Johnny and Jerry, the dynamic twelve year old duo with a lemonade dream.
Johnny, the go-getter, decides to approach his mom for a loan of $20 to fund their venture. Bursting with pride at her little entrepreneur, his mom not only agrees but takes it a step further.
“Sure, Johnny! I’ll drive you to the store and help you handpick the supplies!”
Now, on the other hand, we have Jerry, the ambitious hustler. He hops on his bike and heads straight to his rich uncle, Uncle Pete. With hopeful eyes, Jerry asks, “Uncle Pete, can I borrow twenty dollars to start a lemonade stand?”
Uncle Pete, always one to raise an eyebrow, questions Jerry’s plan, “Where are the customers, kiddo?”
Jerry, ever the optimist, replies, “I don’t know, but Johnny’s mom is chauffeuring him to the store right now to get the supplies!”
Ah, Uncle Pete, the wise one, flashes a knowing smile and drops this nugget of business wisdom,
“Jerry, my nephew, remember this golden rule: Sell it, then Buy it.”
Grateful for his uncle’s sage advice, Jerry hops back on his trusty bike and pedals his way to a local baseball game. Lo and behold, there they are, a bunch of fifteen-year-old boys and their sun-drenched parents, sweating it out in the summer heat.
Jerry, feeling like a sales ninja, strolls up to the coach, who is conveniently standing in the shade.
“Hey, coach! How about some ice-cold lemonade?” Jerry pitches.
The coach, parched and intrigued, replies, “Sure, kid! How much are we talking?”
And then comes the million-dollar question from Jerry, “Well, coach, how much do you and your players want?”
Quick on his feet, the coach estimates, “With twenty guys on each team, I reckon 3 gallons should quench our thirst.”
Ever the savvy businessman, Jerry offers a sweet discount, “No problem, coach! That’ll be $20, please.”
The coach, impressed by Jerry’s entrepreneurial spirit, hands over a crisp twenty-dollar bill and seals the deal, “Can you make this a regular thing? Every weekend, perhaps?”
Now, let me share a little personal anecdote. After my first business took a nosedive into insolvency I was left feeling utterly defeated. Dialing up an old friend, a wildly successful businessman, I sought solace and guidance.
Curious about my takeaway from the experience, he asked, “So, what did you learn, Mark?” And what he said next struck a chord that still resonates within me.
“Mark, my friend, businesses may fail, but YOU only fail when you give up on yourself. Treat every lesson as a precious gift and never let anyone snatch away your dreams.”
He then regaled me with the legendary Lemonade Story, which has become my entrepreneurial North Star ever since.
Now, the essence of the Lemonade Story is a delightful twist on conventional wisdom.
You don’t need a truckload of cash to kickstart a business; quite the opposite.
Sell it, then Buy it.
Some examples to illustrate this delectable principle:
Options on Real Estate: Skip those hefty down payments that could backfire. Instead, do as the wealthy do—secure an option to control sizable plots of land without breaking the bank.
Sell an annual contract:
Remember Jerry’s smart move? He snagged a long-term contract without any initial investment or overhead. It’s like planting a seed of exponential growth while keeping the risks at bay.
Genius
How can you use the Lemonade story in your own business?
