When my eldest son Hugh was 8 we had the ‘profit’ conversation. I told him that a profit was the selling price minus the buying price. Sell take buy he said. A couple of hours after educating him on this most important concept I asked him what profit was. Profit is good he told me! A little while after that I asked him how much profit we should make. As much as possible was the reply!
Hugh is now 15 and wheeling and dealing whatever he can. His favourite saying is ‘let’s do a deal’.
Well it seems that my daughter Harriet has the Entrepreneurial spirit in her as well. Today is election day in Australia and about 150 meters down our road is a polling station and as such there have been loads of people walking past all day today to pledge their vote. Harriet and her friend got the idea that they would capitalise on the opportunity and set up a lemonade stand and sell home made lemonade to the thirsty voters walking past. They started by juicing about 20 of my limes (that were supposed to be for my Corona beer and sparkling mineral water) and the first version was Lime based lemonade – hideous it was.
After a few initial sales I was sent to the shop to get some lemons. So with a new recipe business flourished and 51 cups later they had made $25.50. Only problem was I did not have the profit conversation with her. I paid for everything and they kept all the money!