Five-spot is slang that was used for the five-dollar bill in the 1930s. Click here to check out the new look!Close

What's your favorite flavor?
I have always wanted to own and operate my own business. Sure, I had tried a lemonade stand on the corner of my street, but that wasn't what I meant by "business."

One night I asked, "Dad what can I do to have my own business?" He remembered when he was growing up there was a kid who would sell snow cones around the neighborhood. He worked from a trailer attached to the back of his bike.

I thought of how much I love the fruity shaved ice on a hot day. Ryan's Sno-Kones was born!

First the dream, then the machine

Crankin' it out on my first snow cone machine
Crankin' It Out

I shove in blocks of ice and crank out the good stuff. Close

I researched to find a nice, but used snow cone machine. The machine and start-up supplies cost about $500.

I saved my birthday money and allowance for a month or so, but wondered—how would I ever reach $500?

After talking this over with my dad, we decided the best way to go would be to borrow $25 each from family and friends, and pay them back with interest.I Gave My Lenders Corporate Bonds

People lent me money by buying corporate bonds from me. My lenders were family and friends.

They paid $25 for each bond they purchased. Every six months I paid them about 6% interest on the total amount of their bonds.

I designed my corporate bonds on my computer, printed them, and gave them (18 total) to my lenders. I paid off the bonds in full within nine months!

Close

Once I got enough money, it was time to figure out how much I would charge for the snow cones.

My sister Kristen likes blue raspberry.
Blue Raspberry

Sometimes when there are a lot of people lined up, I forget what flavor a person has asked for.

Oops. Someone has to eat the mistake!

Close

What to charge?

I planned how much to charge by thinking, "What would be a good price, so that I would make money (profit) without it being too expensive for the customer? What price will the customer think is good deal?"

The pricing job took a while to complete. I talked to my dad, and did my own research on how to decide on a price. It was like the 5-Spot game Lemonade Mega-Stand.

After I figured the initial pricing, I separated my business into two divisions...