Inadequate profit

The kids sold lemonade and snacks at an Oklahoma City metro-area gathering on Saturday and cleared $10 each.  S2 fell asleep on the way back but S1 was full of excitement when he got back home at 11pm (at which time I talked to him over Skype).

He had ideas for how to make more money next year: (1) better stall location ("our tent was right at a turn and people couldn't see us"), (2) different products ("the tent that had plates and real food sold 300 dollars and some people went and bought from them a second time") and (3) a more enthusiastic sales force ("S2 would not ask people if they wanted to buy a bag of snacks").   The only thing that was missing was a PowerPoint slide with future expected revenues if these changes were made.

Unfortunately, the excitement turned to disappointment when he started leafing through a toy catalog to see what he could buy for $10.  It doesn't go that far, he quickly realized. I am afraid that he's going to shoot for that $300 product-line next time and that we will get stuck having to make it in our kitchen.

1 comment:

  1. I would counter that - any business plan wanting to vault to the "next level" is in need of investment. And your role should be that of a VC, putting in the required amount of investment to help realize the Year 2 revenue target of $200. And that investment can go to funding required raw materials, preparation (if not in your kitchen, then elsewhere), transportation, and who knows - maybe even some snazzy t-shirts that S1 and S2 (and others) can wear and promote the store and its offerings. Some marketing - leaflets, balloons, too maybe! ;-)