kid summer businesses...

[tcufrog]

I was wondering whose kids had started a summer business and if they had any advice for my kids. Our neighborhood HOA operates a community pool that is quite popular in the evening and on the weekends. My kids want to start a snack stand that sells prepackaged items (bottled water, soda, juice boxes, chips, and candy) since there isn't one there and no places to buy a treat within walking distance of the pool. The options are to either bring snacks from home or walk/drive home when hungry. My husband is a successful entrepreneur so he's discussed things like profit, loss, inventory, etc. with them. We will loan them the money to start and they will pay us back with the (hopeful) profits. They're planning to sell each item for 50 cents or $1. We were going to get a square account with a minimum $5 purchase if you wish to use a credit card. Our house is within walking distance so they plan to walk the merchandise down there in wheeled coolers we have and we'll drive down the card table, folding chairs, and sign. We think the only thing they will need to get at first are: change, cash box, credit card processor and cash box. We already own everything else.

I was wondering what advice y'all have for us. I feel we've made a thorough plan but I'm sure there's stuff/issues we haven't thought of.

 

[Southernmiss]

Is the HOA okay with it?

 

[kaytieeldr]

Yeah, what Southermiss said. Permits.

 

[TipsyTraveler]

An umbrella if they’ll be sitting in the sun.

 

[tcufrog]

We are checking with the HOA.

 

[Deb & Bill]

How old are your kids? Can they fend on older kids who might try to take stuff without paying for it? Or do you plan to be there with them the entire time.

 

[holden]

Around here you'd need a permit from the township for that.

 

[tcufrog]

How old are your kids? Can they fend on older kids who might try to take stuff without paying for it? Or do you plan to be there with them the entire time.

One is 8 and the other is 12 and tall for his age so he looks older. We plan to be in the background watching.

 

[sam_gordon]

We are checking with the HOA.

If they say they're ok with it, get it in writing. Assuming you're doing so at the pool itself.

If they say no and you want to do it anyway (on your property), check your HOA bylaws first and see if they have restrictions on home based businesses, then check with your local government and see if they have ordinances with requirements.

Get everything in writing.

 

[SteveH]

Fun idea! A quick few things to consider:

• The HOA will probably want a cut as this venture comes with some risk (insurance) as well as increased maintenance costs.
• Talk with your insurance agent about potential risks for your family too, probably a good idea for an umbrella policy.
• HOA, and nearby residents, might be uphappy about garbage left around, so plan on spending some time cleaning up.
• Your margins seem a bit low, but depends on how much they want to earn.
• Don't forget to factor in the cost of ice for the beverages (coolers) and keeping the other product from melting.
• Check with your municipality about business license, yes sadly even for something like this.
• I would skip the Sqaure, but watch minimum charges (statement fees) and the rough loss of 3% for the CC fees.

 

[Cindy's Mom]

I like the idea of the square - kids now a days are pretty much cashless. At least in my area they are.

 

[tcufrog]

We already have an umbrella policy and plan to take a trash can and trash bags down there with us. I've also talked to my son about checking around the pool for trash at the end of a selling shift. We're not going to put the table next to the pool. There's a gate and we plan to put stand outside of the gate. I'm in the process of trying to figure out the HOA situation. I'm struggling with the city issue.

As for the price of items, they will make 50% profit on them. Should we just charge $1 for everything? A dollar does seem high for a juice box or Capri Sun.

 

[Hrhpd]

I was wondering whose kids had started a summer business and if they had any advice for my kids. Our neighborhood HOA operates a community pool that is quite popular in the evening and on the weekends. My kids want to start a snack stand that sells prepackaged items (bottled water, soda, juice boxes, chips, and candy) since there isn't one there and no places to buy a treat within walking distance of the pool. The options are to either bring snacks from home or walk/drive home when hungry. My husband is a successful entrepreneur so he's discussed things like profit, loss, inventory, etc. with them. We will loan them the money to start and they will pay us back with the (hopeful) profits. They're planning to sell each item for 50 cents or $1. We were going to get a square account with a minimum $5 purchase if you wish to use a credit card. Our house is within walking distance so they plan to walk the merchandise down there in wheeled coolers we have and we'll drive down the card table, folding chairs, and sign. We think the only thing they will need to get at first are: change, cash box, credit card processor and cash box. We already own everything else.

I was wondering what advice y'all have for us. I feel we've made a thorough plan but I'm sure there's stuff/issues we haven't thought of.

Our swim team had food sales at our local HOA pool during swim meets. Check with both your HOA and your town and county.

In order for us to have public sales, we had to have permission from the HOA to sell on their property, had to have a business permit from the town and then also had to have a health certificate from the county since we were selling food even with only selling prepackaged food.

Since this will be an ongoing summer business on public property and not a one time lemonade stand, you will probably be subject to any and all health code regulations that are in place in order to sell food. So definitely check on those first as you don't want your boys to lose all their profits with a health code violation fine. You might be in luck that you wouldn't need one.

 

[BadgerGirl84]

I don't see this going well with an HOA involved...

 

[Hrhpd]

We already have an umbrella policy and plan to take a trash can and trash bags down there with us. I've also talked to my son about checking around the pool for trash at the end of a selling shift. We're not going to put the table next to the pool. There's a gate and we plan to put stand outside of the gate. I'm in the process of trying to figure out the HOA situation. I'm struggling with the city issue.

As for the price of items, they will make 50% profit on them. Should we just charge $1 for everything? A dollar does seem high for a juice box or Capri Sun.

Your umbrella policy is fine for you however the HOA and/or town also assumes liability if they allow sales on their property so have to be protected if anyone sues them. I forgot that we also had to obtain a separate insurance policy under the HOA's and Town's name that protected them from liability. And this was for a bake sale, run by the kids, that only happened 3x per summer. A ton of hoops to go through to sell on someone else's property.

It is not so easy to just go on somebody's else's property and set up a business. Your biggest challenge will be to contract with the property owner and then secure all the necessary permits required by your town, county and state. But what a great lesson in setting up a business for your boys!

 

[Allison]

Are there special permits/regulations/licensing as an establishment selling food?

 

[1GoldenSun]

I don't have any advice except regarding pricing. My community pool does have a snack bar and prices are very reasonable. If they were higher, I'd just pack my own cooler, but they're low enough to make the convenience worth the price. I think your pricing, with a 50% profit, sounds good.

You could also sell Twizzlers. You can get a huge bin of them for pretty cheap at Costco. Our snack bar sells those at 10 cents each. I've often seen a mom walk her kid over to get him a Twizzler and then once there she'll get a cold drink for herself, and maybe something else. Those cheap Twizzlers seem to really draw the kids and then their parents spend more money.

 

[Cindy's Mom]

OP - please keep us updated on this. That darn HOA is gonna get ya. I can't see them doing it, but boy do I wish they would. BEST OF LUCK!!

 

[disykat]

How is the HOA the bad guy in this according to some posters? The only way to have a neighborhood pool is to have some sort of governing group.

OP, is your own property close enough to set up on? If not, I'd avoid having a "stand" and have it all be on wheels. I would keep it all as temporary as possible. No set hours. No set location, etc.

 

[Cindy's Mom]

How is the HOA the bad guy in this according to some posters? The only way to have a neighborhood pool is to have some sort of governing group.

OP, is your own property close enough to set up on? If not, I'd avoid having a "stand" and have it all be on wheels. I would keep it all as temporary as possible. No set hours. No set location, etc.

They're not necessarily the bad guys, but come on.....most HOA's are rigid, their way or the highway and not really very in tune of the needs/wants of the association of which they represent.