How to Set Up a Profitable Lemonade Stand for Kids!

Setting up a lemonade stand is one of the most popular business ideas for kids.

And while it’s a quick and easy way for your kids to earn a little extra money during the summer months, there are a few things to consider as you’re helping your kids map out their business.

Try these fun tips and ideas for creating an amazing lemonade stand for kids this summer.

Young girl selling lemonade to another child at a lemonade stand.

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What Does a Lemonade Stand Teach Kids?

Operating a lemonade stand is a popular business idea for kids because it’s a great introduction into the world of business.

And that means it’s also a great learning experience for any kid who’s interested in learning more about entrepreneurship.

A lemonade stand teaches kids a variety of valuable lessons, including:

  • How to count money and give change
  • Customer service skills
  • Financial literacy and budgeting
  • Goal setting
  • Responsibility
  • Business skills, like calculating profit margin and marketing

RELATED: CREATIVE THINGS FOR KIDS TO MAKE AND SELL FOR MONEY

Does a Lemonade Stand for Kids Need a Permit?

While running a lemonade stand is seen as a rite of passage to many young people, it’s also important to follow state laws regarding food sanitation and permits.

Check your state’s laws to make sure your child’s lemonade stand is compliant.

Be sure to follow all state, county and local laws regarding business permits, food sanitation, health and safety and be sure they are legally compliant.

What Do You Need to Set Up a Lemonade Stand?

Helping your kids set up their own lemonade stand is a pretty simple process.

But in order to be successful, there are a few things your kids will need before they can get started.

To set up a stand in your yard, you’ll need:

  • Stand or table. The first step to putting together a lemonade stand for your kids is to find a table or work surface. You can build your own lemonade stand or simply set up a small table outside to hold the lemonade.
  • Lemonade. You can’t have a lemonade stand without lemonade! You can make your own lemonade from scratch using fresh lemons or simply stir up a premade powder to serve to your customers. Either way, make sure the lemonade is prepared before your kids head outside to sell their drinks.
  • Ice. Keep the lemonade cold with the help of ice. Add the ice directly to the lemonade to keep it cold. Or fill glasses with ice and pour the lemonade in to prevent the drink from getting watered down on a hot day.
  • Cooler. Make sure the kids’ ice doesn’t melt as they sell their lemonade throughout the day by setting up a cooler near their stand. You can keep the ice inside the cooler to ensure it stays frozen.
  • Cups. To serve the lemonade to their customers, your kids will need cups. As you’re picking the cups for your kid’s stand, make sure to keep the size of the cup in mind. Smaller cups will allow your kids to serve more drinks to more customers. While larger cups may allow them to charge a higher price per cup.
  • Pitcher or drink dispenser. To serve the lemonade, your kids will need a pitcher or drink dispenser. The type of container you choose will probably depend on your kids’ ages and abilities. While older kids probably won’t have any issues pouring the lemonade from a pitcher into a cup, younger kids would benefit from the ease that comes with using a drink dispenser with a pour spout.
  • Signage. Creating a sign for your kid’s lemonade stand is another important element of a successful business. A sign will help your neighbors know what your kids are selling and tell them how much each glass of lemonade costs.
  • Change. The price of your kid’s lemonade will dictate what type of change your kids will need. If your kids are selling their drinks for under $1, having some quarters on hand is a good idea. Your kids will also need some small bills on hand, like $1s, $5s, and $10s incase they need to break a large bill, like a $20.

Make your setup easy-peasy lemon-squeasy with this done-for-you printable lemonade stand kit!

printable lemonade stand kit

This kit includes:

  • Lemonade stand banner
  • Editable banner
  • Cup tags
  • Price list
  • Garland
  • And more!

How Much Should My Kids Sell Lemonade For?

Figuring out how much to charge for a product is one of the biggest decisions many business owners make, and your kids’ lemonade stand is no exception.

The key to figuring out how much to charge for the drinks your kids are selling will depend on these different factors.

Cost of ingredients

The first step to determining how much to charge is to figure up how much your kids are spending on their ingredients.

Using premade powder is a much cheaper option than making lemonade from scratch.

But those cheaper ingredients also require a cheaper price tag on the final product.

If your kids are able, I recommend making lemonade from scratch. This gives the customer a premium product and can make them more willing to tell others about the lemonade stand.

Cost of supplies

In addition to the ingredients to make the drinks, it’s also important to think about the amount of money your kids will spend on the supplies they need to run their stand.

Cups, signage, ice, and other essential supplies will all contribute to the overall success of the stand and should be taken into consideration when pricing the drinks.

Here’s where you’ll want to help your kids make a simple supply sheet with prices next to the items they’ll need to buy.

Then, show them how to calculate what it would take to make a profit from their lemonade stand after subtracting the cost of supplies.

Size of the drink

The size of the cup your kids offer their customers is another factor to consider when pricing the lemonade.

Smaller cups will require a smaller price tag, while larger cups can be priced slightly higher.

What the customer will pay

The final factor to think about when setting a price is your local market. That means your kids need to think about how much your neighbors will be willing to pay for their lemonade.

Your kids might want to charge a high price on each glass, but remind them that most customers probably won’t pay more than $1 for a drink.

If they insist on charging a higher price, you can allow them to experiment with charging the higher price and if they don’t make any sales, let them experiment selling them for a lower price to compare how customers react to the difference in price.

How to Run a Lemonade Stand

Smiling kids in front of a lemonade stand.

Once you have your supplies gathered up and your kids have set a price for their drinks, it’s time to start setting up your stand!

As you’re planning out a strategy with them for their summer business, here are some things to think about as you set up a lemonade stand for kids:

When will the stand be open?

Figuring out the timing of your kid’s lemonade stand is the first step in the planning process.

Ask yourself these questions to help you determine the best time for your kids to sell lemonade.

  • Will your kid’s stand be open for one day or will they be selling lemonade multiple times throughout the summer?
  • And what hours will the stand be open?
  • Will the lemonade stand be set up during a special event, like a yard sale, or on a normal summer day?

What will be sold at the stand?

While lemonade is a popular menu item, there are other things your kids can sell at their stand, too.

Other drinks like bottled water and canned soda are all great options for your kids to consider.

They can also include baked goods, snacks, chips, and candy on their menu for even more diversity.

Who will be in charge of tasks?

Girl accepting money at her lemonade stand

If you have more than one child planning to work at the lemonade stand, it’s a good idea to assign individual tasks for each child

One child can be in charge of making the lemonade, while another can be in charge of the money, for example.

Where will the stand be set-up?

Most lemonade stands are set up in the yard because it’s a safe and convenient location for your kids to sell their drinks.

But setting up a stand in your front yard might not be the most profitable option.

You could also consider other places to set up a lemonade stand for kids that might give them the opportunity for more foot traffic.

Whatever location you choose, make sure it’s somewhere that is safe for your kids to be and where a parent or responsible adult is able to keep an eye on them at all times.

How will your kids advertise their lemonade stand?

Getting customers to their stand is essential if they want to make any money.

Using a sign is a great option to advertise to local neighbors and cars driving by.

Your kids can also hang flyers around the neighborhood to help get the word out.

And don’t forget to post about the stand on your social media accounts so your friends and family members know to stop by.

Encourage your young entrepreneurs!

Young boy holding money and standing behind a lemonade stand for kids

A lot of us adults had lemonade stands as kids and we remember the excitement of making money on our own.

Take that same excitement and transfer it to your kids’ stand.

As you set up the lemonade stand for kids, let your child be involved in every step of the process.

Let them ask questions, give their input and make important decisions so they can feel like real business owners.

And most importantly, keep encouraging them even if they don’t make a lot of sales.

They can try again in another location, or another day and they may see better results!

More Ways for Kids to Make Money

Is your child interested in more ways to make money?

Check out this list of jobs ways for kids to earn money.

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