Running Head: BUSINESS PLAN 1

Business Plan

Student’s Name

Institution
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A Business Plan

A business plan is critical since it clearly defines the aims of a particular business. The tool

enhances effective and efficient operation of a business. Viable investors and other financial

institutions use business plans to evaluate the probable future performance of business

entities. For instance, the economic viability of the business is also established. This paper

focuses on a business plan for a lemonade stand that aims at maximising profits.

Mission of the business

The main goal of the lemonade stand is to maximise profits by providing quality services to

clients at all times. All stakeholders of the business should comply with client needs, having

in mind that the client is the boss. The lemonade stand focuses on being the leading supplier

of juice in the locality. Additionally, it offers door-to-door delivery services based on

demand. In furtherance, all workers should understand their roles in the business.

Branding strategies

Pricing

The daily weather changes determine the price of the lemonade juices. For instance, if the

weather is sunny, the juices scoop a relatively high price. On the other hand, during cold

seasons, the prices of the lemonade juices go down to stimulate demand. Secondly, lemonade

stands located at road junctions where customers are in large number sell the products at

relatively higher prices than those located at single lane footpaths. Thirdly, the cost of

producing different brands is a major consideration when it comes to pricing. The purchasing

power of the customers is a key factor to determine prices of the juices (Taylor et al., 2010).
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Promotion

Promotion is critical to all kinds of entities. The business should engage in a rigorous

promotion to win customer loyalty and awareness. Customer awareness of the existence of

the lemonade stand increases sales. Each employee in the business should be willing and able

to carry out sales promotion at all times. The business should carry out various promotion

strategies to raise its awareness to the public.

Personal selling

Personal selling gives an opportunity to the seller to explain and inform potential clients

about various products they offer. Customers who buy the juice in large quantities should win

themselves bonuses always. The entity should explain the importance of the juice to one’s

health. For instance, lemonade juice reduces kidney stones. It is, therefore, healthy to people

susceptible to such kind of ailment. The lemonade stand will frequently give free samples to

clients. This will stimulate their demand increasing the overall sales in the business (Finch,

2010).

Advertising

The lemonade stand will make use of billboards to create awareness to potential clients.

Direct marketing

The business should have distinct marketers to promote its awareness to the public.

Place

The lemonade stands to be located in a strategic place easily accessible to all customers. The

juice should be stored in a safe place. The juice should be available at all times to satisfy
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customer demands. The local suppliers should transport the lemons to the stands in good

time.

Product

The business should offer only right products to potential clients paying attention to customer

complaints and comments (Blackwell & Sunday Times of London (Firm), 2008). Secondly,

the business should be innovative and eager to bring forth products that offer more

satisfaction to customers. Good appearance and taste of the lemonade juice attracts more

customers.

The lemonade stand emerges successful if it offers products that are customer orientated;

prices its products rightly, products are available all the time and if potential customers are

aware of the existence of different products. The business should be aware of competitors

and marketing strategies they use and be able to cope with them.

Expansion of the business

After the lemonade stand recognises profits from its operations, it seeks for new locations for

expansion. Strategic positioning of such business is crucial since potential customers can

easily access the services offered by the business. The purchasing power of people living in

these locations will be detrimental. The location that people have the highest purchasing

power is viable. Other factors such land ownership are considered. Strategic plans for the

management and running of the new business are key after which the business kicks on

immediately. In addition, availability of other similar businesses in the area is an important

factor to consider. Locations where no competitors exist are easy to run.

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Strategic promotion plans

Having $10,000 in the budget for promotion purposes, the business would produce products

and sell them at subsidized prices. These increases customers' loyalty to such products and

increases the products demand in the future date.

The business would also produce billboards and be fixed in strategic points to increase

customer awareness of the existence of such a business.

The business would also undertake direct customer selling by offering free samples of their

products. The business would also make use of the social media to reach as many people as

possible.

Employee training

An employee training on better ways to offer quality services to customers is crucial.

Performance appraisal to motivate employees carried out frequently. Allowances and

commissions guaranteed to employees.

In conclusion, business plans are critical since they are guiding tools in business operations.

They usually help a business to stick to its main goals. Investors and other financial

institutions make use of business plans to establish the economic viability of a particular

business.
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References

Blackwell, E., & Sunday Times of London (Firm). (2008). How to prepare a business

plan. London: Kogan Page.

Finch, B. (2010). How to write a business plan. London: Kogan Page.

Taylor, S., Schrever, C., Dolan, P., Rahmani, N., Donegan, N., Video Education

Australasia., & Films for the Humanities & Sciences (Firm). (2010). The business

plan. Hamilton, NJ: Films for the Humanities and Sciences.