Fantastic post from Seth Godin a couple of days ago, contrasting two completely different approaches to a roadside lemonade stand — that classic icon of pure entrepreneurial spirit: The Lesson From Two Lemonade Stands
As I was reading, it hit me that Seth had found the ultimate example that fits EVERY book he’s written since Portfolio began working with him in 2002. Consider how it illustrates the core ideas in …..
PURPLE COW – One stand is remarkable; the other makes average lemonade for average drinkers. Which one is going to draw word of mouth?
FREE PRIZE INSIDE – You approach a stand looking for a simple beverage, and as a free prize you get a delightful interaction that might be the highlight of your day.
ALL MARKETERS ARE LIARS – Does a cup of fresh squeezed lemonade really taste better than Country Time instant, or do you only think it tastes better? If it makes you happier, the truth doesn’t matter.
THE DIP – A girl decides to be the best in the world by defining a narrow niche: best lemonade stand in her neighborhood. Midway through building it and gathering all the supplies, she’s probably wondering why she chose the hard way instead of the easy way. She’s tempted to quit and go inside to play video games. But she powers through the Dip and her hard work pays off.
MEATBALL SUNDAE – Where’s the fancy social media promoting her stand? Where’s the Facebook page and the Twitter stream and the email newsletter? She’s smart enough to know that she doesn’t need cutting edge marketing tools, no matter how cheap and easy they are. Just like marinara and parmesan cheese won’t improve a dish of ice cream.
TRIBES – After just one day in business, she’ll have a small fan base spreading word of mouth. If she keeps it up, her tribe will grow steadily. But it still won’t be mass market growth. She won’t draw all those average drinkers who like average lemonade and don’t have the patience for hand-squeezed. But that’s fine, because a tribe has to be defined in part by who it excludes.
And, finally,
LINCHPIN – this eleven year old already knows how to be indispensable. If she doesn’t lose her spirit over the next decade, she’ll be in high demand in the workplace of 2020. She’ll get the best jobs and the most freedom. I’m ready to hire her right now.
If you’re thirsty for lemonade after reading this, I can’t help you. But if you’re thirsty for Seth’s books, please click here.
PS – here’s another perspective on the lemonade stand, from Jonathan Fields: Why Having Fun is Great for Business