Starting a Gift Basket Business

How To Start A Gift Basket Business - Background Info:

Everyone seems to love gift baskets, which gives good reason why so many people have found success in starting a gift basket business. Many entrepreneurs have gotten their first

start in the business world by learning how to start a gift basket business. A gift basket business can be very profitable over time and can lead to a rewarding lifestyle.

A gift basket business is a business that sells gift baskets to individuals or events. Gift baskets can range from customizable gift baskets to wedding gift baskets to bath & body gift baskets.

Before you start a gift basket business you should first think about what your future goals are. You typically have two choices- start from home or start from a store.

Many people start a gift basket business from home because it takes far less money up front. You don't need to pay rent on a store front and you don't have to take the risk involved with an actual store for your gift basket business.

The more popular way to start a gift basket business is to start from home. Starting a gift basket business from home gives you the chance to either start full time or part time and to ease your way into the business.

Whichever ways you choose to start your gift basket business make sure you put research into it first. A gift basket business can be a great choice for a hopeful entrepreneur or a great avenue for a creative person looking for additional income.

How To Start A Gift Basket Business - Tasks And Skills Needed:

Business Specific Tasks:

If you are planning to do all the business tasks or hiring or subcontracting tasks, here's a list of tasks that need to be attended to when it comes to the business side of running a gift basket business:

Bookkeeping

Order-taking and filling

Accounting/billing

General office

Industry Specific Tasks:

Same as above if you plan to do everything yourself or get help, here are some of the tasks necessary to operate a gift basket business:

Shop for items needed for different types of gift baskets

Create gift baskets according to order

Deliver gift baskets to recipients

Ship gift baskets to recipients

How To Start A Gift Basket Business - Approximate Daily Hours Needed:

General Hours of Operation: - When your business is open - Making gift baskets can be done according to your own time schedule and delivery dates.

Hours Needed to Prepare - Before Opening and After Hours Activities - Shop for gift basket items, prepare baskets for delivery, return phone and email inquiries.

Number of Employees Needed To Run This Business:

Minimum Number of Employees -During the Start Up Phase: You can start this business yourself on a full-time basis.

Number of Employees - Once Your Business is Up and Running Successfully:

Website maintenance

Record/Bookkeeping

General office

Customer Service

Gift basket designers

Shoppers for supplies

Delivery personnel

Shipping personnel

Skill Requirements for This Business:

T here are different skills required in order for a gift basket business to be truly successful. Here are the basic skills anyone should have before starting a gift basket business:

Creativity: You can't start a gift basket business without creativity because a gift basket business is made up of mostly creative baskets. Anyone can buy products but only a creative person can arrange them in a truly beautiful way.

Knowledge of what is in: To start a gift basket business you will need to know what people like. If you make wedding gift baskets you should know the most popular things to put in them.

Licenses:

If you want a successful and growing gift basket business, you will need to meet all licensing requirements according to local and federal dictates.

Approximate Minimum Start up Cost:

Bare essential: - Many successful gift basket businesses were started with just a few hundred dollars.

Minimal exposure - There are several ways to advertise for free, and word-of-mouth is among the best ways to advertise a gift basket business, along with becoming a member of local small business networks.

Necessary Equipment to Run this Business:

Necessary Start-Up Equipment & Supplies:

Computer

Printer

Cell phone

Website

The equipment required to start a gift basket business is very minimal, which means that it is one of the least investment driven businesses out there. The investment to start a gift basket business is very low and the only equipment you need is listed below: Gift baskets: You will need access to gift baskets to start your packages from. Many stores sell the baskets cheap so look for a place where you can stock up.

Products: Depending on which type of gift basket business you are starting you will need to have some products to fill the baskets with.

Wrappings: A gift basket is made full by the creative wrapping design used on its exterior. Find a source that sells cheap wrapping material.

Supplementary Equipment: - Equipment or helpful products that you can acquire to once your business is off and running:

Postal scale

Shipping materials

GPS (for deliveries)

Monthly Expenses To Consider:

Wages
Phone/cell phone
Internet access
Permits
Advertising/Marketing
Electricity
Water
Gift basket supplies

Special Requirements and Considerations For This Business:

Find out all you can about the trends in the industry. Know your competition, in particular, their strengths and weaknesses. This will help you identify your competitive advantage. In other words, this will help you figure out what you can give your customers that they're not getting from the other businesses. And keep from emulating the competition's strategy. Instead, make the most of your own advantage points.
Your inventory level should grow as your sales grow. However, it is prudent to start small, keeping inventory at a realistic level.
You can buy your items for gift baskets either through wholesale or retail means. It is advisable that you buy at wholesale price the items and supplies that you use in large quantities, such as baskets, 'filler' items such as tissue paper, and items common to several baskets.
Retail purchases will typically consist of the merchandise you accumulate when you go shopping for customized basket materials. As much as possible, buy your items for your gift baskets in bulk. Many retailers give quantity discounts for purchases over a specific amount.
Shopping is a major activity for a gift basket business, and may take you anywhere from one to four hours a day on average. You may find your craft suppliers and 'hard to find' gifts by attending local and regional gift shows, various trade publications, and telephone directory listings under "wholesalers." Adding your name to supplier mailing lists is also a good way to learn of new products and those that are on sale.

Pros And Cons of Opening A Gift Basket Business:

The Pros of Running a Gift Basket Business:

There's a respectable profit potential.

The market for gift baskets is still wide open and the sales opportunities are virtually limitless.

You get to buy lots of cute, clever gift items; you get to pull those items together in an attractive container and create a charming presentation.

You get to provide a product that delivers infinite pleasure to the recipient.

The Cons of Running a Gift Basket Business:

A gift basket business can be hard to make a consistent income from.

Gift baskets need specific niches to be successful online.

Type of Customers You Need to Attract:

Businesses are your best customers because gift baskets can be made for corporate events and gift-giving.

Creating gift baskets is one of the fastest growing types of businesses today that you can start from home. According to the study Gift Basket Statistics 2001 published by Sweet Survival (http://giftbasketbusiness.com), gift basket sales is expected to top $3 billion in 2002.

Gift baskets have enjoyed explosive growth in popularity over the past several years as the number of home-based businesses and independent shops catering to the corporate market has increased. Businesses and individuals looking for that "perfect gift" now choose to give gift baskets. Gift baskets can be customized to suit the giver, the recipient, the occasion and the desired price.

Hence, it has become a gift of choice for birthdays, weddings, special events, anniversaries, housewarmings, and romantic occasions. It has become a way of expressing thank you, sympathies, and congratulatory message for a new baby, and other celebratory milestones in life. Businesses, recognizing gift baskets' versatility, now forms a large part of the gift basket business and are sending them to their employees, sales force and business clients.

Gift Basket Business Statistics:

Gift baskets have enjoyed explosive growth in popularity over the past several years as the number of home-based businesses and independent shops catering to the corporate market has increased.

Revenue:

Opportunities for home-based and small businesses abound in the gift basket business. Your income potential depends on how hard you work, particularly in conceptualizing your products and marketing your business.

Industry insiders estimate potential revenues to range from $10,000 or more annually working part time from home, or $1 million and up operating a retail store or mail order business full time. According to a survey conducted for the Gift Basket Review magazine, 72 percent of the respondents reported annual gross sales of at least $50,000, with about 27 percent indicating that their sales reached $200,000 or more. The survey also found that profits averaged at 22 percent of sales.

Creating gift baskets is one of the fastest growing types of businesses today that you can start from home. According to the study Gift Basket Statistics 2001 published by Sweet Survival (http://giftbasketbusiness.com), gift basket sales is expected to top $5 billion in 2010.

Gift Basket Business Resources:

Industry-Specific Websites:

Gift Basket Business

Apex Gift Basket Pros

Courses:

The Gift Basket Business Home Study Course

Equipment and Supplies:

The Gift Basket Exchange

JDW Gift Basket Supplies

Artistic Gift Baskets

Gift Basket Supplies

Gift Basket Supply

Forums:

Gift Basket Business

The Gift Basket Connectory

Franchises:

eGiftBaskets

Associations:

Gift Basket Resources

Books:

The Gift Basket Design Book

How to Start a Gift Basket Business

Other:

Starting a Gift Basket Business

Businesses To Related to a Gift Basket Business:

Party-planning
Professional shopper