There are three 12 year old African American boys, Billy, Danny, and Jimmy, living in the community but in different neighborhoods. Each one has the dream of making it big and earning a lot of money when they grow up. They see a big discrepancy in their community of poor conditions compared with that of other communities. It is confusing to them and the way they view themselves. They feel like it is something they could do, but their options are limited. Coincidentally, all three see a video on YouTube with a young Asian girl opening a lemonade stand and the amount of money she made. It gives them the idea of doing the same. Each one knows the same businessman, Mr. Gilbert, with a graphics design business on the main thoroughfare running through their neighborhoods. He advocates for Black business and is always having business discussions with the community. Each boy approaches him separately with the lemonade stand idea.
Billy- He approaches and gives Mr. Gilbert the sales pitch that he can make a lot of money opening a lemonade stand and asks for $100. Mr. Gilbert is impressed with the desire but doesn’t see a plan or any confidence in the young man to pay him back with profit. He tells Billy, I will loan you $20 to get you started on your entrepreneurial quest. Billy looks dejected but takes the money anyway and goes to get started. He buys lemons, sugar, and cups. He starts at 2 pm in the afternoon on Saturday. He sells lemonade for $1 in a 10 oz cup. He sells 14 cups of lemonade. He gets agitated and tired then quits at 5:15 pm.
Billy returns to Mr. Gilbert on Monday afternoon to borrow another $20. Mr. Gilbert asked Bill. How did you do? Billy says with glee. I did good and sold 14 cups for $1 each. Mr. Gilbert shocks him into reality. You lost my money! How much do you have? Billy is almost crying now. I have $3, I bought candy with the rest. Mr. Gilbert tells him to hand over the $3 and tells Billy, business works on you making a profit. You have lost $17 of my money I invested in you. I’m sorry Billy, you are a poor businessman, I cannot lend you any more money. If you want to learn about business, you can come to our Wednesday night meetings. You showed initiative, so I will teach you how to conduct business, if you are willing. Billy leaves Mr. Gilbert the same way he came in, without money. He cannot see he didn’t deliver what the young Asian girl did on the video and he blames Mr. Gilbert for being mean to a little boy. He vows to stay away from harsh men like Mr. Gilbert.
Danny- He approaches Mr. Gilbert and literally tells him, you think I can make money selling lemonade. Mr. Gilbert says, you can do anything you want young man if you are willing to put forth the effort, why you want to open a lemonade stand? Danny says yes, I want to open a lemonade stand, you got $100. Mr. Gilbert asked him how much money do you have? Danny says I don’t have any money. Mr. Gilbert asked him, then how are you going to sell lemonade? Danny says, I was thinking you could help me. I could, but how will I get my money back? Danny says, oh I will sell lots of lemonade and I will pay you back with interest. Mr. Gilbert gives him $20 and asked, when can I expect you back? Danny looks at the twenty and says next week. Mr. Gilbert’s expectations of Danny are very low.
Sure enough, Danny didn’t come back at all. Two months later Mr. Gilbert sees Danny walking by the shop outside, he excuses himself from a customer and goes outside to confront Danny. He asked Danny how did the lemonade stand go? Danny says, oh, it went well. Mr. Gilbert asked the young boy, you still selling lemonade? Danny says, yes, I am. Mr. Gilbert asked, when can I expect you to come by. Danny says again, next week, then walks off. Mr. Gilbert shakes his head and worries that Danny may be targeted by gangs.
Jimmy- Jimmy sees the Asian girl video and immediately goes to work. He goes over to his aunt’s house and asks if he can use her cooler until he can buy him one. She says I have 2 coolers, you can have the older one if you help me hang my curtains in the living room. The cooler needs a good cleaning though. Jimmy is happy and helps his aunt hang her curtains. Now he has a cooler that he owns. He draws up a small business plan. He thinks he can sell 100 cups of lemonade in a weekend if he starts early each morning. He knows exactly what lemons and pure cane sugar cost at 3 grocery stores, he can save money if he uses his mom’s membership card at the Super K market. He knows he can go to the dollar store to buy the big red 20 oz cups because people like those and he can sell refills for 50 cents the next day if they come back with the same cup. The last thing is water, he knows water in the faucet isn’t good at all, he can get filtered water from the machine in front of the store for 35 cents a gallon. It’s extra work but he wants people to know that his lemonade has natural ingredients including the water. His lemonade will be the best in the neighborhood. Now he is ready to approach Mr. Gilbert because he has a strategy for his business.
Jimmy doesn’t just walk up to approach Mr. Gilbert, he sets an appointment. He has an appointment for Thursday afternoon after school. Jimmy wears a shirt and tie and brings his notebook with him with a detailed plan in it. He greets Mr. Gilbert and tells him, I admire your business, I would like to build a fine business like yours. Mr. Gilbert asked him, what do you have? Jimmy says I have plans to build a lemonade business on the weekends. My goal is to sell 100 cups a weekend for a revenue of $100 a week. I know my cost in advance. My recipe is a mixture of real lemons plus drops of concentrate from real lemon juice. I will use natural cane sugar and filtered water. I will use the 20 oz big red cups to make sure my customers get good value for their money. My lemonade will be ice cold because I plan to use a cooler. I can make ice from Tupperware molds from my mom’s deep freezer. My cost upfront for this weekend will be $34 because I have to get my flyers out tomorrow before school and I have bought extra fixtures with a tablecloth to have a nice looking booth. I would like to borrow $40 to get started in business. I thought ahead of time you might ask for collateral, so here is my Hot Wheels collection of 65 cars. Today a Hot Wheels car cost $2, so I feel if you had to, you could sell them to get your money back. This concludes my presentation.
Mr. Gilbert is stunned. How old are you, Jimmy? I’m 12 years old. Who taught you about business? No one, I watch YouTube videos and I watch biz kids on Saturday morning. I read business books for kids and I saw a video with an Asian girl who started a lemonade business. I also have been watching your business and I want to join you in doing business together some day but first I want to make money myself and build me an account. I want to learn about the stock market, crypto, and business if you can help me.
Jimmy, I am truly impressed with your approach to represent yourself and wanting to build wealth. I can see you are determined to do things correctly. May I ask, how will I get my money back with profit? I would hate to sell your collateral. Yes, I plan to come here every Monday with a payment after school and pay you $15 dollars. I will do this for 4 weeks in a row. This gives you $60 with a 50% profit of $20 for a month’s interest. Okay Jimmy, I will take your collateral and lend you the $40. Let’s sign a note to put it in writing and I will look for my first payment on Monday. Jimmy says, I’m glad to do business with you sir.
Jimmy shows up on Monday right on time and makes the payment of $15. Mr. Gilbert asked him how’s business? I had a great first day on Saturday and sold 68 cups. On Sunday, it was tougher and I only sold 42 cups and made $110. Did you make a profit yet Jimmy? Jimmy asked him how did he know? My upfront cost were $55 and I paid my borrowing cost of $15. I made $45, but I must pay for materials next week. Mr. Gilbert is impressed. Jimmy, you have done a wonderful job for your first time out. It will get easier next week. See you next Monday.
Jimmy shows up next Monday and makes the payment of $15. Mr. Gilbert asked, how’s business? I sold only 90 cups this weekend but I didn’t have upfront cost and paying my borrowing cost leaves me with $85 this week. I made more with less. Is it easier? Jimmy says a little because I’m learning what customers want and I will try new things. Plus, some people are coming because someone told them about my lemonade stand. Mr. Gilbert tells him, you are making progress. See you next Monday.
Jimmy shows up next Monday and makes the payment for the whole $30. Mr. Gilbert gives him back his collateral and a $5 reimbursement because he makes the final payment early. Mr. Gilbert asked, how’s business? I sold out both days and made $140. I have a total of $175 in profit after my payment of $25 to you and I feel I can make $100 a week in profits, not just revenue, because next week I will sell cookies with my lemonade. Billy, you are an exceptional businessman, but don’t overdo it because you will get burnt out. No sir, I plan on having $2,000 by Christmas because I will start selling candy after school to kids walking home. I want to open an online candy store beginning next year if you can show me how to do it. Jimmy, I’m so proud of you as a junior businessman. I want you to join my Wednesday night business session. You will be the youngest member to ever join, but you are already an apprentice businessman. When the New Year rolls around you will be ready to open your online business. Jimmy is inspired by Mr. Gilbert’s confidence in his ability and plans to work closely with him.
Business is the answer. The three kids all had a shot at bringing in profits, only one took the opportunity seriously. You take any young man in our community and give them a business opportunity and this will happen. Roughly, the same percentages of young men would take the same actions. The unemployment statistics say 2 out of 3 adult Black males don’t work. This Blogsite is about all of the young Jimmy’s out there who need support and some guidance in building their estates. If you want to take the role of Jimmy. It’s time to start your business.