Are you interested in starting a gift basket business from home? Do you need a sample gift basket business plan template or feasibility study? Do you want to learn what it takes to run a profitable gift basket business? Then I advice you read on.
Have you ever been complimented on your crafty and unique gift for the year? Have you imagined running a fun and profitable business that lets you work from home using your creativity to make beautiful gift baskets? Are you full of creative ideas and designs? Then starting a gift basket business is probably the best bet for you.
One of the most enjoyable and profitable businesses is a gift basket business. Anything can be placed inside gift baskets and it can be used by many people. That is what makes it very lucrative. The best thing about this venture is that aside having the freedom to be your own boss, you can also start a gift basket business with less than $20 – $50 (dollars) from home and generate a decent income; especially if you have been staying at home jobless.
But before I go into the details of starting a gift basket business, I want to emphatically state that the information provided in this article does not in any way replace the need for you to conduct a feasibility study, write a business plan and do your own due diligence.
Secondly, the information shared in this article is applicable to any locality; be it USA, Canada, Australia, India, UK, Nigeria, Ghana, etc. Without wasting your time, below is a step by step guide on how to start your own gift basket business from home with little or no money.
5 Reasons Why You Should Start a Gift Basket business
- Gift basket business is a profitable venture
- You can start it from home, thus avoiding rental costs
- It is not capital or management intensive
- You can start it part time
- You don’t need any specialized knowledge for this business, just your sales / marketing skill
How to Start a Gift Basket Business – Sample Business Plan Template
1. Acquire the necessary skills
To successfully run a gift basket business, you need to have some creative and design ability; aside business skills. You need to know how to make attractive gift baskets as this is the heart of the business. To gain such skill, you can attend a seminar or take some tutorials on gift basket design and production.
A business plan is important because it will serve as a blueprint and guide you as you start your business and grow it. For a gift basket business, a simple one-page business plan is enough to get things done; unless you intend starting the business in a big way, then you can go for a comprehensive business plan.
3. Plan your theme
One of the most important things you must know before starting a gift basket business is to know the theme of your basket. Themes include birthdays, Christmas, weddings, showers, anniversaries and Easter, among others. With each basket, you can let your personality and creativity show.
With respect to starting a gift basket business, there’s no definite capital. The amount of money you need to start a gift basket business depends on the level or scale on which you intend to start. If you intend to do business from home as a sole proprietor; then you can setup with less than $50 – $100.
On a medium scale while still operating from home with at least three employees; you may require about $500 – $1,000 in start-up capital. But the point I want to emphasize is that start-up capital for a gift basket business is dependent on scale or size of the business.
You can start the business from home or from a rented space, but its better you start it at a place where there is a lot of pedestrian traffic, so that people will see your samples. Since your target customers are adults, employees, corporate organizations, etc; you need to site your gift basket business at the heart of the town.
Most preferably, you should be situated at a road intersection with lots of human and vehicular traffic. Your store should also be strategically located in between residential and commercial areas. This business can also do well near tourist centers, shopping malls and hotel premises.
6. Get licensed
Before you set up shop, it is your duty to research and check whether you need any special license or business permit for your gift basket business. If it is needed, then obtain such.
7. Get the necessary equipment
After deciding on a theme for your gift basket and estimating your start-up costs, the next step is to get all the supplies you need. Now with respect to packaging, you can either use baskets or boxes but be sure that you use a unique design and personalize your gift baskets.
List of equipments needed to start a gift basket business
- Adornment/decorative items
- Wrapping papers
- Gift basket and containers
- Filler items
- Thin wire and wire cutter
- Fabric pieces/scraps, linen
- Gift cards
- Glue and glue gun
- Hole puncher
- Adhesive tapes, etc.
8. Source for suppliers
You will also need to look for a supplier that will be supplying you with good wrapping papers, ribbons, food items, toys and other things you may need to put in the basket. This step is important because you may need to be getting your supply on credit basis, since you are starting out with low capital.
9. Hire additional hands
Gift basket making is quite a stressful business especially when you are the one weaving your own baskets or designing your own boxes. If you are not performing any of the tasks listed above, then you can run your business alone. But if you are into full scale production and design, you will need to employ those that will help you in your gift basket business and train them yourself; so that they operate without much supervision.
10. Branding and Basket Design
One of the most important criteria for successfully running a gift basket business is to know what to place inside the basket and how to price each basket. Proper pricing is very important to ensure that your gift baskets cover the supplies, cost of labor, the basket or box you used and still return you a profit.
7 Creative ideas and Tips for Marketing your Gift Basket Business
The key factor that’s going to make or break your gift basket business is your marketing strategy. So organize your sales chart properly and employ the necessary skills it needs. Remember that businesses run smoothly on generated sales. So be sure to market your business well.
- It is also important that you know your competition well and the kind of themes and designs they use. Then give your customers a special service that they cannot find with other similar businesses.
- You should also be updated with the modern ideas and techniques of your industry.
- Another way to market your business is to donate some of your gift baskets to charities or churches.
- You can also display them in shops/retail store but be sure that the gift baskets bear the name of your business. If your gift basket has a theme for babies, you can leave them in shops selling baby accessories.
- You can also market your business on the internet using media such as e-Bay, Amazon and Etsy. This will make your business known by people not only in your community but worldwide.
- You can also place your product/services on online directories.
- Another effective online marketing strategy is to create a website to advertise your gift baskets. There are many benefits you stand to gain when you start a gift basket business. You can run it from home by setting aside a space in your house solely for it. With a website, you will be able to get more customers and network with other prospective partners.
How to Run a Gift Basket Business Effectively
Now aside the business operation requirement listed above, there are some personal traits you must possess to run a successful gift basket business. You must be determined, driven, and disciplined in operating such a business. You should also be organized and customer-oriented because there are many other people with such business ideas; therefore you have to be creative enough to get your own customers and niche.
When you know how to start a gift basket business, you will definitely succeed in it. Success in the gift basket business depends on your management style, your networking ability, your drive to be triumphant and your advertising methods. With proper research, you will be able to have a flourishing business. Take these tips on how to start a gift basket business seriously and you will surely build a successful business.
Two Unique Challenges of starting a gift basket business
There are certain challenges every entrepreneur and business owner is expected to face in business. These challenges include getting a good location, competition, finding good employees, etc. However, there are two challenges that are unique to the gift basket business and they are highlighted below.
- The gift basket business is seasonal. Gift baskets tend to sell more during festive periods such as Christmas, Valentine, Easter, Thanksgiving Day, etc. So you need to be thoroughly prepared for the ups and downs in the business.
- The next challenge you will likely face in the gift basket business is pricing problem. Gift baskets are usually priced with respect to the value of their content. However, if you price your baskets to high, you might face rejection from customers; and if you price it too low, customers may associate your products with low value. So you need to find an optimum price that will suit all. Another strategy you can employ to arrest the problem of pricing is to create different gift baskets for each target customer, according to their income potential or buying power.