Lemon Stand`s Financial Report

Assignment Brief

Imagine you are the proud owner of a lemonade stand business that operates year-round. The year just ended, and your investor would like a report out of the stand’s financials, as well as the ability to interact with your data in a dashboard with scorecard elements. This lab simulates the creation of a business dashboard using Excel.

Sample Answer

Financial Report for Lemonade Stand Business – Year-End Review

Introduction

Running a lemonade stand may sound simple, but when operated as a year-round business, it involves real planning, financial tracking, and business strategy. This report aims to provide a clear financial review of the lemonade stand for the past year. It will outline key aspects such as revenue, costs, and profits, and provide basic insights to help our investor understand the business’s performance. Although no Excel dashboard is being included, the data will be presented in a way that can be easily adapted into a visual dashboard later on.

Overview of the Business

The lemonade stand operates in a busy local area throughout the year. It sells different flavours of lemonade, including classic, strawberry, and mint. The stand also introduced seasonal specials during summer and winter, which helped increase sales. The business employs two part-time staff members, and ingredients are sourced weekly from local suppliers. The stand is open six days a week.

Revenue Analysis

Over the year, the lemonade stand made total sales of £18,000. Summer months (June to August) generated the highest revenue, contributing about £8,000, thanks to higher footfall and hotter weather. Winter sales were lower, but warm lemon tea options helped maintain some level of demand. A loyalty card programme was also introduced mid-year, leading to a 10% increase in repeat customers.

Cost Breakdown

The total expenses for the year amounted to £10,500. The major costs included:

• Ingredients and supplies: £4,000

• Staff wages: £3,000

• Stand maintenance and utilities: £1,500

• Marketing and promotion: £1,000

• Miscellaneous (permits, uniforms, etc.): £1,000

All costs were carefully monitored to ensure the business remained profitable throughout the year.

Profit and Performance Summary

By subtracting the total costs from revenue, the lemonade stand achieved a net profit of £7,500 for the year. This is a strong performance for a small-scale operation. The profit margin stands at around 42%, which shows efficient cost control and strong sales performance.

Key Performance Indicators (KPIs)

While a full Excel dashboard was not created, we can still highlight key indicators that would normally appear on a business scorecard:

• Total Sales: £18,000

• Net Profit: £7,500

• Customer Growth Rate: +15% (year-over-year)

• Best-Selling Month: July

• Most Popular Product: Classic Lemonade

• Customer Retention Rate: 60% (improved by loyalty card scheme)

These indicators suggest that the business is on a healthy growth path, with room to scale further.

Opportunities for Growth

To continue growing, the business can consider a few strategic options:

1. Online Sales and Deliveries: Offering bottled lemonade for delivery could open a new revenue stream.

2. Expansion to Nearby Locations: Based on current success, another stand in a nearby park or school zone could double sales.

3. Event Catering: Serving lemonade at local events, fairs, or markets can help build brand awareness and bring in extra income.