Do you want to start a gift basket business with less money? If YES, read this post to get a detailed gift basket business plan startup guide for beginners.
If you are a creative person and enjoy assembling things in an attractive way, then this business is perfect for you. However, if you want to turn your hobby into a profitable business, then you must consider some crucial aspects.
Undoubtedly, it is a highly profitable business. And when you operate from home, the business eliminates the cost related to having an establishment. In addition to that, if you are already in a 9 to 5 job, then also you can consider starting this business. Therefore, making and selling gift baskets is a lucrative income opportunity for women, moms, housewives, and students also.
Is a Gift Basket Business Profitable?
The most fascinating part of the gift business is that each and every person on this planet may become your client. After selling the first time, you can definitely expect repeat business from the same customer.
The business demands a very small capital investment. As you start the business from home with a low overhead cost, surely you will make a great profit.
You can work in the comfort of your home with your other family responsibilities too.
Finally, if you really enjoy crafting beautiful gifts for others, then the business will definitely give you immense satisfaction, fun, and enjoyment.
The gift basket business is one of the most potential opportunities in the gifting industry. Additionally, the business comes with a huge fun potential. Both the domestic and corporates are the potential buyers of this item. And both givers and receivers of gift baskets appreciate the creativity and uniqueness of the concept. And the market is highly wide for exploring online selling.
Generally, gift basket buyers tend to be in the moderate- to upper-income levels. So your market research needs to include finding out where people in this particular demographic shop.
As a matter of fact, the gift basket business is mostly holiday-based or occasion-based. And the sale grows maximum in festive days. One of the fastest-growing segments of the gift basket industry is corporate holiday orders. After Christmas, Valentine’s Day, Easter, Mother’s Day, Thanksgiving, and Secretaries’ Day are the most profitable holidays.
Gift Basket Business Plan Checklist for Beginners
Here are the 10 simple steps to start a profitable gift basket business from home with a shoestring budget:
1. Identify Target Niche
Though every person can be your client, you can’t sell your products to everyone. Actually, you can’t be an expert on every item. So, it is important that you identify your target audience. Broadly, there are two segments. These are individual buyers and corporate clients.
If you want to cater to all the occasions you might need a massive selection of gift baskets to start a gift basket business and be able to offer something for each occasion. So, if you want to start the business with less investment, then you must consider addressing a target niche.
Generally, gift baskets are specialized gifts. So, you must organize the basket according to your client’s specifications. Some of the most popular types of baskets are
- Baby shower gift baskets
- Christmas and other holiday gift baskets
- Gift baskets with healthy organic food
- Bath and beauty gift baskets
- Get-well gift baskets
- Birthday gift basket
- Valentine day gift basket
- Appreciation gift baskets
- Apology gift baskets
- Congratulations gift baskets
- Easter gift baskets
- Honeymoon gift baskets
- Retirement gift baskets
- Sympathy gift baskets
- Thanksgiving gift baskets
- Gift baskets for sports fans
- New homeowner gift baskets
- Wedding gift baskets
2. Create a Business Plan for Your Gift Basket Business
Regardless of the size of your business, you must craft a gift basket business plan. And here, you need to include the target demographics you want to cater to, your marketing policy, and financial analysis. A business plan not only helps in getting an investor’s confidence but also provides you with a roadmap.
Find below some of the aspects that must be addressed in your home-based gift basket business plan:
- Startup & recurring costs
- Your target customers
- Pricing Plan
- How and where to sell?
If you are planning on a larger scale with an exclusive storefront, a detailed business plan is essential. Here you must include topics like business description, market analysis, organization structure, product details, marketing plan, funding proposal if you are looking for funds from investors, and financial projections for at least three years.
3. Cost of Starting a Gift Basket Business
The cost of opening a gift basket venture will largely depend on the format of the business you have chosen. If it is home-based you can launch it within a few hundred dollars.
However, the startup cost will rise as high as $1,00,000 if you plan to open a storefront. Here the rent cost will be the most important factor in deciding the amount of investment.
Another low-cost option to start a gift basket business is to launch an e-commerce store and sell online. It will need to invest much less compared to opening a retail store.
4. Procure Licenses and Permits & Register Your Business
Even, you start the business from home, you need a proper business license. So, it is better to check the regulations of your state and city. Sometimes, it needs separate permission from the local concerned authority. Additionally, as you will deal with food items, check with the Food & Drug Administration, FDA, for any regulations.
You must register your business if you want to run your business hassle-free. Every country offers different legal structures for company formation.
For example, in the United States, proprietorship and LLP are the two most popular business structures for startups.
5. Name Your Business
Find a catchy and attractive name for your gift basket business so that customers can easily remember your company when they are in need of gift basket items.
6. Procure the Supplies
Finally, you will need to procure the supplies for making gift baskets. And definitely, you must buy the supplies properly at the right price. Otherwise, you won’t be able to offer competitive pricing to your clients. Basically, you must find out wholesale suppliers.
However, you will get better pricing if you buy in bulk. Some of the most basic items are baskets in different sizes, different containers, greetings card, cellophane, ribbons, and bows to add the finishing touches.
7. Fix Pricing
Before opening your door to your clients, you will need to fix the price of your products. The price must include the cost of products and profit margins. On the other hand, your price must be competitive enough.
8. Setup Online Store
When you start the business from home or from a storefront, you will need to explore the online avenues to get the orders smoothly. And a small online store is the best option for selling your products through the internet. There are several online store builders, you can find online. However, you will need to evaluate first your specific requirements.
9. Business Tools
Finally, you will need to procure appropriate business tools. When a customer buys products you will need to generate an invoice and money receipt. Additionally, it is better to maintain the stock from the very first day. So, you can consider using free accounting software that provides everything you need.
Also, you will need to prepare business cards, brochures, and flyers. Specifically, when you meet corporate clients you must present yourself with business cards and brochures.
10. Promote your Business
Ultimately, no business can grow without proper promotion. So, you must promote your business in a proper way. According to industry insiders, the best way of promoting your business is private networking and word-of-mouth advertising.
In addition to that, you must explore the online avenues for promoting your business. Ensure listing your business on Google My Business. Additionally, use social media including WhatsApp, Facebook, Pinterest properly.
Finally, if you are planning to start the business from home, you must have a specific workspace for it. You must have specific tables and storage racks. Additionally, you must have dedicated space for keeping your tools and other basket making supplies.
Always try to be updated with hot color trends, popular gift items, and new packaging methods to help you stay one step ahead of the competition. Enjoy the gift basket business and earn a lot of money from home.