All the Information You Need to Start a Gift Basket Business Brought to You by Various Authors
Resources to follow after the introduction
Background About This Type of Business
By providing tasteful gift baskets, you’re providing a great gift for many occasions. Many times finding the right gift is difficult. Gift baskets are gifts that can be unique for the occasion.
Customers will choose a gift basket that is themed for the occasion. Some examples include; retirement, a promotion, a holiday gift, showers, get well, house warming, etc. In addition to your standard baskets, adding customized baskets will allow you to expand your target market and revenue.
This business type can have a low startup cost. You can run it from home and work your own hours. It also works well as a part-time business and makes a good business opportunity for students with a creative flair.
About This Post
This post contains an impressive amount of resources written by various authors. You’ll have the information you need to make good decisions during the startup phase and while running your business by having multiple viewpoints. Before you get to the resources section further down the page, let’s go over a few considerations about starting a gift basket business.
What Type of Person is Suited for a Gift Basket Business?
Anyone with a creative flair likes working with their hands, and has an entrepreneurial spirit; with the ability to market their gift baskets, can do well with this type of business.
Is This What You Want to Do?
Is this the type of business you want to start and operate? For any business owner to succeed, you need a key ingredient, and that ingredient is being passionate about what you’re doing. When you’re passionate about the business you’re running, you’ll look for a solution instead of a way out when problems occur. Passion is the fuel that makes you want to keep going no matter what. Passion ensures you have given it your best.
Do you Have The Necessary Skills?
Do you have the skills to run a business and to make attractive gift baskets? If you don’t have the skills, the good news is you can learn them. Also, depending on how large your business operation will be, you can hire people to perform any of the required jobs, but the larger your staff, the higher your cost, and the more sales you’ll need to cover those expenses.
Key Issues to Focus on With This Type of Business
You’ll want to look into the competition in the area where you are planning to start.
If there is a lot of competition, it will be challenging to get a market slice. You’ll have to make your gift baskets more attractive than what’s available on the market. You could compete on price, but keep in mind, that could start a price war. With price wars, the profit drops to the point where no one makes any money, and as a newcomer, you may not have the funds to keep competing on price.
If there is no competition in the area, you may have hit the jackpot, or it could be there is not enough demand for gift baskets in the area. In that case, it’s no use providing a product in an area where there is no demand; you may have to locate in another area or, in this case, take your business strictly online.
Can You afford It?
Can you afford to start your own business? With this type of business, the startup cost can be low if operating from home. You only need funds for registration, supplies, and marketing.
If you’re running this as a part-time business, then it’s something you can set up without a lot of pressure.
On the other hand, if you plan to start full time, you need to factor in the money you need to pay yourself. In the early stages of a new business, revenue is low, and your main concern is to have enough money to keep the doors open until your business grows and becomes self-sustaining.
The startup cost for a gift basket business can be fairly low, but keep in mind no one can tell you how much your startup cost will be without your intentions for how big of a business you are planning to start. If you’re starting from home and doing everything yourself, you could start with a few hundred dollars. If you’re planning to mass-produce your gift baskets and supply the wholesale market, you could need thousands of dollars. Even opening a storefront will require a substantial startup budget.
Before considering your startup cost, you need to define your business plan. For more on startup costs, see, Estimating Startup Costs – Are You Missing Anything?
What type of Baskets Will You Create
In addition to marketing your gift baskets, you need to create appealing and creative ones. Have you considered if you will have premade gift baskets or create baskets on demand? I would suggest having both; you could have ready-to-go bakest for those in a hurry and allow people to order their own.
The key to success at this type of business is creating attractive looking gift baskets at affordable prices. There are thousands of ideas for creating gift baskets. You can add anything appropriate. It doesn’t just have to be food-based. You can let your imagination go wild. You can add items that are appropriate for a kitchen if the occasion is housewarming. For someone that just got a promotion, you can add items for a desk or anything used in their new job. For a get-well, add items the recipient would like; for example, you could add a video game for a teenager who likes video games. The ideas are endless.
You can come up with a series of questions beforehand to ask your customer, so you can come up with the perfect gift basket tailored towards the recipient.
How Will You Price Your Gift Baskets?
Your price will play an important role in sales if you price too high and you’ll lose sales. Price too low, and your baskets may be perceived as a cheap gift. You need to get the pricing right so that perception and value are high. To figure out how to price your gift baskets, see How To Set Prices To Improve Sales, Revenue, and Profits.
Getting the Word Out and Getting Customers
How will you get the word out about your new business?
One of your main sources of advertising is the basket. Be sure to attach your business name and contact information tastefully. So when other’s see it, your gift basket becomes a conversation piece.
You can monitor local events and donate gift baskets where it will get you some exposure. This works well when raffles occur.
You could also send your local morning show radio host a gift basket with a special message hoping to get a plug for your business. The key here is to be authentic, writing something like thanks for keeping us company during our mornings. You keep us entertained and updated with what’s going on in the world. You might get a plug on the radio, get a photo of your basket on their website or Facebook page. Or you may get nothing, but it’s worth a try!
Keep in mind any gift basket you use to promote your business is a tax write off because it’s advertising. It’s important to keep track of the cost of each gift basket you use to promote your business.
A Collection of Resources Related to Starting Gift Basket Business
Now to the resources. You’ll find the “how-to” information in detail from the sections below.
You’ll gain knowledge from the experience of others. It’s to your advantage to read through many of the resources to gain a broad understanding of this industry.