5th Graders Construct Business Plans

Sometimes the best thing to know in constructing a successful business plan, is what should be left out.
 

This is one of the real life lessons four groups of Hawken 5th graders learned as they prepared for Lemonade Day, a program with 1300 Northeast Ohio student participants dedicated to teaching children how to start, own and operate their own business through the simple and time-honored act of building and running a lemonade stand.
 

Lemonade Day is part of the non profit, nationwide program Prepared 4 Life, that began in Houston in 2007, and incorporates experiential programs infused with life skills, character education and entrepreneurship.
 

At Hawken, fifth grade students divided into one of their four leadership groups, categorized by the charitable end recipient of Lemonade Stand profits. Those charitable categories were Hunger and Homelessness, Arts and Education, Environmental Sustainability and Animal Advocacy. Students then worked in groups of about 14, preparing their business plan to present as a loan request for startup funds. Their presentations had to include the nonprofit chosen to receive business profits, the vision for the lemonade stand, including a theme and what kind of lemonade would be sold, and the business plan cost of supplies (capital and consumable), prices and sales projections.

 

Loan requests ranged from $90-$150 and were presented on April 27 to a panel of Hawken administrators including D. Scott Looney, Head of School, Brad Gill, Director of Lower School, Lisa Brenner, Records, Research and Stewardship Coordinator, and Chuck Toth, Controller. Team presentations were to range from 7-10 minutes, with loan requests either awarded, in full or in part, or denied.

 

It was in the construction of the business plan that Emily Brenner, working for the leadership group of Hunger and Homelessness, learned the importance of what is left out. Her team had originally intended to sell candy along with the lemonade, but that thought did not survive the stark black and white of the balance sheet.
 

“We took off all the candy,” Emily said, “except for Twizzlers. It was just too much money.”
 

This removal allowed the team’s loan request to be moved from its original $200 point, to the more workable figure of $146, which was ultimately what was presented to panel.
 

It also illuminated what Emily felt was one of the most important things she learned from the project.
 

“You have to think of what you are selling and how much it costs and what you can sell it for,” Emily said.
 

The other thing she learned? “You have to keep going and never give up on your business.”
 

Hawken School fifth grade students will be at the following locations for their Lemonade Day from 10:30am to 2pm on Friday, May 18:  Waterway, Legacy Village, Flying Fig, PetPeople, and Pizazz.