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3 ways in which kids can run a (LEGAL) lemonade stand in Romania

What you will find in this article:

A lot of parents have asked us what do they have to do so their kids can operate a lemonade stand in Romania, so they can learn valuable financial and entrepreneurial lessons. A lot of them tried and we're told "This is not the USA". Others didn't even know where to start.

If you want to teach your little ones some valuable entrepreneurial and financial lessons, but you want it to be 100% legal, keep reading. We have prepared for you three legal ways in which kids can operate their own lemonade stand in Romania.

copil fericit, servind la tejgheaua standului sau de limonada

Read this, before you open the lemonade stand

For a lemonade stand to function legally, in Romania, a lot of paperwork is needed. The good thing is, there are three legal ways in which the kids can learn the valuable lessons without breaking any laws. One of them is by playing Investory, the financial video game. Keep reeding to see them all.

What is the lemonade stand exactly?

For many, it is the supreme symbol of capitalism. It's the first business, the moment when they really built something from the ground up. It's the most valuable lesson in entrepreneurship and finances.

As romanian, we've first seen this symbol in american cartoon shows and hollywood movies from the 90's. 

Unfortunately, these shows don't show us the full experience. So the kids won't learn about entrepreneurship just by looking at them. 

Capture from the 90s cartoon Ed, Edd n Eddy with Lemonade stand - stand de limonadă

5 lessons about entrepreneurship that kids learn from operating the lemonade stand

1. You need money to make money

The first entrepreneurship lesson that any kid learns by operating the lemonade stand is that you need to invest, if you want to win. Kids need to invest, at first, in buildingthe stand, in equipment (freezer, juicer, glasses, bottles etc) and raw materials to make the lemonade (lemons, sugar, water etc.)

2, Operating costs should be priority number one

The profit is calculated only after the money is re-invested in the buisness. At this age, kids don't normally understand what it means to make a profit. It's understandable since they only receive money without a real reason behind it. But if they operate a lemonade stand, they will see how most of the money goes back into the business. The also learn about long term objectives and short term objectives.

3. If they want bigger profits, they need to cut on expenses

After they understand what operating costs are and how money needs to be re-invested in the business, they need to find ways in which they cut expenses and to prioritize. This is how they also learn about the right way to shop.

sursa: www.freepik.com

4. A lot of things, other than lemonade, can be monetized

This is an extremely important lesson in sales and entrepreneurship. Kids will learn that lemonade is not their only "product" but that there's also accessories for drinks or the simple confort that they offer to customers. They can also add straws, umbrellas or chairs and tables where customer can enjoy the lemonades. All these add to the price.

5. Great customer experience goes a long way

Kids will quickly find out that running a lemonade stand is way more than just selling lemonade. A lot of it is about hospitality. While some people are not cut out for this, some are and the lemonade stand might be just the perfect opportunity to learn about it.

3 legal way in which kids can run a lemoande stand in Romania, LEGALLY

AS we said already, operating a lemonade stand in Romania is not as easy as you might think.  

Not even in the USA. They are illegal in 36 states, without the right paperwork.

Normally, to open a lemonade stand, kids would need:

  1. 1. A legal form of functioning from someone who is 18 years or older.
  2. 2. Approvals from the City hall and other relevant institutions.
  3. 3. Register
  4. 4. Source of electrical energy
  5. 5. Raw material
  6. 6. Equipment 

And for a 6-9 year old, that's a little too much. Fortunately, there are three legal ways in which the kids can learn the important lessons while making some pocket money as well.

1. Kids can offer the lemonade for free, while suggesting a minimum donation

It's illegal for kids to ask for donations and ask for a fixed price, without the necessary paperwork. But they can always suggest a donation.

The important aspect here is to not directly ask for any money. Instead, they should also have some sign that says that the lemonade is free. They might not all donate, but some will definitely offer more so it will be balanced.

Disadvantages: By using this method, kids will miss many of the valuable lessons. They won't actually run a business, as it is supposed to be. For example, they won't be able to follow revenue and optimize costs.

2. Kids can operate the stand inside other business or in an organized space

The kids have two options here: 

The first option would be for the kids to become affiliated with some other business in the area, where they can sell their own products. There are also reglementations and paperwork that are needed here. But some of them are easier to get than in the case of the lemonade stand.

If you use this method the kids will still need a legal framework and won't fully be in the position of an entrperneur.  

The second option would be for you to create the environment where they will sell their lemonade. Let's say you live in a house - you can organize a Sunday party or a BBQ for your friends. Of course, drinks will be the kids' responsibility and they will run their own little stand.

Disadvantages: This is, probably, the easiest method in terms of runnning it legally. But it's the least valuable in terms of what the kids learn. They might mostly make some pocket money, which is great, but they won't truly feel what it's like running a business.

poză cu un food truck în care copiii pot opera un stand de limonadă legal

3. Kids can run a lemonade stand virtually, where they learn all the entrepreneurial lessons, without investing or losing any real money

The third method is about simulating a lemonade stand, in the virutal environment. It is a great way to take advantage of the benefits of tehnology, as well as avoiding tax evasion. Also, the effort is minimum but lessons are many.

In Investory, kids not only sell lemonade. They sell multiple drinks, made from different fruits and that cost different prices. They buy the fruits and they ask the money for the drink accordingly. Others also ask for extra stuff, such as umbrellas and ice so the kids can charge extra for these.

Investory offers kids the complete experience of the lemnade stand, from the confort of your house, while spending screen time in a very productive way.

Also, there are a lot of other financial lessons that complete the lemonade stand. Any 6-12 year old should learn about these if they want to become adults without money worries.

Download Investory for free, for Android and iOS and let the kids leran the most important entrepreneurial and financial lessons.  

What you must know before running your own lemonade stand in Romania

Now that you learned what situation is really like with the lemonade stands, in Romania, keep in mind the following: 

  • There are 5 entrepreneurial and financial lessons that kids learn from running the lemonade stand: You need money to make money. Operating costs are priority number one. If you want bigger profits, you need to cut on expenses. Many things, other than the lemonade, can be monetized. A good customer experience always brings huge benefits.
  • For a stand to be 100% legal, it needs: PFA, SRL or other legal form of functioning, permits, source of electric energy, register, raw materials and equipment.
  • There are three ways by which a kid can legally run a lemonade stand and learn the lessons implied in doing it.
  • The first method is to offer the lemonade for free, while simply suggesting a donation. Unfortunatel, if the kids choose this way,they won't full live the entrepreneurial experience.
  • The second method is to operate a stand from the inside of other business, as an employee or distributors. This is not the entrepreneurial way of doing things and it requires different permits and contracts.
  • The third method - the safest and the most complete one in terms of learning is running a virtual lemonade stand, in the Investory game. They also have to invest, but they don't risk loosing money or having an illegal business.
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