How to Start a Gift Basket Business
Starting a gift basket business can be very fun and lucrative. It involves making custom baskets for every theme, occasion, and holiday.
The first step would be to do research to find out if there are any companies in your immediate area that offer the same services, how those companies are profiting, and how you can make you company unique. This information can be obtained easily and will give you ideas on basket themes, locations, and profit margins.
Deciding pricing for each basket is important since the goal is to make a a 40 percent profit. The overhead for starting a gift basket making business can vary, depending on whether the business is done out of your home or if it makes sense to rent a commercial space.
The legal aspect of starting your business would be to obtain the required licenses and permits, and find what other laws apply to your business.
The basic materials needed to keep on hand are: baskets of various shapes and sizes, cellophane for wrapping the baskets, and ribbon of different colors and widths. These can be purchased at a wholesale level if they are bought in bulk, saving money. Other items good to have on hand are: coffee mugs and glasses. Customers frequently like to have items for a basket with local sports teams colors and logos, which can be made by hand or purchased online. It is good to have plenty of inventory on hand, but this may drive up the start up cost of the gift basket making business.
Advertising is the key to having a profitable gift basket making business. This may be accomplished several ways. Obtaining business cards that can be readily passed out to friends, neighbors, and family will help spread the word. Flyers can be printed and passed out to local residents, at public events, and at businesses like supermarkets and laundrymats. Advertising in local pennysaver magazines and newsletters is always helpful in advertising a new business.
Once the customer calls to order the gift basket, the following questions need to be asked: What will be the theme of your gift basket? How much does the customer want to spend? When does the gift basket need to be delivered? How does the customer want pay? Additional questions, such as, Is the gift basket for a man, woman, or child? Is the gift basket for a male or female? Is the gift basket for a special occasion, such as a birthday, baby or wedding shower, or anniversary? Knowing exactly what the customer wants is the key to making the perfect gift basket and have return business.
Assembling a custom gift basket takes thought. Picking out the perfect basket, and coordinating all the items to go in the basket, takes some time. Easter grass or shredded paper or raffia should go into the bottom of the basket. It will make the items stand up better, cushion them against breakage, and give a better overall presentation. Arranging the items to go in the basket is important and after arranging them; it is good to step back and take another look or ask someone elses opinion.
Starting a gift basket business can be very rewarding. It can be both profitable and a chance to meet and serve the public. It is a great opportunity to be your own boss and have fun at the same time.