Are you looking for a creative business idea that is pleasing and profitable too? Did you ever think of starting a gift basket business? It is really an innovative idea for you. In fact, it makes you satisfied and nurtures your creative mind and sense of designing. It would be a real opportunity to show off your talents by presenting gifts in unique form and grab a decent buck simply being at home. Running a gift basket business is a common endeavor but still acquiring a great popularity in the world of small home based businesses.
From the view point of necessity, gift basket business is really worth mentioning as it is chiefly related with the ceremonial offerings to the near and dear ones. We all love to have gifts and if it comes in crafty and unique form, then it would be a perfect match. For corporate sectors, it also has been a trend to send gift baskets to their associates. So, everything is in favor of exponential growth in popularity of the gift basket business.
Gift basket business already gets huge recognition in a short time span as a great number of home-based entrepreneurs and local stores are engaged in offering the customized gift baskets to individuals and businesses. A variety of gift baskets are available for different occasions like birthdays, anniversaries, weddings, baby showers, anniversaries and other celebrations. Individuals can offer these gifts to the friends, relatives and well-wishers to the best of their abilities. Gift basket business gets hold of its present status thanks to the businesses that are used to present corporate gifts to their clientele and employees.
Before concentrating on gift basket business particulars, take a quick look at the 10 reasons behind the ever-increasing demand of gift baskets as well as the popularity of the explosive growth. Sure, these reasons would be enough to encourage you starting the business.
- Anyone can be your client as gift baskets are low-cost items with much respect.
- Gift basket business is recurring in nature and soon become flourished with lots of recommendations.
- The business start-up cost is low- only a few hundred dollars are enough to set up the business. Operating cost is also minimal.
- It does not require any specialized knowledge or you need not to join any training courses. Creativity and uniqueness are the prime requirements along with some basic entrepreneurial skills. like marketing, sales, financial assistance etc.
- Since you are starting and operating this business from home, it charges no extra burdens hence making extra profits. It also provides you complete freedom to work at your own pace.
- The target market has become wider than before. Both individual and corporate clients make this business profitable.
- It has no enduring franchise fees, so every profit is yours.
- It is real fun to make gift baskets. Start enjoying the other part of the business.
- You will get appreciation for the gift baskets you design and it helps to grow your enthusiasm and involvement in this business.
- Finally, The Gift Basket Connectory is here to assist you in building up a successful business.
Have you made up your mind? It is always better to start your own gift basket business as soon as you can manage all the business activities; from planning to designing and making of gift baskets, marketing to sales everything. Here is the step-by-step guidance on how to start a gift basket business from scratch.
Step1: Decide the business place first
Where do you want to set up your gift basket business? If you have very tight budget, your home would be the best place since this way you can avoid huge rental fee of the commercial business place and can bring the overhead expenses within your control. In addition, working from home allows you to enjoy flexibility in work schedule.
Step2: Brush up your finest skills
If you enjoy designing and creating gift baskets your friends and relatives, then you already have firsthand experience. Great!! You can start this business whenever you think. Just brush up your creative skills and design ability before getting on it. People who are artistic but don’t know how to design attractive gift baskets can also start this business. They may attend various training workshops, seminars arranged by the successful entrepreneurs of this industry. Online tutorials are also available to find out the details of this business.
Step 3: Prepare a simple business plan
Planning is very essential for building a successful business. If you are starting it as a home business, then write down a simple one-page business plan to guide you throughout the journey.
Step4: Register your business and get the licenses
Now give your gift basket business a suitable name and then register it at your local authority. If you are planning to give it a big start, go to your local city office of business administration and apply for the business permission and special licenses, if any.
Step5: Go for a particular theme
Selecting a particular theme is very essential to take your gift basket business to the next level. There are different types of themes including Christmas, weddings, birthdays, anniversaries and lot more. You may design gift baskets for all occasions or concentrate on a specific occasion e.g. weddings or anniversaries. Before deciding anything, you should consider your target market.
Step6: Research Your Target Market
The market for gift basket business is wide enough that one and all could be in your client’s list. Once, the market was restricted to women, they were the both the clients and recipients. Now there are a great number of corporate clients occupy the market along with the individual customers. Both have different tastes and occasions but it would be a rewarding experience to serve both.
Step7: Arrange the start-up fund
If you are planning to set up a small scale gift basket business at home, then the starting and operating costs are comparatively low as you don’t have to spend money on rent a business place and business license and insurance etc. It is possible to arrange the money of your own. It is advisable to calculate the start-up cost depending on the size of your gift basket business.
Step8: Get all the supplies
Now you have selected your gift basket theme and organize the start-up funds accordingly. Now you have to focus on the supply lists. Which packaging option do you prefer- a basket or a box? You can select anyone but make sure that the final product is unique and eye-catching and meets your client’s expectation. Here is the list of items you need to purchase for creating gift baskets.
- Gift baskets or boxes
- Shrink wraps
- Wrapping papers/cellophane
- Local art and crafts
- Decorative items
- Jewelry pieces
- Packing materials
- Gift cards
- Fabric pieces, linen
- Thin wire
- Wire cutter
- Gift cards
- Paper shredder
- Carton Stapler
- Hole puncher
- Glue and glue gun
- Adhesive tapes, etc.
You should invest a good amount of time on shopping the items and supplies of the basket. The supply list should be prepared depending on the theme of your basket. If you are going to make gourmet/ food basket, then you have to collect a variety of chocolates, candies and cookies, gourmet food, snacks, crackers, cheese, tea, coffee, wine, jam etc. For bath and body baskets, you need to stock aromatic products like soaps, oils, body lotions, candles and bath sponges, bath salts candles etc.
Step9: Find wholesale suppliers
You will need to find wholesale suppliers to purchase some items in bulk. It saves your money and increases your profit level also. Try to stock those items which are common to maximum baskets and also required in large numbers such as baskets, boxes, wrapping papers, and filler items etc. If your plan is to make customized gift baskets, then you have to carry out some retail purchases like jewelry, special craft items etc.
Step10: Prepare sample gift baskets for presentation
You need to create a handful of sample gift baskets to show your potential customers. It will increase the chance of getting orders from them. You can use their pictures in your business website or fliers.
Step11: Fix up the price
Pricing is an important issue that is tedious and challenging too and you need to take care of it. Otherwise your effort, time and money all will be in vain. How much should you charge for a gift basket depends on the quality of the filler items and the uniqueness of the basket. If your charge is too high, you have a risk to lose the prospective customers. At the beginning, you should keep the profit margin at low level and this will attract more customers and make a solid clientele. For proper pricing, you need to calculate the cost of the basket and other goods kept in it, your labor and profit. It is also important to add a fraction of your start-up capital and other overhead costs involved in this business.
Step12: Marketing your business
Marketing is the most essential task you should continue to sell your gift baskets. Sure, customer service is the best ever marketing tool in this business. You need to take advantage of it by attending customers personally and providing them your best services. Satisfied customers will return back to you with further needs.
Here is a list of such other marketing ideas and techniques you may adopt for your gift basket making business.
- Research your competitors thoroughly-which market they are serving to, their themes and pricing etc. Then offer your customers an additional service and that will be your specialty service can’t be find with any other related fields.
- Get some professionally designed brochures and business cards to market your business.
- When you are in a get together and talking about your business, one or two people would definitely show their interest. They may be your future customers, so don’t forget to give them your brochure and a few business cards and later present them a complimentary basket each.
- You may offer a discount or small gift items to the customer referrals. It would sure establish a firm relationship with your customers as well as help in future referrals.
- Make sure every gift basket recipient should your company name and how to reach you i.e. your address and phone number. It is advisable to attach with every basket a small card including useful information about your business.
- Direct-mailing is the other marketing technique. Every gift basket business owners should send mails once a month to inform their client base about the upcoming gifts ideas and discounts.
- Finally, online marketing is the today’s most effective strategy. You need to develop your business website featuring your previously made gift baskets. It should include testimonials from the satisfied customers.