade. In that case, those prices would make sense.
But in our case, we went with a mix of freshly squeezed lemons, homemade simple syrup, and all-natural Simply Lemonade.
We served it over ice in 16-ounce plastic cups with lids and a straw, charging $5.00 per cup.
Most people had no issue with the price, and many even tipped my nephew on top of that!
There were a handful of people who wanted to support, but could only pay $2.00 and $3.00, which we gladly accepted.
So many people had been generous to my nephew that we also wanted to pay it forward.
In fact, later in the day, someone stopped by and told us that his friend, who couldn’t pay the full amount, had sent him over to buy from us!
My main goal in all this was to teach my nephew real business lessons on how to make a profit (and the value of generosity), not just have an expensive hobby.
Whatever your objective, set your prices accordingly, but make sure you charge enough to cover your costs!
Tip #3: Sell the Cause, Not the Lemonade
It’s safe to say that most people love supporting kids and even more so kids with a cause. My nephew’s cause was a cute one.
His lemonade stand poster read “Help Me Get to Disney! $5.00 Lemonade.”
This was likely a big reason why so many drivers pulled over to buy lemonade from him and tipped generously.
One lady told us she’d always support any kid trying to get to Disney!
She then proceeded to give us tips on where to stay and what to check out once we got there.
It also didn’t hurt that the street corner we chose had 4 stop signs in each direction, giving drivers just enough time to read our sign!
If you have a legitimate cause, make sure to highlight it on the lemonade stand sign to attract even more customers.
(My nephew is going to Disney next year and this was a great way to jumpstart his vacation savings account!)
Have Teens at Home? You may also want to read about these 8 Online Jobs for Teens that Pay Well!
Tip #4: Find Creative Ways to Save Money on Supplies
It’s easy to overspend on supplies before knowing if your lemonade will actually sell.
To keep costs down, we shopped at Dollar Tree, used what we already had, and kept our stand simple by offering just one type of lemonade.
Our biggest investment was in quality ingredients, and we were careful not to overstock.
When it became apparent that we would soon sell out, one of the adults quickly ran out to grab more supplies to make more lemonade.
Here are other tips for saving money with your lemonade stand:
- Buy at Farmers Market – You’ll often find better prices and high-quality lemonades, perfect for a standout lemonade stand.
- Get Last Minute Deals with Flashfood App – On many occasions, I’ve used this grocery-savings app to buy ripe fruits and vegetables at a significant discount.
- Ask Grocery Store Manager for Bulk Pricing – Lemons are perishable, so grocery stores may offer you a discount on ripe ones in bulk before they go bad. It never hurts to ask!
- Shop Dollar Tree – We got our table cloth, poster boards and balloons here for under $5 total.
- Use What You Already Own – Check your cabinets and use lemonade pitchers you already own or whatever else you may need for your stand.
If this is your first time running a lemonade stand like it was for us, these tips can help you get started and make the experience a success.
Tip #5: Have a Tip Jar
Some people will want to support your lemonade stand without actually buying any lemonade. That’s why having a tip jar is a great idea.
It gives everyone a chance to chip in, no matter how much they want to give!
We had plenty of people pull over and hop out of their vehicles just to say hello and drop some money in our tip jar.
Other times, folks would wave cash from their car windows, and we’d gratefully walk over to take it from them.
It just goes to show that the lemonade stand is about more than just selling drinks. It really creates a sense of connection and brings out the generosity in people.
Tip #6: Set Up Venmo or PayPal
Nowadays, people are used to paying for things electronically.
That’s why it’s a good idea to set up a Venmo or PayPal account to accept payments for your lemonade.
Surprisingly, only one person asked to pay electronically. He bought 2 lemonades and tipped my nephew $10!
That was $20 he could have missed out on had we not had a Venmo account set up ahead of time.
Tip #7: Smile, Wave and Dance!
Smiling and waving to passersby may seem like a small gesture, but it plays a big role when it comes to bringing out the inherent generosity in others.
Plus, it’s a fun way to attract positive vibes and good outcomes.
My nephew even came up with a clever lemonade dance to show off, while I focused on smiling and waving.
Together, we brightened people’s day just enough to make them pause and take a second look at our stand.
Some people pulled over to buy lemonade, while others honked and waved back.
This simple act made a big difference in our lemonade stand’s success, and I’m sure it’ll do the same for you!
Lemonade Stand Ideas Final Thoughts
Running a successful lemonade stand is all about keeping things simple, staying creative, and connecting with your community.
From choosing the right location to setting up electronic payment options, every small detail adds up.
It’s not just about making money (although being profitable is ideal!). It’s about having fun, learning valuable lessons, and spreading some happiness along the way.
With these tips, you and your kids are sure to have a lemonade stand day to remember!
Next, you may be interested in reading about How to Start a Profitable Dog Treat Business from Home.
