“Entrepreneurship is going to cost you way more than you could ever expect, and you have to be prepared to do whatever it takes. And when you do, the returns on the other side can be greater than you could ever imagine. That is what success looks like on the other side, and that’s what we ultimately need to teach our kids. Because the greatest returns in our lives, both personally and professionally, almost always come from overcoming our greatest challenges, and entrepreneurship will present some of the biggest challenges we will ever face. The real lesson is learning what it takes to succeed through all the challenges in life or that entrepreneurship presents us.”
Think of it this way:
Imagine a family helping their child start a simple lemonade stand. They expect to buy lemons, cups, and a table, only to discover there may be permits, licensing requirements, fees, or other compliance-related costs they never anticipated. For many people, that experience can be surprising and even frustrating. They wonder why something so simple comes with so many requirements and expenses. But that reaction creates an opportunity to teach a much larger lesson about entrepreneurship.
When people hear about a lemonade stand running into permits, licensing requirements, or unexpected costs, they often focus on whether those requirements are fair. While that can certainly be debated, there is a bigger lesson here. The reality is that unexpected costs, regulations, and obstacles are not unique to lemonade stands—they are part of the entire entrepreneurial experience!!! Understanding that, helps explain why these situations matter and why they can be valuable teaching moments for both parents and kids.
First, there are practical realities that come with running any business. Whether it’s a lemonade stand or a $10 million company, there are accounting, legal, state, federal, and local compliance requirements that need to be addressed. From setting up an LLC, to filing taxes, to understanding sales tax requirements, business owners need to seek out accounting and legal professionals for key guidance and important decisions.
Second, when people ask what startup costs or challenges entrepreneurs don’t expect, my answer is simple: all of them! Whatever you think it’s going to cost, it’s going to cost more. Whatever challenges you think you’re going to face, there will be more. Business ownership requires preparing yourself for the unexpected because there will always be expenses, obstacles, mistakes, and surprises that you couldn’t foresee.
Third, for parents and kids who want to encourage entrepreneurship, I would encourage them to embrace these lessons rather than avoid them. The legal requirements, permits, licensing fees, startup costs, and unexpected challenges are not reasons to give up on an idea—they are opportunities to learn how business really works. Learning how to navigate those realities is part of the entrepreneurial education and part of what prepares young entrepreneurs for greater success in the future.
The Plan:
- Identify and budget for as many expenses as possible. Include everything you can anticipate—from permits and licensing fees to wages, materials, cost of goods sold, overhead, marketing, and sales expenses.
- Expect the unexpected. No matter how much planning you do, there will always be costs, challenges, and surprises you didn’t anticipate. Entrepreneurship requires accepting that uncertainty as part of the process.
- Adjust and adapt as you go. Continually refine your pricing, budget and understanding of how expenses affect your pricing, sales targets, and profitability goals. Whether you’re running a lemonade stand or a company generating $10 million in revenue, success depends on making informed adjustments along the way.
The bottom line is that every business, regardless of size, follows the same basic principles.
First, you need to identify and budget for as many expenses as possible—from permits and licensing fees to wages, materials, cost of goods sold, overhead, marketing, and sales expenses.
Second, you need to accept that you will never identify every expense in advance. Unless you have access to the complete financial history of a nearly identical business, there will always be costs, challenges, and surprises you did not anticipate.
Third, you must continually adjust your budget and understand how your expenses impact your pricing, sales targets, and profitability goals.
Whether you’re operating a lemonade stand that earns a few hundred dollars a year or a company generating $10 million in revenue, those fundamentals remain the same.
The bigger lesson for parents and kids is not whether a lemonade stand should have a permit. The bigger lesson is learning what entrepreneurship really looks like. It means solving problems, adapting when things don’t go according to plan, and finding a way forward when unexpected costs and challenges appear.
You will have expenses you didn’t anticipate. You will make mistakes. People will disappoint you. Some things will cost more than you think is fair. You will not be able to predict every line item in your budget. But those experiences are part of the entrepreneurial journey.
And that is exactly why this lesson is so valuable for kids. The goal isn’t simply to teach them how to sell lemonade. The goal is to teach them how to respond when things don’t go according to plan. Because whether the obstacle is a permit requirement, an unexpected expense, a difficult customer, or a business setback years from now, the lesson is the same: success belongs to those who learn to adapt, solve problems, and keep moving forward.
That is why I encourage parents to teach kids not just how to start a business, but how to overcome obstacles. Because the entrepreneurs who succeed are not the ones who avoid challenges—they are the ones who learn how to work through them.
“Entrepreneurship is going to cost you way more than you could ever expect, and you have to be prepared to do whatever it takes. And when you do, the returns on the other side can be greater than you could ever imagine. That is what success looks like on the other side, and that’s what we ultimately need to teach our kids. Because the greatest returns in our lives, both personally and professionally, almost always come from overcoming our greatest challenges, and entrepreneurship will often present some of the biggest challenges many people will ever face. The real lesson is learning what it takes to succeed through that journey.”
To learn more about the important lessons of entrepreneurship—whether you’re teaching them to your kids, applying them yourself, or putting them to work in the business you own or work for—schedule a free Discovery Call with EWH University and discover the tools, training, and resources that can help you grow.
