business plan for gift basket business

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Gift Basket Business Plan

MAR.01, 2021

Do you want to start gift basket business?

It is always difficult to find a gift that matches the recipient’s mood, occasion, and of course the price range. If you are looking for a business where you can earn profits while also interacting with different people round the clock, this may be the right choice for you.

A gift basket business provides customizable and standard gift baskets for people of all ages and professions. The business is profitable as people usually exchange gifts with each other on special occasions and meetups.

The first step before starting this business is exploring how to open a gift basket business and making a business plan for gift baskets. For your help, we’re providing a sample of a business plan written for gift business startup , Gifters’ Stop.

Executive Summary

2.1 the business.

Gifters’ Stop will be a registered gift basket business based in New York. The business will aim at offering gift baskets, general gift items, and decoration pieces to its customers.

2.2 Management of Gift Basket Company

Gifters’ Shop will be providing its services both in-store and online. Therefore, to manage it, the business owner will be hiring a large team including co-managers, delivery personnel, store operators, website manager, and customer’s guide.

Though the business doesn’t contain large-scale operations, still there is a need for a proper management plan to run it. This is because the sales in this business hugely depend on how well you treat your customers. And how quickly you convince them to buy a certain thing.

In this gift basket startup plan, we will be listing everything you need to know about how to set up a gift basket business. This blog will also be sufficient in case you’re looking for how to start a gift basket business online.

2.3 Customers of Gift Basket Company

The customers of gift basket company belong to various areas of life. To study their demands and needs we’ve divided them among the following groups:

• Family Members
• Working Class
• Corporate Owners
• College and High School Students

2.4 Business Target

Our target is to achieve a customer satisfaction score above 90% within a year of our launch. Moreover, our financial targets for the first three years of our launch are demonstrated here.

Company Summary

3.1 company owner.

Angelica Diaz will be the owner of Gifters’ Stop. Angelica is a master’s in Management Sciences. She worked for one year after completing her degree and decided to leave her job to manage her family and children.

3.2 Why the gift basket company is being started

Angelica wanted to run a business along which she could manage her family life and children easily. She was first thinking about starting a gift basket business from home. But due to the explicit advantages, one gets through physical presence, she decided to offer her services in both ways.

3.3 How the gift basket company will be started

Step1: Plan your Business

The first step to start a business is detailed and accurate planning of all of its aspects. To have an idea of what details to include in your business plan for investors you can take here from this gift basket business plan example. In this gift basket business plan sample we’re listing all the details of Gifters’ Stop.

Step2: Define your Brand

The next step is to search for gift basket company name ideas that can help you catch peoples’ attention. Get registered and define your offerings and competitive aspects so that people can recognize you in the market.

Step3: Start the Recruitment

Employees for a gift business must be hired after careful interviewing. It is because the interaction of customers and employees largely depends on the behaviors and communication skills of your workers. Therefore, after establishing your presence, you should start hiring the required employees.

Step4: Promote & Market

To reach out to your target customers, start advertising and promoting your startup way before you actually launch your business.

Step5: Establish a Web & Social Media Presence

Lastly, to manage online sales and to grab the attention of more and more people, you’ll need to establish and maintain a strong website and social media presence.

Before you start your own gift basket service you should decide your offerings. You should clearly state your services and products in your gift basket service business plan so that you can make all other arrangements accordingly.

Premade Gift Baskets

Our primary offerings will be premade gift baskets of all sizes for people of different ages and lifestyles. Our gift baskets that will contain things like chocolates, perfumes, skincare products, automated gadgets, jewelry, and many more things, will be categorized as follows:

• Best for Her
• Best for Him
• Best for Foodies
• Best for Sweet Lovers
• Delight for Mom
• Treat for Dad
• Movie Night Themed
• Success Themed

Customizable Gift Baskets

In this service, our customers will be able to include/ exclude anything in the gift basket.

Gift Cards/ Customized Apparels & Other Items

We will also offer creative gift items including

• Printed Mugs
• T-Shirts with Customizable Graphic Designing
• Fun Printed T-Shirts
• Chocolate Boxes
• Toys for Kids
• Skincare Products

Decoration Pieces

Lastly, we’ll offer a wide range of decoration pieces and home décor accessories such as

• Elegant Candles
• Garden Vases
• Picture Frames
• Wall Artwork
• Fun Stickers & Wallpapers
• String Lights
• Small to Medium-Sized Decoration Pieces

Marketing Analysis of Gift Basket Company

Excellent work.

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

Before opening a gift basket business you should carry out a detailed marketing analysis. Your marketing gift baskets analysis should study all the facts about your stakeholders. For example, knowing who your customers are, and how much they would be willing to pay for a medium-sized gift basket, will enable you to set your product quality and prices. Similarly, having an idea of how many customers will you be able to get on a monthly and yearly basis, can enable you to gather sufficient resources and personnel.

In this blog on how to write a gift basket business plan, we’re providing the business plan developed for Gifters’ Stop. From market segmentation to product pricing, we’re listing all the marketing analysis details that might help you.

5.1 Market Trends

Gift basket businesses are in high demand in the United States. As gifts are considered a lovable and respectful gesture, people of all backgrounds and incomes purchase them many times a year. According to IBISWorld, more than 57k gift shops and businesses are successfully running in the United States. The industry that also includes gift card stores holds an annual market size of $17 billion. And is also responsible for employing nearly 163k employees.

5.2 Marketing Segmentation

Before starting your gift basket business, it is necessary to explore the groups of target customers. In the case of a physical store, people living in your vicinity will be your frequent buyers. However, in the case of starting gift basket business home your customer base would be larger. You can serve more customers in case of serving online but you’ll be required to hire more delivery persons to ensure fast shipping.

5.2.1 Family Members

Our biggest customers will be the families living in New York. Family members usually exchange gifts with each other on special occasions like birthdays, anniversaries, mothers’ or fathers’ day. Besides, this group is also expected to purchase our décor equipment.

5.2.2 Working Class

Our second target group will comprise the working class. People who are financially stable and secure usually prefer to give expensive gifts. Moreover, they frequently purchase printed mugs, watches, and gift cards for their colleagues, seniors, and supervisors.

5.2.3 Corporate Owners/ CEOs

Our third category includes business CEOs and owners who strive to create a healthy organizational culture. This group usually purchases gift packs in bulk to appreciate the performance of employees or to celebrate special events and occasions.

5.2.4 College & High School Students

Our last group of target customers will comprise students who exchange gifts with their fellows, teachers, and families. However, this group is expected to make small and occasional purchases.

5.3 Business Target

The business targets of Gifters’ Stop are listed below:

• To earn a net profit margin of $25k per month by the end of the third year.
• To achieve and maintain a CSAT score above 90% within a year of our launch.
• To increase our sales by 30% by the end of four years of our launch by expanding our product line.

5.4 Product Pricing

Our prices almost within the same range as our competitors. However, the prices for our customizable themed baskets are a little higher than our business rivals.

Marketing Strategy

In your gift basket business plan template you must also include the ways that can help you in attracting and retaining your target customers. To develop an influencing gift basket marketing plan it is essential to explore what interests your customers and which medium of advertisement is more likely to be noticed by your target customers.

6.1 Competitive Analysis

Gifters’ Stop will be having the following competitive advantages over others:

• We have the largest collection of gifts in the entire city. All of our products are high-quality and are made to ensure longevity.
• Only we among all of our competitors are offering customized T-Shirts. Through us, the customers will be able to get anything written and drawn on the gift T-shirt.
• Our staff is highly respectful and collaborative. They will guide the customers unless they are fully satisfied.

6.2 Sales Strategy

To attract our target customers, we will:

• We’ll carry out a strong social media campaign. And advertise our fun customizable apparel.
• We’ll advertise our services through local magazines, social media, and Google Local Ads services.
• We’ll offer a 40% discount on all of our services for the first two months of our launch.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

While you write gift basket business plan you should also include a list of required employees along with their qualifications, selection criteria, and average salaries. This will eventually help you in hiring the most suitable employees that meet your requirements as well as budget.

7.1 Company Staff

Angelica will hire the following people for her running her business:

• 1 Co-Manager to help manage the business
• 2 Sales Managers to manage online and in-store sales
• 3 Salesmen to attend customers and maintain store’s display
• 1 Website & App Developer to maintain online presence
• 1 Accountant to maintain financial records
• 1 Sales Executive to promote the company
• 1 Customer Care Officer to resolver customers’ concerns/ complaints
• 3 Drivers to deliver orders
• 2 General Assistants
• 1 Receptionist/ Call Operator

7.2 Average Salary of Employees

Financial plan.

To achieve your financial goals, just increasing sales isn’t enough. In fact, your business can run into loss even with increased sales, if you fail at managing your resources and investments. Understanding the importance of financial planning, Angelica decided to consult a financial expert before developing a strategy. While carefully analyzing taxation, expenses, and income from sales, she developed a financial plan.

The cash flow tables, profit and loss projections, gross margins charts, and balance sheets developed by her are given here. If you need any help to create a gift basket business plan for your business, you can have it from here free of cost.

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 gross margin yearly.

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Gift Basket Business Plan Sample in pdf

Professional writers OGS capital specialized also on theme such as: wedding photography business plan , art gallery business plan , T-shirt printing business plan , picture perfect photography company business plan and etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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How to Start a Gift Basket Business: A Step-by-Step Guide

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Many first-time business owners get started because they’ve found something they love to do and they want to make money for themselves. Selling gift baskets is a highly rewarding, fun business. But first, you have to learn how to start a business.

In this guide, we’ll walk you through the process of how to start a gift basket business step by step, so you can set your new business up for success.

Step 1: Write a business plan

The first step when you’re planning how to start a gift basket business is to write a business plan. A business plan is a roadmap for how you will start and grow your business. Not only does this plan help you organize your own thoughts and ideas and create a cohesive strategy, but it’s also helpful if you plan on seeking funding or a business partner down the road.

A business plan consists of several parts, but here are some of the most important to consider when planning your gift basket business.

Market analysis: The market analysis is a crucial part of your business plan because it helps you ensure there is a need for your business. During this step, you’ll research the current market to determine how many similar businesses are out there, what they provide, and what will set your business apart. You’ll also get a feel for your target audience, which will inform everything from your product design to marketing strategy.

Product line : For most business owners, this is the fun part. In this section of your business plan, you get to detail what types of gift baskets you’ll sell, what will be included in those gift baskets, and how you’re sourcing your goods. Don’t forget to include pricing information, the cost of each basket, how much you’ll sell it for, and your profit margin.

Marketing plan: How will you spread the word about your new business? This section is all about how you’ll find your customers and how you’ll market your business so they can find you. While you don’t need to create a full-blown marketing plan at the start, but you can continue building this section out as your business grows.

Funding needs: If you’re writing a business plan for funding or to attract investors, you’ll need to include a section about your funding needs. This section should detail how much money you need, what that money will be used for, and your plan for return on investment.

Step 2: Pick your legal entity

Before you get started selling baskets to customers, you’ll want to choose your business entity. Your business entity is the legal structure of your business and will designate how your business is taxed, structured, and more. Some common business entity types include:

Sole proprietorship: The most common type of business structure in the U.S. is a sole proprietorship, likely because it’s so simple to set up. You typically don’t even need to register it with your state. However, the downside of this setup is you have no personal liability protections.

LLC: An LLC or limited liability company places a barrier between the owner’s personal finances and the business’s, so while you will have to register this entity and pay a nominal filing fee, your personal assets won’t be on the line if your business runs into trouble. The LLC owner can also choose how the business is taxed.

Partnership: A partnership is very much like a sole proprietorship, the one difference is that a partnership is run by two or more owners. There are two types of partnership: general partnership and limited partnership.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Step 3: Choose your niche or target market

It’s important to narrow your gift basket vision to your target or niche market. Counterintuitively, focusing on too broad of a niche can actually lower sales.

While there are a number of different gift basket niches, the two main overarching categories are personal and business baskets. Once you’ve chosen which one you want to target, you can continue to refine your niche.

The options for gift baskets are limitless, so consider what the market opportunities are and what your target audience is interested in. Maybe you’ll choose assorted items from local artisans, a food theme, self-care, or bridesmaid and wedding-related baskets. Spend some time researching the possibilities—as well as suppliers and costs—before making your final decision.

Step 4: Pick your type of basket

Once you’ve identified your target customer and have refined your niche, it’s time to think about what type of gift basket you intend to offer to your customers. You might offer only one type or you may choose to do a combination of these options.

Pre-made: Pre-made gift baskets make a great base for your business. By always carrying a number of pre-made gift baskets in stock with non-perishable items, you lower the assembly cost and have baskets on hand for quick delivery. If you plan to offer pre-made baskets, be sure to have a variety of sizes and price ranges to fit any need.

Custom: For customers interested in a custom gift basket, they can shop from a list of items you already have on hand. You may also want to offer the option to personalize the baskets.

Seasonal: Some people choose to only feature seasonal baskets. While you’ll have a clearly defined niche, make sure to account for your business’s seasonality in your business plan and budget.

Step 5: Choose your sales channel

When you’re learning how to start a gift basket business, one of the main things you want to think about is how you plan to sell your product.

Many businesses now operate entirely online. One of the big benefits of operating an ecommerce business is that you can save a lot of money by not opening a retail shop. An online business allows you to work from home while allowing your customers to shop from the comfort of their homes.

However, you may also choose that a physical storefront is best for your business. Opening a brick-and-mortar business requires a significant amount of initial investment and upfront capital. You need to pay rent on the retail space and outfit to fit your needs and attract customers. That being said, the initial investment can pay off with higher sales volume and higher individual prices.

Step 6: Set your prices

Deciding how to price your products can be intimidating. After all, you want to appeal to your customers while also making a profit. Consider the following costs that go into each basket:

Cost of the basket and packaging

Cost of products in the gift basket

Time spent putting together the gift basket

Cost of shipping

You’ll also want to determine your desired profit and look at your competition. Obviously, if a similar business is offering baskets for a much cheaper price, shoppers will likely choose them unless you have another advantage—like higher-quality goods—to win them over.

Step 7: Assess startup costs

There are a number of different ways to fund a business, from personal savings or loans from friends and family to more traditional business loans or credit cards. As you start your gift basket business, keep in mind there are a number of potential costs you might run into.

Retail space

If you choose not to operate your gift basket business out of your home, then you’ll need retail space for selling your products. Investment in retail space will likely be one of the biggest expenses for your gift basket business. In addition to rent for the space, you’ll need to purchase display items and decorations for the inside of the space and to entice customers.

Special equipment

There are a number of specialty items that can be used to make gift baskets easier. You might want a work table, crafting tools, heat gun and shrink wrap, and anything else you need to put together your products.

Retail supplies

For businesses that have a customer-facing retail space, you’ll need a lot of accoutrement to go with it. For example, you’ll need a cash register or payment processor, gift wrap materials, and shopping bags.

Packing and shipping supplies

Whether you’ll be operating your business out of a retail space or your home, you’ll likely be selling gift baskets online. This means that you’ll need to ship your products to your customers. You’ll need packing and shipping supplies, including a dolly or hand truck, electronic scale, packing tape, paper shredder, mailing labels, boxes, cushioned mailers, packing materials, and a vehicle that can transport large packages.

Sourcing products for your gift baskets is another significant investment, especially if you have a physical store with items on display. If you run your business online, you may be able to purchase inventory as sales are made to keep your upfront costs down.

Step 8: Organize your finances

As you’re thinking about how much money you’ll need to start your business, you’ll also want to start thinking about how you’ll organize your finances.

No matter what type of business entity you’ve chosen, the simplest way to track your finances is to ensure that you’ve completely separated your business and personal finances. To do that, you’ll need a business bank account, business credit card, and an EIN.

EIN: Before you sign up for your business bank account and credit card, you’ll want to apply for your EIN or employer identification number. An EIN is like a social security number for your business. This helps the IRS and other businesses to identify your business with a unique number. An EIN also means you don’t have to list your personal social security number on business documents.

Business bank account: If you want to separate your business finances from your personal finances (and you do), you’ll need a separate bank account. There are a number of business checking accounts to choose from.

Business credit card: While your business bank account might give you a debit card for accessing the money in your account, it isn’t as useful as a business credit card . A business credit card lets you purchase the things you need now and pay it off later. It can also help you to build your business credit score.

While separating your business and personal finances is important, it works even better when paired with accounting software. Business accounting software helps you to track all of your business income and expenses. Different software has different features, so be sure to evaluate the needs of your business before making your decision.

Step 9: Consider funding options

Depending on how you plan to start your gift basket business, you might need some funding to help you along the way. There are a number of options to choose from when it comes to business loans.

These range from term loans and business lines of credit to personal loans or credit cards. As a new business, know that you likely won’t be able to qualify for more traditional funding options. However, once you have a year in business, a solid credit score, and solid revenues, you’ll have plenty of options to work with.

Step 10: Build a network

When you first are learning how to start a gift basket business, you might build your gift baskets from products that you find from stores in your area. As you increase your sales and add more items to your gift baskets, you’ll want to start building a network of suppliers. This will also help you to build unique baskets that aren’t something that customers could make themselves.

Step 11: Market your business

Lastly, it’s time to market your business. Marketing your small business is all about getting your products in front of people. The more people who see your products, the more likely you are to make sales.

There are a number of ways to market your small business, but these are a few suggestions to get started.

Build a website

Promote your business on social media

Try local marketing

Pay for online ads

Network with influencers

Create a loyalty program

Start Your Dream Business

The bottom line

First-time business owners often get intimidated by all the steps required when learning how to start a gift basket business, or any business for that matter. The best advice: Break it down into smaller, more manageable steps. Starting your gift basket business is within reach when you take it step by step.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

Retail | How To

How to Start a Gift Basket Business in 7 Steps

Published March 3, 2023

Published Mar 3, 2023

REVIEWED BY: Meaghan Brophy

WRITTEN BY: Katie-Jay Simmons

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This article is part of a larger series on Starting a Business .

Starting A Business?

Step 1: Find a Gift Basket Niche

• Step 2: Create a Business Plan
• Step 3: Choose a Sales Channel

Step 4: Organize Your Business Finances

• Step 5: Source Products
• Step 6: Design & Price
• Step 7: Advertise

Bottom Line

Starting a gift basket business involves finding a niche, choosing a sales channel, registering your business, designing your baskets, and developing a solid marketing plan. To start a gift basket business from home or a storefront you need a carefully crafted business plan, a flair for creativity, and as little as a few thousand dollars.

Here’s how to start a gift basket business in seven steps:

Finding a niche helps differentiate your business from the competition. A niche targets a specific audience or fills a specific need. The narrower your market, the easier it will be for your gift baskets to become the go-to solution for that audience.

For example, Edible Arrangements has a strong hold on the general fruit gift basket market. But a fondue gift basket business would target a more specific audience, distinguishing your brand from competitors.

Our guide to finding a profitable niche market outlines three steps for finding your niche:

• List your interests: Choosing something you’re interested in or passionate about as the basis for your gift baskets will help keep you engaged, and it can equip your new business with preexisting knowledge and connections.
• Determine the audience potential: If you’re opening a storefront, ensure your gift basket has a lot of local interest. For online businesses, use tools like Google AdWords or Google Trends to see how many people are searching for the products you want to offer.
• Research the potential profits : Once you have an idea with verified consumer interest, make sure it can become a profitable business.

Who Buys Gift Baskets?

It’s important to consider your target market when planning what and where to sell. Gift baskets are most frequently purchased by individuals at middle- to upper-class income levels, as well as businesses and corporations. Here’s a closer look:

• Individuals: Customers may buy gift baskets for their friends, romantic partners, family members, co-workers, or acquaintances. They’re typically purchased for special occasions, such as birthdays, weddings, anniversaries, baby showers, holidays, or to celebrate personal accomplishments.
• Businesses: Companies may buy gift baskets to show appreciation for their clients, employees, or partners. It’s also common for businesses and corporations to use gift baskets as promotional items or giveaways.
• Event Planners: Event planners sometimes purchase gift baskets to use as centerpieces, other decorations, or prizes for events such as weddings, parties, or fundraisers.
• Nonprofit Organizations: These businesses often buy gift baskets to use as fundraising items or to show appreciation for their donors and volunteers.

Gift baskets can be designed to appeal to a specific demographic, like the ‘Masculine Munchies’ basket, which features an assortment of hearty foods in a rustic wooden container. (Source: Pampered Paw Gifts)

Holiday gift baskets can contain special, seasonal items or a selection of evergreen items decorated with festive adornments. (Source: Amazon)

Gift baskets designed to celebrate a particular occasion often include usage-specific items, like this baby shower gift basket stocked with plush toys, blankets, and other goods made for infants. (Source: Etsy)

Elegant gift baskets that aren’t designed around a certain theme or occasion are popular with businesses and organizations. (Source: Alexandria Gifts)

Step 2: Create a Gift Basket Business Plan

Creating a business plan is essential for laying out the nitty gritty details of how your business will operate and how you’ll make money. Your business plan serves as a model for how you envision your business to grow, and is often a requirement for securing a small business loan or other funding.

Creating a detailed plan early in the process will give you a better understanding of how long it will take for your business to turn a profit, what funds are necessary to sustain your business until that point, and which ideas are actually viable.

Your business plan should include the following sections:

• Business Description: Describe the gift basket industry and its outlook, as well as your concept, theme, and other markets or industries that can directly impact your business.
• Market Analysis: Identify trends in the gift basket market, as well as your target market, and analyze competitors. Be sure to include other gift basket businesses in your area and any other possible competitors.
• Organization and Management: Explain how you plan to run your business, including standard operating procedures, staffing, and responsibilities of each employee.
• Product Line: Lay out the details of your gift baskets, including what products will be used, how you plan to source your products, how much each basket will cost to make, and what you’ll sell them for. Plan for any seasonal baskets through the year, and be sure to include those all well.
• Marketing Plan: Describe how you plan to market your gift basket store. Be sure to account for any seasonality in the business, such as slower summer months and a big rush during the winter holidays.
• Funding Request and Proposal: Figure out how much you need to start and run your gift basket shop (including any capital you have ready), how much you will need from outside sources, and how you plan to acquire those funds. If you’re applying for a business loan , specify how much money you need to borrow as well as a repayment strategy.
• Financial Projections: Break down your projected expenses, profits, and losses for at least your first three to five years.

You can create your plan on whatever medium is most comfortable for you— whether that’s a Google or Word document, a slideshow, or using business plan software . While preparing your plan, make sure that you include all the tiny details wherever possible.

Costs of Opening a Gift Basket Business

The funds you need to start a gift basket service will vary dramatically depending on whether you’re opening a storefront or operating an online business from home.

If you’re opening a brick-and-mortar store , your startup costs can be as high as $100,000, depending on your location and rent prices. This process requires designing and equipping the store’s interior, which is an expensive step.

If you’re starting an online business from home, the costs will be significantly lower—it’s possible to start an online gift basket store for a few thousand dollars. You’ll just need to invest in a quality website and ecommerce platform, online marketing, gift basket supplies, and shipping tools.

Choosing a Legal Structure for Your Gift Basket Business

Another key part of writing your business plan is choosing a legal structure for your business. This step is important because it determines how you’ll collect and pay taxes, how you’ll get paid from your gift basket business, and your level of personal liability.

There are many types of legal structures, but the two most commonly used for small gift basket shops are sole proprietorships and limited liability companies (LLCs) .

If you don’t set a legal structure, your business will default to a sole proprietorship. It essentially means you’re doing business as an individual, and therefore are not separated from your business in any way. Sole proprietorships are popular options for freelancers, project contractors, and other individuals conducting low-risk work by themselves.

Limited Liability Companies (LLCs) are legal structures for small businesses that protect your personal assets (such as your house) in the case of lawsuits or business bankruptcy. This is the most popular legal structure for small retail businesses, and the one we recommend if you are planning on opening a storefront or operating a high-volume ecommerce business.

Step 3: Choose a Gift Basket Sales Channel

Choosing where and how you’ll sell your gift baskets is an important decision for your business. Evaluate your plan and decide whether you want to launch a brick-and-mortar shop or an online store .

Opening up a physical storefront requires much more upfront capital than starting an online store. You need to lease a space, outfit the space, design your store, and hire employees. That being said, having a physical store makes your business more visible and allows for growth into other retail categories. Plus, it’s common for brick-and-mortar businesses to also sell their wares online.

Alternatively, starting your business online requires less upfront investment, and allows you to ease into the gift basket business as a part-time or side job. Plus, if you’re shipping nationwide, having an online business provides a much larger customer base.

Online Gift Basket Sales

If you’re interested in starting a gift basket business but not ready to devote 100% of your time to running the shop, selling online is your best option. The startup costs of an online store are significantly lower than opening a brick-and-mortar business, and you’ll have much more flexibility.

In addition to building your website, you’ll need to develop a method of fulfilling and shipping your online orders . Many small businesses start with an in-house fulfillment operation based out of the owner’s garage or a rented storage unit. But as your business grows and order volume increases, you’ll likely need to scale up by moving into a commercial fulfillment space or outsourcing your fulfillment to a third-party .

Pros & Cons of Selling Gift Baskets Online

In-store gift basket sales.

Opening a brick-and-mortar storefront for your gift basket business can be an ambitious endeavor. You will need to find a space, design and outfit that space, and hire employees.

Pros & Cons of Opening A Brick-and-Mortar Gift Basket Store

If you open a storefront, you’ll need a POS (point-of-sale) system to manage your sales, track inventory, and view reports. Read our recommendations for the best retail POS systems for small businesses.

Choosing a Storefront

It’s crucial to look for a location that has high visibility and lots of foot traffic. In the beginning, foot traffic could account for most of your sales, and will definitely be one of your most valuable means of advertising.

When choosing a location, talk to neighboring business tenants to get their feedback on foot traffic and how they feel about the area. Also, be sure to consider other elements, like accessibility, nearby competition, and signage (some landlords or zones have restrictions on the kind of signage you can use on the front of your space, so it’s important to do your research). Your storefront should also have ample parking for customers.

Seasonal Gift Basket Store

Another option to consider is opening a temporary or seasonal gift basket store. Gift basket sales tend to spike during the winter holidays—especially for food and wine baskets. Signing a temporary lease, opening a pop-up shop , or selling your baskets at local markets and festivals can be great ways to test the waters and take advantage of the busiest retail sales season.

Another important step in opening your business is separating your personal and business finances . If you opt for an LLC business structure, separating your finances is necessary for protecting your personal assets. Having your finances separated also makes it easier to monitor expenses and track tax deductions.

The best small business checking accounts have little-to-no fees for your daily financial transactions and offer outstanding products and services—like lending products, merchant services, and access to interest-earning accounts. Read our list of the 10 best small business checking accounts .

Step 5: Source Products for Your Gift Baskets

At first thought, it may seem like the easiest way to buy products for your gift basket may be to run to the nearest box store. But to get the best profit margins on your baskets, you should purchase everything it takes to make them from retail suppliers at wholesale rates . Wholesale prices are typically 50% of standard retail prices (and sometimes even less).

There are several ways to source wholesale products , including:

• Using an online directory: There are several websites that gather many different wholesale suppliers in one place so you can order many kinds of products at once. Popular directories include Faire, Handshake, and Alibaba.
• Attending a merchandise trade show: Shop for wholesale products at a regional or national merchandise trade show. You can see the products for yourself before purchasing, and there are typically great deals if you buy at the show. Plus, most retail trade shows have complimentary educational seminars on various marketing and management topics.
• Purchasing directly from a wholesale distributor: Once you find a supplier you’re happy with, purchasing directly from them will usually get you the best pricing. And as your business relationship with your supplier grows, you can begin negotiating for better pricing, shipping terms, or customizations. Some POS systems, like Lightspeed , have built-in product catalogs so you can order wholesale products directly from your POS.

Merchandise trade shows like the one shown above are a great way to source all of your products at once.

Step 6: Design & Price Your Gift Baskets

Popular gift basket categories include gourmet food and candy, bath and toiletry items, seasonal items, baby showers, and wedding themes. Many gift basket stores offer a variety of standard and custom baskets.

To start, plan about 20 baskets. If you’re working with non-perishable items, you can create the baskets upfront to save on labor down the road. If your baskets incorporate perishable goods, just create one sample basket for photos or display.

In addition to the products inside your gift basket, you’ll need:

• Empty baskets (or other attractive vessels)
• Bows and ribbons
• Note tags or cards for the baskets
• Paper shreds or other filler for the bottom of the baskets
• Cellophane or other clear wrapping material
• A shrink wrap machine and heat gun for packaging
• Crafting tools

If you’re shipping baskets, you’ll also need:

• Packing materials
• Temperature regulating packing materials for perishable goods
• Ability to print shipping labels

Gift Basket Pricing Strategies

Like with any retail business, the key to making a profit is to sell your baskets at a price that’s high enough to make a reasonable profit and low enough to attract customers. When determining the costs of your basket, take into account the cost of the items inside, the wrapping and packaging materials, and any labor costs involved in building the basket.

For an in-depth guide to pricing your baskets (and easy-to-use profit calculators), read about how to price products in four steps .

Chocolate Lover’s gift basket

Step 7: Advertise Your Gift Basket Business

Once you have your location or online store all set, it’s time to start advertising. The best advertising strategies combine online and traditional marketing tactics to reach the largest number of customers.

Online Advertising

Advertising online is often the most cost-effective way to reach a large group of people. If you’re selling baskets online, digital advertising is a must—but it’s important for brick-and-mortar stores to have a digital presence, as well. Here are the basics every gift basket business should follow:

Build a Website

If you’re starting an ecommerce gift basket business, your online store will function as your website. But if you’re launching a brick-and-mortar store, it’s crucial to take the time to build a website for your brand. In either case, your site should feature:

• Images and descriptions of the different types of gift baskets you offer
• An “About Us” section
• Contact information
• Cancellation/return policies
• Store location and hours (if applicable)

Your website should be easy to navigate with lots of crisp pictures and plenty of open space. It also needs to be mobile-responsive so that it’s easy to use on any device.

If you’re using a web builder or ecommerce platform, it will have mobile-responsive templates you can choose from. Read our list of the best ecommerce platforms for small businesses to get started.

Use Social Media & Paids Ads

Using Facebook and Instagram is an easy way for new customers to find you. Start building your profiles before your business launches to get people excited about your products. Instagram marketing is the perfect opportunity to show off your baskets since it’s a highly visual platform.

You can also create simple, low-budget Facebook ads to reach a large number of potential customers. Facebook ads are a great option to advertise gifts for upcoming holidays, promote giveaways, or in-store events.

Sample Facebook post from Our Green House gift basket business

Traditional Marketing

In addition to online advertising, you’ll want to use some traditional marketing techniques to encourage and reward loyal customers . Most retail businesses earn a large majority of their sales from a small percentage of their customers. So, it’s important to keep customers happy and coming back for more with loyalty and referral programs.

Implement a Loyalty Program

Loyalty programs are a simple yet effective way of rewarding customers. Issuing punch cards is a popular approach; customers who keep your card in their wallets will think of you each time they see it (and be incentivized to come back).

There are also digital options for loyalty programs—like Candy Bar, a digital punch card solution that customers keep on their phones. It even enables you to track who is using the loyalty program and how effective it is. Visit Candy Bar to learn more.

Visit Candy Bar

Track who uses your loyalty program with Candy Bar

Starting a gift basket business requires creative ideas and lots of careful planning. You’ll need to find a profitable niche, choose a sales channel, and write out a detailed business plan—but having the right tools makes the job much easier.

For online gift basket businesses, we recommend using Shopify. It’s an ecommerce platform, POS system, and payment processing solution all in one. Shopify has the tools you need to manage sales, track inventory, and market your business. Visit Shopify for a free trial.

Visit Shopify

About the Author

Find Katie-Jay On LinkedIn

Katie-Jay Simmons

Katie-Jay Simmons aims to put answers in the hands of small business owners by leveraging more than 10 years of retail and hospitality experience. Informed by a background in jewelry and gemology, she specializes in ecommerce with a focus on fulfillment and global sourcing. Her scope of expertise ranges from traditional brick-and-mortar businesses to innovative, high-volume ecommerce operations.

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Home » Sample Business Plans » Wholesale & Retail

How to Write a Gift Basket Business Plan [Sample Template]

Are you about starting a gift basket business? If YES, here is a complete sample gift basket business plan template & feasibility study you can use for FREE . In starting your gift basket business, you need to first ensure that you have a proper structure on ground, by obtaining a written zoning approval that is necessary for your gift basket business.

In selecting your business structure, you will need to get guided by experts especially a Certified Public Accountant (CPA) that has got experience with small retail and home-based businesses. You will also need professional advice from an insurance broker about the best insurance policy for your business. Then after this, ensure you get your business license, sales tax license, and any other permit that will be required for you to operate your business.

The next thing you ought to do is to analyze the gift basket market. Find out who you will be competing with in your neighborhood, area, or region. Most gift basket business owners usually operate from home, and so you may not need to break any bank or over extend yourself in looking for a store to start your business in. you can simply operate your business and expand to become a national brand without leaving your home.

A Sample Gift Basket Business Plan Template

1. industry overview.

Most gift baskets are usually food gifts, as the food gift sector experienced a growth of 9% between 2007 and 2009. Another sector that grew too was the specialty food gift market, as customers tend to prefer creative products when selecting food gifts, which also included gift baskets. Gift baskets also have started stocking organic and healthy foods, as of 2010, while some gift basket companies have started the organic and healthy line as a niche.

According to industry surveys, more than half of all the gift basket businesses have retail outlets. However, due to the flexibility of the gift basket business as regarding the choice in location, more people prefer to start the business from home than to rent out a store for it. Those who rent are often those who have a huge inventory with no space to store these inventories in their homes, and so often opt to lease facilities.

According to a study conducted in 2008 by gift basket industry consultants, Sweet Survival, the united states gift basket industry reached .3 billion in sales. This valuation confirmed the resilience of the industry even in economic downturns in satisfying a steady consumer base. The study did not include sales by major retailers and wholesale clubs.

According to an industry statistics carried out in 2001, with the report released in 2002, estimated industry sales were pegged at $3 billion and included a large portion of industry participants that were unaccountable. This means that the 2001 statistics were more reliable than that of the 2008 that didn’t account for unregistered gift basket owners, or those working from home.

The gift basket in the overall gift industry in the United States, maintains the highest ranking, and comprises of more than 3,600 retailers that categorize their businesses mainly as gift basket firms within the country. More gift baskets retailers are in California, New York and Florida, and majority of the firms calculate sales volume at $500,000 or less. Firms that post between $1 million ad $5 million in sales have increased since the 2002 industry survey.

The market trend for the gift basket in the gift industry has consisted majorly of mergers and consolidations, as larger companies continually buy out smaller companies. This is made possible because larger companies have economies of sales that is able to allow them generate better margins.

The market for the gift basket business is also no longer limited to a single customer or to women, especially as women once made up the largest segment of the industry’s market, as both customers as well as recipients. The market has now expanded to include the corporate client.

If you are contemplating opening a gift basket business in the United States, you should ensure that you carry out a thorough market survey and feasibility studies so you that you will be able to get the ideal location to launch your gift basket business. The truth is that, if you get some key factors wrong before starting your own gift basket business, then you are likely going to struggle to stay afloat.

2. Executive Summary

Gracias & Macie® Gift Baskets, LLC is a leading and standard gift baskets stores and delivery business that will be based in Boston – Massachusetts, USA and covers a wide range of clients both individual and corporate clients. We have been able to lease a standard corner piece facility that is centrally located in the heart of Boston and few minutes drive from Harvard University Community.

We have put plans in place to also sell our franchise and offer consultancy services in line with our area of business hence spreading across major cities in the United States of America.

Gracias & Macie® Gift Baskets, LLC is established by the Massachusetts awarding winning business guru – Ms. Grace Mackenzie who has a B.Sc. in Marketing and a Master’s Degree in Business Administration (MBA) from Harvard Business School. She has a robust experience in the retailing industry having worked both in the public sector and the private sector for top retailing outlets prior to starting her own business.

We are in the gift basket Industry to favorably compete with other leading brands in the industry both in the United States and other parts of the world. Our corporate business goal is to be among the top 10 gift baskets chain brand in the United States of America.

As a company, we are willing to go the extra mile to invest in some of the finest professionals we can find and also, we have put, process and structures in place that will ensure that we are always at the top of our game when it comes to excellent services deliveries. We have been able to secure permits from all relevant departments in Massachusetts.

Beyond every reasonable doubt, the demand for gift baskets and other related products that we retail is not going to plummet any time soon, which is why we have put plans in place to continue to explore all available market around the cities where our gift baskets outlets are going to be located and ensure that we create a wide range of distribution channels via franchising.

With that, we know that we will be able to Business model; we are set to cover all the niches involved in the food basket industry and to become one of the pacesetters in the industry. There is hardly any customer that will request for our gift basket who would not want to come back and make more purchase or order more– we take great delight in welcoming repeated customers over and over again.

Gracias & Macie® Gift Baskets, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our customers.

Our plan is to position Gracias & Macie® Gift Baskets, LLC to become the leading brand in the gift baskets industry in the whole of Massachusetts, and also to be amongst the top 10 gift baskets brand in the United States of America within the first 10 years of starting our business.

This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Boston – Massachusetts is the right place to launch this type of business before spreading to other cities all across The United States of America.

3. Our Products and Services

At Gracias & Macie® Gift Baskets, LLC we make a wide range of gift baskets in terms of sizes and niches (products) et al; we will engage in retailing and wholesale distribution to both individual and corporate clients. As part our strategy to create multiple sources of income in line with our core business concept, we will go into franchising and consultancy services.

Our intention of starting Gracias & Macie® Gift Baskets, LLC is to make profits from the gift baskets industry and we will do all that is permitted by the law in the US to achieve our aim and ambition. Here are some of our products and services;

• Toiletry baskets
• Gourmet/food baskets
• Wedding and baby shower baskets
• Nut/fruit gift baskets
• Bath product gift baskets
• Candy gift baskets
• Floral baskets
• Customized gifts baskets.

4. Our Mission and Vision Statement

• To be amongst the top 10 leading gift baskets companies in the United States of America before our 10 th anniversary.
• Our mission is to build a gift basket sales and delivery business that will meet the needs of all our customers and potential customers in the regions / cities where we have our outlets and to sell franchise all across the United States of America and Canada.

Our Business Structure

As part of our plan to build a standard gift baskets Company in Boston – Massachusetts, we have perfected plans to get it right from the beginning which is why we are going the extra mile to ensure that we have competent and hardworking employees to occupy all the available positions in our company.

The picture of the kind of Gift Baskets Company we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in the gift baskets and retailing industry as long as they are willing and ready to work with us to achieve our business goals and objectives.

Below is the business structure that we will build Gracias & Macie® Gift Baskets, LLC;

• Chief Executive Officer

Shop Manager

Merchandize Manager

Human Resources and Admin Manager

• Sales and Marketing Officer
• Accountants / Cashiers

Information Technologist

• Drivers / Deliverers
• Customer Service Executives

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for overseeing the smooth running of the gift basket shop
• Part of the team that determines the size and content of a gift basket
• Maps out strategy that will lead to efficiency amongst workers in the shop
• Responsible for training, evaluation and assessment of the entire workforce
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Ensures that the shop meets the expected safety and health standard at all times.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversees the smooth running of the daily office and shop activities.
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of goods and products on our rack
• Responsible for the purchase of goods and products for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps increase sales and growth for the company
• Manages the organization website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant / Cashier

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Distribution Van Drivers:

• Delivers customer’s orders promptly
• Runs errand for the organization
• Handles any other duty as assigned by the sales and marketing executive and plant manager

Client Service Executive

• Responsible for taking orders from clients when the call or email the organization
• Ensures that all contacts with customer (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the shop manager in an effective and timely manner
• Consistently stays abreast of any new information on Gracias & Macie® Gift Baskets, LLC products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
• Responsible for cleaning the entire shop facility at all times
• Ensures that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the shop facility
• Handles any other duty as assigned by the plant manager.

6. SWOT Analysis

Due to our desire and drive for excellence when it comes to running a gift basket sales and delivery company, we were able to engage some of the finest business consultants in Boston – Massachusetts to look through our business concept and together we were able to critically examine the prospect of the business and to access ourselves to be sure we have what it takes to run a standard gift baskets sales and delivery company that can compete favorably compete with other leading brands in the industry both in the United States of America and in any part of the world.

In view of that, we were able to take stock of our strengths, our weakness, and our opportunities and also the threats that we are likely going to be exposed to if we launch our gift basket sales and delivery business in Boston – Massachusetts and even in the United States of America as a whole.

Here is a of what we got from the critically conducted SWOT Analysis for Gracias & Macie® Gift Baskets, LLC;

Our strength lies in the fact that we have a wide range of gift baskets in terms of size and content that can meet the needs of a wide range of customers. We have state of the finance, facility and competent workforce that has positioned us to meet the demand of products even if the demand tripled over night or if we have a massive order to meet and emergency need.

Another factor that counts to our advantage is the background of our Chief Executive Office; she has a robust experience in the industry and also a pretty good academic qualification to match the experience acquired which has placed her amongst the top flight professionals in the United States of America. We are not ignoring the fact that offering consultancy services and running a franchise is definitely going to count as a positive for us.

The fact that we are setting up a gift baskets sales and delivery business in a city with other leading gift baskets shops and retail outlets might likely pose a challenge for us in breaking into the already saturated market in Boston – Massachusetts.

In essence our chosen location might be our weakness. But never the less, we have plans to launch out with a big bang. We know with that, we will be able to create a positive impression and we have a proper handle when it comes to building on already gather momentum.

• Opportunities:

The opportunities available to us are unlimited. Loads of people consume or make use of our products on a daily basis and all what we are going to do to push our products to them is already perfected. There are also loads of people who would want to buy our franchise and start their gift basket on a platter of gold; our platform will be highly ideal for them to fulfill that goal.

The threat that is likely going to confront us is the fact that we are competing with already established gift baskets sales and delivery businesses in Boston – Massachusetts and also there are other entrepreneurs who are likely going to launch similar business within the location of our business.

Of course, they will compete with us in winning over the available market. Another threat that we are likely going to face, is unfavorable government policies and of course economic downturn. Usually economic downturn affects purchasing / spending powers.

7. MARKET ANALYSIS

• Market Trends                                                        

The Gift Baskets Sales and Delivery industry has risen slowly over the last five years while combating lackluster consumer spending and changing preferences pattern. Extreme external competition from loads of new retail outlets and similar services concepts. The introduction of technology and subsequently online retail store has indeed helped in reshaping the industry.

It is now a common phenomenon for retail outlets and gift baskets companies to leverage on technology to effectively predict consumer demand patterns and to strategically position their shop to meet their needs; in essence, the use of technology help retailers to maximize supply chain efficiencies. No doubt data collected from customers goes a long way to help gift baskets shops serve them better.

8. Our Target Market

When it comes to gift baskets sales and delivery business, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who have reasons to eat or make use of our products

In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. These are the groups of people we intend marketing our gift baskets to;

• Corporate Organizations
• Corporate Executives
• Government Officials
• Business People
• Celebrities
• Military Men and Women
• Sports Men and Women
• Everyone who resides in our target locations.

Our Competitive Advantage

Our aim of starting Gracias & Macie® Gift Baskets, LLC is to build a business that can grow within the first 10 years of establishing the business to be listed amongst the top 10 gift baskets sales and delivery companies in the United States of America and also to sell our franchise. With that in mind, we have been able to come up with competitive strategies that will help us compete favorably in the industry.

Another competitive advantage is that we have a wide range of gift baskets in terms of size and content that can meet the needs of a wide range of customers. We have state of the finance, facility and competent workforce that has positioned us to meet the demand of products even if the demand tripled over night or if we have a massive order to meet and emergency need.

One thing is certain, we will ensure that we open our outlets in various cities in the United States of America and also sell our franchise. With that our brand will be well communicated and accepted nationally. Lastly, our excellent customer service culture, highly competitive prices, reliable and easy to use payment option and the visibility of our outlets will serve as a competitive advantage for us.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Gracias & Macie® Gift Baskets, LLC is established with the aim of maximizing profits in the Pizza shop cum pizza delivery industry in the United States of America and we are going to go all the way to ensure that we do all it takes to sell a wide range of pizzas and soft drinks to a wide range of customers.

Gracias & Macie® Gift Baskets, LLC will generate income by offering the following products and services;

10. Sales Forecast

We are well positioned to take on the available market in the U.S. and we are quite optimistic that we will meet our set target of generating enough income / profits from the first month or operations and grow the business and clientele beyond Boston – Massachusetts to other states in the U.S. and Canada

We have been able to critically examine the gift baskets sales and delivery industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in the United States of America.

Below is the sales projection for Gracias & Macie® Gift Baskets, LLC, it is based on the location of our business and our competitive advantage;

• First Fiscal Year-: $250,000
• Second Fiscal Year-: $600,000
• Third Fiscal Year-: $900,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location to launch Gracias & Macie® Gift Baskets, LLC and also the types and sizes of gift baskets to produce, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market in the cities where we intend positioning our business.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time and also for our products to favorable compete with other leading gift baskets brands in Boston – Massachusetts and the whole of the United States of America.

We hired experts who have good understanding of the gift baskets sales and delivery industry to help us develop

In other to continue to be in business and grow, we must continue to sell our products to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals. In summary, Gracias & Macie® Gift Baskets, LLC will adopt the following sales and marketing approach to sell our products;

• Introduce our gift baskets brand by sending introductory letters to residence, merchants and other stakeholders both in Boston – Massachusetts and in other cities in the United States of America
• Open our gift baskets sales and delivery business with a party so as to capture the attention of residence who are our first targets
• Engage in road show in targeted communities from time to time to sell our products
• Advertise our products in community based newspapers, local TV and radio stations
• List our business and products on yellow pages ads  (local directories)
• Leverage on the internet to promote our gift baskets sales and delivery brands
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our gift baskets sale and delivery company is a standard one with a wide range of products that can favorably compete with other leading brands in the United States, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Gracias & Macie® Gift Baskets, LLC.

Gracias & Macie® Gift Baskets, LLC has a long term plan of opening outlets in various locations all around the United States of America and also to sell our franchise which is why we will purposefully build our brand to be well accepted in Boston – Massachusetts before venturing out to other cities in the United States of America.

As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Gracias & Macie® Gift Baskets, LLC;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
• Install our Bill Boards on strategic locations all around major cities in the United States of America
• Engage in road show from time to time in targeted communities
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
• Ensure that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.

12. Our Pricing Strategy

When it comes to pricing  products such as gift baskets, there are is no  hard and fast rules, as the prices depends on the size, content and packaging. Generally, the prices for gift baskets and similar products are affordable hence there is no need to employ any detailed strategies when it comes to pricing.

In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our gift baskets are sold a little bit below the average prices of various gift baskets sales and delivery brands in the United States of America. We have put in place business strategies that will help us run on low profit margin for a period of 6 months; it is a way of encouraging people to buy into our brands.

• Payment Options

At Gracias & Macie® Gift Baskets, LLC, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money
• Payment via check (From trusted customers)

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.

13. Startup Expenditure (Budget)

When it comes to starting a standard gift baskets sales and delivery business, one is expected to spend the bulk of the start – up capital on renting a store facility. Aside from that, you are not expected to spend much except for purchasing distribution vans, purchasing commodities, paying of your employees and utility bills.

This is the key areas where we will spend our start – up capital;

• The Total Fee for Registering the Business in Boston – Massachusetts – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
• Marketing promotion expenses for the grand opening of Gracias & Macie® Gift Baskets, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
• Cost for hiring Business Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost for Start-up inventory (commodities and packaging materials et al) – $100,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase of distribution vans – $50,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• The cost for our opening party – $10,000
• Miscellaneous – $10,000

We would need an estimate of $250,000 to successfully set up our gift basket sales and Delivery Company in Boston – Massachusetts. Please note that this amount includes the salaries of the entire staff member for the first month of operation.

Generating Funding / Startup Capital for Gracias & Macie® Gift Baskets, LLC

Gracias & Macie® Gift Baskets, LLC is a family business that is owned and financed by Ms. Grace Mackenzie and Family. They do not intend to welcome any external business partners, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sell of stocks
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If any of these factors is missing from a business (company), then it won’t be too long before the business close shop.

Gracias & Macie® Gift Baskets, LLC will ensure that all the factors listed above are reinforced on a regular basis, we will continue to improvise with our products, packaging and services, and come up with efficient delivery strategies and also we will engage in continuous capacity building of our workforce.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more.

We will make sure that the right foundation, structures and processes are put in place to ensure that staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner. We have the plans of

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and re – construction of the facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
• Purchase of delivery vans: Completed

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Gift Basket Business

Back to All Business Ideas

How to Start a Gift Basket Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on March 10, 2022 Updated on March 13, 2024

Investment range

$3,050 - $8,100

Revenue potential

$104,000 - $520,000 p.a.

Time to build

0 – 3 months

Profit potential

$40,000 - $100,000 p.a.

Industry trend

Do you have a knack for making great gift baskets? If you enjoy putting together creative gifts, you could turn that skill into a business. Gift baskets are popular not only as personal gifts, but as corporate gifts as well, so the market for your products would be large. You can start the business for very little money and run it from home. Gift baskets sell for around $50 each, so you could bring in good money, even working part-time.

But first, you should give yourself the gift of knowledge, so you know what you’re getting into. Fortunately, all the information you need is wrapped up in this step-by-step guide designed to put you on your way to entrepreneurial success.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a gift basket business has pros and cons to consider before deciding if it’s right for you.

• Flexibility – Work from home, set your own hours
• Good Money – Gift baskets tend to have strong profit margins
• Share the Love – Create gifts that will make someone’s day
• Bulk Buying – Invest in multiple items to keep cost of goods low
• Massive Competition – Low barriers to entry means the market is saturated

Gift basket industry trends

Industry size and growth.

• Industry size and past growth – The global personalized gifts market was worth $26.3 billion in 2019 after years of steady growth.(( https://dataintelo.com/report/personalized-gifts-market/ ))
• Growth forecast – The global personalized gifts market is projected to grow by nearly 60% by 2026.

Trends and challenges

Trends in the gift basket industry include:

• Gift baskets that include a variety of items plus a tech gadget are trending, presenting an opportunity for higher revenue products.
• 40% of gift baskets are purchased as corporate gifts, which gives gift basket designers a new market to target.

Challenges in the gift basket industry include:

• Food gift baskets present some liability if perishable items are included and mishandled.
• Offering gift baskets that contain alcohol presents the challenge of complying with laws and regulations. Some states do not allow alcohol delivery to consumers – Alabama, Utah, and Oklahoma. 

How much does it cost to start a gift basket business?

Startup costs for a gift basket business range from $3,000 to $8,000. The main costs are for baskets, wrapping, gifts and a website. You can cut costs significantly if you start out by selling on Etsy or another online platform. 

There are online videos about how to make gift baskets on sites like Gift Basket Review Magazine . You can get a membership for $69 and watch unlimited videos. 

You’ll need a handful of items to successfully launch your gift basket business, including: 

• Tissue paper
• Cellophane wrapping
• Shipping supplies

How much can you earn from a gift basket business?

The average price of a gift basket is about $50. Your prices will vary based on what items you put in the baskets. You should aim for a profit margin of about 40%.

In your first year or two, you could work from home and sell 40 baskets per week, bringing in $104,000 in annual revenue. This would mean more than $40,000 in profit, assuming that 40% margin. As your marketing efforts grow, sales could climb to 200 baskets per week. At this stage, you’d rent a commercial space and hire staff, reducing your profit margin to around 20%. With annual revenue of $520,000, you’d still make more than $100,000.

What barriers to entry are there?

There are a few barriers to entry for a gift basket business. Your biggest challenges will be:

• Finding gift items that you can buy in bulk to keep your costs low
• Standing out from established names like Harry and David

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Step 2: hone your idea.

Now that you know what’s involved in starting a gift basket business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research gift basket businesses in your area and online to examine their products, price points, customer reviews, and what sells best. You’re looking for a market gap to fill. For instance, maybe the local market is missing a custom gift basket company that allows customers to choose specific items for the basket.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as wine and cheese gift baskets, or corporate gift baskets.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

You need to determine what kinds of gift items you want to include in your baskets. You could specialize in wine gift baskets, or care package gift baskets for college students. You could also choose to offer a variety of baskets instead of specializing.

How much should you charge for gift baskets?

Your prices will depend on the items that you put in your baskets. You should try to mark them up by about 100%, giving you a profit margin of 50%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will depend on what type of baskets you offer. If you make baskets that will attract corporate clients, you’ll find business owners on LinkedIn. You can also call on business owners directly. If you sell online, you don’t have to limit the businesses you call to local businesses. 

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a production facility. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Gift Basket Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “gift baskets” or “corporate gifts”, boosts SEO
• Name should allow for expansion, for ex: “The Basket Boutique” over “Wine Baskets”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Gift Basket Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: A brief summary highlighting the main points of the gift basket business plan, including its objectives, market opportunity, and financial projections.
• Business Overview: An overview of the gift basket business, detailing its mission, vision, and key differentiators in the market.
• Product and Services: A description of the types of gift baskets and additional services offered, emphasizing unique features and value propositions.
• Market Analysis: A thorough analysis of the target market for gift baskets, including demographics, trends, and potential growth opportunities.
• Competitive Analysis: An examination of competitors in the gift basket industry, outlining strengths, weaknesses, opportunities, and threats to identify a competitive edge.
• Sales and Marketing: A strategy for promoting and selling gift baskets, encompassing advertising, pricing, and distribution channels to attract and retain customers.
• Management Team: Profiles of the key individuals involved in the gift basket business, highlighting their expertise and roles in ensuring the company’s success.
• Operations Plan: Details on how the gift basket business will operate, covering production, sourcing, and logistics to ensure efficient and effective day-to-day functioning.
• Financial Plan: A comprehensive financial outlook for the gift basket business, including revenue projections, expense forecasts, and a break-even analysis.
• Appendix: Supplementary materials, such as additional data, charts, or supporting documents, providing further context and information for the gift basket business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to gift basket businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your gift basket business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a gift basket business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Licenses/Permits

Starting a gift basket business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your gift basket business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability : The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property : Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance : Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation : Provides compensation to employees injured on the job.
• Property : Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto : Protection for your company-owned vehicle.
• Professional liability : Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) : This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as  LS Retail , Vend , or Retail Pro , to manage purchasing, inventory, and invoicing.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

For your gift basket business, the marketing strategy should focus on showcasing the creativity, variety, and personalization of your gift baskets. Emphasize the uniqueness of your products, the quality of the items included, and your ability to cater to different occasions and preferences. Here are some powerful marketing strategies for your future business:

Kickstart Marketing

• Professional Branding : Your branding should convey creativity, warmth, and attention to detail. This includes your logo, packaging, website, and promotional materials.
• Direct Outreach : Connect with corporate clients, event planners, and local businesses for bulk orders or partnerships. Offering to create custom baskets for their specific needs can open up new opportunities.

Digital Presence and Online Marketing

• Professional Website and SEO : Develop an attractive website showcasing your range of gift baskets with high-quality images and detailed descriptions. Optimize your site for search engines using keywords related to gift baskets, personalized gifts, and special occasion gifts.
• Social Media Engagement : Utilize platforms like Instagram, Pinterest, and Facebook to showcase your baskets, share customer testimonials, and post about gift-giving ideas and occasions.

Content Marketing and Engagement

• Gift-Giving Blog : Share blog posts with gift-giving tips, ideas for different occasions, and stories behind some of your unique baskets. This can help establish your brand as a thoughtful and creative gift-giving solution.
• Email Newsletters : Keep your customers informed about new basket themes, special promotions, and seasonal offerings.
• Video Content : Create videos showcasing the making of your baskets, highlighting the products within, or offering ideas for using the items in the baskets.

Experiential and In-Person Engagements

• Participation in Local Markets and Fairs : Set up booths at local markets, fairs, and events to showcase your baskets and interact directly with potential customers.
• Gift Basket Workshops : Host workshops where customers can come in and create their own baskets, providing a personalized experience.

Collaborations and Community

• Partnerships with Local Businesses : Collaborate with local gourmet food producers, artisans, and merchants to include their products in your baskets, adding local appeal and variety.
• Community Involvement : Participate in community events, or collaborate with charities for fundraising initiatives, enhancing your brand visibility and reputation.

Customer Relationship and Loyalty Programs

• Loyalty Rewards Program : Implement a program offering discounts or special perks to repeat customers.
• Customization Services : Offer personalized services where customers can select specific items to include in their baskets, enhancing customer satisfaction.

Promotions and Advertising

• Targeted Local Advertising : Use local media outlets, community boards, and online platforms like Google Ads to reach potential customers.
• Seasonal Promotions : Capitalize on holidays and special occasions with themed promotions and marketing campaigns.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your gift basket business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your gift basket business could be:

• Professionally styled gift baskets to wow your clients
• Festive holiday gift baskets to send to your loved ones
• Custom personalized gift baskets to show you care

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a gift basket business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in gift baskets for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in gift baskets. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a gift basket business include:

• Gift Basket Makers – put together gift baskets, ship
• General Manager – ordering, scheduling, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Gift Basket Business – Start Making Money!

A gift basket business is easy to start – you just need some baskets, wrapping materials, and all those lovely gifts. It’s a great business to run from home, and eventually grow into a thriving gift basket operation. You can specialize in corporate gift baskets, holiday baskets, care package baskets, or just anytime baskets. 

Now that you’ve wrapped up your business know-how, go ahead and start gifting your way to success!

• Gift Basket Business FAQs

Yes, a gift basket business can make money. You just need to try to mark up the cost of your baskets to make a good profit. Just make sure you’re making great baskets that your customers will appreciate.

To secure items in a gift basket for shipping, you can use tissue paper or crinkle paper to fill any gaps and prevent movement during transit. You can also use bubble wrap or packing peanuts to provide additional cushioning and protect fragile items.

Some popular gift baskets include gourmet food and wine baskets, spa and relaxation baskets, and baby and child-themed baskets. It’s important to research the demand for different types of gift baskets in your area and to tailor your offerings accordingly to maximize profitability.

To ensure that your gift basket products are visually appealing and attract customers, you can focus on using high-quality and aesthetically pleasing packaging materials, such as colorful ribbons, cellophane wrapping, or decorative baskets. 

To differentiate your gift basket business from competitors, you can focus on providing exceptional customer service, offering unique or personalized products, and using eco-friendly or sustainable materials.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Gift Basket Business Name
• Create a Gift Basket Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Licenses/Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Gift Basket Business - Start Making Money!

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How to Start a Gift Basket Business

Many occasions call for a gift, but people often struggle to find the right present. Even those who have an idea of what to get sometimes don’t have time to go shopping.

Gift basket services make purchasing and giving gifts easy. They provide both standard and customizable baskets that are appropriate for many different occasions. Many also make the actual giving of the gift simple by providing shipping or delivery options.

Learn how to start your own Gift Basket Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a gift basket business by following these 10 steps:

• Plan your Gift Basket Business
• Form your Gift Basket Business into a Legal Entity
• Register your Gift Basket Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Gift Basket Business
• Get the Necessary Permits & Licenses for your Gift Basket Business
• Get Gift Basket Business Insurance
• Define your Gift Basket Business Brand
• Create your Gift Basket Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your gift basket business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Gift Basket Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your gift basket business?

Business name generator, what are the costs involved in opening a gift basket business.

A gift basket service can be started with very little capital. If necessary, all startup costs can be kept to $1,000 or less . Obtaining licenses and purchasing initial supplies to make baskets are the two primary costs. Some necessary supplies include baskets (in various sizes), crinkle paper, cellophane, ribbon, tags and products to put in the baskets. Many different products can be put in gift baskets. Local products, gourmet foods and candies are some popular items to include. To avoid paying rent, business owners can assemble baskets in their own home. If offering delivery, business owners also need a vehicle for making deliveries.

What are the ongoing expenses for a gift basket business?

The ongoing expenses associated with a gift basket services are any annual licensing fees, supplies for gift baskets and any employees’ salaries.

Who is the target market?

A gift basket service makes money by charging customers for gift baskets. Most gift basket services offer several different baskets.

How does a gift basket business make money?

Gift basket services have two ideal customer types. First, affluent individuals who have demanding jobs will sometimes order gift baskets for holidays and special occasions, because they have discretionary income to spend on gifts but little time to spend finding them. Second, companies often order gift baskets for events and as client gifts. Large companies that order gift baskets often need them on a somewhat regular basis, which can provide a regular source of revenue for a gift basket service.

Gift baskets average between $45 and $50 . It’s wise to offer less and more expensive baskets, though, to attract customers who have different budgets.

How much profit can a gift basket business make?

A gift basket service’s profit depends on how many baskets it sells each day. A business that averages 5 gift baskets a day averaging $45 to $50 each will have a daily revenue between $225 and $250, or an annual revenue of $82,125 to $91,250. Even a part-time business that sells only a few baskets a day can bring in a decent revenue.

How can you make your business more profitable?

Gift basket services can increase their revenue in two ways. They can charge delivery fees for customers who want baskets delivered. They can also sell products in baskets as standalone gifts. Many items that go well in gift baskets also make great standalone presents. Businesses that are successful may consider opening another location in a different city. This can greatly increase revenue, but it also significantly increases operating expenses. Businesses with multiple locations must pay rent for at least one of their locations.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your gift basket business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a gift basket service. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Gift Basket Business needs and how much it will cost you by reading our guide Business Insurance for Gift Basket Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a gift basket business

One fo the best ways to market a gift basket service by making sales calls. Going into apartment management offices, professionals’ offices and the headquarters of large companies with a business card and sample basket is a great way to showcase baskets and find consistent customers.

How to keep customers coming back

A gift basket service can set itself apart by offering uniquely themed baskets that others don’t have. Locally themed baskets or occupation-specific baskets, for example, aren’t offered by all gift basket services. Even if creating unique baskets increases costs a little, many customers will be willing to pay a little more for a basket that’s memorable.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

Anyone who likes giving presents and is creative may be well-suited to run a gift basket service. A gift basket service can be started as a part-time business and, by shipping baskets, be coordinated around other obligations.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a gift basket business?

A gift basket service owner spends most of their time helping customers select or assemble gift baskets, assembling baskets, and shipping or delivering baskets. Other tasks include administrative duties, such as managing the business’ finances and placing orders for additional products to include in baskets.

What are some skills and experiences that will help you build a successful gift basket business?

Putting together a gift basket requires both an appreciation for what people like and an eye for presenting it nicely. Learning how to create a beautiful gift basket doesn’t require formal coursework. There are lots of YouTube, Pinterest articles, and blogs that have free tips and ideas.

Rachael Ray has a video that’s a good place to start. Shirley Frazier has also published two informative books on the topic: How to Start a Home-Based Gift Basket Business and Gift Basket Design Book . For business owners who want to complete a formal training program, the Gift Designers Association offers a certification program.

What is the growth potential for a gift basket business?

A gift basket service can be a solo operation or a national chain. Many large gift basket services either operate through a franchise structure or sell exclusively online.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

How and when to build a team

Many gift basket service owners run their company themselves. Owners who do hire employees often hire a delivery driver first, so they can focus on marketing the business rather than delivering baskets. A brick-and-mortar gift basket service may need employees to help take care of customers as well. These employees can be hired as a business grows.

Useful Links

Industry opportunities.

• Franchise opportunity with the Original Basket Boutique
• Edible Arrangements franchise opportunity
• Gift Designers Association

Real World Examples

• Speciality gift company, Edible Arrangements
• FTD, a large online gift basket/flower delivery shop
• Sample gift basket service business plan

Further Reading

• How to Start a Home-Based Gift Basket Business by Shirley Frazier
• How-to video on making gift baskets

Have a Question? Leave a Comment!

• Business Ideas
• Registered Agents

How to Start a Gift Basket Business in 14 Steps (In-Depth Guide)

Updated:   February 8, 2024

BusinessGuru.co is reader-supported. When you buy through links on my site, we may earn an affiliate commission. Learn more

Looking for a fun, creative business venture? The gift basket industry could be perfect for you. This market is booming, with a projected compound annual growth rate of 6.4% between 2023 and 2033 . In 2023, the market reached over $2,018 million.

The options for theme and content are infinite too, from spa packages to gourmet treats. With a gift basket business, you can turn your passion for creativity into profits.

In this guide, we’ll explain how to start a gift basket business. Topics covered include market research, competitive analysis, trending gift basket service options, registering your EIN, and more. Check out these vital steps as you develop your gift basket business plan.

1. Conduct Gift Basket Market Research

Market research offers insight into the gift basket business industry. To run a successful gift basket business, you need to understand your target market, market saturation, and how to make your gift basket business profitable.

There are two types of market research, primary and secondary. The primary research is data you collect yourself. Secondary is third-party research compiled for your needs.

Some topics to search during market research include:

• Gift-giving opportunities: Beyond the major gift-giving holidays, there are opportunities with corporate gifts, birthday presents, thank you gifts, condolences, anniversaries, and more.
• Consider what gift baskets usually contain, such as gold jewelry , shampoos, hair styling products, flowers, watches , and more.
• Corporate access: Many companies rely on branded gifts for clients, employees, and events, this segment provides a steady stream of B2B sales.
• Market trends: Healthy and organic baskets are on the rise, as are experiences like spa packages over physical items.
• Add-on features: Popular add-ons like shipping, gift wrapping, and greeting cards further boost revenue.
• Cost assessment: Startup costs are reasonable at $2,000 to $10,000 for basic supplies and marketing.

With the right business acumen, gift basket ventures can be extremely lucrative. For the creative, business-minded entrepreneur, the gift basket industry checks all the boxes.

2. Analyze the Competition

Doing your due diligence on the competition is crucial when assessing a gift basket business opportunity. Competitive analysis tells you about your target market, where gift basket buyers go for products, trending services, and price options.

• Identify direct competitors locally: Search Google Maps and online directories for other gift basket companies in your city.
• Visit competitors: Visit their stores, and browse their online business offerings and prices.
• Look at indirect competitors: Flower shops, candy stores, and specialty food sellers provide overlapping products.

Evaluate competitors on:

• Product selection – What kinds of baskets do they offer? How unique and tailored are they? Do they resonate with your local target demographics?
• Pricing – Low or high end of the spectrum? What value do their products provide for the price? What does pricing indicate about quality?
• Location – Proximity to customers? High foot traffic? Convenience and accessibility?
• Customer service – Reviews, responsiveness, experience interacting with them.
• Branding and marketing – Website, messaging, promotions, events, social media, and advertising presence.
• Website design, ease of use, selection, product photos
• SEO presence – Search engine rankings, metadata, keywords targeted
• Promotions and offers – Free shipping, discounts, loyalty programs

This research lets you craft a unique value proposition and gifts that stand out.

3. Costs to Start a Gift Basket Business

Starting a gift basket company does require an initial investment, but the costs are reasonable for most entrepreneurs. Here is an overview of typical expenses to factor into your business plan and budget.

Start-Up Costs

Startup costs are any initial expenses you hit to open your basket business.

• Business registration fees – $50 to $150
• Business licenses and permits – $50 to $500
• Business insurance – $300 to $1000 annually.
• Website – $50 to $150
• Packaging materials – $1000
• Inventory and supplies – $2000
• Kitchen equipment – $300 to $1000
• POS system – $200 to $2000
• Office Supplies – $300
• Marketing materials – $500
• Initial inventory – $1000 to $5000
• Rent – $1,500 per month

In total, plan around $5000 to $15,000 to launch your gift basket company depending on size and scope.

Ongoing Costs

Ongoing costs are expenses encountered throughout the life of your gift basket service.

• Rent – $1500 to $5000 monthly
• Utilities – $200 to $500 monthly
• Insurance – $100 to $300 monthly
• Packaging supplies – $500 monthly
• Inventory – $1000 to $5000 monthly
• Advertising – $500 monthly
• Website and software subscriptions – $50 to $200
• Salaries – $2000 monthly
• Contractors – $500 for bookkeeping, legal, marketing, or web development needs
• Credit card processing fees – 1% to 5% of revenue from credit card transactions
• Transportation costs – Gas, vehicle wear, possible delivery fees.

Anticipate approximately $5000 to $15,000 in monthly operating expenses, excluding the cost of inventory. Be sure to account for seasonal spikes around holidays when sales surge.

4. Form a Legal Business Entity

Starting a gift basket business equires you to form a legal entity structure. This decision can have major impacts down the line on your liability exposure, tax treatment, and ability to raise investment capital. There are four main options to consider:

Sole Proprietorship

A sole proprietorship is the simplest structure – you would operate the business as an individual, without forming a separate legal entity. The major advantage is the ease of setup; you can just start selling gift baskets without officially registering a business name.

Partnership

A partnership is similar, except you share ownership and liability exposure with one or more partners. You don’t have to register formally but should draft a partnership agreement outlining profit/loss splits and partner roles. The shared liability and lack of corporate veil are still concerns though.

Limited Liability Company (LLC)

An LLC (limited liability company) provides personal liability protection while allowing pass-through income tax treatment. You don’t pay taxes at the entity level, but personally owe taxes on business profits via your returns. We strongly recommend an LLC for a gift basket company to shield your assets from any business-related claims or debts.

Corporation

A C-corporation is more complex but offers the strongest personal liability protection. The business becomes a separate legal entity that can be sued or enter into contracts while shielding the owners personally. However, C-corps are subject to “double taxation” – the entity pays corporate taxes on profits, which are also taxed at the personal level as dividends.

5. Register Your Business For Taxes

One key step in forming your gift basket business is obtaining an Employer Identification Number, or EIN, from the IRS. This unique number identifies your business for tax and reporting purposes.

An EIN is required if you plan to hire employees, operate as a corporation or partnership, or file any business tax returns.

Applying for an EIN is easy and free through the IRS website. You can apply online and get your EIN immediately. Here’s a quick step-by-step:

• Navigate to the EIN Assistant and select “View Additional Types, Including Tax-Exempt and Governmental Organizations”
• Choose “Sole Proprietorship” or your appropriate business structure
• Enter your personal information, business name and address, and reason for applying. For a gift basket business, choose “Started a new business” as the reason.
• Submit the online form. Your EIN will be displayed on the next page.

The entire process only takes about 15 minutes. The EIN is free and you can use it immediately to open business bank accounts or apply for licenses.

Don’t forget to register with your state revenue department to obtain a tax ID number for collecting and remitting sales tax. Search your state’s website for details on applying and any costs. Most states offer online registration.

6. Setup Your Accounting

Keeping accurate financial records is crucial for any business, especially a gift basket company that handles frequent transactions and inventory purchases. Investing in accounting software and an accountant from the start will save major headaches at tax time.

Accounting Software

Accounting platforms like QuickBooks let you automatically track income, expenses, account balances, and taxes owed. QuickBooks seamlessly connects to your business bank and credit card accounts to import all transactions and categorize them.

Hire an Accountant

A good accountant provides oversight to ensure you comply with all IRS rules and regulations for your gift basket activity. They can advise you on the optimal business structure and taxes to minimize your liability. Expect fees of $200-500 to have your taxes prepared.

Open a Business Bank Account

Make sure to completely separate your personal and business finances. Have a dedicated business checking account and credit card solely for gift basket transactions. Never co-mingle personal and business funds.

Apply for a Business Credit Card

Applying for a business credit card only requires your company’s name, EIN, your personal information, and credit score (as the owner). Issuers like Capital One Spark offer cards with generous rewards and spending power scaled to your business needs.

7. Obtain Licenses and Permits

Before selling your first gift basket, it’s crucial to have all required local and state licenses squared away. Check federal requirements through the U.S. Small Business Administration . Check local requirements through the SBA’s local search tool .

A general business license also called a business tax registration, is needed to operate legally in your city or county. The requirements and fees vary by location. For example, in Los Angeles, you would register for a Business Tax Registration Certificate (BTRC) which costs $61 annually after the first year.

If you plan to manufacture or store your gift baskets at a commercial kitchen or facility, that site will need a health permit. These are issued following an inspection by the health department. Expect a fee of around $500 to 600 initially. You’ll also need a food handler certification.

For gift basket delivery, investigate if you need a local delivery license for your vehicles. For example, Chicago requires all delivery vehicles to have a delivery license ($250 annual fee). Rules vary widely, so research your local ordinances.

8. Get Business Insurance

Purchasing adequate business insurance is strongly advised to protect your gift basket company against unexpected risks. The right policies can safeguard your assets and prevent catastrophic losses.

Without insurance, scenarios like these could put you out of business entirely:

• A delivery truck accident resulted in inventory destruction and liability claims from injured parties. Without commercial auto coverage, you’d pay all these costs out of pocket.
• A slip-and-fall injury at your gift basket production facility. One lawsuit could exceed your net worth without proper premises liability insurance.
• An employee theft led to thousands in missing inventory and cash. Crime insurance helps recoup these losses.

To get insured, first determine your specific risks based on your operations. Common gift basket policies include:

• General liability – covers injury/property damage claims
• Product liability – protects against basket defects
• Commercial property – replacements for damaged inventory
• Workers’ comp – required for employees
• Commercial auto – for delivery vehicles

A broker will explain your options, exclusions, deductibles, and limits to tailor coverage and premiums to your budget. Expect total yearly premiums between $1,000 to $5,000 depending on your operations.

9. Create an Office Space

Having a dedicated office provides legitimacy as you scale up operations. The right work environment helps you complete admin tasks, hold meetings, and even build your brand.

Home Office

A home office is the most affordable option starting. You can claim a tax deduction on the percentage of your home used for business. Deduct up to $1,500 based on individual expenses, or at $5 per square foot. Expect minimal costs beyond a desk and computer.

Coworking Office

For a more collaborative environment, a coworking space like WeWork offers open desk rentals and private offices on flexible terms. You gain amenities like meeting rooms, office equipment, kitchens, and community events. Average costs range from $200 to $500 monthly depending on the location and space size.

Retail Office

If you plan to serve local customers with a retail gift basket shop, consider a mixed office and storefront space. This allows customers to browse your products and place orders onsite while also housing your back-office operations. Renting retail space also builds visibility and brand awareness.

Commercial Office

Finally, a traditional office building space offers room for your team to grow into. An office building carries prestige and credibility for an established gift company. Prices vary widely based on location and build-out costs but plan on $25 to $40 per square foot each year.

10. Source Your Equipment

Launching a gift basket business requires procuring the right materials like baskets, packaging supplies, decorations, and food items. You also need equipment for assembly, storage, and delivery. Consider these options for sourcing everything required cost-effectively.

Buying new ensures you get high-quality items that meet your exact specifications. Baskets, packaging materials like cellophane and ribbon, and decor like bows and filler can all be purchased now online. Food items are likely cheapest from wholesale restaurant suppliers.

Buying used saves substantially on bigger ticket items. Check Craigslist, Facebook Marketplace, and auction sites for deals on used delivery vans, industrial kitchen equipment, and office furniture. Thoroughly inspect and test any used equipment first. Baskets and decor are better purchased new.

Renting makes sense for occasional needs like extra vehicles for holiday delivery rushes. You can rent commercial vans and trucks by the day as needed from providers like U-Haul or Penske at rates like $50-100 daily. Event rental companies offer tables, chairs, tents, and decor for gift baskets marketing booths, and pop-ups.

Leasing gives you predictable monthly payments on essentials like delivery vans and computers without a major upfront cost. Expect 2 to 4-year leasing terms from companies like Enterprise. Watch for mileage limits and early termination fees.

11. Establish Your Brand Assets

Developing a strong brand identity is crucial for gift basket companies to stand out in a crowded market. Invest in branding essentials to make your business recognizable, professional, and memorable.

Get a Business Phone Number

A custom business phone number builds credibility and gives customers an easy way to reach you. Services like RingCentral offer toll-free and local number options, call routing, voicemail, and more for $20 to 50 monthly.

Design a Logo

A logo encapsulates your brand personality and motifs in an iconic visual. For gift baskets, consider bright, vibrant designs with ribbons or bows. Check out logo makers like Looka to create one yourself or work with a designer.

Print Business Cards

With a logo, you can produce branded assets like business cards, packaging, catalogs, and signage. Vistaprint offers affordable, high-quality cards, brochures, banners, and more starting at around $10 to 20. Every owner should have cards to exchange at networking events, trade shows, and client meetings.

Buy a Domain Name

Secure a domain name that matches your brand for a professional website. Aim for .com over alternatives and make it short and memorable. Namecheap offers domains for $8 to 12 yearly.

Design a Website

You can build a website through DIY platforms like Wix with drag-and-drop templates. Expect to invest $100-300 for a polished site. Or hire a freelance web developer on Fiverr for $500 to $2,000 based on complexity.

12. Join Associations and Groups

Joining relevant local groups and associations is a smart way for gift basket entrepreneurs to network, learn, and grow their businesses.

Local Associations

Your local chamber of commerce likely has a small business or entrepreneurs group perfect for connecting with fellow owners in your area. For example, the Austin Independent Business Alliance hosts events like mixers and workshops.

Industry associations like the Retail Bakers Association offer training programs, advocacy resources, and online communities. Subscribing to industry newsletters keeps you on top of trends.

Local Meetups

Attend local small business events and food/beverage trade shows to meet potential partners and display your products. Sites like Meetup list events in your city. Bring business cards and gift basket samples to make connections.

Facebook Groups

For online networking, Facebook groups like the Gift Basket Business and Gift Basket Business Connection offer advice and feedback. Interact regularly to build relationships.

13. How to Market a Gift Basket Business

Implementing an effective marketing strategy is critical for getting a new gift basket business off the ground. With the right mix of digital and traditional tactics, you can build awareness, drive sales, and delight customers.

Friends and Family

Word-of-mouth referrals from your network and existing clients will be the most valuable early marketing channel. Offer incentives like discounts or free items to happy customers who refer new business. Creating raving fans is the best strategy.

Digital Marketing

For digital marketing:

• Run Google and Facebook ads targeted locally by interest and demographics. Focus on gift-giving occasions.
• Start a YouTube channel creating gift basket DIY tutorials and promotions.
• Blog regularly with gift ideas, trends, and “behind the scenes” business content.
• Leverage Instagram and Pinterest to showcase visually appealing basket designs.
• Send email promotions and newsletters to subscribers highlighting new products.
• Get customer reviews on Google, Facebook, and your website. These build trust.

Traditional Marketing

For traditional marketing:

• Partner with local gift shops on custom co-branded basket designs.
• Distribute flyers and coupons to offices, realtors, and corporate HR departments.
• Sponsor local events and charity fundraisers with donated baskets.
• Run print ads in regional magazines and newspapers during holidays.
• Send direct mail postcards to targeted zip codes announcing promotions.

While digital marketing provides excellent data-driven targeting and ROI tracking, don’t neglect traditional methods completely. The right blend maximizes your reach and conversions.

14. Focus on the Customer

Providing an incredible customer experience makes your brand stand out. With so many options for gift-giving, your service can set you apart. Some ways to focus on your customers as you start a gift basket company include:

• Quick responses: Respond quickly to inquiries with customized product and delivery recommendations for their recipient.
• Special touches: Send handwritten thank you notes after purchases.
• Product guarantee: Offer satisfaction guarantees. If a recipient doesn’t love their basket, provide a replacement item or credit.
• Follow up: Follow up by email after deliveries to ensure everything meets expectations. Consider including a coupon for their next order.

Exceptional care and personal touches differentiate you from other gift basket retailers. Don’t take customers for granted. Earn their trust and appreciation with every interaction. The referrals and repeat business generated by delighted customers can propel your success.

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Start a Gift Basket Business

Becoming a Gifting Guru: The Joyful Journey of Starting Your Gift Basket Venture

GIFT BASKET BUSINESS

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How to Start a Successful Gift Basket Business The Ultimate Guide

This is an open letter to those of you who have dreamed of starting a gift basket business but never did anything about it.  Even those of you who have started one that isn’t going anywhere may find some information here that will be beneficial to you.

This isn’t a short article.  So grab your favorite beverage, sit down and start reading.

It has been said that “Dreams are Wings for the Soul.”

Dreams bring out our deepest desires and often we think of them as silly, foolish, and impossible.  But until we “own them,” they will never happen.  So if you’ve always had the dream of starting a gift basket business, pull out that dream and make it real.  BUT before you do, keep reading so that you avoid many of the mistakes that abandoned businesses lying on the roadside have made.

While dreams bring out our deepest desires, they can also bring to the surface our deepest fears.  Fears are the enemy of dreams.  Fear wants us to live a safe life that is small and isolated.   Fear tells us that we will fail.  It can also tell us that we might be successful — too successful — so we use that fear of success to keep us from taking action.

I’m telling you to put that fear aside and follow your dreams.

But I’m also telling you to: Dream Big But Start Small

I know this is the opposite of what many will tell you but this advice will save you lots of time and money and make it much more likely that you will succeed.

Is it going to be easy?  Definitely not.

It is going to take work, time, and even a bit of money.  You can spend the time and do the work or you can hire someone to do it for you.  Building a business takes money — but it can be done on a shoestring if you know how.  And I plan to help guide you through that part of it.

There are those in the industry who will tell you that the gift basket industry is booming.  They’ll say to just jump in and start designing.  Build your business and customers will be there waiting to buy.

I’m going to tell you that when I started my gift basket business over 30 years ago, the industry was very different.  Gift baskets were THE gifts for people to buy.  They were easy to sell.   It was relatively easy to start and succeed with little experience and money.  Without the Internet, selling was local and all we had to do was design fairly decent baskets and build relationships with potential customers. They even sold at holiday craft sales.

But like every good thing, that is no longer true.

The industry has evolved.  It’s true that gift baskets still sell, and always will,  but they are competing with other gift ideas.

And with the Internet, we now can expand beyond our local area and sell nationwide or even around the world.  But, as a result, we are competing with the big boys who saw the potential profit and have deeper pockets to pay for marketing than you will ever have.

In today’s world, the gift industry is highly competitive and expert knowledge of the industry is essential for success.  Hundreds of gift basket companies are started each year but only a few survive past the start-up state and fewer still are operating and flourishing after the first five years.

I’m not telling you this to discourage you but to make sure that you aren’t looking at starting a gift basket business with rose-colored glasses. The industry is much different now than it was when I started my business and now includes gift boxes.

BUT it is still possible to start and grow a successful business.

It just takes different tactics now.

Building relationships is still, and always will be, important but the Internet has opened new and different methods of marketing.  When I started, the Internet was in its infancy.  Cell phones, Facebook, Instagram and Pinterest were in the future.

This makes marketing easier now but also increases the competition and makes the need for knowledge more important than ever.  There is lots of knowledge to be found out there.  Some is good and others are scams.  And, as a beginner, you may not have the background and knowledge to determine which is which.

There are books on the web and even courses you can take.  Most are written by those who no longer operate an active gift basket business as they are pursuing a whole different business model of teaching, writing, and selling products.

I, too, have taught at national gift basket conventions, wrote for industry trade magazines, and even produced a digital magazine for the gift basket industry for 13 years.

But the difference is that I still operate a very active and successful gift basket business and national gift service today and what I share with you is what I have learned and am still learning from the trenches. You can check it out for yourself at ShopCreativeGifts.com.

As with most things, there is no absolute right way to do anything.  I’ll be sharing my knowledge with you as well as lead you to other resources that will be valuable for you as you create your own unique niche in the gift world.

I can help you learn the techniques needed to create a gift basket or a gift box that sells.  And, believe me, techniques can make a big difference between a gift that looks “put together” and one that creates a “Wow” experience.  This is true even with a budget gift basket.

So let’s get started!

Today, You Are a Business!!

Even though you may be beginning your research for your gift business, as of today, you are a business.

I can hear you now saying:  “But I don’t know anything about starting a business yet? I’m not ready for customers? How could I be in business?

You aren’t ready to open your doors yet.  That’s true.  But if you’re really serious about this, you’re on your way already.  We never learn everything we need to know.  I’m still learning and you will be too, even after you’ve been in business as long as I have.

Today, I want you to realize that the sad truth is that all the other gift  companies are the only ones who care about how long you’ve been in business.  A customer could care less.

Let me tell you how I know this to be true.

I’ve taught small business classes in my county and at national conventions and meetings.  In one of my local small business classes, we had people who were in all stages of starting and growing their business.  Some had been selling their products and services for years but the businesses just weren’t working.  There was one student, however, who had a unique idea — making and selling ukuleles.  Now I live in the mountains of northern Arizona — not too far from the Grand Canyon.  Definitely not a place you think of for ukuleles.

But this guy’s mother had married a Hawaiian who make the instruments, played them, and taught lessons.  He wanted to pass the skills that he had learned down to his step-son who could continue the tradition.  My student immersed himself in everything he could learn about ukuleles as well as about starting and operating a business.

He considered himself to be in the ukulele business from the very beginning.

He didn’t wait until he knew everything about the instrument or even everything about business.  He didn’t just sit and wait to find customers in this unlikely area of the country.  He became pro-active.  He found groups in town who were interested in the Hawaiian culture or just liked music.  He talked about what he was doing with everyone he knew and even those he didn’t know who would listen.  He showed them how easy it would be to learn to play and was wildly enthusiastic about the ukuleles he could make for them.

He entered a competition for a grant for new start-up businesses and won.

Within six months, he had a new business that was on its way and many of the other business owners in town, who focused on how long they had been in business in their marketing, were lining up to buy a ukulele and learn how to play it.

He was in business before he ever opened his doors.  Before he quit his day job.

He looked in the mirror and saw himself not as a man planning a business but the man in the mirror was in business.

He discovered that it is not how long you are in business. It is what your business can do for others.

So, as of today, look in the mirror and see yourself as a person who is a business.

Now, let’s look at some of the ins and outs of running a business.  These are the things that will determine whether you want to go further and develop that business or forget about it for now.

Running a Business

Many years ago, I took a writing class from author Ted Schwarz.  One of the things he said was, “Today you are a professional writer.  Think of yourself as one.  Act like you are one.  When you send out a query letter, say that you are one.  And you will be one.”

And, that is what I am going to say to you today.   Think of yourself as a business owner.  Act like you are one.  Believe that you are one.  And you will be one.

Now that you are a business owner, there are a few things that you should realize before you proceed in developing that business that is still in your head.

Think about them and decide if growing a business is something that you really want to proceed with or if you want to put that dream back on the shelf and take off your business owner hat.

• A lot of gift basket businesses fail Unfortunately the stats don’t lie. Most gift businesses don’t last past the first year and even fewer make it to the five-year mark.  Making it to twenty years is even rarer.
• You may be slow seeing Profits  This is not a business where “if you build it, they will come.”  Profits come with hard work and lots of marketing.  I saw a profit the first year that I was in business, but remember I had created and sold other successful businesses in the past.
• There’s no safety net Unless you have savings or a spouse that earns a good income or you continue working while growing your business, there aren’t a lot of safety nets should your business fail.  This is why so many start their business part-time and from home rather than dive deep into it from the beginning.  Consider what the results would be for your own personal life should you not be able to make this business work.
• It costs money There has been a lot written about starting a gift business with no money.  It’s true that if you operate it as a home based business, already have the knowledge to know how to start and run a successful business, and don’t make any spending mistakes, you can start a gift  business with less money than many many other businesses.  But let’s face it.  It does cost money to make money.  I started my own business with a loan to myself for $5,000 but I already had a computer and  printer, and had started and sold other successful businesses.  You can start a business with even less than what I did, and I will be giving you some tips about running your business on a shoestring.  But you will have to be more creative, more resourceful, and much more careful with every dollar that you invest in your business.
• Running a business can be stressful Being your own boss has advantages but it also can be stressful.  You will have to make decisions that can affect your bottom line and there will be months when it will be hard to show a profit.  If you are someone who is simply not made for that kind of pressure, a regular job may be a better bet for you.

It’s not all negative.  There are many positive things about owning your own gift business. Your hours spent being creative and all your hard work will be going directly into an asset that you own.  And the profits will be going into your bank account instead of someone else’s pocket.   There are other benefits as well:

• You can set your own hours You will no longer have to punch a time clock.  As long as you meet the needs of your customers and your business, you can work at whatever time works best for you.  Some parents of small children like this because they can work around their children’s schedule.  You can work late at night if that suits you better than early mornings.
• You’re much more flexible Just like setting your own hours, you’ll have more freedom to pick up the kids from school, go to the gym or run some errands. You need to still work the hours, but it often doesn’t matter when you work as long as you are meeting the needs of customers.  Cell phones make it easier for you to respond to customers no matter where you are.  When I started my business, it was before the age of even car phones and pagers.  If I wasn’t in, my customers could only reach an answering machine.
• You don’t have to deal with  office politics There is lots of stress dealing with the drama of a job working for someone else.  This is your office and the only politics are those that you wish to create for yourself.
• There is a potential for earning a lot of money The potential is there but it is not a guarantee.  There are those who have grown their business into a high-earning one while there are others who prefer to grow it slowly without dealing with employees and the stress of operating a large business. And then, of course, there are those who never make it.

As with anything in life, there are pros and cons.  The important thing is to look at both and decide if this is for you instead of going into it blindly.

Are you ready to take that step and say, “I am a gift  business.”  If so, keep reading but also start doing.

Facebook groups are a good place to begin asking your questions and getting answers.  But even then, be aware that your business and your area may be different than someone else’s.  We have a Facebook group that I invite you to join at GiftBasketNetwork Group.

You’ll find people just like you who are starting their business or even thinking about it as well as many of us who have been successful gift business owners for many years.  Giving and sharing information with each other is the very best way to make friends in this industry that you are becoming a part of.

Once you get your business started, another helpful group is the G ift Basket Resell Shop where  company owners post merchandise that they no longer need for sale.  You can sometimes find good bargains there.

The Pros and Cons of a Gift Basket Business

I realize now that many of the ideas and reasons for starting my new business were unrealistic.  There was much that I didn’t know or even think to expect.  As I said earlier, I don’t intend to whitewash this business.  It can be a lot of fun and there are lots of pros for it.  Likewise, there are negative aspects which should be considered.

The Pros and Cons

I’m going to address this as if you are planning to be a homebased business which is realistically the best way to go.  We’ll discuss the pros and cons of homebased versus storefront later.  But, as a homebased business, you’ll save a lot of overhead that a storefront will have.

One of the advantages of this business is that you can set your own schedule and plan your time around other things that you would normally be doing.  I can dry the clothes or cook dinner while making gift baskets.

The gift basket business allows me to juggle my time so that I can spend time with my family and make the baskets at night or on the weekend.  This can also be a disadvantage as children, spouses, and housework can be equally demanding.

Unless you have a large basement or other area that can contain a growing business, be prepared for the growing business to take over your house.

You may begin in an extra bedroom or in a corner of your house, but if you are successful, it will expand like a balloon and you’ll find that you have baskets, inventory, ribbons and paperwork everywhere.  Your bathtub will become the place to store finished baskets.  Your dining room table will no longer be useable or even visible.

One very successful gift basket company owner began in her laundry room, graduated to the garage, expanded to an add-on workshop, and is now operating out of a shared retail space.

My husband and I live in a large house with about 2400 square feet.  Fortunately, the children are grown and no longer living here.  I began my business in one of four bedrooms.  My business now occupies two bedrooms (a third one is sometimes used to store finished baskets), our 15 x 22 foot living room, the garage, and two outside storage areas.  I also used to rent a small retail space – first in an antique mall, then in a florist, later in a gift store and now no longer rent retail space.

Your business will take over your life.  As a true entrepreneur, your business will consume almost every waking moment as well as your dreams.  You’ll no longer shop for clothes or gifts for others.  You’ll find yourself looking at things in a store very differently.

As you wander through a store, you’ll suddenly see a colander as a container for a pasta basket, a bait bucket for a fishing basket, and a flower pot for a candy bouquet.

Silk flowers are no longer for the dining room table but are purchased for enhancements for that springtime gift basket or the sunflower summer one.  The child’s wagon becomes a “Welcome Wagon” for a housewarming gift or a container for a new baby gift.

You’ll wake up in the middle of the night with an idea (better write it down before you forget it!)

You’ve probably heard or even read that you can make lots of money in this business.  That’s one of those sugar-coated truths.  You can make a lot of money in this business BUT it doesn’t happen overnight and it doesn’t come easily.  It takes a lot of work, a great deal of knowledge, strong business and time management skills, and even luck.

Many spend the first few years without ever taking a penny out of the business.  All of the profits are plowed back into the marketing, inventory, advertising and more.  If you are looking at the gift basket business as a “get rich quick” business, forget it.  Keep your fulltime job and learn how to invest wisely.  You’ll end up a lot richer.

Most of us in the gift business are here because we love it.  We wouldn’t be happy doing anything else and we are willing to work hard to make it work.  Many gift basket company owners work at another job in order to support this business until it takes off – and this can take years.  It’s the kind of commitment that is hard to understand.  It’s the magic of he entrepreneur.

One misconception that many creative beginners in this business have is that all they need to succeed is to be able to make a beautiful gift basket.  Some even think that all they have to do is buy a bunch of similar products, put them in a basket or box and call it done.

Creativity is important, of course.  You probably wouldn’t even be considering the gift basket business if you weren’t somewhat creative.  But it takes much more than that to succeed in this business.  Making the gift basket is only a minor part of what is essential if your business is going to blossom and grow.

I had never even made a gift basket before starting this business.  This is a skill that can be learned.  Other skills can be learned as well but you should be aware that they will be needed if you hope to grow this business.  Marketing, managing time wisely, networking, advertising, accounting, computer, graphics and internet knowledge are all valuable assets to have.

Don’t be discouraged, however, if you don’t have all these skills.  They can be farmed out to others or even acquired.  As an employee or mother or housewife or whatever station of life you happen to be in, you probably have many of these skills without even being aware of them.

Attitude and patience are very important in this business as well.  Everything will not always be sunny.  You have to be able to take disappointment in stride and bounce back.  There will be grumpy customers and perhaps your family and friends will not always be supportive.  You have to believe in yourself and your ability to succeed.

I mentioned earlier that you can make a lot of money in this business.  Oftentimes there are tradeoffs, however.  That big mega order for 200 baskets that have to be shipped out in one week may require long back-breaking hours to get it out.

Many of us have put in all-night stints to make sure our customers were not disappointed.  I haven’t had a Christmas tree (or even been able to see my living room) since the first year I began my business.  That’s not all bad though.

I don’t have to cook Christmas dinner as we celebrate at my daughter’s homes.  Christmas cards are completed either before December or by my husband.  Any cookies or holiday pastries fill the freezer before Thanksgiving or they don’t get made.  Since I don’t have a young family, this is not much of a drawback for me, but it could be a problem for some of you.

Pros and cons. . . there are many on both sides of the slate.  But this is true of any kind of business.

Take a long deep look at yourself and if you still want to own your own business while having fun (most of the time), then read on.  This may be just the business for you.  It was for me 30 years ago and still is!

If you still have that dream, let’s continue!

Every business needs a good foundation.  Built on an unstable one, it will surely fail.  And like building a house, building a business requires a plan.  This is the perfect time to build that plan and to avoid the alligators in the gift business swamp.

My suggestions to you are this:

Regardless of where you look, there are gifts galore.    In the stores.  At craft sales.  Online.  Look at everything that is available.  Look at what is selling.  Look at gifts and the gift baskets that you find with new eyes.  Look at what is missing.  Look at what you can do different.  Look at how you can be unique.  Make notes and use them as you create your plan.

Remember that I said earlier:  Dream Big but Start Small.

This is what I meant by that.  Don’t start your business by planning to be everything for everybody.  That is one of the quickest and most expensive ways to fail.

Start with One Specific Niche

Of course, food gift baskets are always popular and will most likely be a part of most niches that you choose.  But think deeper than that.

Choose a niche (or market) that you know something about or that you see a need for in your local community.  This way, you will save money on inventory and marketing.

As an example, when I started my business, I was a Realtor.  My customers loved the closing gift baskets that I made for them.  Looking back at them now, they were pretty pathetic compared with what I can create now.

But I decided that making gift baskets was much more fun than the grind of showing homes and closing sales.  And, best of all, I had a husband who made a good income so I wasn’t dependent on the money I made even though I was a multi-million-dollar producer.  So, I started a side gig — selling closing gift baskets to the other Realtors that I knew.  The business evolved from that to what it is today.

I have no idea why you are considering starting a gift basket business.  Perhaps you are a mom who wants to do something to make some money while staying home with the kids.  Or you may just love designing and being creative.  Perhaps you’ve made a few baskets and others have told you that you should start a business and sell them.  Maybe you’re tired of the 9 to 5, and want a side gig that will possibly grow enough to allow you to quit your day job and have a full-time business.

Whatever your reason, I suggest that you look deeply inside yourself.  Take the time to sit down and brainstorm.  Write your thoughts down or you are sure to forget them.

• Think about what you know, what you are good at, and what you see a need for.
• Look at different niches and decide which one appeals to you the most.
• Think about things such as whether you are really interested in that area of the industry and whether it is evergreen — when means that the gifts will sell throughout the year and not just at one time of year.
• Think about who your potential customers will be and how you will reach them.
• Who will be your competition?  Of course, florists is the first we think of.  But any company that sells any kinds of gifts — and not just gift baskets — will be competing with you for that customer’s dollars.

So what do I mean by niches. 

There are many of them out there.  If you are a mom with young kids, gifts for babies or kids is a niche to consider.  Look at the gift basket websites and scroll through the “categories” of gifts and you will find many, many ideas.  There are gifts for men, for women, college students and even for grandparents and/or senior citizens.  You could focus on special occasion gifts or be even more specific by choosing birthday gifts, get well gifts, sympathy gifts, etc.

You may want to specialize in corporate and business gifts.  This is where the money is in this industry.   I began with Realtors which is still a good market.

But there are others as well.  How about Financial (planners, mortgage brokers, banks, etc)?  Or medical or property managers? Here is another article that you may find helpful about choosing your gift basket niches.

Look around your local area and see where there may be a need.  If you know people in the industry area that you are considering, talk to them.  Take one of them to lunch or coffee and find out what they need, what price ranges, and the types of gifts that would help them market their own business.

I’m not going to suggest that you spend any money right now and when I do, it will be what I have found to be the most economical ways to build your business.

To help push you over the edge and get moving on laying that foundation, I have a free e-book for you.  The first one is called What I Wish I Had Known When Starting my Gift Business.   You can download it here.

By this time, you probably have  more questions than answers and your excitement is being replaced by overwhelm.  But, even though at this very moment, you may feel like giving up on the idea, you know that you really want to make this dream come true.

Many people start a business while neglecting some the foundational steps that will make sure the business succeeds. Planning where you want to go and how you will get there will make the difference between success and failure.

Read this article about Planning Your Gift Basket Business before you go any further. This article will lead you to a very basic way to plan your business at this point in time.  You really don’t need a long detailed business plan now or even later unless you are going to take it to a bank for a loan.

Then come back here and let’s continue.

As you go through the process, if  you feel you need some feedback, feel free to ask questions in the comments below and I will answer them.  Or if you don’t want to share what you are thinking about, you can always email me at [email protected].

I will be taking you through the various steps and things that you need to consider and do as you start your business in future articles that I will link to on this page.  So bookmark the page and come back often.

My advice to you is to Read, Read, Read.  When you join the Facebook group, scan down and read through the old posts that have been made.  You’ll find that others have asked many of the same questions that you have and have shared information and comments that you have never thought of.

Remember that It Is Never Too Late to Be What You Want to Be!  So get started today.

Your friend and mentor,

   Joyce Reid

Keep on Learning

The Biggest Mistakes Made by Gift Basket Entrepreneurs When Starting Their Business

Avoid the Alligators in the Gift Business Swamp

Money and finances.

Is a Gift Basket Business Profitable?

The Zero Cost Business Startup Myth

Financial Steps for Starting Your Business

Stretching Your Inventory Dollar

Sales and Marketing

Why Are You in Business?

Marketing Your Business

Does Your Business Need a Website?

Plan Your Blog From the Beginning

How to Make a Bow

How to Shrink Wrap a Gift Basket

This post may contain affiliate links. If you make a purchase through links on our site, we may earn a commission.

How to Start a Gift Basket Business [Right from Home!]

How To Start a Gift Basket Business

Starting a business can be stressful. So planning is important. If you want to know how to start a gift basket business, planning is going to be the first step. Not thinking through critical preplanning steps like market analysis (need for your product), picking the products you'll provide (and how much it will cost to provide them) and your marketing plan. How will you get the word out about your business. Having a strategy for all these pre-launch steps will set you up for success. You'll want to keep in mind as well, that you'll need to check with your local government regarding starting a business. You'll want to pick a business name and get it registered. There may well be permits to purchase. And creating a business entity for your gift basket business is great idea. Many basket business are limited liability companies (llc), but you can be a sole proprietorship too. Think about business insurance too. There are many types of insurance and your agent should discuss all these options with you to find what suits your business best. General liability insurance is important, do not skip this step. Open a business bank account just for your business. You can add your company logo to these checks to make them even more official!

Creative Types are Perfect for Starting a Gift Basket Business

Next, does this business suit your personality and skill set? Designing gift baskets can be fun and profitable! And a successful gift basket business – very lucrative. If an online job or career isn't your cup of tea and starting a home business is – this might be perfect for you. Gift-basket entrepreneurs buy gift items and baskets, use an artistic flair to package them attractively, then find creative ways to market their eye-catching creations to others. The gift basket industry has been going strong for over 20 years, and the outlook continues to be bright. When I initially wrote this article, annual sales for gift baskets totaled about $800 million in 1996, up from $700 million in 1992 according to Kathy Horak, editor of Gift Basket Review. Now annual sales exceed a billion dollars.

Are Gift Baskets Still Popular?

Gift baskets remain incredibly popular. There's a gift basket variety for almost any occasion and they can be enjoyed and shared with others. Gift baskets have become extremely personalized as well. Letting gift givers hone in on exactly what their recipient loves most. Whether it be anime or tea or popcorn. The most typical gift-basket buyers, according to the Gift Basket Review survey, are women between the ages of 35 and 49, who account for more than 76 percent of gift-basket sales. Next in line are corporate customers, who account for approximately 20 percent of sales.

Can I Make Money Selling Gift Baskets?

A survey by the magazine reveals the majority of American gift basket designers in business at least one year boast annual sales of $50,000 or more; approximately 30 percent enjoy sales of at least $100,000 annually. So the potential for making money (see money making program reviews on this page ) with a creative type home business like this – is indeed there.

Because prices for gift baskets run anywhere from $15 to $1,000, customers tend to come from the moderate to upper-middle income levels. Despite the baskets' widespread appeal, running a successful gift basket business can pose a few challenges.

A general rule of thumb is to charge three times your labor costs. So if a basket cost you $22 in time, labor and products — you should charge $66 retail.

“This is an incredibly competitive business,” says Jo Masterson, owner of Mountain View Gift Baskets in Redmond, Washington. “The main thing that surprised me when I entered this industry five years ago was the amount of competition that's out there. In my area, for instance, we have more than two pages' worth of gift basket provider listings in the local telephone book, and there's another gift-basket shop just three blocks down the street from mine.” Other gift basket services aren't your only competitors. Masterson notes that florists offer similar convenience and prices and target the same market. Masterson has succeeded in this competitive environment by focusing her marketing efforts on corporate rather than individual clients.

“When I started out as a gift basket business owner, I targeted my offerings to individuals rather than to businesses, because that's who I already knew. But my intention from the beginning was to gradually shift my focus to the corporate market,” Masterson explains. “That's because a company that uses your service regularly tends to place five or six gift basket orders a month, whereas most individuals order only one or two times a year. In short, for the same amount of marketing and physical effort, you generally get a bigger return with the corporate market.” This doesn't mean, however, that Masterson turns her back on individuals. “Today, I sell about 20 percent to 25 percent of my items to individuals,” she says, “many of whom learn of my business through the workplace.”

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Think of all the holidays or occasions that gift baskets can be sent for:

*…and so many more!

Valentine’s Day Weddings Father’s Day Condolence/Sympathy Easter Hostess/Host gift Going Away Divorce Celebration (Yep… some people are thrilled to celebrate this.) Christmas Halloween Graduation – both HS and College Thanksgiving Job promotion New home Adoption Thank you Mother’s Day Get well Baby shower New Business Opening Birthday Hanukkah Bridal shower Anniversary

Making Gift Basket Making Work

Anyone operating a gift basket business should be prepared to spend much of the holiday season working long hours, especially during the weeks before winter holidays. “The demand for our baskets is steady all year long, but it's during the last few months of the year when things really heat up and we work very, very hard,” Nichols says. Still, operating a gift basket service offers a variety of distinct advantages. The market for gift baskets is sizable, with repeat business being not the exception, but the rule. Start-up costs can be as low as $3,000.

It's possible to make substantial profits running this business part-time, as Masterson did. “I ran this as a part-time home-based business for my first two years and had some success that way, but once I realized I really enjoyed the gift-basket business, I decided I needed to move things up a notch,” Masterson says. “So I quit my day job as a nurse and moved into a retail spot with a showroom and a warehouse. That definitely took the business to a whole different level, converting it from a hobby into a full-time `real job.' ” Sales also reached a new level: Mountain View Gift Baskets brought in sales of more than $100,000 back in 1997! For gift-basket entrepreneurs, the rewards are more than financial.

“Being creative, seeing your visions come to fruition, and [seeing] the responses of [people] who receive your baskets–that makes all the difference,” Nichols says. “When you get a call from someone who tells you how happy one of your creations made them, it just makes you feel so darn good.”

Obviously today – a bigger monetary investment is involved, but the profits are higher as well. And gift baskets have so many themes now. With this industry growing tremendously – even in a tough economy – it seems a good business venture if you have a solid business plan, the right creative talent and are ambitious.

Helpful Gift Basket Business Resources

For More Information Contact the Gift Association of America, 612 W. Broad St., Bethlehem, PA 18018, (610) 861-9445. Subscribe to Gift Basket Review ($29.95 for a one-year subscription), Festivities Publications Inc., 815 Haines St., Jacksonville, FL 32206, (800) 729-6338.

How to Start a Gift Basket Business, Entrepreneur.com

Start Your Own Gift Basket Business, Free Mini Course

Learn to Make Candy Bouquet, Edible Crafts for Kids, Fruit & Veggie Creations & MORE, ebook

There are also some direct sales companies that allow you to start your own gift basket business with less risk and some mentoring. Please feel free to look in the direct sales company directory for some of these companies. I know just off the top of my head that La Bella baskets has an opportunity with baskets.

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Initial Outfitters Home Biz • Gifts & Crafts

Good and interesting business. Thanks for sharing.

I’m just beginning to build my web site for my gift basket business. After reading your review it looks like I have some serious work to do. As Jo mention earlier about first starting with individual clients, which was the same thing that I had in mind. But it looks like If I want to stay afloat in this business that’s where I’ll start along with my other targets.

My wife and I are planning on starting a gift basket business and where we live there are a lot of resources to use and with my creative ideas I think we will be successful.

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How to Write a Business Plan for Gift Baskets

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Writing a business plan for a gift basket business requires attention to detail, accurate research and a thorough understanding of the purpose of business plans. Settling important issues before you open, such as organization type and purpose, will help guide you through the obstacles and challenges that await a new business. Start your gift basket business off on the right foot by planning early for an array of possibilities, outcomes and challenges.

Conduct extensive research. Focus on investigating gift basket industry trends. Identify potential niche and target markets, such as private clients and corporations. Investigate local and regional gift basket businesses. Take special note of the variety of their offerings, pricing and added services, such as delivery and payment options. Gather pricing information from wholesalers and suppliers of gift basket must-haves, such as containers, candy, tissue paper and shrink wrap. Use the information you collect to help assemble your business plan.

Prepare a full description of your business. This section should contain information such as a company overview and mission statement. Summarize important aspects of your business by completing an executive summary. This should provide a well-rounded synopsis of products, services, financial goals and marketing efforts. Complete this after drafting the rest of the business plan if that works better for you.

Complete a market analysis section. Provide a detailed analysis of your marketing ideas and goals. Identify your target market and provide details on plans to reach out to the demographic contained within your target market. Include information pertaining to what makes your gift basket business unique. Identify gift basket trends, such as cookie and candy bouquets.

List management details. Include information on ownership and organization type, such as sole proprietorship and general partnership. Organizing a gift basket business as a sole proprietorship can help defray the costs associated with traditional retail spaces by starting with a home business. Detail the qualifications and duties of all business owners.

Prepare a detailed financial analysis. Forecast sales to the best of your ability. This includes how many gift baskets you expect to sell at each price point. Prepare financial statements, including an income statement, cash flow statement and balance sheet. Seek help preparing financial statements from an accountant or visit the U.S. Small Business Administration for examples and additional help.

Combine all the information to complete your business plan. Organize your business plan with the business overview, executive summary, marketing information and management overview at the beginning. Follow with a section detailing sales forecasts and provide financial statements. Attach any supporting documentation, such as business license and permit information.

• U.S. Small Business Administration

Nicole Long is a freelance writer based in Cincinnati, Ohio. With experience in management and customer service, business is a primary focus of her writing. Long also has education and experience in the fields of sports medicine, first aid and coaching. She earned her Bachelor of Arts degree in economics from the University of Cincinnati.

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Three Things to Know Before Writing a Business Plan

Are you ready to start your gift basket or gift box business? If so, you need written guidance. Here are three things to know before writing a business plan.

A standard recommendation

If you meet with an advisor within any organization that provides guidance to start your gift basket business, you will be told one thing:

You need to write a business plan.

Organizing your ideas in a written format is an important part of starting your business . It’s not as glamorous as designing, but if you want to sell your designs, a plan is the first start.

Why is a written plan a requirement?

A written plan isn’t a requirement. However, a plan that you organize on paper or computer is a guide to assess the steps to take your business from dream to reality.

In life, you possibly write a plan for buying groceries at the supermarket. You might consult YouTube to learn how to install some type of equipment or change the toner in a printer. Why not write a plan for your business success?

When you first decide that you’ll start a gift basket or gift box business, ideas and questions begin to swirl through your head. Questions such as:

• Where will I buy products?
• Who will buy from me?
• How much can I make?

These questions and more are answered in your plan after careful thought and research. Written or typed documentation is important to “see” results before you take action. It helps you:

• Not overlook simple and complex options
• Determine design styles before buying inventory
• Sidestep problems that result in wasted money

When you get everything out of your head and onto paper, the process of starting or growing your business becomes clear. That’s what separates good designers from great business owners.

What are the components of such a plan?

The sections you include depend on what’s most important. Some areas you might focus on are:

• Workspace location
• Inventory sources
• Who will buy (target market)
• Competitive sellers

There may be more to add according to your location and other factors.

Chapter 2 of the book, How to Start a Home-Based Gift Basket Business , provides a 26-page example of a business plan. You can include all of the components or document the parts you need most.

How long does planning take?

A business plan can take weeks or even months to complete. When done it’s a document to be updated as often as you wish due to changes about any part of your planning.

Try your best to not rush the process. Write or type your ideas as the information comes to mind. Also, understand that there’s no order to writing your plan. For instance, looking at the above plan sections, you can document marketing before starting the inventory section.

Start with the area that’s easiest, the area that you’re confident about writing first.

You’ll find more details to write your gift basket business plan in the podcast, How to Create Your Business Plan , available in the audio below.

What part of your business plan do you consider the easiest to write?

These 10 Steps Prepare You for New Year Success

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Gift Shop Business Plan

Start your own gift shop business plan

Regali Luxuri

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Bensai Halstadt and Kaethe Villanova are the principals of Regali Luxuri. Regali Luxuri is a specialty gift boutique located in the enterprising warehouse district of west midtown in Treschicburg. We specialize in an assortment of high-quality merchandise ranging from customized business cards and greeting cards to personalized apparel and home accents. Regali Luxuri caters to middle-to-upper class and affluent clientele. Our company image exemplifies what customers are seeking in home accents and gifts which is a “Modern & Urban Life Style” look and feel. What differentiates our company from other specialty retail shops are the printing services we offer, our “one-of-a-kind” product line and a number of exclusive, proprietary products we designed ourselves.

Before Regali Luxuri’s Grand Opening we will have established a company website. In year one, Regali Luxuri plans to break-even and in year two, we plan to generate a moderate profit. Some future growth plans for Regali Luxuri include: physically expanding the location to include the 2nd level of our live/work unit; broadening our unique product line; hiring individuals to design for our proprietary merchandise; developing and implementing e-commerce to our existing website in year three; and establishing a mail order catalog.

We incorporated our business as an “S” corporation. Over several years, we, Bensai and Kaethe, have invested our time, innumerable personal finances and research in developing and expanding our home-based business into a retail location. For the opening of the retail location, we each contributed an equity investment. Even though we are not well versed in the retail industry, Kaethe does have five years of retail and accounting experience and we have both have taken entrepreneurial and managerial classes through the local University SBDC (small business development center). Our experience and continuous education aid our efforts in training future employees and managing daily operations.

1.1 Objectives

• Generate total sales revenue to establish a profit at the end of year one.
• Implement e-commerce capabilities to existing company website in year three.
• Establish an annual growth rate of approximately 20% in year three.
• Maintain a direct cost of sales of 45% or less.
• Establish 50% of our merchandise as proprietary products in year two.
• Establish our company as a premier “Brand Recognized” name throughout the community in year one.

1.2 Mission

Regali Luxuri is a specialty cards, gifts and apparel boutique that specializes in “one-of-a-kind” merchandise not commonly found in the larger retail market. We are dedicated to providing customers exceptional customer service in a visibly relaxing and engaging shopping environment. Our mission is to provide customers with unique, high-quality merchandise at affordable prices.

1.3 Keys to Success

• Acquire and personally design a product line of “one-of-kind” handcrafted and unique products.
• Provide customized products and services that are “tailor-made” to each customer’s personal style.
• Establish a loyal customer following by offering seasonal promotions / discounts, distributing direct mail postcards, offering quality merchandise at affordable prices, and providing a visibly inviting and comfortable shopping environment.
• Establish a “Brand Identity” that personifies high-quality, gift giving merchandise and outstanding customer service.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Regali Luxuri is a privately owned specialty gift boutique located in the community of Treschicburg. The principal owners are Bensai Halstadt and Kaethe Villanova. Regali Luxuri specializes in a variety of unique merchandise ranging from specialty cards and personalized printing services to specialty handcrafted gifts and customized apparel.

What started out as a hobby for us soon evolved into a promising business venture. After meeting through a mutual friend we realized that we shared interests and a similar hobby. When Kaethe Villanova purchased a personal computer we began designing greeting cards, custom T-shirts and business cards for loved ones, free of charge. We used our own money to produce these products. Family and friends soon became very interested in actually purchasing these items. After a while we had built a clientele base that eventually branched out to several cities by word-of-mouth.

Over the years, we have invested our time and money to conduct the necessary primary market research by marketing new merchandise to the public which resulted in tremendous interest and responses.

Three years ago we relocated to Treschicburg where another clientele base was established. By testing our products, we realized that our target market consisted primarily of women; of ages ranging from 25 to 55; Business Entrepreneurs and Business Professionals. Next we started visualizing the possibility of having more than just a home-based business but perhaps a store front. That possibility didn’t culminate until Bensai Halstadt located and secured space in a newly developed Luxury Residential/Retail Community in west midtown in January of last year. Twelve of the residential lofts apartments are 2-level live/work space units where tenants who maintain home-based businesses could utilize the space as their store front. It was more than what they had imagined. Although both owners have diverse backgrounds, Bensai Halstadt, a design engineer, and Kaethe Villanova, a surgical technologist, both are very creative, crafty and ambitious.

Regali Luxuri is located at 1234 Greenfern Boulevard, in the warehouse district of west midtown in Treschicburg. The area is in its beginning stages of gentrification. The gift shop is located in a newly developed Residential/Retail Community named Wensleydale. There are approximately 12 live/work space units that are dedicated to tenants/entrepreneurs and two sizeable retail spaces available for more established businesses. The two-level unit that the owners occupy has a total square footage of 1,800 with the lower level store front space occupying 800 square feet. The owners are leasing the total space at $1,610 per month.

Of the 12 live/work store fronts, over half have been occupied and are fully operating. These businesses include: a convenience/beer and wine store; a dry cleaners; a hospice; a children’s story-book store; a music production company; and a spa. What is sure to increase visibility and business traffic to the area is the opening of an established upscale restaurant in early fall which will occupy one of the larger retail spaces.

Regali Luxuri is approximately 15 minutes from the Treschicburg Airport and is less than 10 minutes away from the intesection of the two Interstate Highways. Local street access is convenient. Ample parking is available to prospective customers along with other shopping conveniences. The shop is also within 5-10 miles of several universities.

2.1 Company Ownership

Regali Luxuri is owned and operated by Bensai Halstadt and Kaethe Villanova who are equally involved in the operation and management of the company. In August of last year, the business became incorporated and is structured as a privately owned “S” Corporation.

2.2 Start-up Summary

These figures are based on monthly and start-up expenses needed to open and functionally operate the gift store. The capital needed will come from both owner’s personal finances.

Purchase of an additional computer, POS system, additional high-quality printing equipment and software is allowed by the IRS as a Start-up Expense instead of as Long-term assets.

Long-term assets include a larger multi-function fabric press or use in customizing garments.

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Other Current Assets include the computer, supplies, and inventory the owners had accumulated while pursuing this business as a hobby.

Products and Services

Ragali Luxuri offers an ecclectic ensemble of specialty cards, gifts, and home accents designed to fit the client’s personal style. Our specialty shop also incorporates customized printing services as well as exclusive proprietary products. We have assembled an array of local and national vendors along with skillful craftsmen and business entrepreneurs who will showcase a unique product line that will embody Regali Luxuri’s company image of a “Modern & Urban Lifestyle.”

PRODUCT DESCRIPTION

The following is an overview of our product line by category:

Printing Products: The printing products are just an extension of Regali Luxuri’s visually artistic and creative ideas that we offer clients to engage in. Price-points in this category range from $5 – $250+.

• Business cards
• 12-month calendars
• Special occasion cards: Greeting cards, wedding invitations, etc.
• Photo restoration/photo enlargements
• 2-year pocket planners
• Promotional materials

Customized Apparel: Our offering of personalizing a client’s favorite garment to reflect a special occasion or individual style will surely enhance their wardrobe. We use graphic imagery along with decorative studs and rhinestones to create a personal style. Price-points in this category range from $20 – $150.

• Sweat shirts
• Denim apparel: Jackets, slacks, jump suits, and shirts

Home Accessories: Our product line of home accessories is a collection of modern accents that customers can certainly connect with. Price-points in this category range from $5 – $100.

• Bamboo garden vase collection
• Decorative and scented candles
• Framed artwork
• Shadow boxes
• Wine accessories
• Tabletop Accents: Coffee mugs, place mats, platters and coasters

Personal Care Accents: This category is very popular with customers when it comes to gift giving or personal use. Price-points in this category range from $6 – $15.

• Scented body lotion
• Scented bath salt
• Facial and body soaps
• Aromatherapy products

Pet Products: This trendy category will be very popular with potential customers and convenient for 80% of residential tenants in the complex who own a pet. Price-points in this category range from $5 – $25.

• Gourmet snacks
• Overnight traveling bags
• Bathing products

Specialty Gifts: This gift giving merchandise line will allow customers to express their personal sentiments for special occasions and the gift recipient. Price-points in this category range from $10 – $250.

• Organza sheer gift bags
• Handcrafted jewelry
• Designer cigar handbags
• Baby products
• Handcrafted Afro-centric dolls
• Customized men’s and women’s gift sets
• Children’s interests books
• Housewarming gifts

SERVICE DESCRIPTION

To distinguish ourselves from surrounding specialty retailers, we provide numerous customized services that offer customers a satisfying and unique shopping experience.

Plastic Gift Cards: Gift cards are available to customers when purchasing for gift recipients may become a little difficult. We offer $25 gift cards.

Customization Services: To further enhance the customer’s shopping experience, we provide customers with the option of customizing almost any item of our product line. Whether it is printing products, specialty gifts, or home accessories customers can choose to have certain items customized to fit their individual decorating style or personal needs.

V.I.P. Customer Appreciation: In recognition of our “loyal” customers, we will provide them with V.I.P. cards. V.I.P. card holders will receive a special discount on all merchandise for a specified time period.

Graphic Design/Photography Services: These services are provided to complement the personalization of our printing services and products. Equipment available to support these services includes:

Corporate Gift Program: Regali Luxuri would like to branch out and explore business-to-business ventures. We will offer a 15% discount to businesses that purchase for their employees.

ADVERTISING LITERATURE  

This will be distributed to existing clients via direct mail and available to new customers as they browse through the boutique. Regali Luxuri will utilize our own printing capabilities to publish business cards, brochures and promotional postcards. Bensai Halstadt is a graphic design enthusiast who is proficient in desktop publishing and printing professional advertisements. This approach will definitely reduce our monthly advertising costs.

Product pricing structures will be based on cost-plus and competitive pricing. Cost-plus pricing is basing the price on the basis of all costs plus a mark-up to cover overhead costs. Our mark-up cost is 33%. All orders will require a 50% deposit upon receiving final shipment. For bulk orders, a 50% deposit is required and a 15% discount will be given to customers. There will be seasonal and periodic sales on merchandise due to the possible overstock of inventory. 

Design and Photography Service Fee Structures will be determined by the particular requirements of individual projects. Typically, compensation to Regali Luxuri includes a retainer design fee in addition to the cost plus system of billing for supplies and materials. This structure accounts for research, design time and consulting.

Future Plans

We seek to broaden Regali Luxuri’s product line by expanding the retail location to the 2nd level and show casing:

• Home Accessories: Mirrors, framed artwork, picture frames, glassware, dinnerware, flatware, throw pillows, throw blankets, and plush rugs.
• Gift Wrapping Services: This signature service will strengthen Regali Luxuri’s “brand identity” and company image.
• Men’s Gifts

Regali Luxuri also seeks to hire individuals to design exclusively for our proprietary products.

• Apparel: Crochet hats and scarves for toddlers to adults
• Baby Products: Crochet hats, booties, and throw blankets
• Soft Goods: Crochet throw pillows and throw blankets
• Printing Products: Greeting cards, calendars, obituaries

Plans of developing a mail order catalog will increase sales for Regali Luxuri.

Market Analysis Summary how to do a market analysis for your business plan.">

Many skeptics wouldn’t think in these economic times that a small business would be capable of successfully launching their business. However, the following research findings will prove that small businesses in the gift industry have a distinct advantage. While the U.S. economy has been in a recession since 2000, consumers have continuously been focused on enhancing their homes with the purchase of home accent pieces. Total sales in the gift and decorative accessories industry for 2002 were $54.3 billion, resulting in just a drop of 1 % from $54.6 billion in 2001.

“When it comes to dealing with change, small firms are at a distinct advantage. Not having the large corporate hierarchy, they can be flexible, react quickly, and readily respond. When you make a change in a big company, it’s like turning an aircraft carrier. In a small company, you’re turning a jet ski.” — Source: The Kenmarc Company, Common Sense Management, Thriving in a Recession 2002

“Although cost cutting is inevitable, marketing and product promotion are absolutely essential. The question is, How can you effectively promote your products on a smaller budget?”

4.1 Market Segmentation

Regali Luxuri target markets will consist of the following groups:

BABY BOOM GENERATION (age 35-59) is married with children; college educated; homeowner; tend to stay in their home rather than multi-family properties; household income $50,000-$75,000; and seeks spacious living.

AFFLUENT (age 30-45) are married; college educated; household income $100,000+; growing at a much faster rate than the total number of U.S. households; and currently represents more women and minorities than ever before.

GENERATION X (age 24-37) well educated; married and raising children; buying our first homes; climbing up the corporate or entrepreneurial ladder.

GENERATION Y (age 10-24, born 1977-1995) is more ethnically diverse and is experiencing tremendous growth in spending power. “They will have careers and enough disposable income to afford luxuries for themselves and our homes.” — Source: Home Accents report 2002, The Consumer Counts: Generation Y.

Market Segmentation Demographics

Regali Luxuri’s retail boutique is located in the community of Treschicburg. It encompasses a wide area of 28.7 square miles and experienced a population growth rate of 6.0% through 2005. The following demographic information will concentrate primarily within a five mile radius of our retail location.

The population (age 0-59) contained within a 5 mile radius of Regali Luxuri target market segments totals 214,675 in 2000.

Women are the primary consumers of Regali Luxuri products representing 60%. The growth rate of 6.0% is expencted to continue.

By market segments, Regali Luxuri’s customer base is represented by the following:

• 33% Baby Boomers
• 26% Affluent
• 24% Generation X
• 17% Generation Y

By race, Regali Luxuri’s market segments is represented by the following:

• 30% African American
• 10% Hispanic

The total number of households from 2000 through 2005 was projected to increase at a 7.5% growth rate for our area.

— Source: CACI Marketing Systems for 2000 Information Systems, Ourstate University

Who is Regali Luxuri’s customer?

• Influenced by a brand and reputation of the product and its seller

4.2 Service Business Analysis

The “Gift Industry” is primarily engaged in the retail sale of combined lines of gifts and novelty merchandise, souvenirs, greeting cards, holiday decorations, and miscellaneous small arts goods. These establishments are characterized by small, single unit specialty shops, each retailing a narrow line of full-priced, high-quality merchandise. The gift industry’s five product categories along with its total sales and market share are represented by the following:

— Source: 2004 Market Share Reporter (Research Alert, Dec. 6, 2002, p.5 from Unity Marketing)

The market for gifts and decorations hit $54.6 billion in 2001, only a 1% drop of $55.2 billion for 2000. In the Home Decorative Accents segment, Candles commanded the largest sales of $2 billion, while Baby and Children gifts were the top sellers in the General Gifts category with $1.8 billion.

Snap Shots of the Industry

“While the traditional furniture industry is struggling with the new fashion focus in home, the gifts industry is benefiting greatly from this trend. In the past two years, consumers spent more money on home furnishings than on clothes.”

“With this new emphasis on home decorating, consumers are not just striving to make our homes more ‘beautiful,’ rather they are seeking decorative items that can positively impact the mood and emotional climate of our home.”

“Products which have a personal, emotional link to the consumer, such as collectibles or gifts based upon licensed properties or which appeal to multiple senses, including sight, sound, scent, are in demand as consumers seek to make our homes more comfortable and comforting.”

“The future of the gifts and home accents market is positive for the next several years. A significant consumer trend that will play out in the gifts and home decorative market, as well as many other consumer product categories, will be a reaction against our increasingly technology-driven culture.”

“As our lives become more ‘virtual’ and dependent upon computers and technology, consumers will seek out gifts and decorative accents which will help ground them in the ‘real’ world.” — Source: Unity Marketing, The Gifts and Decorative Accents Report 2002: The Market, The Competitors, The Trends

4.2.1 Competition and Buying Patterns

Main Competitors

Specialty gift retailers have the ability to distinguish themselves merely by the types of products and/or services that they offer and Regali Luxuri is no exception. We have identified and conducted an in-depth analysis of three of our competitors located within a 5 mile radius. To aide in a more effective analysis, one of the owners visited all three retail stores to observe pricing structures, company image, traffic-flow, location and range of service. The analysis proved to be valuable to Regali Luxuri in identifying our competitive edge, areas of uniqueness, and marketing “niche.”

BELLA AZUL Bella Azul is an ultra chic, cutting-edge, funky fashion and lifestyle boutique that recently opened its doors in February 2003. A large percentage of their merchandise is designer fashion followed by a distinctive but narrow line of home accessories, candles, bath/body accents and jewelry. They have a personal shopping staff available to repeat customers who are interested in this service. Their target market is primarily affluent women and prices range from $20 – $1600. While walking through the store, customers become captivated by the lofty space, eclectic ambiance and hand-painted floors. Since Bella Azul is located just blocks away from Regali Luxuri, they too are experiencing slow traffic-flow due to the developing residential/commercial area. The boutique occasionally hosts special events like Wine Tasting and Fashion Shows. Hours of operation are Tuesday through Friday 11 a.m. — 7 p.m., Saturday 10 a.m. — 6 p.m. and Sunday/Monday by appointment only. Their first-year estimated annual sales were approximately $200,000.

SWOOZIES Swoozies is a more established gift shop located in the metro Treschicburg area with four retail locations. The shop closest to Regali Luxuri is located in a shopping center so there is a substantial amount of traffic-flow. The two owners of this establishment have at least 25 years of retail experience between them. They too target affluent women with an eclectic wide range of products and services. Products range from dinnerware, picture frames and journals to doll collections, pet products and custom printing. The store environment is very festive, engaging, bright and celebratory which have been effective in establishing the store’s name and image. The products are creatively displayed and showcased throughout the store to distinguish who the gifts are for, e.g. “a girl” section and “a boy” section. Swoozies is looking to expand nationally to the southeast cities like Raleigh, Huntsville, and Memphis. Their estimated annual sales for 2003 were $8 million. Hours of operation are Monday through Friday 10 a.m. — 7 p.m., Saturday 10 a.m. — 6 a.m. and Sunday 12 p.m. — 6 p.m.

Strategy and Implementation Summary

Regali Luxuri will develop effective marketing & sales strategies by focusing on the following key areas:

• Distribution channels
• Customer relations

These keys areas will reflect our existing and potential target market segments previously mentioned.

5.1 Competitive Edge

KEY COMPETITIVE STRENGTHS

• Customized Services — These “tailor-made” services offer the customer a personal connection to the product that he/she is purchasing. This type of service is not commonly offered in today’s retail marketplace.
• Printing Services — The added printing products service within the gift shop is unique for a gift shop. This will enable customers to bring in personal photographs and mementos or email digital images to create greeting cards, 12-month calendars or business cards. These types of items then become personal keep-sakes and one-of-a-kind type merchandise.
• Handmade/Handcrafted Products — The handcrafted products will be designed by owners Bensai and Kaethe as well as outside entrepreneurs. We will showcase their crafts on consignment. This will also broaden the our own product line.
• Brand Identity — The proprietary products that we design will be distinguished from other products by brand labels. Our brand name merchandise makes up 50% of our present product line. Promoting “brand recognized” merchandise connects the customers to products that represent high-quality and dedicated customer service.

KEY COMPETITIVE WEAKNESSES

• Range of Product Line — Although Regali Luxuri’s present product line is unique and high-end merchandise, the range of our products is considered small in relation to more established businesses. Yet these items are engaging and personable.
• Location of the Gift Shop — Because the area is in its developing stages of residential and commercial enterprise zones, business traffic is relatively slow. However with time, west midtown will undoubtedly generate a traffic-flow of curious residents and outside customers.

5.2 Marketing Strategy

PRICING STRATEGY

Although Regali Luxuri products are high-end and stylish, our pricing structure remains affordable and in-line with other specialty gift retailers. Our pricing structure is also based on the value the customers place on these products.

PROMOTION STRATEGY

Regali Luxuri will host several seasonal open houses offering special discounts. This promotional strategy will showcase new products and liquidate slow moving merchandise. The following illustrate the seasonal open houses:

• Spring: 15-20% discounts
• Fall: 15-20% discounts
• Summer: 15-20% discounts
• Annual Anniversary: 25% discounts

MARKETING CHANNELS

Existing customers as well as potential customers will be informed about new merchandise and savings utilizing the following marketing communications channels:

• Direct-Mail Postcards: Advertising postcards will be mailed to various local ZIP codes and to existing clientele located out of state.
• Word-of-Mouth: Networking through friends, family, and business associates is an inexpensive and effective marketing tool which Regali Luxuri utilizes to broaden our clientele base.
• Advertising Literature: Regali Luxuri will distribute our literature to various local community businesses and establishments such as restaurants, coffee shops, book stores, and universities.

5.3 Sales Strategy

Establishing a rapport and connection with the customer directly effects a business’ sales. The following methods will establish such a connection:

• Training and Customer Needs: While training sales associates, we will emphasize the importance of the customer’s needs and inform associates to be helpful and personable.
• Suggestion/Comment Box: A suggestion/comment box will be available to customers near the boutique’s entrance. This provides Regali Luxuri with direct customer feedback concerning areas of improvement or enhancements.

PRODUCTS AND MERCHANDISING

Staying abreast of product and market trends is also essential to increased sales for a business. Regali Luxuri will utilize the following methods to increase our sales:

• Gift Industry Trade Shows: Frequenting local and national trade shows will provide Regali Luxuri with most up-to-date gifting products and the customer’s buying trends.
• Subscribing to Trade Publications: This resource will also ensure that Regali Luxuri product selections are current and satisfying the customer’s needs.
• Proprietary Products: Regali Luxuri will continue to develop creative and stylish products that will continue to strengthen our brand positioning and company image.

5.3.1 Sales Forecast

For this first year we have chosen to average our cost of goods across all product lines at 42%. As we track our real costs our forcasts for subsequent years’ COGS will be adjusted. Sales forecasts show the cyclical trends of seasonal/holiday spending and post-holiday frugality. Current forecasts show decling sales in the summer months, but as the neighborhood economic/residential develpment continues, there is the possibility of more visitors/vacationers/guests/residents shopping the area, and our sales would then improve.

5.4 Milestones

The following lists important milestones for Regali Luxuri along with dates and person(s) responsible for each task.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Owners, Bensai Halstadt and Kaethe Villanova will initially manage the day-to-day operations of the boutique. Kaethe Villanova has five-years of retail and accounting experience that she has applied to the business. Both owners have also taken entrepreneurial classes through the local University SBDC (small business development center). our experience and continuous education has aided our efforts in training sales associates and managing daily operations.

Due to the area being in its beginning stages of gentrification resulting in slow business traffic, the owners have decided to initially open its doors Thursday-Saturday, 10a.m. – 7p.m. and Sunday, 10a.m. – 6p.m. They have also decided to take a minimal salary for the first year 2005, and increasing their salary each of the next two years, commenserate with their expanded operating hours. Both will continue to work to finance our business venture. Our work schedule allows us the flexibility to manage the store on the days previously mentioned. We will eventually expand our days of operation according to increased population of residential and retail establishments and increased business traffic.

The following is a structural breakdown of responsibility and decision-making:

In addition Regali Luxuri has a professional and advisory support team.

• Board of Directors – Bensai Halstadt & Kaethe Villanova
• Attorney – Greming Starke Roffman P.C.
• Accountant – Cleona Giraude
• Insurance Agent – State Farm Agency
• Banker – Riane Schmidt, Wachovia Bank
• Consultant(s) – Kudana Elderberry
• Mentors & Key Advisors – Kudana Ederberry and Shantu Mobuko

6.1 Personnel Plan

Owners Bensai and Kaethe have decided to take a minimal salary for the first year 2005, and increasing their salary each of the next two years, commenserate with their expanded operating hours. Both will continue to work to finance our business venture. If the extended hours and volume of business warrants we may hire part-time employees for the year two holiday season, or maybe not until year three.

Financial Plan investor-ready personnel plan .">

The following topics present the financials for Regali Luxuri.

7.1 Start-up Funding

Kaethe Villanova and Bensai Halstadt will each invest in Regali Luxuri. Additional start-up funding includes existing computer and printing equipment, some short-term debt in the form of credit card purchases, and a small amount of Accounts Payables owed to suppliers for inventory purchased while this operation was a hobby.

7.2 Break-even Analysis

Current projections of average monthly expenses, and an admittedly high estimated cost of goods, Regali Luxuri will need to sell mechandise and services each month, as shown below, to break even.

7.3 Projected Profit and Loss

The profit and loss figures show Regali Luxuri balances on the knife edge of profitability. The owners are aware that they may forego salaries in any given month to insure profitablity and positive cash balance.

7.4 Projected Cash Flow

The following includes Regali Luxuri Projected Cash Flow through 2007.

7.5 Projected Balance Sheet

The balance sheet for Regali Luxuri is somewhat typical of a shoe-string start up company, relying upon the passion and dedication of this founding owners. The company displays steady growth, based on conservative forecasting. Earnings and Net Worth grow and show improvement each year of the plan.

7.6 Business Ratios

The Standard Industrial Classification (SIC) Code for our industy is Gift Shops (5947.0104).  We used the report for broader category Gift, Novelty, and Souvenir shop (5947) to generate the industry profile ratios shown in the following table.

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Once the decision to start a gift basket business has been made, it is best to develop a business plan. A business plan is a written document that outlines all aspects of your business, like its development, needs, marketing, and future. The many steps involved in the creation of a business can be numerous and complicated for those who are doing so for the first time. Many business owners choose to develop a business plan to ensure that they not only follow every step that is necessary, but also to make sure that the process goes as smooth as possible.

Creating a business plan involves breaking down all of the aspects you plan to include in your company. You should be thinking about how you will have it organized, what your product is, your marketing, finances, business structure, and more. It is equal parts road map and checklist, and a crucial part of your gift basket's business towards success.

Why Have A Business Plan?

As previously stated, there are many steps involved in the creation of a business. Missing even one step, while it may not be initially, can result in problems arising that can derail your business' creation and affect its future. A business plan can do more than help you get started; it can function as a blueprint and assist you at every stage of your business as it develops.

Planning-- At the planning stage of your gift basket service, your business plan is your blueprint for the creation of your business and its early years of operation. It can, in a way, function as the foundation that you lay all other aspects on and build from. The U.S. Small Business Administration recommends that your business plan cover the next 3-5 years of your business operations and how you plan to grow during and after that time.  Going into that 3-5 year time frame with no plan, no clear idea of what you want your business' future to be, can cause your business to not have a future.

Gift basket businesses, no matter how ambitious or well thought out they are, have been known to fail without a business plan. This is usually because they fail to adequately establish any kind of plan and wing it instead.  Going into the business with minimal planning is very much like tightrope walking for the first time without a safety net. No matter what happens further down the road, the business plan that you create during the planning stage of your business will be there to catch you when you misstep.

The First Year-- In a business as massive as the gift basket industry, the first year of operation is incredibly important. It is during this time that you will first establish yourself and find your footing as a business. Many see the first year of their business as a time of trial-and-error and for learning. It is often how you handle the first year that shows if your business will make it in the years to come.

During your first year, you may find yourself falling back on your business plan during times of uncertainty or in the event of a crisis. Problems arise, sometimes without warning or precedence, and your business plan can help you navigate your way to a solution. Returning to your business plan during the first year your business is in operation is completely acceptable, and will more than likely help you stay on track.

Growth-- As time goes on, your business will grow and expand from what you originally started with. This can include growth to your customer-base, your product offerings, staff size, or general presence. It may come along slowly or quickly, and you will need to be able to adapt in either case. You should include growth projections as part of your business plan, as the Small Business Administration recommends, but be aware that they may not occur in the way you initially expect them to.

Whatever way your gift basket service grows, whether it is according to your predictions or well beyond them, it will already be included in your business plan. In cases where a business has bypassed its planned growth, modifications to its business plan have been easily made to compensate. Even if it requires multiple changes in order for it to work, your business plan will be able to guide you as your gift basket service grows.

Industry Declines-- The state of the economy can affect the survival of a business, regardless of the industry that it is a part of.  The gift basket industry has seen a decline within the last few years and was affected by the 2008 recession.  Many of the businesses that managed to survive the recession and the decline were forced to make changes in order to do so. This included what they offered and how they conducted themselves.

Just as your business plan can be modified in cases of growth, it can be done in times of distress or decline. Any changes that you need to make in order to cope with the state of the economy can be done with your original business plan as the template. Treat it as if you are taking something apart to fix it or to add a component. You can keep the original framework and most of the pieces, but some things will need to be swapped out for something newer and better.

Where Do You Begin?

As previously mentioned, there are many steps involved in the creation of a business. Figuring out where exactly is the best place to begin can be overwhelming and problematic if you do not start off with the right steps. Your business plan will be broken down into each aspect of your business, with each section covering the relevant information and your plans for that particular issue. The business plan that you create for your gift basket service should roughly cover topics such as organization, management, finances, marketing, services offered, and an overall description of your business.

Preparation often precedes the actual development of your business plan. Researching the industry, your competition, and all the requirements necessary for you to start and operate a business in your area is highly recommended.  Organize all the information you find, breaking it down into the sections you will include in your business plan. Not all of your research will translate into your business plan, as you may not include every single aspect of a gift basket service into yours.

Take your research and apply it to what it is you want to do with your business in order to create your business plan. The plan is for you, so it is best that you are the one to actually write it. It does not have to be overly complex, but it should be detailed enough to prevent you from skipping any necessary tasks and so you may be able to understand it should you need to return to it at a later point. If needed, you may use a template to write your business plan; you can search online for one you like or use one that is preinstalled in your word processing program.

A.I.M: Audience, Industry, Market

There are certain things that you should take into consideration as you make your business plan. 

As you create your business plan you need to look at what you aim to do as a gift basket service and what your A.I.M.--Audience, Industry, and Market--is. Just as understanding the driving forces and demands of gift basket services can be a crucial element to your business's success, having an understanding of elements like audience, industry, and market can also affect your success.

Audience --Your business' audience is your customer base. It encompasses those who order your baskets as well as those who receive them. Determining who your audience is and how you will reach them is one of the largest aspects of your business plan. The way you make your baskets and what you include in them will determine who your audience is. It is not necessary to decide on your audience and your product in any particular order, as you may develop an idea for your baskets before you figure out who your audience will be and vise-versa.

As you establish your audience for your business plan, it is best to take into account any changes that might affect you gift basket service in the future. People change their mind about what they like all the time, new trends develop, and what was once a best seller may be left forgotten on a shelf. Look at what you plan on offering for your gift basket service, who its audience is, and what has happened with both up until now. Take that information and implement it into your business plan to the best of your ability, leaving room for adjustments as they may be needed.

Industry-- Looking into the industry that you are planning on entering is vital to your business' survival. The connections you make with those in the business--suppliers, competition, allies, and mentors--will help determine how your service functions within your industry. Pay attention to the way the industry operates, how it changes, and the impact it can have on your business. The industry itself should be something you plan to include in your research for your business plan. While your gift basket service may be a single fish in the sea of the gift basket industry, you can still be affected by the smallest of ripples.

Your research into the industry and the inclusion of that research into your business plan can provide you with vital information. While every event in the industry will have a different effect, you can still use information from past declines and recessions to prepare your business for the next one. Research what has historically happened in your industry and what businesses have done in response. What was successful? What resulted in failure? Even if you do not include all of that information into your business plan, it may be a good idea to keep it in the event that you and your service are faced with something similar in the future.

Market-- The market your gift basket service will operate in will be noticeably smaller than the industry at large. It will include things such as the specific area you operate out of, where your audience is in that area, and who your competition is. Determining where your market is, and therefore what is within it, will be up to you. Some gift basket businesses choose to remain online only, and limit their market to the United States or local areas for the sake of shipping and delivery purposes. You do have the option of having a physical location to operate out of--something else you need to decide on for your business plan--and you can choose have the same market as an online business would or modify it to whatever you want.

Setting Up Your Business Structure

Now that you have begun the process for writing your business plan and creating your gift basket business, you need to decide on your business structure. Your business structure is the main framework for your business plan. It includes aspects relevant to the functionality of your business, like its name, licensing, legal issues, insurance, and start-up funds.

Naming Your Business

While it may seem like a small detail, the name that you choose for your business is one of the biggest decisions that you will make in this process. It's the identity that you will have within the gift basket industry. The name attached to your business will be what you build your reputation and image on. Your customers and competitors will recognize you by your name and will associate everything connected with it with you.

Choosing a name for your business can seem like the hardest part of creating your business. It can feel very final when you pick a name, as it will still be attached to you even if you change your business' name later on or leave the business entirely. The name you decide on will be on all of your marketing material, licenses and permits, and your product so it can be a big deal. Due to the pressure associated with the task, some businesses wait until they have the majority of their business structure decided on before choosing a name.

As you think about a name for your gift basket business, there are certain issues that you may want to consider :

Appearance-- The aesthetics of your name can affect how your gift basket business is marketed. Business names are incorporated into logos, on social media, and into advertisements. Things like text, color, and shape can affect how your business' name looks. Issues such as misprints or manipulation can distort the appearance of your business' name, which can cause inappropriate associations amongst your potential customers. Your name, even when plainly written, should be visually appealing and be easy to look at.

Association-- The image that your business' name invokes and its relevance to your product are something that should be high on your list of name requirements. Without knowing anything else about your business, potential customers may have to make a decision about your business based solely on its name. Choosing a name that creates a mental image of something unrelated to gift baskets or can be associated with something negative or inappropriate can lead to problems.

 A name that is too similar to another product or company can result in a loss of business. Customers may search online for your business name and come across the website of another company; they may make the mistake of thinking it is yours or associating your services with their products. Search for your potential business name online and through the U.S. Patent and Trademark Office to prevent any confusion of copyright issues that can harm your business. 

Relevance-- Your business' name, in addition to provoking an association with your product, should be relevant to the industry you are part of. Your customers should be able to look at or hear your business' name and not think that it's the name of a restaurant or clothing store. An irrelevant name for your business can cause your customers to ignore it when looking for a gift basket service, inadvertently sending them to your customers.

Licenses and Permits

In order for your business to operate and function, there are certain legal aspects that you must navigate before you get started. Any business, regardless of what it is that they offer, is required by law to obtain the correct licensing and permits. The requirements for your gift basket business' licensing will be determined by where it is that you are operating from, even if all of your business is going to be online. Different states have different requirements for business licenses, although they usually cover all aspects of your business regardless of the industry you are a part of.

As a gift basket business, you will need, at minimum, a standard business operating license. Depending on the state you are operating in, a standard licenses may not cover all aspects of your business.  Adequately researching the requirements for the state you are operating in and what they cover in terms of operation, shipping, sales, and specialty items--again, like alcohol--will help you be sure that your gift basket business is fully licensed by the time you begin.

As not all licenses are permanent, you will need to keep track of when your licenses and permits are up for renewal. This information will be included in your application for your business license and it is  your  responsibility to know when your licenses are about to expire. Including this information in your business plan--which, remember, should cover the first 3-5 years of your business operations--will allow you to stay on top of your licensing and prevent any issues from arising.

Insurance Issues

No matter the size of your gift basket service, it may be in your best interest to obtain some form of insurance for your business. Problems can arise in which you can be held liable or possibly cost you financially. Business insurance policies will provide you with coverage that will take the brunt of a problem's outcome off of you. For your gift basket business' insurance needs, you may want to consider some of the following:

Assess Risks --An insurance company will assess you for any risks that can affect your coverage and what they will be responsible for should they have you as a customer. The possible risks associated with you and your business can heavily affect whether you an insurance company will cover you, what it will cover, and what you will pay for that coverage. 

Business Owner's Policy-- You may encounter some difficulty in finding a policy that will completely cover all aspects of your business, resulting in multiple policies, possibly from multiple companies. Some insurance companies, however, will offer what is known as a Business Owner's Policy (BOP), which combines multiple coverage options at a lower cost. A BOP will cover things such as property, vehicles--useful if you plan on using your own delivery services--general liability, and interruption of business operations. While it may not cover  everything , it does cover the major risks that you may face as a gift basket business.

Revisions-- Changes in your business, such as growth, can affect your coverage and the amount of liabilities you may be prone to. Your insurance policies will not automatically update themselves as your business changes, leaving any modifications your responsibility. Regularly reviewing the insurance policies for your gift basket business and speaking with your insurance agent about any spots that are lacking can prevent issues further on.

Legal Issues

For everything that goes well for your business, there are things that can go awry. As you prepare your business, it is best to look into what potential problems there might be and what legal issues can arise. Some legal issues can be covered under your licensing and your insurance policies, as discussed above. However, this is not the case for  all  legal issues that your gift basket business may face. In designing your business structure, taking preemptive measures to ensure that you are adequately prepared for any worst case scenarios.

Liability --The biggest legal issue that you may face as a business owner is liability, or responsibility over something as determined by law. The way you design your business and how you operate it can affect your liability should something happen with your company that results in a lawsuit. The insurance policy or policies that you take out for your business may cover liability, which can save you money should occasion arise for it to be needed. Having a plan in place within your business structure for instances of liability can also help if you do not have insurance, or can handle what isn't covered by your liability insurance policy.

Classification --The structure of your business will determine your legal classification, which can affect things like your taxes and how you can be sued. Classification usually is determined by ownership, and is broken down into sole proprietorship and partnership.    Sole proprietorship simply means that there is only one owner (you) who runs the business and is responsible for it. Businesses that are sole proprietorships are usually not incorporated and are not really seen as separate from the owner. Partnerships, on the other hand, are usually incorporated businesses legally separate from the owners, which can include two or more people. Profits, debts, and taxes for the business are shared and controlled equally amongst all of its owners.

Copyright and Intellectual Property --This usually involves making sure that your business is not infringing on the property of someone else. It includes names, logos, websites, advertisements, and basket designs. As a business, it is your responsibility to ensure that your business is not violating copyright and intellectual property laws. Likewise, you should look into securing your own property and brand to prevent theft--accidental or intentional--from occurring and affecting your business.

Start-up Funds

Finances are a key part of business, whether it is operating costs, profits, or paychecks for your employees. When you begin your business, the main focus in terms of finances that you will need to think about is start-up funds. This is mostly made up of the money you will need to get your business off the ground. Start-up funds will go towards paying for the legal aspects of the business like licensing and copyrights, and for purchasing inventory and supplies.

Having start-up funds of any amount does not necessarily mean that you will begin your business on a positive note. The cost of starting your company is going to be contingent on what you want to do and how you want to do it. Some gift basket businesses have been able to start will only a few dollars while others set aside thousands. The money you put towards your gift basket business' start-up funds can come from one of three places:

Out of pocket-- To say that your start-up funds came out of your own pocket means that you are the primary source of funding. This money comes out of your bank account and is 100% yours. The biggest issue that some see with out of pocket funding is the fact that if your business fails, you completely lose all of the money put into it. You can end up in the negatives rather than back at step one, which can lead to disaster with your personal finances. However, out of pocket funding carries the biggest reward and degree of satisfaction.

Loans-- Getting a loan to finance your gift basket business' start-up isn't very common. Unless you plan on starting your business in a very extravagant manner, a lot of money is not really necessary. Some gift basket service owners, however, choose to request a loan from a family member or friend rather than a bank. If you choose to gather your start-up funds with the assistance of a loan, keep in mind that you are required to follow through with all of the loans requirements.

Fundraising --Using fundraising to gather start-up funds for your business is like asking others--strangers, family, friends, etc.--to be your investors for your business. The money is, legally, seen as a donation to you rather than a loan. It also isn't a total loss for you in the event that the business fails to take off, as you are not the source of the funding. However, those that give to fundraising efforts usually expect some evidence that their money is being used wisely. If you choose to get start-up funds through fundraising, you may want to document the process and share your progress with those who donated to you.

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