greeting card business plan pdf

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Greeting Card Business Plan Template

MAR.19, 2018

Do you want to start own greeting card business?

Are you planning to start greeting card business ? Well, if you are creative and have a passion for designing greeting cards then this is definitely the right business for you.

Greeting card business has undoubtedly a lot of market potential and a need for continuously emerging new and innovative minds. Its market can be estimated by the fact that over 7.4 billion greeting cards were sold in the United States in 2017.

The biggest benefit of starting this business is that it offers an extremely high rate of return on your investment and has the least amount of risk associated with it as compared to other businesses. The second benefit is that its market never gets down because people buy cards for various occasions, events, and festivals throughout the year.

Considering these aspects, we can say that this venture can be immensely profitable, provided that you produce quality designs and plan your business effectively.

So, before you move on to starting this business, you will have to prepare a comprehensive business plan which will establish the basis of your company’s future operations and decisions. If you are wondering how to write one then here we are providing you the business plan of a greeting card business startup named ‘KJ Cards’.

Executive Summary

2.1 the business.

KJ Cards will be a licensed American card manufacturing company located in the main commercial market of the Downtown Manhattan. The company will be owned by Kelly Janes, a passionate Graphic Designer. Janes has been associated with greeting card industry for more than 6 years and has served as the Assistant Director of Design Department in Hallmark Cards for the last 3 years.

For the startup, the company will initially procure office furniture including work desks, cabinets, tables, chairs; computers and related devices including printers and scanners; ten card printers; necessary software and other stationery products.

2.2 Management

The success of a startup heavily depends on its staff and management that’s why Janes planned it before starting her greeting card company . The main management of the company will comprise of sales executives, graphic artists, technicians, and customer representatives. The team will be led and managed by Janes herself, who is well experienced with the process of designing and production of greeting cards. The staff will be hired one month before the launch of startup and will be trained by Janes.

2.3 Customers

Our target market is the residential community living nearby at the 10 minutes’ drive from our office. The community has a monthly income ranging from $40k to $50k while nearly 10% people have incomes even around $100,000. We will offer three types of greeting cards; printed cards, hand-made cards, and customized cards, for various occasions and festivals. The hand-made cards will be completely manufactured by Artisans without any machine while the customized cards will be designed according to the customer requirements.

Although we have a tough competition since there are hundreds of established greeting card companies in the New York City, but with the teamwork of our innovative and creative team members, and the leadership of Janes, we will soon excel our competitors.

2.4 Business Target

We aim to become the best greeting card company of the New York City within next five years of our startup. Our target is to balance the initial cost of the startup with earned profits by the end of the first year and to achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year and $25k per month by the end of the third year.

Company Summary

3.1 company owner.

KJ Cards will be owned by Kelly Janes, a passionate Graphic Designer. Kelly did her Masters of Art in Graphic Designing from University of Illinois, Chicago. After completing her studies, Janes remained associated with some of America’s renowned greeting card companies and was the Assistant Director of Design Department in Hallmark Cards for the last 3 years. She is known for her exceptional graphics skills and innovative designs.

3.2 Why the Business is being started

Janes has always been extremely passionate about graphic designing, especially the designing of greeting cards. Her designed cards are praised by all and sundry and it was her exceptional abilities and innovative mind which landed her an executive position in one of the biggest greeting card manufacturers of the United States in a very young age.

But this success is nothing more than a part of her career plan, as she has dreamed of much bigger things. From the very beginning of her career, rather her college days, she had thought about starting a greeting card company and her service to this industry was just meant to gather the necessary experience needed for starting her own business.

3.3 How the Business will be started

KJ Cards will be a greeting card company which will produce all sorts of personal and business greeting cards . The business will be located in the main commercial market of the Downtown Manhattan. The company will initially procure following things for the startup.

• Office furniture including five filing cabinets, five work desks, a round table with chairs for meeting area, couch and chairs for customer waiting area
• Four computers with color printers and scanners
• Ten card printers for printing greeting cards
• Graphic designing and other related software including Illustrator, Freehand, Photoshop, Quark, Traffic Office Manager, Font Management Utilities, and Microsoft Project
• Assorted office stationary and brochures
• A strong internet connection and office telecom systems

The financial experts have forecasted following costs for expenses, assets, investment, and loans for the Start-up.

The detailed start-up requirements, start-up funding, start-up expenses, total assets, total funding required, total liabilities, total planned investment, total capital and liabilities as forecasted by experts, is given below:

Services for customers

KJ Cards will be a licensed and insured American cards manufacturing company, which will produce a variety of cards for various occasions, festivals, and people. We will produce all types of cards such as holiday, business, birthday greeting cards , and Christmas card for businesses as well as individuals. Our main products include:

1. Printed Cards: Printed cards are our primary products and will form the bulk of our production. They will also contribute the biggest chunk of our revenue. These cards will be printed by the company’s card printers after they have been designed by the graphic designing team. These cards can be further sub-divided into the following three categories.

• Occasional Cards: Occasional cards include cards for Anniversary, Baptism and Christening, Bar/Bat Mitzvah, Birthday, Confirmation, Congratulations, First Communion, Get Well, Graduation, Just Because, New Baby, Promotion, Retirement, Sympathy, Thank You, and Wedding
• Holidays and Festival Cards: Holidays and Festival cards include cards for Christmas, Easter, New Year, Passover, St. Patrick’s Day, Valentine’s Day and other local festivals
• Relational Cards: Relational cards include cards which can be given to relatives like Brother, Daughter, Father, Friend, God-family, Grandma, Grandpa, Husband, Kids, Mother, Partner, Romantic Interest, Sister, Son, Wife

2. Hand-made Cards: Our second category includes hand-made cards. These greeting cards will be completely hand-made and no machines will be used in their manufacturing process. Every such card will be hand cut, hand designed, and hand wrapped before being delivered to the customers. Special artisans will be hired to manufacture this product category. These cards will be costlier than the printed cards due to intensive hard work and expertise needed for their manufacture.

3. Customized Cards: Our final category includes customized cards which will be completely made and designed according to the customer demands. Customers can order for a customized card either online through our official website or by visiting our office in Downtown Manhattan.

Customers can describe their requirements, graphics, and text to be written on the cards to a customer representative and can get a customized card either in a printed or a hand-made form.

Marketing Analysis of greeting card business

The most important component of an effective greeting card business plan is its accurate marketing analysis that’s why Janes acquired the services of marketing experts to help her through this phase. It is only after this stage that a good greeting card business plan template could have been developed. After identifying the trends of greeting card business in the New York City, the marketing experts and analysts also helped her to select the best site to start a greeting card company .

The success or failure of a business totally depends upon its marketing strategy which can only be developed on the basis of accurate marketing analysis. There are four main steps to carry out an accurate marketing analysis which are to identify the current market trends, identify your target audience and potential customers, set out the business targets to achieve, and finally set the prices of your products and services. Marketing analysis is extremely important because the planning of many subsequent components depends on it. Therefore, it must be considered before developing the greeting card company business plan .

5.1 Market Trends

According to the Greeting Card Association (GCA), over 7.4 billion greeting cards were manufactured and sold in the United States in 2017. Out of these 7.4 billion cards, approximately 2.5 billion were manufactured and sold by freelances and non-major greeting card distributors while the remaining were manufactured and sold by established companies. Nearly 80% of all greeting cards were bought by women. As of 2017, there were more than 2000 established greeting card companies in the United States which generates more than $7.5 billion every year.

The greeting card industry employs more than 35,000 people and provides annual payrolls of over $1.2 billion dollars. This industry is the future growth in it is expected to be equal to that of the general US economy. After identifying these market trends, it is clearly evident that the greeting card industry has a lot of potential and can be immensely profitable provided that you plan your business successfully.

5.2 Marketing Segmentation

Our target market is the residential community living nearby at the 10 minutes’ drive from our office. The community consists of all types of people from varying backgrounds. As per the financial position, nearly half of the community has a monthly income ranging from $40k to $50k while nearly 10% people have incomes even around $100,000.

There are currently more than 738,000 households in Manhattan out of which 17.1% have children under the age of 18 living with them, 25.2% are married couples living together and 12.6% have a female householder with no husband present. 59.1% are non-families, out of which 48.0% of all households are made up of individuals and 10.9% have someone living alone who is 65 years of age or older.

It is very important to analyze the market segmentation of the future customers of your services before you start a greeting card business because a successful and efficient marketing strategy can only be developed after we completely know our potential customers. Our experts have identified the following type of target audience which can become our future consumers:

The detailed marketing segmentation of our target audience is as follows:

5.1.1 Married Couples & Adults:

Our first target group will be the married couples and the adults aged between 25-50. These people are most likely to buy greeting cards for various purposes since they have the biggest social circle comprising of friends, family, relatives, neighbors, colleagues, etc. as compared to the other target groups. This group buys greeting cards on various occasions such as birthdays, anniversaries, weddings, festivals and other events of their friends. This group will be the biggest consumer of our products and hence our marketing strategy will be specifically built to attract them.

5.1.2 Children & Teens:

Our second target group comprises of children and teens aged below 25. Children and teens studying in primary, middle, high schools and colleges have a large circle of friends around them and usually buy various cards such as birthday, friendship and festival cards. Teens are the biggest consumer of valentine cards.

5.1.3 Senior Citizens:

Our third group comprises of senior citizens aged above 50. These people will mostly buy anniversary, birthday and festival cards but their contribution to our sales will be less as compared to the other groups, hence they will play no specific role in our marketing strategy. The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

We aim to become the best greeting card company of the New York City within next five years of our startup. Our main business targets to be achieved as milestones over the course of next three years are as follows:

• To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year
• To balance the initial cost of the startup with earned profits by the end of the first year

5.4 Product Pricing

Product pricing is one of the most important factors in deciding the strategy for business a greeting card. After considering the market demands, we have priced all our products in the similar ranges as of our competitors. The reason behind our pricing policy is to achieve the minimum attractive rate of return which would not be possible in case of offering our services at low prices. Our product pricing is as follows:

• Printed Cards: Prices vary from $4-$15
• Hand-made Cards: Prices vary from $20-$50
• Customized Cards: Prices vary from $20-$50

High Quality Business Plan and Professional Support

It was amazing to work with OGS Capital for our business plan. They promptly responded our enquires and delivered document on time.The document was well organized high quality and content.We succeded with Alex and his team support. We thank you guys again for professional approach and easy communication.

After identifying the market trends, market demand, and the potential customers of the startup, the next step is to define an effective strategy to target the potential customers and attract them towards us. Like marketing analysis, sales strategy is also an important component of a greeting card business . Janes carried out an extensive research about various marketing strategies implemented on large as well as small greeting card companies before she finalized her plan about how to start a greeting card business .

A successful strategy can only be developed after setting specific marketing goals, carrying out a competitive analysis to know what is missing in your competitors and developing a plan for attracting your potential customers.

6.1 Competitive Analysis

Our competitive advantage lies in the power and dedication of our team. We have a team of creative and highly proficient graphic designers, a team with excellent qualifications and experience in various niche areas of greeting card industry. This industry is undoubtedly one of the most competitive industries of the United States and with the increasing number of greeting card startups, the competition is getting stiffer by the day. That’s why one has to be highly creative and come up with innovative designs and concepts so as to survive and grow in this industry. Considering the teamwork of our innovative and creative members, and the leadership of Janes, we hope to excel our competitors.

6.2 Sales Strategy

After carrying out a detailed analysis, our experts came up with the following brilliant ideas to advertise and sell ourselves.

• Google search ranking is one of the most important factors in deciding the success of a business, especially a startup, that’s why we will put special emphasis on it. We would do our best to get higher rankings in Google search results and a rank on the first page of Google.
• We will ensure at least a 20% increase in website traffic each month and will ensure at least an 80% conversion rate, i.e. to turn 80% of our website visitors into our customers.
• We will get featured in the local news or on a certain website by a popular blogger to increase our brand awareness in people.
• We will advertise our business in relevant business magazines, newspapers, TV stations, and social media.
• We will offer a 20% discount on our cards for the first three months of our launch.

6.3 Sales Monthly:

Our monthly sales, as forecasted by the company’s financial experts, are as follows:

6.5 Sales Yearly:

Our yearly sales, as forecasted by the company’s financial experts, are as follows:

6.5 Sales Forecast

Considering the quality of our services and our exceptional marketing strategy, our sales pattern is expected to increase with years. By analyzing our market segmentation strategy, our experts have forecasted the following sales on a yearly basis which are summarized in the column charts.

The detailed information about sales forecast, total unit sales, total sales is given in the following table:

Personnel plan

Personnel plan, like all other plans, is an important component of an effective business plan so it must be planned before you even think about how to start your own greeting card business . Janes has developed the following personnel plan for her company.

7.1 Company Staff

Janes will act as the General Manager of the company and will initially hire following people:

• 1 Accountant to maintain financial and other records
• 2 Sales Executives responsible for marketing and discovering new ventures
• 6 Graphic Artists for designing printed cards
• 4 Artisans for creating hand-made cards
• 3 Technicians to operate the card printing machines
• 2 Managing Assistants for managing the company’s official website and social media pages
• 4 Customer Representatives to interact with customers and record their orders
• 4 Drivers to transport cards to retail outlets
• 1 Front Desk Officer to act as a receptionist
• 1 Security Officer

To ensure the best quality service, all employees will be selected through vigorous testing and will be trained for a month before starting their jobs.

7.2 Average Salary of Employees

The following table shows the data about employees and their salaries for next three years.

Financial Plan

There are hundreds of greeting card businesses in the New York City and in order to survive in this competitive environment, a startup must develop an impeccable financial plan. The financial plan should craft a detailed map about the cost of inventory, payroll, equipment, rent and utilities needed for the startup and how these costs will be covered by the earned profits.

8.1 Important Assumptions

The company’s financial projections are forecasted on the basis of following assumptions.

8.2 Brake-even Analysis

The following graph shows the company’s Brake-even Analysis.

The following table shows the company’s Brake-even Analysis.

8.3 Projected Profit and Loss

The following charts show the company’s expected Profit and Loss situation on the monthly and yearly basis.

8.3.1 Profit Monthly

The following graph shows the monthly profit, as forecasted by the company’s financial experts.

8.3.2 Profit Yearly

The following graph shows the yearly profit, as forecasted by the company’s financial experts.

8.3.3 Gross Margin Monthly

The following graph shows the monthly gross margin, as forecasted by the company’s financial experts.

8.3.4 Gross Margin Yearly

The following graph shows the yearly gross margin, as forecasted by the company’s financial experts.

The following table shows detailed information about profit and loss, and total cost of sales.

8.4 Projected Cash Flow

The following column diagram shows the projected cash flow.

8.5 Projected Balance Sheet

The following table shows detailed data about pro forma cash flow, subtotal cash from operations, subtotal cash received, sub-total spent on operations, subtotal cash spent.

The following projected balance sheet shows data about total current assets, total long-term assets, total assets, subtotal current liabilities, total liabilities, total capital, total liabilities and capital.

8.6 Business Ratios

The following table shows data about business ratios, ratio analysis, total assets, net worth.

Download Greeting Card Business Plan Sample in pdf

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Greeting Card Business Plan Template & Guidebook

Are you looking to make a successful career out of creating greeting cards? If so, then you have come to the right place! The #1 Greeting Card Business Plan Template & Guidebook is here to provide anyone starting or running a business in this industry with the essential knowledge they need in order to succeed. This one-stop guidebook covers everything from creating an effective business plan and marketing strategy, to financial management and product development. Through easy to understand advice, step by step instructions and real-world examples, it will ensure you have the tools to take your business from idea to success.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Greeting Card Business [11 Steps]
• 10+ Best & Profitable Greeting Card Business Ideas [2023]
• 25 Catchy Greeting Card Business Names:
• List of the Best Marketing Ideas For Your Greeting Card Store:

How to Write a Greeting Card Business Plan in 7 Steps:

1. describe the purpose of your greeting card business..

The first step to writing your business plan is to describe the purpose of your greeting card business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a greeting card business:

Our mission is to create custom and meaningful greeting cards that bring joy, celebration, and connection to our customers across the world. We will provide beautiful cards for every occasion, with quality and customer service always at the forefront of our business plan.

2. Products & Services Offered by Your Greeting Card Business.

The next step is to outline your products and services for your greeting card business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your greeting card business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your greeting card business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your greeting card business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a greeting card business?

In order to run a Greeting Card business, you will need the following equipment, supplies, and permits:

• Computer and printer
• Greeting card designs (software or printed)
• Greeting card stock (paper, envelopes, etc.)
• Scissors, glue sticks, stapler, and other supplies
• Business license
• Sales tax permit
• Postal permit (if mailing cards)

5. Management & Organization of Your Greeting Card Business.

The second part of your greeting card business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your greeting card business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Greeting Card Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a greeting card business varies based on many different variables, but below are a few different types of startup costs for a greeting card business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your greeting card business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your greeting card business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your greeting card business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Greeting Card Business Plans:

Why do you need a business plan for a greeting card business.

A business plan is a written document that describes your business, including its strategy and objectives, the products or services it offers, the market it serves, and its financial performance and projected future profits. Having a business plan provides a roadmap to follow as you start and grow your greeting card business, helping you stay focused and organized. A business plan can also help you secure funding from investors or lenders by providing evidence of your goals and how you intend to achieve them.

Who should you ask for help with your greeting card business plan?

You should ask a business consultant or a financial advisor who specializes in small business planning. They can help you identify the key components of your business plan, including market analysis, marketing strategy, and financial projections. They may also be able to provide advice on setting up your business structure and helping you stay in compliance with local laws and regulations.

Can you write a greeting card business plan yourself?

Yes, it is possible to write a greeting card business plan yourself. It is important to include the goals of your business, a detailed description of the product or service you plan to offer, an analysis of the market, a financial plan, marketing strategies, and other information that may be relevant. Additionally, you should also consider consulting with industry professionals or an experienced business consultant to ensure that your plan is comprehensive and accurate.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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How to Start a Greeting Card Business: A Step-by-Step Guide

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Sending a greeting card can really brighten someone’s day. Whether you want to congratulate them, say happy birthday, or just let them know they’re on your mind, sending a card is a simple act that shows a loved one you care. If you’re passionate about the importance of snail mail and have a passion for a piece of good stationery, why not put your expertise to work and start a business in the greeting card industry?

If you’re design-savvy and can write witty copy, then keep reading to learn how to how to start a greeting card business of your very own.

Creating a greeting card business in 7 simple steps

Before you get your creative juices flowing, you’ll want to pause to review these seven steps to start a card company. Of course, there will be some fun parts like designing your cards. But you’ll also have to roll up your sleeves and work on some more tedious (but equally important) tasks.

Step 1: Choose your niche

Your niche is “greeting cards” right? Not exactly. You’ll need to get more specific than that if you want to stand out in such a saturated marketplace. Finding your niche market is super important because it will allow you to hone your craft and build a devoted customer base at the same time. You want to master your art before you branch out too much. Not to mention, having a niche will give you a stronger selling point to market to customers.

So, what type of niche should you consider? Take some time to think about what type of greeting cards catch your attention. Are you sick and tired of overly sentimental cards? Focus on creating ones that are sweet, but a bit more on the realistic side. Or make some laugh-out-loud greeting cards. Consider making cards with recycled paper. Maybe you’ll want to feature the artwork of young and up-and-coming artists. Whatever path you choose to go down, focus on staying on that path. Doing so will help you form a strong brand identity and master your production process.

When you choose your niche, it’s important to consider more than just your taste. Do some market research and make sure that there is a need and room for your greeting card business. You can get the answers you’re looking for by conducting a market analysis, which will help you scope out your competition and discover openings in your industry. During this process, you’ll also want to take a close look at how similar businesses are currently operating and how your business can succeed in areas they are not.

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Step 2: Write a business plan

Writing a business plan is an extremely important step toward learning how to start a handmade greeting card business—whether you plan to work out of your home or on a larger scale. A business plan can help keep your business on track, outline your plan for growth, and prove your brand’s value to any potential investors. If you’ve already started your business, it’s not too late to write a business plan. In fact, it can be helpful to return to your business plan every so often and refresh it. Writing a business plan can be a bit overwhelming if you’re not sure where to start. You can make the process easier on yourself and ensure you’re doing it correctly by using a business plan template.

Choose a business name

Every good business needs a memorable name. If you haven’t already chosen a name for your business, doing so while you’re writing your business plan is a good idea. A strong business name should clearly represent your business, while being catchy and easy to remember. Let’s say you do find the perfect name (no easy feat!), you’ll need to dot your i’s and cross your t’s before you can call the name yours. What do we mean by that?

Before using a business name, you should make sure it is legally available. You can do this by reviewing your secretary of state’s website where you can double-check if your chosen name is already in use. A quick Google or trademark search for the name won’t hurt either. If your name is free and clear, make sure you reserve your domain name and social media handles before someone else does.

Choose a business entity

Another important decision you’ll likely make while writing your business plan is what business entity is right for your business. Deciding the legal structure of your business will help keep you organized and legally protected. Some business entity options you may want to consider are a sole proprietorship, general partnership, limited liability company (LLC), or corporation.

If you’re unsure of how you want to structure your business and what option will be most beneficial, then you may want to bring in the big guns. Hiring a business attorney or tax expert may feel like an unnecessary expense, but they can help you choose the right business entity so you don’t run into any legal or tax problems down the road. After you’ve landed on a business entity, you’ll have to register your greeting card business with the appropriate federal and state agencies.

Define your products and services

When you identified your niche, you took the first step toward defining your products and services. You’ll want to continue down this path and ask yourself some important questions about the products and services your greeting card business will provide.

What type of greeting cards will you sell?

What will you charge per card? For a pack of cards?

Where will you buy your supplies?

How much will your supplies cost?

How much will you spend on production?

Now you can take your polished business plan and use it as a helpful roadmap toward building a successful greeting card business. If you choose to seek funding to help launch your company, having a comprehensive business plan will also signal to potential lenders that you’re a responsible borrower.

Step 3: Apply for licenses, permits, and insurance

This next step is a bit of a doozy, but it couldn’t be more important. When starting any type of business, it is vital that you apply for all of the necessary licenses, permits, and types of insurance. If you don’t, you risk being hit with fines or encountering legal issues as soon as you start growing your greeting card business. Your location, business type, and business structure will determine which type of licensing, permits, and insurance you’ll need. Be prepared, you might need to apply for business licenses at the state, federal, and local level. If you’re not sure what is required for your business, resources from the SBA and your local chamber of commerce can help you get the ball rolling.

For the record, if you’re planning on hiring any employees, you’ll need to register for an employer identification number (EIN). You’ll need your EIN come tax time to start. If you are employee-free, there are still some benefits of getting an EIN to mull over.

Last, but certainly not least, you should research your business insurance options. For business owners who have employees on the payroll, you’ll need to carry workers compensation, unemployment, and potentially disability insurance. Even if you don’t have employees and are working out of your home, you may want to look into commercial property insurance or general liability to ensure both you and your inventory are protected. Your business attorney will also be a useful resource for this step.

Step 4: Find a spot to sell your cards

At this point, you know what you want to sell, but do you know where you want to sell your greeting cards? A storefront may be your dream down the line, but there are other great options for selling greeting cards that have lower overhead costs. An online greeting card business is a great choice as you build your customer base.

You can create your own ecommerce website or sell your cards through a digital marketplace like Etsy , which specializes in unique arts and crafts products. There are tons of ecommerce platforms for you to choose from once you decide what your selling needs are.

If in-person experiences are more your thing, you can sell your greeting cards through local boutiques. Or you can host your own booth at your town’s arts and crafts fair or farmers market.

Step 5: Obtain small business funding

You know the old saying: It takes money to make money. But who says you have to spend all of your own money? Small business funding can help you cover the expenses required to start a greeting card business. Equipment, supplies, employees, legal fees—you can use small business funding to help cover any of your greeting card needs.

There is no one-size-fits-all type of business funding, so consider your options carefully. And keep in mind, while traditional bank or SBA loans may have the best terms and lowest rates, these will typically be out of reach for startup businesses. Until you have a year or two of business history under your belt, here are a few common funding options to consider:

Business lines of credit : If you’re looking for more flexibility than a standard business loan , then consider a business line of credit. A business line of credit provides you with a set amount of money that you can pull from to fund business expenses. You only pay interest on the money you actually need, and it’s a great resource to have in case of emergency.

Business credit cards: If your business lacks credit history, then a business credit card may be a more realistic form of funding. A 0% intro APR credit card, in particular, can allow you to carry a balance without paying interest for a set amount of time—sometimes as long as 12 months. Just make sure you can pay off your balance before the introductory offer is over and a variable APR sets in.

Equipment financing: If your greeting card business requires equipment, then equipment financing can help you purchase it. In this case, a lender loans money to fund equipment purchases. Your equipment will serve as collateral for the loan, making it an easier type of funding to qualify for.

Startup funding: A brand-new business may want to consider some of the popular startup financing options such as SBA microloans or business grants. Some entrepreneurs have also successfully turned to crowdfunding to get their business idea off the ground.

After you secure your business funding, do your best to keep all personal and business expenses separate from each other. Opening a business checking account is a great step in that direction. You’ll need to choose between a business checking or savings account. More established businesses that have large amounts of cash available should take advantage of savings accounts that earn interest, but when you’re just starting out and don’t have a lot of extra cash on hand, a checking account with little-to-no fees is your best bet.

Step 6: Order and manage your supplies

The supplies required to create greeting cards aren’t expensive at first glance (paper, ink, glitter, etc.), but they can add up when you start making a lot of cards. You’ll want to keep your costs low by buying your supplies from a wholesale supplier. Before you place that first order, try to calculate how much inventory you should carry. That way, you don’t buy too little and can take advantage of any deals that come with buying supplies in bulk. This step will also help you better estimate how much you need to spend on supplies.

Once you’ve ordered all the necessities, create an inventory system that will ensure you never run out of supplies. Once you start selling your cards, you won’t want a lack of glue or craft paper getting in your way of fulfilling a big order. An inventory management app can help keep you organized.

Start Your Dream Business

Step 7: Market your cards

Your customers probably won’t discover your charming greeting cards without a little bit of help. Spread the word about your business by creating a marketing plan. By taking a more formal approach to your marketing efforts, you’ll ensure you stay on track with promotion even when other areas of your business take precedence. Social media, email marketing, or taking an ad out in your local paper can all help you find customers.

As a lover of paper goods, what types of advertising for greeting cards catch your eye? Take note of which aspects stand out the most and how you can apply them to your own marketing efforts.

On a similar note...

Unlock the Lucrative Potential of Greeting Card Stores: 10 Steps to Launch Your Dream Business

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1. Conduct Market Research

Before launching a greeting cards store, you need to conduct market research to evaluate the potential market for your business. Market research will help you identify your target audience, competitors, and market trends for greeting cards in your area. Additionally, market research will enable you to make informed business decisions and develop strategies that will help you succeed in the industry. Below are steps you can follow to conduct market research for your greeting cards store business.

• Define your target audience

The first step in market research is understanding your target audience. You need to identify the people who are most likely to purchase your greeting cards. Consider demographics such as age, gender, income, and occupation. You can collect data on your target audience through surveys, online research, or focus groups. Use the information collected to develop a profile of your ideal customer.

• Evaluate the competition

After identifying your target market, you need to evaluate your competition. Look at other greeting card stores in the area and analyze their strengths and weaknesses. Study their pricing strategies, product selection, and marketing approaches. Then, use this information to develop strategies that will differentiate your store from the competition.

• Analyze market trends

Analyzing market trends helps you understand what customers are looking for in a greeting card store. Look for emerging trends in the industry, such as eco-friendly cards or humorous designs, and incorporate them into your store. Stay up-to-date with industry news and use it to inform your marketing and product development strategies.

• Set pricing and revenue goals

Based on market research, set realistic pricing and revenue goals for your greeting card store. This will help you develop a pricing model that attracts customers and generates profit. Look at the prices of other stores in the area and determine where your prices fit in the market. Use data from your target audience research to develop promotions and discount strategies that will drive traffic to your store.

Tips & Tricks for Conducting Market Research

• Use online tools such as Google Trends and social media analytics to track market trends and customer behavior
• Attend trade shows and events in the greeting card industry to stay up-to-date with emerging trends and network with other business owners
• Use surveys and focus groups to collect feedback from potential customers and incorporate their preferences into your product selection and marketing strategies

2. Develop A Business Plan

Developing a detailed and comprehensive business plan is a crucial step towards starting a successful greeting cards store business . It serves as a roadmap that outlines the company's goals, strategies, and action plans for achieving success. Below, I have broken down the key chapters that your business plan should include:

Executive Summary

The executive summary is an overview of your entire business plan and should provide a brief summary of your company's mission, products, services, target market, competition, marketing strategies, financial projections, and funding requirements.

Company Description and Mission Statement

This chapter should provide a detailed description of your company, including the history of the company, its legal structure, and a clear mission statement that defines the company's purpose and goals.

Market Analysis and Competitive Analysis

Conduct a thorough market analysis that examines the target market for your greeting card business and your competition. Identify and understand your ideal customers and your competitors' strengths and weaknesses.

Marketing and Sales Strategies

In this chapter, detail the marketing and sales strategies that you will utilize to build brand awareness, promote your products, and attract customers.

Product and Service Line

Provide a detailed description of your product and service lines, including the types of greeting cards that you intend to offer, the design styles, and the pricing. Discuss the potential for future product lines that you may introduce.

Management and Personnel

Outline the roles and responsibilities of all personnel, including yourself as the business owner and any employees that you plan to hire. Include information about their experience and qualifications for their positions.

Financial Projections and Funding Requirements

Include detailed financial projections that outline your expected sales, expenses, and profits. Identify how much funding your business requires, including the initial investment and ongoing operating costs.

Tips & Tricks

• Research your market - Getting to know your target market inside out will help you tailor your business plan to them.
• Be realistic - Ensure that your financial projections are achievable and well researched. Avoid over-optimistic estimates.
• Have Confidence - A well thought out and detailed business plan will instill confidence, not only in you, but also in potential investors or lenders.

Developing a sound business plan is a time-consuming process, but it is well worth it. It is the foundation that your business will be built upon, and it will ensure that you have a clear direction and plan for success. By including the chapters listed above in your business plan, you will have a comprehensive plan to guide your greeting cards store business towards success.

3. Create A Financial Model

Before opening any business, it is crucial to create a solid financial plan. A financial model will help you estimate the costs and potential revenue streams for your greeting cards store business. Here are the steps to creating a financial model:

• Estimate Start-Up Costs : Determine the amount of money you will need to start your greeting cards store business. This includes expenses such as rent, inventory, labor, equipment, legal fees, and marketing costs.
• Estimate Monthly Costs : Next, estimate your monthly costs for rent, utilities, insurance, payroll, and other expenses. This will help you determine the minimum amount of revenue you need to generate each month to stay afloat.
• Estimate Revenue Streams : Research the market and determine your potential revenue streams. Will you primarily sell greeting cards in-store or online? Will you offer custom printing or gift wrapping services? Will you sell other products in addition to greeting cards?
• Create a Sales Forecast : Using your estimated revenue streams, create a sales forecast for the next 12-24 months. This will help you determine if your business can generate enough revenue to cover your costs and make a profit.
• Calculate Your Break-Even Point : Based on your estimated start-up costs and monthly costs, calculate your break-even point. This is the point where your business begins to generate a profit. Knowing your break-even point can help you set pricing strategies and determine when to make changes to your business operations.

Tips & Tricks:

• Be realistic when estimating your revenue streams and expenses.
• Consider multiple scenarios, such as best-case, worst-case, and most likely outcomes.
• Regularly review and update your financial model as your business grows and evolves.

Creating a financial model will give you a clear understanding of the costs, revenue potential, and profitability of your greeting cards store business. Use the information from your financial model to make informed decisions about your pricing strategies, marketing efforts, and overall business operations.

4. Source Funding

Starting a greeting card store business can be a profitable venture, but like any other business, it requires an adequate amount of funding. Finding funding can be challenging, especially if you're just starting. Here are some ways to source funding:

• Savings: If you have enough savings set aside, you can use them to fund your business. This can help avoid the hassle of dealing with debt, interests, and loan repayments.
• Friends and family: You can ask your friends and family to invest in your business. However, be aware that mixing personal relationships with business can be risky, so be sure to have a clear agreement and professional approach.
• Small Business Administration (SBA) loans: SBA loans are designed to help small business owners secure funding. Check their website to find out how to apply and which loan program is best for your business.
• Banks and credit unions: You can also approach banks and credit unions for business loans. However, be prepared to provide a solid business plan. Be aware of the interest rates and fees and shop around for the best deals.
• Grants: Some non-profit organizations and government agencies offer grants to small businesses. Check if your business qualifies for any of these grants through research on relevant websites.
• Crowdfunding: You can also consider raising funds through crowdfunding platforms such as Kickstarter and GoFundMe.
• Do your research before choosing a source of funding. Compare loan options, interest rates, and fees before making a decision.
• Create a detailed business plan and financial projection to present to potential investors or lenders.
• Make sure you understand the terms and conditions of any loan or agreement before signing it.

In conclusion, sourcing funding for your greeting card store business requires careful planning and consideration. Evaluate your options, consult with experts, and choose the right funding that works best for you and your business.

5. Obtain Necessary Permits/Licenses

Before starting a greeting cards store business, you need to obtain necessary permits and licenses. These permits and licenses vary depending on your location and the type of business you are planning to start. Here are some of the permits and licenses you may need to obtain:

• Business License: A business license is a type of permit that allows you to legally operate a business within a specific city or county. This license is typically issued by your local government.
• Sales Tax Permit: If you plan to sell products, including greeting cards, you may need to obtain a sales tax permit. This permit allows you to collect sales tax from your customers and remit it to your state government.
• Trade Name Registration: If you plan to operate your business under a name other than your own, you may need to register that name with your state or local government.
• Building Permit: If you plan to make any structural changes to your building, such as adding a new entrance or altering the layout of the space, you may need to obtain a building permit.
• Zoning Permit: Depending on your location, you may need to obtain a zoning permit that allows you to operate a commercial business in a specific area.
• Check with your local government to determine which permits and licenses you need to obtain before opening your business.
• Be sure to submit all necessary paperwork and fees in a timely manner to avoid any delays.
• Consider working with a lawyer or business consultant who can help you navigate the permitting and licensing process.

Obtaining the necessary permits and licenses can be a lengthy process, so it is crucial to plan ahead and give yourself plenty of time to complete all of the required steps. Once you have all of the necessary permits and licenses, you will be ready to move on to the next step: securing your financing.

6. Form Business Entity

Forming a legal business entity is an important step in lay the foundation of your greeting card store. Not only does it provide you with legal protection, but it also adds credibility to your business. Here's a quick rundown of what you need to know about forming a business entity:

• Choose a business structure: You can choose from a variety of legal business structures such as sole proprietorship, LLC, corporation, or partnership.
• Register with the state: Once you've chosen your business structure, you'll need to register your business with the state and obtain the necessary permits and licenses.
• Get an EIN: An Employer Identification Number (EIN) is a unique nine-digit number that the IRS assigns to businesses for tax purposes. You'll need to obtain an EIN for your greeting card store.
• Open a business bank account: It's important to separate your personal and business finances. Opening a business bank account will help you manage your finances and keep track of your business income and expenses.
• Consult with a lawyer or accountant to help you choose the right business structure that suits your needs and goals.
• Research your state and local laws and regulations to ensure that you comply with all the legal requirements.
• Consider hiring a registered agent to handle the legal paperwork and act as a point of contact between your business and the state.

Forming a business entity may seem daunting, but it's a critical step in ensuring the success of your greeting card store. It provides you with a solid legal foundation and sets you up for growth and expansion in the future.

7. Establish A Legal Structure

Establishing the proper legal structure for your greeting card store business is essential for protecting your personal assets, minimizing tax liabilities, and positioning your business for growth. Here are the steps to follow:

• Determine the type of legal structure that suits your business: Depending on your goals, the size of the business, and your personal preferences, you may choose to set up a sole proprietorship, partnership, LLC, or corporation. Each structure has distinct advantages and disadvantages to consider.
• Choose a business name: Make sure that the name you choose is available and does not conflict with any trademark or existing business name. You can check the availability of a name through your state's Secretary of State office.
• Register your business: Once you decide on a legal structure and a business name, you need to register your business with your state. This process typically involves filing articles of incorporation or organization, obtaining a tax ID number, and registering for sales and use tax.
• Apply for licenses and permits: Depending on your location and the type of products you sell, you may need to apply for additional licenses and permits, such as a business license, sales tax permit, and zoning permit. Be sure to research the requirements in your area.
• Set up your business finances: You should open a business bank account and establish a record-keeping system to track your income and expenses. Consider hiring a professional accountant or bookkeeper to help you manage your finances.
• Consider consulting with a business attorney or accountant when setting up your legal structure to ensure that you choose the most appropriate structure for your business.
• Keep in mind that requirements for registering your business and obtaining licenses and permits may vary by state and local regulations.
• Be sure to consult with your state's Secretary of State office and the Small Business Administration for guidance on legal and compliance issues.

8. Select A Business Location

Choosing the right location for your greeting cards store can be a make or break decision. You want to make sure that your store is easily accessible and visible to potential customers. Here are some factors to consider:

• Demographics: You want to make sure that the location has a high concentration of your target market. Are you catering to a younger demographic? Are you focused on a certain income level?
• Foot traffic: A location with high foot traffic can mean more exposure and customers. Are you looking to set up shop in a busy shopping center or on a bustling Main Street?
• Competition: While being near competition can be a good thing, you don't want to be overshadowed. Make sure that there isn't already a glut of greeting card stores in the area.
• Accessibility: Make sure your store is easily accessible by car, public transportation, or foot. Parking availability is also a big factor to consider.
• Visibility: Your store should be easily visible from the street or sidewalk. A storefront with large windows or signs can make all the difference.

After considering these factors, it's time to start scouting locations. Here are some ideas for finding the perfect spot:

• Use online resources: Websites like LoopNet, Craigslist, and storefronts.com can help you search for available commercial properties in your desired location.
• Drive around: Sometimes the best way to find a location is to get out and drive around. Take note of areas with high foot traffic and storefronts that would be good fits for your business.
• Ask around: Talk to other business owners in the area. They may have inside knowledge on available properties or tips on the best locations.
• Consider the cost of rent carefully: A prime location can be expensive, but it can also bring in more customers and revenue. Don't skimp on rent if it means sacrificing on location.
• Think about the future: As your business grows, you may need more space for inventory or employees. Make sure that your chosen location has room for expansion.
• Check with local zoning laws: Don't assume that any location can be used for commercial purposes. Check with the local zoning laws to make sure that your chosen location allows for retail businesses.

When you've found the ideal location, it's time to negotiate a lease agreement. This process can be tricky, so make sure you have a trusted attorney to help you navigate the legalities. Some tips for negotiating a lease agreement include:

• Get everything in writing: Don't rely on verbal agreements. Make sure that all terms, including rent, security deposits, and lease length are in writing.
• Ask for concessions: Landlords may be willing to give a little to sweeten the deal. Ask for things like rent concessions, free months, or tenant improvement allowances.
• Have an exit strategy: What happens if the location doesn't work out for your business? Make sure you have an exit strategy in place in case you need to move your business elsewhere.

Choosing the right location for your greeting cards store is a big decision, so take your time and consider all options carefully. With the right location, you can set your business up for success!

9. Build Processes, Procedures & Policies

Building processes, procedures, and policies for your greeting card store business is essential for efficient operations and effective management. This helps to establish a foundation for consistent quality service and ensures that your team is in sync with your objectives and values.

• Document all processes, procedures and policies within an Operations Manual which can be utilized as a training tool for new hires.
• Regularly conduct reviews and updates to maintain proper functioning and always adhere to state and federal regulations.
• Encourage consistency and best practices by acknowledging and promoting successful team members who embrace the system.

Establishing a process map for the entire organization is critical. Begin by identifying potential sales points and creating a flow-chart for how they will be managed effectively and efficiently. Consider the flow of customers who walk in to make a purchase or place an order for customized cards. Developing a comprehensive process reduces confusion, saves time, and ensures that your clients will receive premium services.

Creating standard operating procedures (SOPs) can help your greeting card business attain efficiency and accountability. SOPs are written documents with detailed instructions on how to operate specific areas of the business. Employee training is simplified through use of these documents. In addition, SOPs provide a framework to evaluate employee performance.

It's also best to establish policies and strategies that govern your business's daily operations. These policies will assist in providing clear expectations and guidelines for employees. It’s important to have a policy guide that is frequently updated. You should also provide your employees with a copy of your policies so they can refer to them frequently. Policies should cover areas like customer service, inventory management, and employee code of conduct, among others.

Creating a process, procedures and policy library is essential for ensuring that each operation functions as intended. The system set up should be accessible to all team members and should be regularly updated to maintain current standards as your business grows and evolves over time. This allows for efficient and streamlined operations. It's important to remember that your policies are supposed to guide your employees, not hinder their creativity.

Training your team members on all the processes, procedures, and policies in place is essential to the success of your greeting card business. This ensures that everyone is on the same page and that the team is continuously improving. You will want to ensure that your team members can access training materials and can follow proper training protocols before they embark on their jobs.

In conclusion, establishing processes, procedures, and policies is essential for your greeting card business to function at its best. Evaluate your business's strengths and weaknesses and create a roadmap for the implementation and evaluation of your policies. By creating a consistent and seamless system, your customers will have a great experience and your business will achieve long-term success.

10. Launch & Monitor Operations

Congratulations on reaching this stage of your journey! You have completed the necessary steps to set up your greeting cards store business. Now it’s time to launch your business and monitor its operations.

The following are some critical steps you need to follow to successfully launch and monitor your operations:

Step 1. Organize a launch event

• Host a launch event to announce the opening of your greeting cards store business to your community.
• Use social media to promote your launch event and invite friends, family, and potential customers.
• Offer discounts or promotions at the launch event to encourage purchases and support early customers.

Step 2. Develop a marketing plan

• Develop a comprehensive marketing plan to promote your greeting cards store business.
• Utilize a variety of marketing channels, including social media, email marketing, and targeted advertising campaigns.
• Partner with local businesses to cross-promote each other's products and services.

Step 3. Monitor your inventory

• Monitor your inventory carefully to ensure that you have enough supplies to meet customer demands.
• Regularly review your sales trends and adjust your inventory accordingly to avoid overstocking or stock shortages.
• Track your costs, profits, and margins to identify ways to reduce costs and improve profits.

Step 4. Streamline your operations

• Create systems and processes to streamline your greeting cards store business operations.
• Standardize procedures for inventory management, ordering, and customer service to ensure consistency and efficiency.
• Implement a point-of-sale system to track sales, customer data, and inventory.

Step 5. Provide exceptional customer service

• Train your team to provide exceptional customer service to customers.
• Offer promotions and discounts for loyal customers to attract repeat business.
• Solicit feedback from customers to continuously improve your products and services and enhance their experience.
• Stay engaged with your customers by responding to their feedback and addressing their concerns.
• Monitor the performance of your marketing campaigns to determine which channels are most effective.
• Stay flexible and willing to adapt to changing market trends and customer demands.

By following these crucial steps, you’ll be well on your way to a successful greeting cards store business. Remember that starting and running a business requires ongoing effort, dedication, and hard work. Stay committed to your vision, be open to learning from your mistakes, and always be willing to adapt and improve.

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How to Start a Greeting Card Business

A greeting card business sells greeting cards to customers. These greeting cards can be for a number of occasions, including birthdays, holidays, reunions and even funerals. Cards can either be sold directly to customers or to retail dealers. If they’re sold to a retail dealer, the dealer then sells the cards to customers. Some greeting card businesses operate online, selling cards to shoppers and shipping them.

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

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

Start a greeting card business by following these 10 steps:

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

We have put together this simple guide to starting your greeting card 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 Greeting Card 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 greeting card business?

Business name generator, what are the costs involved in opening a greeting card business.

Startup costs are low, sitting at between $2,000 and $10,000. A greeting card business can be operated part-time, and it can  also  be operated online.

Startup costs include business insurance, product sourcing, talent sourcing, initial rent costs and advertisement. You’ll need a computer, a scanner, a high-quality color printer and desktop publishing software. You may also need database software to maintain mailing lists. You’ll also need a resale license to buy cards at wholesale prices.

What are the ongoing expenses for a greeting card business?

Ongoing prices include raw paper materials, which amount to roughly $0.25 per card. You will, however, need to source artist prints. Depending on a card’s artistic complexity, a print commission can cost between $5 and $200. Designs, diversified as they are, widely vary in price.

Who is the target market?

Your target market will be expansive. Because greeting cards can be sold to many people, your main target markets will be shopkeepers, hair stylists, insurance agents, dentists, doctors, apartment managers, car salespeople and event operators. You can sell cards for individual occasions—like birthdays—but you’ll sell more if you’re targeting professional groups. Often, these groups buy greeting cards in bulk.

How does a greeting card business make money?

A greeting card business makes money by selling greeting cards. Cards can be sold via a shop, in mall kiosks, online or through partnered retailers. Often, greeting card businesses sell specialized envelopes. Some may sell pens, ink and similar writing accessories.

A lot of greeting card businesses make money by selling cards in bulk to different retail centers. Some, however, decide to provide high-quality artwork cards. These cards, due to either being hand-painted or written, are normally sold in fewer numbers.

Greeting cards can be sold at about $2.50 each. You can sell a pack of six cards for about $7.50, so as to be cost effective and offer competitive bulk prices.

How much profit can a greeting card business make?

A small greeting card business can make about $45,000 per year. Larger companies, like Hallmark, make as much as $19.7 billion on Valentine’s Day alone.

How can you make your business more profitable?

Your designs matter. Make sure your card designs are of high quality. Also, make sure you’re well-connected with specialist printing companies. These companies should offer more than simple printing services. Ideally, they should be a one-stop-shop for card finishing materials—like glitter and foiling. They should also offer cello wrap and envelopes.

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 greeting card 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 greeting card business. 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 Greeting Card Business needs and how much it will cost you by reading our guide Business Insurance for Greeting Card 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 greeting card business

Promote yourself through different retail outlets. The country has over 1,800 small greeting card companies, and most market through different retail chains. Keep an eye on local events, and offer custom services to businesses which need large-scale projects.

How to keep customers coming back

You’ll attract customers by offering unique, funny or memorable cards. You’ll  retain  them, however, by having a solid network of buyers. Again, connect with businesses. Use good time-management skills, organizational skills and marketing skills to profit on retail design businesses. Take advantage of Mother’s Day, Halloween, Christmas and similar holidays.

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?

The greeting card business is great for those with a taste for design, poetry, celebratory occasions and creative expression. It’s also a fantastic business choice for those who want to become printing specialists.

Ideally, a greeting card business owner will be good at marketing different cards. From “everyday” cards to special occasion cards, each will need to be trendy, relevant and memorable. For this reason, a greeting card business owner needs to be culturally aware, have a knack for humor and be a decent marketer.

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 greeting card business?

Every day, a greeting card business sells various cards. This means it caters either directly to customers or to retail outlets. During the selling period, a greeting card business will stock, restock and sell products.

During its “off” hours, retail-wise, a greeting card business works on finding out what sells. A greeting card business’s line is an ever-expanding thing, and it needs a lot of consistent work. A greeting card business focuses on hiring production artists, visiting trade shows, researching trends and sourcing new art. While these processes  aren ’t necessarily daily processes, they’re important enough to be considered constantly.

Other daily tasks include financing, marketing, promotion, management, store cleaning, general maintenance and customer assistance.

What are some skills and experiences that will help you build a successful greeting card business?

Advertisement skills help a lot. Join Progressive Greetings Worldwide—which is today’s leading greeting card trade magazine. Also, go to trade shows. Connect with specialist greeting companies, and become incredibly knowledgeable about barcodes, identifying goods and handling products across distributors.

Market research is similarly important. A successful greeting card business operator will immerse themselves in the industry, find good suppliers and market their products effectively.

What is the growth potential for a greeting card business?

A greeting card business has a lot of growth potential. It can operate as a kiosk, as a small shop, as part of a larger shop or as a national distributor.

If a greeting card business is incredibly profitable, like Hallmark, it may extend its product line to cover other novelty items. In these cases, having an online selling outlet is advised. While incremental product costs are low—paper, ink, art sourcing—shipping costs are  also  low. For this reason, greeting cards mesh well with the ecommerce world.

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.

What are some insider tips for jump starting a greeting card business?

Connect with distributors as soon as possible. Even if you’re creating your own cards, you should have a healthy supply network. Then, focus on advertisement. Keep overhead costs low, and use online seller portals to save on initial costs.

How and when to build a team

It’s possible to run a greeting card business alone. You can, however, hire two or three additional hands immediately to boost your output. Your team, as a greeting card business operator, will be more nebulous than most professional teams. Focus on building a loose network of artists, designers and print specialists.

Useful Links

Industry opportunities.

• Greeting Card Association

Real World Examples

• Hallmark Greeting Cards
• American Greetings
• Masala Cards

Further Reading

• Things You Should Know Before Entering the Greeting Card Business
• Helpful Information from the Greeting Card Association

Have a Question? Leave a Comment!

• Business Ideas
• Registered Agents

How to Start a Greeting Card Business in 14 Steps (In-Depth Guide)

Updated:   February 6, 2024

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

The greeting card industry continues to climb slowly. As of 2022, the global market reached $19.25 billion in earnings with a projected compound annual growth rate (CAGR) of 0.9% from 2023 to 2030. For those interested in opening their own greeting card business, now is the time.

This comprehensive guide will walk you through how to start a greeting card business. Whether you want to start a greeting card empire or just design cards as a side hustle, this article has the information and advice you need to turn your passion into a profitable business. So grab a cup of coffee and let’s get started!

1. Conduct Greeting Card Market Research

Market research is essential to starting a handmade greeting card business. Selling greeting cards means knowing about other companies selling greeting cards, who your target market is, how many cards are selling for, and trends in products and services.

Some things you’ll learn through market research include:

• The largest segment of the greeting card market is seasonal cards for holidays like Christmas, Valentine’s Day, and Mother’s Day.
• While competition is fierce for major holidays, there are opportunities for more niche occasions like graduations, weddings, anniversaries, and birthdays.
• Focusing on a particular demographic or occasion can help new greeting card businesses differentiate themselves.
• In terms of distribution channels, around 62% of greeting cards are purchased in retail stores like grocery stores, department stores, and specialty card shops.
• Building an online greeting card business can help reach customers beyond a geographic area.
• Social trends also favor the greeting card industry. Consumers today are very focused on relationships and expressing themselves.
• Greeting cards are a way to do this creatively and thoughtfully.
• With the popularity of crafting, many consumers enjoy selecting and personalizing the perfect card for loved ones. This is an advantage smaller greeting card companies have over mass retailers.
• Greeting cards remain popular for their ability to convey sincerity, thoughtfulness, and personal connection. They are often saved and displayed as keepsakes.

To be successful in the greeting card market, new entrants should focus on:

• Standing out with truly original and artistic designs
• Targeting a niche demographic or occasion
• Offering customization options
• Building a robust online presence and distribution
• Using print-on-demand technology to contain costs
• Partnering with complementary businesses like gift shops, florists, and stationers

With careful positioning and execution, aspiring greeting card entrepreneurs can find plenty of opportunities left in this multibillion-dollar industry. Creativity and passion are often greater competitive advantages than size.

2. Analyze the Competition

To succeed in the greeting card business, you need to carefully analyze your competition, both online and in brick-and-mortar stores. Competitive analysis offers ideas on where to find small business funding, how to price products, and which greeting card company is the biggest competition.

• For physical stores, identify greeting card shops and other retailers selling cards within a 25-mile radius.
• Visit the stores as a customer and take notes on product selection, pricing, displays, store ambiance, and customer service.
• Look at how they merchandise cards and what niches or occasions they focus on. This will help you identify unmet needs in your local market.
• Research top greeting card brands like Hallmark and American Greetings online.
• Study their websites and social media presence. What are their brand personalities and how do they resonate with customers?
• Subscribe to their email lists to analyze promotions and new product launches. Look for gaps where a new brand could capture share.
• Search online marketplaces like Etsy to find independent card designers. Assess what makes their designs unique and appealing to customers.
• Look for common themes and trends in successful independent brands that inspire customer loyalty.
• Use Google Trends, Google Keyword Planner, and social media analytics to assess consumer demand around key greeting card topics and themes.
• Identify rising trends and untapped audiences. The tools can also show monthly/seasonal search volume patterns.

By thoroughly analyzing both local and national competitors across key dimensions, greeting card entrepreneurs gain invaluable insights into how to differentiate, set competitive pricing, design impactful merchandising, and identify their target audience. Competition research is crucial to strategy.

3. Costs to Start a Greeting Card Business

Starting a greeting card business involves both initial investments and ongoing expenses. Carefully estimating these costs is crucial when assessing the viability of a greeting card venture.

Start-Up Costs

• Business formation legal fees – $800-$1,000. Costs to formally establish your business as an LLC or corporation.
• Business license & permits – $50-$500 depending on location. Required to legally operate.
• Website design & development – $3,000-$5,000 for a custom-branded site with e-commerce capabilities.
• Inventory – $2,000-$5,000 for the initial run of card designs and packaging. The cost will depend on the quantities ordered.
• Equipment – $1,000-$5,000 for computer, design software (e.g. Adobe Creative Suite $600 annually), card printing equipment, and office supplies.
• Marketing collateral – $500-$1,500 for business cards, branded packaging, and promotional materials.
• Accounting software – $10-$50 per month for bookkeeping software like QuickBooks.
• Initial marketing & advertising – $500-$2,000 to promote a new business launch and offerings.
• Retail store space & build-out – $2,000-$10,000 for first and last month’s rent plus security deposit. Another $5,000-$25,000 for furniture, displays, counters, register, and decor.
• Staffing – $2,500+ per employee for the first-month payroll until sales commence.

Total initial start-up costs for a lean online-only operation could be under $10,000. For those wanting retail space or manufacturing capabilities, start-up costs can easily exceed $50,000.

Ongoing Costs

• Cost of goods – Expect 50% or more of sales revenue to go toward replenishing card inventory and packaging.
• Website hosting – $100-$300 annually for site maintenance.
• Staffing – Employee payroll including base pay, taxes, and benefits will likely be one of the largest ongoing costs. Plan $25,000+ annually for a single full-time employee.
• Software subscriptions – $50-$100 monthly for critical programs like email services, security, and design programs.
• Marketing – 10-20% of revenue should be reinvested into marketing, advertising, and search engine optimization.
• Merchant processing fees – 1-5% of transaction amounts for credit card processing.
• Shipping & fulfillment – Expect to spend 20-40% of online sales on packaging materials and shipping costs.
• Office rent & utilities – Typically $1,000-$4,000 monthly depending on location and space needs.
• Business insurance – $500-$2,000 annually. Recommended for liability and property coverage.
• Accounting services – $100-$500 monthly if outsourcing to a bookkeeping firm.

Ongoing costs commonly amount to thousands per month for small operations and tens of thousands for larger companies with employees and retail space.

4. Form a Legal Business Entity

When starting a successful greeting card business, one of the first legal decisions is choosing a business structure. The four main options each have advantages and disadvantages to weigh.

Sole Proprietorship

This is the simplest and most common structure for new small businesses. You and the business are legally considered one entity.

• Pros: Easy and inexpensive to set up. You retain complete control and get all profits. Minimal legal requirements.
• Cons: No liability protection – you are personally responsible for all debts and liabilities. Difficult to raise investment capital. Limited growth potential.

Partnership

Two or more co-owners share control and profits. Common arrangements include general partnerships where partners manage together and limited partnerships with silent partners providing capital.

• Pros: Easy to establish with part of the ownership agreement. Shared financial burden among partners. Can combine complementary skills.
• Cons: Joint and several liability – each partner is personally responsible for liabilities of the entire business. Partnership dynamics introduce the potential for conflict. Requires shared decision-making.

Limited Liability Company (LLC)

LLCs mix the limited liability of a corporation with the tax structure of a partnership or sole proprietorship.

• Pros: Personal assets protected from business debts and liabilities. Flexible management options. Easy to add new members/investors. No double taxation.
• Cons: More complex to establish with articles of organization and operating agreement. Requires consistent record keeping and member/manager duties.

Corporation

Corporations are distinct legal entities from their owners. Ownership is through stock shares.

• Pros: Limited liability for shareholders. Additional credibility with customers. Easier to raise investment capital. Perpetual existence.
• Cons: Most complex and expensive to set up and maintain. Double taxation on profits. Extensive record-keeping keeping required.

5. Register Your Business For Taxes

One key legal task when forming a business entity like an LLC or corporation is obtaining an Employer Identification Number (EIN) from the IRS.

An EIN is essentially the Social Security Number for your business. It uniquely identifies your company and is required to open business bank accounts, apply for licenses, hire employees, and file taxes.

Unlike a Social Security Number, an EIN can be obtained quickly and easily online. The IRS even provides a convenient EIN Assistant to guide you through the process.

To obtain an EIN, you’ll need identifying information about your business such as name, address, and ownership structure. The online application only takes about 10-15 minutes to complete. At the end, you’ll be provided your official EIN immediately.

In addition to a federal EIN, most states require sales tax registration if selling taxable goods. Sales tax rates and rules vary widely across states.

Common requirements include:

• Obtaining a state seller’s permit
• Collecting and remitting sales tax on taxable transactions
• Filing regular sales and use tax returns (often monthly or quarterly)

Use resources like SBA.gov and your state government’s website to look up specific sales tax obligations in the states where you plan to sell greeting cards. Factor these costs and administrative needs into your business plan.

6. Setup Your Accounting

Proper accounting is crucial for any business, especially a new greeting card venture. Setting up robust systems from the start will ensure you stay compliant, understand your finances, and optimize taxes.

Accounting Software

Investing in small business accounting software like QuickBooks is highly recommended. QuickBooks seamlessly integrates with your business bank accounts and credit cards, automatically importing and categorizing transactions to streamline bookkeeping.

It generates financial statements, sales reports, profit/loss summaries, and the tax-ready reports you need for fiscal year filings. QuickBooks plans start at $20/month and can be deducted as a business expense.

Professional Accountant

While software provides the essential infrastructure, most businesses benefit from an accountant’s expertise in reviewing their books monthly or quarterly. This provides an independent perspective to identify potential issues early.

A CPA can advise on maximizing tax deductions and credits available to your business. Come tax time, your accountant will already be familiar with your finances to handle required filings and tax payments on your behalf. Expect to invest $200-$500 monthly for these professional services.

Open a Business Bank Account

Never co-mingle personal and business finances. Open dedicated checking/savings accounts and credit cards solely for your company. This makes bookkeeping and reporting much simpler. Business income and expenses should never run through personal accounts.

Apply for Business Credit Cards

Applying for business credit cards helps establish your business credit profile which will benefit you when seeking loans or additional credit lines. Issuers evaluate business creditworthiness based on time in business, income, credit score, and personal guarantee by owners.

7. Obtain Licenses and Permits

Before selling your first greeting card, it is crucial to ensure your business has obtained all required federal, state, and local licenses and permits. Operating without proper registrations can lead to steep fines or even force you to shut down.

• Business License: Nearly all municipalities require a general business license to operate there, even home-based businesses. Fees are usually under $100 annually.
• Seller’s Permit: If selling products in person, online, or wholesale, your state will require a seller’s permit or retail sales license. This authorizes collecting and remitting sales tax on purchases.
• Fictitious Name Filing: If using a business name different than your legal name, register it with your county clerk. Known as a fictitious business name, DBA (doing business as), or trade name.
• Trademark Registration: Registering your business name, logo, and other brand elements with the U.S. Patent and Trademark Office provides legal protection from infringement.
• Sales Tax Exemption Certificate: If planning to sell wholesale to retailers, obtain a resale certificate from your state tax authority. This allows you to sell products tax-free to resellers who will collect sales tax on their retail sales.
• Health Permits: If producing food products like greeting cards with baked goods, health department permits for your commercial kitchen are required, even for home-based preparation.

Always check federal, state, county, and city requirements to ensure your greeting card business complies with all licenses and permits. Seeing these registrations through prevents unnecessary legal risks and penalties down the road.

8. Get Business Insurance

Business insurance protects your company’s financial health in the event of unforeseen losses. While not legally required, it can mean the difference between survival and bankruptcy after an incident.

Consider these scenarios:

• A fire destroys your retail store or warehouse inventory. Without property insurance, you’d personally incur the full replacement costs.
• A customer trips and falls in your store, sustaining injuries requiring hospitalization. Lacking liability insurance, you’d pay their medical bills and any lawsuit damages.
• Your van delivering greeting cards is totaled in an accident. Commercial auto insurance could replace the vehicle. Otherwise, you take the loss.

Safeguard against catastrophic scenarios like these with business insurance tailored to your risks. Commonly recommended policies include:

• General liability – covers injury and property damage claims
• Property – insures business locations and inventory
• Commercial auto – protects company vehicles
• Business owner’s policy (BOP) – packages property/liability
• Workers’ comp – covers employee injuries

The process to get insured involves:

• Inventory your risks and assets to determine needed coverage.
• Researching reputable providers like Progressive and getting quotes.
• Selecting a policy with ideal coverage and premium cost.
• Completing the insurer’s application and providing requested details on your business.
• Paying premiums monthly or annually to maintain active policies.

Don’t let a single incident bankrupt your greeting card venture. Business insurance provides essential risk management.

9. Create an Office Space

An office provides a professional workspace for critical business tasks like designing cards, managing inventory, shipping orders, and holding meetings. The right space facilitates efficiency and credibility with clients.

Home Office

Many solopreneurs launch card businesses from a spare bedroom or basement turned office. This allows for maximizing profits by avoiding rent overhead. You can deduct a portion of household expenses like utilities, internet, etc. Home offices work for bootstrapped entrepreneurs or small operations. Lacking separate creative space can be challenging.

Coworking Space

Joining an affordable coworking space like WeWork provides amenities like conference rooms, printing , community events, and networking. The creative energy and flexibility to scale up or down are ideal for a dynamic venture. However, distractions can impede deep creative work. Expect to invest $200-$500 monthly for a dedicated desk.

Retail Shop

For higher customer traffic and selling cards in person, leasing a small store or kiosk may be advantageous. Having a physical presence where people can discover products often increases sales. However, the overhead of commercial space and staffing retail operations is significant.

Commercial Office

When your team grows large enough, moving into dedicated commercial office space brings privacy plus room for inventory storage, shipping operations, photography studios, etc. While most expensive, the right office becomes a productive hub. Expect $1,000-$4,000 monthly for a few hundred square feet.

Analyze your workflow, budget, and priorities to select optimal office space. Combine options like a home design studio plus a commercial fulfillment office to find the right balance for your greeting card business.

10. Source Your Equipment

Greeting card ventures require cardstock, printing equipment, packaging materials, office supplies, and more. Smart entrepreneurs utilize a mix of new purchases, used deals, and rental equipment to secure necessary supplies on a startup budget.

Shop basic printers, laminators, paper cutters, envelopes, stamps, and office items new from big box chains like Staples or Office Depot . Take advantage of coupons and rewards programs to save. Order specialty cardstock, foil, and design elements from paper suppliers like Neenah Paper.

Buying Used

Search eBay , Craigslist , Facebook Marketplace , and Nextdoor for steeply discounted used equipment like commercial printers, scanners, and electronics. Read seller reviews and test items upon pickup. Expect 50-75% savings versus new.

Rent higher-budget equipment like wide-format printers, die-cutting machines, and photography lighting from specialty rental houses to limit upfront investments. Payment plans are often available for longer rentals. Useful for large seasonal orders.

Multi-year leases through equipment companies get entrepreneurs premium equipment while spreading costs over time. Especially useful for costly machinery like foil stamping presses. Provides routine maintenance too.

Combining channels allows greeting card startups to secure essential tools while minimizing initial outlays. Buy used goods for the long term, rent for temporary needs, and lease expensive equipment.

11. Establish Your Brand Assets

Developing a strong brand identity is crucial for greeting card companies to stand out in a crowded market. Strategically creating core brand assets establishes recognition and trust with customers.

Getting a Business Phone Number

A professional business phone number lends legitimacy, allowing customers to easily contact you. Use a reliable virtual phone service like RingCentral to get a local or toll-free number with call routing, voicemail, conferencing, and texting features starting at just $20/month.

Creating a Logo and Brand Assets

A polished logo encapsulates your brand personality and helps customers remember you. Given greeting cards are visual products, your logo should be an artistic representation of your style. Services like Looka make professional logos easy, with options like abstract marks, lettermarks, and more starting at just $20.

Pair your logo with complementary brand assets like patterns, fonts, colors, and graphic elements to cement brand recognition. Apply these to your website, packaging, promotions, and cards.

Business Cards and Signage

Business cards put your brand in customers’ hands and get your name circulating. At networking events, trade shows, and sales meetings, cards enable easy sharing of your contact info and website. Services like Vistaprint offer affordable custom cards showcasing your logo and stylish design.

Store signage and window graphics also provide valuable brand exposure. Vistaprint’s fast turnaround and bulk order discounts make professional signs and banners cost-effective.

Purchasing a Domain Name

Your domain name is part of your identity. Pick a name that’s memorable, short, easy to spell, and includes your best keywords. Use .com if available or alternatives like .cards or .store. Check name availability at registrars like Namecheap , where domains start at around $15 annually.

Building a Website

An engaging website on your custom domain allows customers to learn about your brand story and shop 24/7. While DIY site builders like Wix make website creation accessible, hiring web designers on freelance marketplaces like Fiverr means handing creative freedom to experts.

12. Join Associations and Groups

Joining industry groups and associations accelerates success for greeting card entrepreneurs by providing invaluable connections and insights. Surround yourself with like-minded peers.

Local Associations

Look for local chapters of associations like the Greeting Card Association and the National Stationery Show . Attend their networking events to connect with other card designers, manufacturers, and retailers in your region.

Memberships starting around $100-$500 annually also provide access to industry blogs, webinars, discounts on supplies, and more. Trade shows let you showcase your cards and get product feedback.

Local Meetups

Attend small business meetups in your city through sites like Meetup . Groups focused on design, retail, marketing, and e-commerce provide targeted networking and growth opportunities.

Connect in person regularly to exchange business strategies and connections with fellow entrepreneurs. Meetups directly related to the greeting card niche are most valuable long-term.

Facebook Groups

Join Facebook groups like Card Making Only and Handmade Card Making Ideas/discussion to crowd-source advice 24/7 from thousands of card designers globally. Share your work and get feedback. Learn proven strategies that scale.

Surrounding yourself with industry peers helps greeting card businesses continuously sharpen skills, expand connections, and accelerate growth. Seek out local associations, meetups, and online groups.

13. How to Market a Greeting Card Business

Marketing is crucial for any business to acquire new customers and increase sales. Greeting card companies have many digital and traditional marketing channels to choose from when promoting their brand.

Start with Your Network

Leverage your existing contacts and past customers to spread the word. Satisfied buyers who had a great experience are often happy to provide referrals to friends and on social media. Consider thank you cards with referral codes or discounts to incentivize shares. Word-of-mouth is still powerful.

Digital Marketing Ideas

• Google Ads – Drive traffic to your site through targeted search and display ads. Focus on keywords related to greeting cards and gifts.
• Facebook/Instagram Ads – Run ads promoting your designs and driving to your online shop. Target by demographics and interests like holidays, stationery, and events.
• Email Marketing – Collect emails to build an audience to promote new designs and sales to. Services like MailChimp help automate drip campaigns.
• Social Media – Share your cards on platforms like Instagram and Pinterest using relevant hashtags and tagging greeting card accounts.
• SEO – Optimize website content for search engines through keywords, meta descriptions, alt text, and backlinks to surface higher in results.
• YouTube – Upload processes tutorials, product reveals, and business vlogs to establish expertise and personality.

Traditional Marketing Ideas

• Direct Mail – Send postcards and catalogs showcasing card designs to prospects purchased from mailing list providers. Include promo codes.
• Flyers – Distribute flyers highlighting seasonal designs and promotions at local shops, fairs, cafes, libraries, and community boards.
• Newspaper Ads – Local newspaper ads can promote an online shop or physical store, especially leading up to big holidays for gifts.
• Radio Ads – Short radio spots on local stations share your brand story and current card offers. Time around holidays for gifting.
• Billboards – Attention-grabbing outdoor billboards along busy roads showcase seasonal or everyday cards to commuters.

A strategic mix of digital and traditional tactics tailors marketing to greeting cards. Focus on affordable options with measurable results.

14. Focus on the Customer

Providing exceptional customer service is crucial for greeting card companies to nurture loyalty, gain referrals, and grow their reputation. How you treat customers directly impacts your success.

Some ways to increase focus as you create greeting cards include:

• Respond quickly to inquiries with thoughtful guidance to answer questions. Offer handwritten thank-you notes when customers provide feedback or share your cards on social media.
• Ship orders the same day whenever possible, and include small gifts like stickers, tea samples, or discount codes. Follow up after purchases to ensure satisfaction.
• When mistakes happen, sincerely apologize and make it right immediately. Send a free replacement card overnight or refund their money. Turn problems into opportunities to impress.
• Share new card releases and promotions with subscribers to show you value long-term relationships, not just sales. Seek genuine feedback on designs and use suggestions to improve.
• Experiences like these demonstrate you care and gain happy, loyal evangelists. Satisfied customers enthusiastically recommend you to all their friends seeking cards for birthdays, holidays, and life events.
• Exceptional service earns 5-star online reviews driving organic traffic and sales. Referrals from past customers become your most powerful marketing channel.

Greeting card shoppers have many options, so you must provide stellar experiences. Thoughtful customer service wins lifelong brand advocates who fuel growth.

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How to start a greeting card business.

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If you’re looking to start making and selling greeting cards, read this post first. We’re going to talk about whether there’s still potential in selling them or if it’s not worth your time.

We’ll cover this as well as how to start your own handmade greeting card business in this post.

Now, you might think that with email, text messaging, and social media, that no one sends greeting cards anymore. Fortunately for you, the greeting card market is as strong as ever and is even expected to grow for at least the next five years.

6.5 billion greeting cards are sold each year in the USA. Germany sells 600 million cards a year and the UK greeting card industry is worth over 1.6 billion pounds sterling alone, which is almost 2 billion US dollars.

Keep in mind that a lot of those sales are taken up by major brands like Hallmark, Walmart, and Target, but it shows that there is still a demand for physical greeting cards and there are opportunities to collaborate with major retailers if you’re unable to find a gap in the market on your own.

To give you more of an idea about who buys greeting cards, you should first know that approximately 80% of greeting cards are purchased by women.

Greeting cards are considered an impulse purchase product with an immediate, somewhat urgent need. People are grabbing a card on the way to visit a relative or while shopping for a gift. This does not necessarily translate well into online sales, but there are still plenty of people who plan for birthdays and holidays in advance and like to customize cards to give to friends and family.

On that note, they are a very occasional item. This means that people need a reason such as a holiday or an event to buy one. You’ll probably see a spike in sales at certain times of the year; Christmas being the major one, but you’re still likely to achieve sales throughout the year if you make cards for birthdays and other celebrations.

There are two main categories of greeting cards; every day and seasonal. The best-selling everyday cards are birthday cards, followed by wedding and anniversary, get well and sympathy, then friendship and encouragement cards.

For seasonal cards, Christmas themes are the bestsellers, followed by Valentine’s Day, Mother’s Day, Father’s Day, and Graduation cards.

How to Make Greeting Cards

When it comes to making greeting cards, there are several ways you can go about it.

First, you can create the card by hand, using all sorts of materials and decorations such as cardboard, paper, glitter, and the usual arts and craft tools and supplies.

If you’re good at drawing, you can draw your own designs on them. Many people like to emboss or engrave their cards for a more professional look, but you may have to invest in specialist equipment in order to achieve those effects.

Speaking of which, you can totally also make really cool designs with a Cricut machine.

Creating greeting cards completely by hand can be time-consuming, but some people appreciate a handcrafted card done well and are willing to pay a little extra for it provided you’re in a very clear and specific niche.

Reddit is a great place for sharing tips and design ideas, especially on the Etsy and cardmaking subreddits. thesprucecrafts.com , which I’ve mentioned before, is also a great place to learn cardmaking skills for free.

Alternatively, you could choose to print greeting cards. You make the initial design using a computer or an iPad and keep re-printing many copies of the same card design.

While they may not sell for as much individually than a made-completely-from-scratch card, you will be able to make far more in a shorter period of time. It makes much more financial sense in the long run, as you will earn more by selling in higher quantities.

That said, it’s harder to stand out from the crowd this way, and it could arguable be less fun for you to create.

Keep in mind you’ll also need to be very careful that you do not infringe on any copyright laws with any of the images you use as your designs.  

Cardmaking Supplies

Cardmaking supplies are relatively cheap to source. In order to maximize your profit margins, you’ll want to buy in bulk at wholesale costs.

You can find them through sites like Amazon and Etsy but you may want to shop around on more dedicated wholesale sites like 8seasons.com or factorydirectcrafts.com .

It can be tempting to go on a shopping spree and buy lots of cute additions for your cards, but remember that this should be reflected in the selling cost of your finished product and if it climbs too high then very few people are going to want to buy it. So there’s a balance there. 

Selling Cards Online

Selling cards online can be tough, since lots of people buy them on impulse in physical stores and are not willing to wait a couple of days to receive a card. However, there are still plenty of ways to earn a living from card making online.

You can try selling on the usual sites like Etsy, Amazon and Shopify. Most sites will take a cut of your earnings at around 15-20% and you may have to fight for buyers’ attention because there’s a lot of competition out there.

Your designs will need to stand out in order to grab attention and make sales.

You really want to invest the time and research in developing a niche for your greeting card business.

Don’t just make what everyone else is making. Pick a group of people from within the niche of greeting card buyers, and make designs specifically for them.

Get specific, find a focus and you’ll be much more successful that way.

If you have the resources for it, then you can launch your own website and advertise your products online. You’ll want to learn about SEO (Search Engine Optimization), which is how people will find you on Google or Etsy or Amazon search, and look into how to pitch your card designs to the media.

This is a fantastic and free way to get your products in front of a large audience and in my opinion, it’s much more effective than doing social media.  

Submitting Your Designs to Card Companies

Some card companies pay you for submissions if you approach them directly with your designs. Before submitting your idea to a site, analyze the style of cards they sell first so you can be sure your style matches theirs.

If they like your ideas; you can earn anywhere between $25 to $300 for one design.

Companies known to accept designs include

• Oatmeal Cards
• Blue Mountain Cards
• Warner Press

To team up with them, you first need to sign a statement to confirm that your idea is original and often that you won’t use it anywhere else. They’ll want some exclusivity with your work.

This might seem like a lot, for you to give up your intellectual property, but consider that these companies do all the work in printing, marketing, and selling the cards and you don’t have to worry about that.

How many cards do you have to sell on your own to make $300 from one design? Probably quite a few, and over a long period of time.

Unless you’re really established, this could be a good route if you’re just starting out.

Selling Wholesale

Selling wholesale is also a very big opportunity for you. A majority of physical brick and mortar stores carry greeting cards.

As we talked about before, greeting cards get bought in person a lot.

If you can, pitch your designs to physical stores and sell your work wholesale to them, keep a great, positive relationship and they’ll keep reordering from you.

That could be your entire bread and butter and you wouldn’t have to worry about selling directly to customers online.

The beauty about wholesale is even though you’re getting paid less per item, you’re getting paid more overall because you’re dealing in larger bulk quantities. You’ll be making orders in the hundreds if not thousands of dollars per order from just one store alone. So definitely keep that in mind.

You might also want to look up art licensing where you’re “renting” your art to a buyer, like a greeting card company to use your art on a product. You can do this yourself or work with an agent to this for you, and you get paid royalties, or a commission every few months.

If you’ve bought a greeting card lately, you’ll know that there is a wide range to choose from. They can generally cost anywhere from 50 cents to $10 to $12.

They usually vary in size, quality, and detail. The average price of a greeting card is around $4-$5.

The Greeting Card Association also reports that, “Cards featuring special techniques, intricate designs, and new technologies are at the top of the price scale.”

The trick to pricing your product is to leave yourself with enough profit to invest back into the business and help it grow, and a salary is always nice to have too.

A formula I like to use to price handmade products is the cost of your supplies plus labor costs plus any overheads, multiplied by 2 to work out a wholesale price, and then times that by 2 again to give you a retail price.

So it’s effectively twice what it cost you to make when selling wholesale and 4 times the production cost when selling retail.

So if a card costs you on average 50 cents to make including labor costs, you should look to sell it for around $2 at wholesale pricing and $4 direct to customers with retail pricing.

It’s worth your time to do some window shopping of your own to see how much similar cards are selling for and then price your own accordingly.

Unfortunately with greeting cards, there’s not a whole lot of wiggle room to price any more than $10-$12, because this is what people are willing to pay, and the perceived value of a greeting card just isn’t that high.

Remember that you must also factor in the cost of delivering your greeting cards to the customer.

Check out ‘ Off Kilter Crafter Ian ’ on YouTube – he gives some good advice about sending handmade cards on his channel.

If you’re in the US, you’ll probably want to use USPS for shipping your greeting cards. It’s pretty cost-effective to ship greeting cards because it’s light in weight and doesn’t take up much space. Cards are usually really flat, and that gives you special cheaper pricing with USPS. 

  Selling handmade cards can be a profitable business, especially if you’re able to be recognized by a major card company or sell in physical stores where you’re selling in high numbers.

Greeting cards are still going strong as an industry, but to benefit from it your designs will need to be different and still worth the price.

How often do you buy greeting cards and what is the most you would expect to pay for one? Let me know in the comments! 

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your intelligence an d know how has inspired me so very much! So helpful, I just wish I started earlier in my life, I have so many fans of my artwork and they save even my envelopes. Anywayyyyyyy…I am hoping to do something with my art, (to actually get paid) I have made logos and so many things and never knew how to charge, so I never do when I am sked for special favors. but, hello, I am unemployed now…thank you again!!!

Contact me what is contact info want to make joke greeting cards

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I found your video to be way too long and full of information I did not need. I am not a n artist nor do I want to be one. I do have a bricks and mortar business that sells shipping and I am looking for a product I can sell from both my physical store via a workstation and from my website to my customers that want to print off a quick card to send with their shipment. The idea is to have a white label solution I can brand myself and have my customers choose from a selection of cards to customize and print off in store or to just pick one from the display rack. I also like the option of providing a digital version of the card when they buy a printed one. This would be great to send by email to the recipient of the shipment.

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Start a Greeting Card Business

Emotions for Sale: Crafting Cards that Touch Hearts

GREETING CARD BUSINESS

Related business ideas, discover your perfect domain, greeting card mini business plan, business idea: greeting card business, expected percent margins:, earnings expectations:, actions to hit those numbers:, product creation and inventory management:, marketing and customer acquisition:, sales and customer experience:, cost control:, business operations:, not what you had in mind here are more ideas, grab your business website name, step 1: determine if a greeting card business is right for you, breakdown of startup expenses, breakdown of ongoing expenses, examples of ways to make money, step 2: name the business, step 3: create a business plan, sources of funding, business model, financial forecast, step 4: obtain financing, business plan, step 5: obtain licenses and permits, how to obtain licenses and permits, cost of licenses and permits, step 6: set up a business location, necessary equipment, setting up the store, obtaining necessary licenses and permits, step 7: create greeting card designs, step 8: market the business, tips for effective marketing, step 9: monitor the business, tips for making adjustments, explore more categories, take the next steps.

How To Start Greeting Card Business: 11 Steps and Strategy

Whether it’s for a special occasion or just to send some good regards, one can always show someone how much he or she cares with a fully customizable greeting card!

The world of business can open new avenues of interest around your art or craft passion. For the hobbyist, card-making is fun!

Have you been making cards for your own use, and are you now wondering if you should expand and sell your creations? Greeting cards are big business. People need them for countless occasions.

In This Article

Start Greeting Card Making Business

Not only do they send them to mark births, deaths, graduations, and anniversaries, but they also send them just to add cheer to a loved one’s day. Many people won’t even think about giving a gift unless a greeting card is attached.

If you have a unique idea for a line of greeting cards, artistic flair, or even talent with the written word, you can start a home-based greeting card business.

Be Creative

Working at home sounds easy, but it’ll be hard to earn a profit if you go overboard with your spending . If you’ve been making cards for a while, the start-up cost can be minimal, and the only upfront costs would be fees to show your work to your target shoppers.

If you see yourself enjoying the card-making process long-term , selling cards to sustain your passion can be a great way to go.

Visit several greeting card stores and gift shops to browse through their selection of greeting cards. As you browse, try to determine what is missing or how you can produce better cards. Search online for even more greeting card ideas.

Sell Online

Remember that many online cardmakers may have great ideas but don’t necessarily sell very well if they don’t know how to market.

If you can find a need in the greeting card business that hasn’t been completely dominated by another artist or card company, you can experience business success by filling it better than someone else is. Purchase the materials you will need for your greeting card business.

If you make handmade cards, you will need a range of special papers, pens, colored pencils, and embellishments.

If you design cards on your computer, you will need a desktop publishing program, scanner, printer, and card stock or photo paper. A paper cutter may prove helpful as well.

Build Home Base Office

Set up a home-based office in which you can create your greeting cards, market your business , and handle administrative and marketing tasks. If you don’t have room for an office, consider setting aside space in a finished basement, dining room, or even a guest room.

Stock your home-based office or space with basic office supplies and equipment as well as card-making supplies.

Set up your computer, fax machine, and phone in the same area. You can use this space for designing your cards and communicating with potential customers and suppliers.

Satisfaction is important

One thing to think about is your artistic style. The market is saturated, and competition is fierce, so a niche market or a unique look will help sell your cards. Do you have a drawing, painting, or collage style that makes your work pop and draws attention?

Some ideas you can try are:

• paper pricking,
• stitching on paper,
• pop-up cards,
• and paper quilling.

Explore your potential for a distinctive look in greeting cards. Make your style your own, and you’ll discover people drawn to your unique creations!

When you have selected what cards you will be making and selling, you will need to gather several accessories for your greeting card-making business. For digitally printed cards, you will need to have computers, scanners, designing software, and high-quality printers.

You can also outsource the printing arrangement. For other types of cards, you need to source beads, colors, blank card paper, and different craft-making items. You will find these materials from the local wholesale shop, or you can go for an online purchase.

how you can make your Business cards unique

Mimic a pattern.

Find inspiration from bold patterns, such as we did with a woven pillow. Mimic this pattern on a card by cutting a rectangle of card stock. Then tape down the horizontal ribbon and thread the vertical ribbon through. Use different widths and patterns to create a unique look.

Use Real Flowers

Add a touch of realism to a card with pressed flowers. Make sure your flowers have lost all their moisture before using them in a project, or they may turn brown. To attach the flowers, use dry adhesive dots.

Use Botanical Prints

Create an elegant look by punching botanical stems in the center of a mod card. Use warm colors to emphasize this botanical look.

Create an encouraging card with phrase stickers placed in a grid. Top it off with a simple flower detail.

Use Other Objects

Fashion a cute flower shape out of safety pins. Add beads to the pins for an extra touch. To hide the glue holding the pins together, adhere a button to the center of the design.

Personalize a thank-you card by hand-stitching ribbon in the shape of a flower. Complete the look with machine-stitched lines.

Use fabric to add texture to your card design. We covered a card with fabric pieces and then embellished it by machine-stitching other fabric pieces onto the card. For an extra special touch, create a flower out of sewn-together pouches.

The last element to consider for a small business is a website. Many online platforms offer tools for building a website on your own. Try a few sites out before giving up because they are not all made alike. Your own knowledge of computers will make one platform easier to use than another.

As your greeting card-making business grows, you can apply for a Patent and Copyright License. You will need to submit the designs and your company name with a specific application format and fees.

Similar Posts:

• 51+ Flower Business Ideas: Blooming Profits in a Petal Paradise
• Ultimate Guide to Crafting Professional Voicemail Greetings
• 59+ Valentine’s Day Business Ideas: Heartfelt Ventures for Entrepreneurs
• 65+ Crafty Business Ideas 101: Creative Ventures for Success
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Business, marketing, and blogging – these three words describe me the best. I am the founder of Burban Branding and Media, and a self-taught marketer with 10 years of experience. My passion lies in helping startups enhance their business through marketing, HR, leadership, and finance. I am on a mission to assist businesses in achieving their goals.

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How to Start a Greeting Card Business in 2023?

Sanjoli jain, table of content, decide your target audience, which one should you choose: readymade cards or personalized cards, what will the greeting card industry look like in 2023, step 1: visibility through your website and ecommerce store, step 2: design phase: adapt a product design tool, step 3: the printing phase, step 4: define marketing strategies, cost vs. benefit: maximize the profit, step 5: delivery and logistics management, start a greeting card business: work with experts.

It’s your birthday, and amidst the hundreds of wishes you receive through WhatsApp, Instagram stories, and DMs, one wish catches your heart.

It’s a personalized card from your mother featuring a special moment and a heartfelt message.

Cards surely have a unique power to connect us emotionally.

Even in this digital age, they remain a popular choice, with nine out of every ten households buying greeting cards each year.

In the US alone, around 7 billion greeting Cards are purchased annually, making it a thriving $7.5 billion industry.

So, if you want to start your greeting card business, make an announcement already, or just simply say thanks. Because we’ve got you covered. We have put together this detailed guide that will answer all your questions from “How to start a Greeting Card Business?” to “How to frame the perfect greeting card business plan?”.

Create a full-proof, well-planned, legally compliant, customer-friendly greeting card business plan. Let’s start.

Deciding the target audience or the target market is the essential step zero. You cannot probably sell without knowing who you’re trying to sell to. Decide what audience you want to target. Deciding this at an early stage is essential so that you can create designs that appeal to those audiences. You must go through a series of steps to decide your target audience. Let’s look at them one by one.

1. Find your Niche

You need to think of a strategy that would mark your identity and would differentiate you from the pool of competitors. Defining a unique niche is a part of your larger brand strategy . A lot of things will depend on the niche of your business, like the name, specialization, marketing strategies and so on.

Once you specialize in a certain type of message, you may find it difficult to branch out because the name you chose for your business may or may not align with your new specialization. So, it is better to know it all before you begin.

2. Greeting Card Type

Decide what kind of cards you are going to design. Categorization could be based on size, material and so on. Ask yourself all sorts of questions and brainstorm. All these questions will help you decide your inventory and supplies and will eventually help you estimate the cost of your plan.

• Size Decide the size of your cards. What kind of size are you going to offer? Are you going to offer multiple fixed sizes options? Are you going to offer custom sizes?
• Material Choose the material that you’re going to offer. There can be a wide range of materials to choose from like paper, cardboard, reusable material and so on.

Top Greeting Card Companies: Learning Popular Card Types, and Trends from Them

Below are the 4 popular greeting card companies and what they are good at.

1. LovePop Cards

LovePop is more than just a greeting card that unfolds like a miniature surprise. The company creates 3D paper sculptures for every occasion designed by naval engineers on cutting-edge software and then hand-crafted in the Asian art form.

3D elements have been a popular choice on greeting cards. Embracing such latest technologies will make you stand apart.

2. One-per-Week

It is a monthly subscription that sells high-quality cards. Each box comes with 4-5 greeting cards plus color pens, vintage stamps, and more. Cards are centered around themes like birds, food, and puns.

(OPW’s Weekly Card Subscription)

Currently, this type of business model is growing at an exceptional rate. The subscription-based business model is a good option to give your business the sustainability it requires.

3. EcoFriendlyCards

Sustainability is at the core of this company. Their cards are made of flower seeds and are 100% recycled. Card designs are handmade from cut and torn mulberry paper, glitter, and paint. The real magic happens after shoppers buy cards. After planting a card in a pot, it will grow into a beautiful flower.

(Cards that Grow Into Flowers)

Shoppers today have become too environmentally conscious. And hence, brands like this one are winning over shoppers. Launching a greeting card business in this niche can be a profitable business idea.

4. CardsDirect

CardsDirect is a Texas-based company selling cards for all occasions. What sets them apart from others is their card designer tool . Using the tool, shoppers can customize their cards by adding logos, images, signatures, etc.

Want to learn more? Discover the distinct functionalities of our intuitive tool by clicking the link below.

This allows them to provide an extensive range of cards for every occasion, as their customers can customize the cards and add any message they wish to add.

You too can provide a diverse selection of greeting cards by implementing a Product Designer Tool.

This powerful tool enables your customers to add their personal touch online, designing cards for any occasion and expressing themselves through unique elements and text.

You can also easily offer such a range of greeting cards and cater to every unique need of your customers. Implementing Web to Print Software will empower your customers to add their personal touch to their cards online.

So, they can design greeting cards for any occasion, and personalize them with unique elements and text they want to express.

Check out the link below to see all the distinct functionalities of our intuitive tool and deliver your visitors exactly what they desire.

Either offer readymade cards or personalized cards or offer both of them. Although custom-made cards produce more guaranteed money. You may lose some creative control, as you must produce what the client wants. Therefore, offering both types of cards can be a plus point too. You can also showcase your creativity through readymade cards. By offering personalization, you can let your customers design the cards as they want.

(Personalized Greeting Card)

Personalized Cards: A Major Growth Driver for Your Startup

You must be wondering why there is a big difference between personalized cards and readymade ones. Well, the answer is simple. Customers love things made specially just for them. A great way to make customers happier and keep them engaged.

Deloitte found that 1 out of every 5 customers is willing to pay 20% more for a personalized exclusive product that is designed just for them. Another study on creating customer loyalty through customization states that:

“customization increases perceived service quality, customer satisfaction, customer trust, and ultimately customer loyalty toward a service provider.”

Your customers can upload photos, write messages, add designs of their choice, and send ready files for printing. Customer experience finds value through exclusivity in the form of customized products. It gives them the feeling of something unique and something specific that works in just the way they want.

We can help you enable offering custom greeting cards in your store. Built by industry experts, our fully-functional product designer tool is easily integrable with all eCommerce platforms. To know how, get in touch with our industry experts.

Keep track of new greeting card business by reviewing submission guidelines, requirement statistics, by visiting card stores, fairs etc. It is a good way to find out what is trending, what is not and what sorts of cards are people looking for.

These stats can also play a role in defining your niche. Let’s have a look at some of the latest trends in the industry. You can also get a good idea about the conventional market, which could help you try breaking the conventions to offer something unique.

Customized greeting cards are becoming more common. This trend is bolstered by the companies’ emergence, allowing their customers to create cards as and when they want quickly.

Millennials and younger consumers are on the lookout for cards with relatable content containing cheeky or informal messages. These cards cater to the need for a more comedic, informal way of communicating. Many smaller businesses are creating these cards, and industry experts expect that they will continue to grow.

Social media seems to be the number one choice for card companies for branding, promoting their products, and creating a loyal fan base. Brands like Hallmark are doing a great job on social media. If you were to check their Instagram profile , they hardly post promotional content. They have gathered a massive following of more than 200K by sharing inspirational messages, behind the scene videos, tips, giveaways, and more.

Also Read: A Step-by-Step Guide on Selling Invitations Online

So, you’re ready with your step Zero and you’ve thought it all through. You know your niche, type of cards, type of products and so on. We bring you a 5-step implementation plan, to start with the successful execution of your Business Idea.

The first and foremost step in your greeting card business plan is to build your online presence and improve your visibility.

You can also go with a traditional offline store; you and I both know that the world is going digital.

With the global e-commerce market likely to reach more than $8 trillion by 2026 , having an eCommerce store is definitely a better option.

You will need an eCommerce store to sell your products and showcase your offerings. You can easily build your online presence if you go through the following steps.

You will need to register a domain name and build a website. You can create your own website and customize it to mark a benchmark of your brand. You can either build an eCommerce website directly or can build a separate website and then integrate your eCommerce store into it.

ii) E-commerce Platform

Selecting the right e-commerce platform is a crucial step. There’s a pool of options to choose from. Since we are looking for a specific use-case that is building it for our greeting card print shop or website. You can categorize your selection on the basis of licensing, cost of development, customization, support services and so on.

Magento, Shopify and WooCommerce are three popular ecommerce platforms with active communities for developers for support. Magento is the popular choice for larger enterprises and for someone who needs flexible customization. Shopify and WooCommerce on the other hand are hassle-free to start with. You can easily integrate the store into your website and get up and running within days. Each platform has its own pros and cons. To know more about these platforms, you can visit this detailed guide .

iii) Business App

You can also create and launch your own app. Having your own app can also work towards building brand recognition.

At PrintXpand, we provide comprehensive solutions to help you effortlessly start your own greeting card business.

We offer personalized eCommerce platforms tailored to your specific business requirements.

Additionally, we can assist you in developing a native Mobile2Print application for wider customer engagement. Our experts will guide you through the setup process, ensuring a smooth and hassle-free experience.

iv) Social Media

You can build a social media page to publish your content and improve your reach. With most millennials and young generation active on social media these days and with your unique product offering, you are surely going to get good business.

You’ve set up your website, app, e-commerce store, and social media account. Now, all you need to do is come up with eye-catching designs that lure customers to your store. The more unique your designs the more likely customers are to click on your website. As we noticed earlier, product personalization is trending these days. And to let your customers implement this on their own, you will need a Product Customization tool.

A product personalization tool is a Web-to-Print software with diverse features for your customers to create customized designs. All you need to do after that is print those designs. An Intuitive W2P product design tool consists of everything that you would expect from an online product design tool, from diverse customization features to print-ready designs.

Ideally, most tools provide a huge library of images, texts, clipart and ready templates. A fully-responsive designer tool is also perfect to create personalized designs on every printable material. It can have element-based pricing, design-based pricing and so on. Pick a tool that gives you full control over its offerings and flexibility.

After your customers design their products, the next step would be to print those designs. Planning the printing phase involves planning everything from the printing methods, supplies, to the printing infrastructure. Let’s have a detailed look at all these aspects.

A. Printing Methods

There are multiple types of printing methods . Choose your printing methods first so that you can make sure of your supplies and the infrastructure. It is necessary to select a printing method that gives the desired result.

While choosing the printing method, think about the factors like quality of the output, required resolution, compatibility of the printing method with your product design tool, and so on.

Some of the popular printing methods are engraving, thermography, foil stamping, embossing, digital printing, etc.

Digital Printing is one of the most common methods that uses four colors of ink to create intricate designs and lettering, applied in small dots. Plus, digital painting requires an image resolution of 300 dpi. It ensures better image quality and output.

B. Manage your Supplies

Note down all the supplies that you’ll need and look out for similar suppliers. You will need necessary supplies like cards, paper, ink and so on. Find wholesale suppliers through industry contacts, trade journals, internet and so on.

You can go according to your budget and choose the one that best suits your budget. But I would suggest not to go for low quality products solely because of the budget. It is about customer satisfaction in the end. To manage these supplies, you can opt for various Inventory management software too.

C. Infrastructure

Set up the infrastructure pertaining to the printing method you choose. Setup a professional workspace with required instruments. The printing instruments that you buy will depend on the printing methods that you choose. You can hire professionals to help you with everything. You can sign a third-party contract and give the printing consignments to well-equipped print professionals.

Your customer probably won’t discover your charming cards without you marketing them. Your greeting card business plan needs effective marketing strategies. The best marketing technique for new businesses is word-of-mouth. As you grow you can work out on a more formal approach to your marketing strategies. Marketing strategies must include social media marketing, email marketing. You can also create and launch ads and have your business review printed in the local newspapers.

Promote yourself through various retail outlets. Showcase some sample designs on your ecommerce stores and social media. Advertising through social media is a good, cheap way to get early business.

Choose the right kind of content to catch the attention of your potential customers. Offer samples and prototypes to customers so that they can see the card up close before committing to larger orders. You can also sell these cards directly to pre-existing popular stores. This can build brand recognition too. Providing additional sweeteners, such as free shipping, or discount can also prove to be helpful. The possibilities are limitless.

As a beginner every business owner is worried about the cost vs benefit ratio. But they forget to notice that the benefit ratio is not solely based on just the market but also their own business strategies. Here’s a brief on how to increase the benefit ratio using smart business tactics. Include these points in your greeting card business plan and you’re good to go.

Most card shops – online as well as offline – sell specialized envelopes, pens, gifting accessories and so on. You can implement this too. Provide gifting options at the time of checkout. Ask your customers if they want envelopes and even suggest some based on the type of card they’ve chosen. This will bring you additional revenue.

(Product Recommendations to Drive Higher Conversions and Increase Average Order Value)

You can sell these cards in bulk at various retail shops too. This can help improve your brand recognition. Design unique and new ideas to get more attention.

Decide on a pricing system of your own. Especially for personalized products, you can include element-based pricing, size-based pricing, color-based pricing, and so on. You can charge your customers for uploading custom photos too. You can charge them for every word they write or you can implement sentence-based pricing.

You can also display live pricing based on the level of customization your users are opting for with our card designer tool . This will make pricing more transparent, leading to a positive impact on customer experience.

Plan seasonal offers and provide lucrative discounts to your customers. Generally, the prices of greeting cards are about $2.50 each. However, you can sell a pack of six cards for approximately $7.50. This way customers will find it cost-effective and are more likely to make the purchase.

(A Well Executed Discount/Offer Strategy Will Bring You a Bunch Of New Customers)

Small greeting card businesses can make about $45,000 a year. Larger companies, like Hallmark, make as much as $19.7 billion on particular days alone like Valentine’s Day.

Your designs matter, just make sure the design offerings are of high quality. You can collaborate with print specialists too. Print specialists offer more than simple printing services.

The old saying goes: It takes money to make money. But nobody said that you have to spend all of your own money. small business funding can help you cover the expenses required to get your greeting card business plan started. You can use this funding to help you with equipment, supplies, employees, legal fees, etc. There is no one-size-fits-all type of business funding. So, consider your options mindfully.

Last but not the least is logistics management. You will need an effective logistics infrastructure, to manage your supply chain as smoothly as possible. Again, you can do this on your own, by creating logistics workflows or you can outsource it to a third-party company. Decide on a commission to pay them either monthly or based on orders.

Hopefully, this handy guide will help you create a clear plan for starting a greeting card business. Without a roadmap, things can get chaotic. There are hundreds of things to manage. But now you have the perfect plan and tools to frame the perfect business strategies for your greeting card business. However, the main decision to take is the choice of the eCommerce platform and a custom design tool.

PrintXpand is a foolproof solution to the dilemma of making the right choice for a custom design tool. Our Web-to-print developers can help get you up and running within just a few days. We design web-to-print solutions for multiple platforms like Magento, WooCommerce, Shopify, Prestashop, OpenCart, PHP and so on. We also provide multiple custom integrations like Print Inventory Management solution and Print Job Manager.

Our product comes with the top functionalities that you need to acquire, engage, and serve your potential end-customers in the best way possible. We guarantee that our team of expert developers will guide you every step and be by your side to embark on this journey ahead. If you do seek any customizations for your greeting card business idea – we would not be surprised.

All product and company names are trademarks™, registered® or copyright© trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

Sanjoli, an ENFJ is an engineer turned writer, with a non-binary approach towards the world. Along with a keen interest in writing, her goal is to make the intersection of art and technology coherent for our readers. She is passionate about Science, Reason and Rationality. When she is not writing, Sanjoli is often found travelling, exploring indie-pop music and watching experimental films on the internet.

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Crafting a Profitable Greeting Card Store: Financial Modeling Tips

By henry sheykin, resources on greeting cards store.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan
• Sales & Revenues
• Running Costs

Welcome to our blog post on How To Build a Financial Model For a Greeting Cards Store! If you are planning to start a greeting card business or simply looking to improve your existing one, having a solid financial plan in place is crucial. In this post, we will guide you through the various aspects of building a financial model for a greeting card store, including sales forecasts, expense tracking, profit margins, break-even analysis, and more. By following the steps outlined here, you will be able to develop a strong financial foundation for your greeting card business and make informed decisions that drive growth and success. Let's dive in!

Greeting Cards Store Revenue & Sales Forecast

As a crucial part of the greeting card business plan, revenue and sales forecast includes important factors that need to be considered for the financial plan of a greeting card store.

The revenue and sales forecast depends on several factors, such as the launch date, sales ramp-up time, walk-in traffic and growth assumptions, customer and purchases assumptions, and sales seasonality. These factors directly affect greeting card store expenses , profit margins , and marketing strategies .

To achieve Greeting Cards Store ROI calculation , owners and investors can use data analysis tools, such as the Greeting Card Sales Forecasting Model , a break-even analysis, and cash flow projection for better financial decision-making.

Greeting Cards Store Launch Date

The launch date of your greeting cards store is important because it sets the tone for your business. It is essential that you have a plan in place for your store's launch date. This plan should include details on how you will market your business, your sales forecast, expenses, and projected profit margins.

Your financial plan for your greeting card store should include a sales forecast that outlines how much revenue you expect to generate during the first year of business. Additionally, you will need to conduct a break-even analysis to determine how long it will take for you to recoup your initial costs and start generating a profit.

Tips & Tricks:

• Determine your target market and create a marketing strategy that will appeal to them.
• Factor in all costs associated with running your store, including rent, utilities, and inventory when creating your financial plan.
• Create a cash flow projection to ensure that you have enough money to cover your expenses during the initial startup phase.
• Calculate your ROI to see how much profit you can expect from your business.

By choosing the right launch date and having a solid financial plan in place, you can improve your chances of creating a successful greeting cards store. Remember to factor in all expenses and create a realistic sales forecast. With careful planning and execution, you can achieve your goals and run a successful greeting cards store.

Greeting Cards Store Ramp-Up Time

When starting a greeting card store, it's essential to have a solid financial plan in place to ensure success. This includes a sales forecast , expense projection , and cash flow analysis . However, one crucial factor often overlooked is the ramp-up time to reach the sales plateau.

Tips & Tricks

• Conduct market research to determine industry-specific ramp-up periods.
• Offer incentives to customers during the ramp-up phase to boost sales.
• Prepare for a slower sales period during the ramp-up phase by reducing expenses.

The ramp-up time is the period it takes for a business to reach a profitable sales level . During this time, a business may have higher expenses than revenue, making it crucial to have sufficient funding or resources available. The ramp-up period may vary depending on factors such as location, competition, and the marketing strategy of the business.

To determine the ramp-up time for a greeting card store, it's important to research the industry and gather data from similar businesses. Based on this research, the average ramp-up period for a greeting card store is approximately six months.

By forecasting the ramp-up time as part of the overall business plan , a greeting card store can prepare for the slower sales period and adjust its expenses accordingly. With a well-thought-out financial plan and realistic sales forecast, a greeting card store can achieve a profitable ROI in a reasonable time frame.

Overall, taking into account the ramp-up time is a critical component of forecasting sales for a greeting card store. With proper planning, research, and resources, a business can successfully navigate the ramp-up phase to achieve profitability and long-term success.

Greeting Cards Store Walk-In Traffic Inputs

In the first few weeks after opening, the Greeting Cards Store experienced a steep ramp-up in visitors. However, after the sales plateaued, the average daily walk-in traffic began to stabilize. By tracking the traffic weekly, the company was able to determine the average walk-in daily traffic of visitors by weekdays. Mondays had the lowest average at 50 visitors, while Saturdays had the highest daily average at 150 visitors.

Tracking walk-in traffic is an essential part of building a financial model for the Greeting Cards Store. Knowing the average daily visitors enables the company to calculate the break-even point and profit margin. It also helps in creating the sales forecast, cash flow projection, ROI calculation, and marketing strategy.

When building the financial plan for the Greeting Cards Store, the company predicted an average walk-in traffic growth factor of 5% per year. Using this input, the model calculates the future traffic by weekdays for the next five years. This prediction helps in planning and preparing for future expansion and hiring.

• Offering attractive discounts on weekdays can encourage customers to visit during off-peak hours, increasing walk-in traffic and sales.
• Promoting your store through social media channels can increase awareness and drive new visitors to your store.

In conclusion, tracking and predicting walk-in traffic is a vital aspect of building a financial model for the Greeting Cards Store. By understanding the average daily traffic and growth factor, the company can plan for the future, make informed decisions, and improve the overall profitability of the business.

Greeting Cards Store Visits to Sales Conversion & Repeat Sales Inputs

When opening a greeting card store, it's important to consider the number of store visits that will convert to new customers. Based on industry data, the average conversion rate is about 30%. However, this can be impacted by various factors such as marketing, location, and sales tactics.

It's also important to consider the percentage of repeat customers that the store will have. Repeat customers are essential in maintaining a stable revenue stream. On average, a greeting card store can expect around 40% of their customer base to be repeat customers.

In addition, it's important to estimate the average amount of purchases that each repeat customer will make per month. This can vary depending on factors such as customer loyalty and discounts offered, but on average, each repeat customer can be expected to make around 3 purchases per month.

These inputs are important in building a comprehensive financial plan for a greeting card store. They help in sales forecast, break-even analysis, cash flow projections, marketing strategies, and ROI calculations.

• Offer loyalty programs or discounts for repeat customers to encourage continued business.
• Ensure marketing efforts are targeted towards the right demographic to maximize store visits and conversions.

Greeting Cards Store Sales Mix Inputs

At our Greeting Cards Store, we sell a variety of products that belong to specific categories. Sales Mix by Product Category is an essential measure that helps us understand how much of each product category we are selling, and in turn, which categories are driving most of the revenue.

We have identified five product categories to use in our Sales Mix assumptions:

• Birthday Cards
• Thank You Cards
• Anniversary Cards
• Graduation Cards
• Christmas Cards

Here is how we have forecasted our Sales Mix by Product Category over the next five years:

• Regularly review your Sales Mix by Product Category to identify opportunities for growth or product diversification.
• Set realistic sales mix assumptions based on historical data and market trends.
• Use sales mix assumptions to inform your inventory management, pricing strategy, and marketing campaigns.

Greeting Cards Store Average Selling Amount Inputs

When running a greeting card store, it is important to have a good financial plan in place in order to maximize profits. One important input for this plan is the average selling amount of each product category. By grouping products into categories, it becomes easier to estimate the average selling amount for each category and utilize it to estimate the average ticket size. For example, a store may have categories for birthday cards, thank you cards, sympathy cards, and so on.

• Regularly analyze your sales data to update your assumptions on average selling amounts by product category.

Let's say the store owner assumes that the average selling amount for birthday cards is $4, for thank you cards is $3, and for sympathy cards is $5. If the store's sales mix (the percentage of sales from each category) is 50% birthday cards, 30% thank you cards, and 20% sympathy cards, then the model calculates the average ticket size as:

Average Ticket Size = (% of Sales from Birthday Cards x Avg. Selling Amount of Birthday Cards) + (% of Sales from Thank You Cards x Avg. Selling Amount of Thank You Cards) + (% of Sales from Sympathy Cards x Avg. Selling Amount of Sympathy Cards)

In this example, the average ticket size would be:

Average Ticket Size = (50% x $4) + (30% x $3) + (20% x $5) = $3.70

By utilizing the average selling amount of each product category and the sales mix, the greeting card store can make informed decisions about pricing, inventory, and marketing strategies that will maximize profits.

Greeting Cards Store Sales Seasonality

When it comes to forecasting sales for your greeting card store, it's important to consider the seasonality of the industry. Throughout the year, sales can vary greatly due to holidays, special occasions, and other events.

For example, February is typically a busy month due to Valentine's Day. Sales during this time can be double or even triple the average sales per day. On the other hand, July and August tend to be slower months with sales possibly being only 50% of the average sales per day.

• Take advantage of holiday sales and promotions to drive traffic to your store
• Plan ahead for slower months by focusing on cost-cutting measures
• Be aware of any local events that could impact sales, such as a nearby graduation or wedding season

By analyzing and understanding these seasonal trends, you can create a more accurate sales forecast and develop a financial plan for your greeting card store. This will help you determine your break-even point, cash flow projection, ROI calculation, and profit margin.

Greeting Cards Store Operational Expenses Forecast

Operational Expenses Forecast is an important element of the financial plan for a Greeting Card Store. It provides an estimate of the necessary expenses required to operate the store. These expenses include Cost of Goods Sold by Products %, Employee Salaries and Wages, Rent, Lease or Mortgage Payment, Utilities and Other running costs.

By creating an operational expenses forecast, a Greeting Card Store can determine its cost structure, break-even analysis and profit margins. It is essential to have a clear idea of the expenses required for the store to operate and generate Greeting Card revenue model while developing a Greeting Card business plan and Greeting Card store marketing strategy .

Greeting Cards Store Cost Of Goods Sold

The cost of goods sold (COGS) is a significant expense for a greeting card store. To calculate the COGS, you need to subtract the amount of inventory at the end of the period from the beginning inventory and add the cost of inventory purchases during that period.

Assuming that we are a greeting card store, the percentage of COGS for our business can be broken into several categories. For instance:

• Greeting Cards: 60%
• Gift Wraps: 15%
• Stationery: 10%
• Gift Items: 10%

The COGS assumption percentage can vary from store to store. However, our percentage amounts are a rough estimate, and we should adjust our budget accordingly.

• Regularly assess your COGS assumption percentages to keep your budget updated.
• Partner with wholesalers to get discounts when purchasing inventory.
• Ensure that your COGS is in line with your pricing strategy to maintain a good profit margin.

Greeting Cards Store Employee Salaries and Wages

When developing the financial plan for a greeting card store, it's important to consider the cost of employee salaries and wages. This includes determining the number of staff members needed, their positions, and how much they should be paid annually for a 12-month period. For example, a starting cashier position could be paid $25,000 annually while a store manager could earn $50,000 annually. It is assumed that these positions will be hired in the first year of operation to ensure smooth operations of the store.

• Consider offering performance bonuses or incentives to motivate staff.
• Train staff members on effective customer service strategies to increase sales.
• Review local wage laws and ensure that all employees are paid competitively and fairly.
• Consider hiring part-time staff or outsourcing certain tasks to reduce overall labor costs.

From the above assumptions, it is estimated that two full-time staff members will be required for the store's operations: one store manager and one cashier. This will be further assessed based on the Greeting Card store sales forecast, the greeting card store expenses, the Greeting Card store break-even analysis, the Greeting Card store cash flow projection, the Greeting Card store marketing strategy, and the Greeting Card revenue model. The amount allocated for employee salaries and wages will impact the store's profit margin and ROI calculation.

Greeting Cards Store Rent, Lease or Mortgage Payment

When opening a greeting card store, one of the most significant expenses to consider is the rent, lease, or mortgage payment. This expense will have a significant impact on your store's overall financial plan and profit margin.

The assumption you make about this expense will depend on whether you choose to lease a commercial space or purchase one. When leasing, you will need to consider factors such as location, size, and lease terms. In contrast, buying a commercial space requires a lump-sum payment or a down payment, interest rates, and mortgage payment terms.

Tips and Tricks:

• Shop around for the best mortgage rates if you choose to buy a commercial space as this will impact your monthly mortgage payment.
• Factor in additional expenses such as utilities and insurance when setting your budget for rent or mortgage payments.
• Choose a prime location with high foot traffic to maximize sales potential and cover rent or mortgage expenses.

Your greeting card business plan should incorporate a detailed financial plan that outlines all the expenses associated with running the store, including rent or mortgage payments, marketing strategy, sales forecast, expenses, profit margin, break-even analysis, and cash flow projection. Understanding these metrics allows you to calculate your store's ROI, which will help you make informed decisions about your business's future.

Greeting Cards Store Utilities

When it comes to running a greeting card store, utilities are an essential expense to consider. Utilities can include electricity, water, internet, heating, and air conditioning expenses.

It's essential to make assumptions about the cost of utilities when creating a financial plan for a greeting card store. For example, let's say that the average monthly cost of utilities for a similar-sized business is $2,000. The assumption would be that the greeting card store utilities would cost roughly the same amount.

• Cut costs by using energy-efficient light bulbs and appliances.
• Create a schedule for turning off lights and equipment when not in use.
• Consider negotiating a better rate with utility companies.

By carefully considering utility expenses, a greeting card store can create a realistic financial plan. The financial plan is vital when it comes to forecasting sales, determining break-even points, and projecting cash flow needs.

Greeting Cards Store Other running costs

Aside from direct expenses like inventory and rent, greeting card store owners need to consider other running costs. These include:

• Marketing: This includes the cost of advertising, promotions, and creating marketing materials like flyers, posters, and brochures.
• Utilities: Expenses like electricity, water, and gas bills can add up for a physical store.
• Insurance: Greeting card store owners need to protect themselves against any potential lawsuits and damages.
• Staffing: Hiring employees to assist in store operations such as handling sales and managing inventory.

For example, if a greeting card store spends $500 on monthly rent and $200 on inventory, they may estimate another $300 for marketing, $100 for utilities, $500 for insurance, and $1000 for staffing. Considering all these expenses, greeting card store owners can build a financial plan for greeting card store that includes a greeting card revenue model , greeting card store profit margin , greeting card store sales forecast , greeting card store break-even analysis , greeting card store cash flow projection , and greeting card store ROI calculation to ensure their business is profitable.

Greeting Cards Store Financials Forecast

Financials Forecast is an essential component of the Greeting Cards Store Financial Model, which provides a comprehensive financial plan for the store's operation. This forecast includes a Profit and Loss Statement, Sources and Uses Report, Cash Flow Projection, break-even analysis, sales forecast, marketing strategy, and ROI calculation. This forecast is crucial in making informed financial decisions and determining the store's success.

Greeting Cards Store Profitability

Once we have created a financial plan for our greeting card store, it's time to analyze the projected profitability. This can be done by reviewing the Profit and Loss (P&L) statement, which showcases our revenue, expenses, and net profit.

The P&L statement is a useful tool to visualize our store's profitability. We can calculate metrics such as gross profit, EBITDA margin, and net profit margin. These metrics are important to indicate how well our store is performing financially.

It's also helpful to conduct break-even analysis, sales forecast, cash flow projection and ROI calculation on your business plan. These will help you evaluate the overall sustainability of a greeting card revenue model and make necessary changes to boost the store's profitability.

• Regularly review and update the P&L statement to track the store's performance effectively.
• Try to minimize expenses to increase the profitability of your store.
• Adopt a comprehensive marketing strategy to attract more customers and increase sales.

By following these measures, we can increase our greeting card store profit margin and achieve financial success.

Greeting Cards Store Sources and Uses chart

The sources and uses of funds statement within the financial model in Excel for Greeting Cards Store provides users an organized summary of where capital will come from Sources and how this capital will be spent in the Uses.

It is important for the total amounts of sources and uses to be equal to each other. The sources and uses statement is particularly critical when the company is considering or going through a recapitalization, restructuring, or mergers & acquisitions (M&A) procedure.

• Try to estimate your Greeting Card Store Sales Forecast realistically to avoid underestimating or overestimating potential revenue.
• Consider all Greeting Card Store Expenses carefully, including start-up costs and ongoing expenses such as rent, utilities, payroll, and marketing expenses.
• Your Greeting Card Store Marketing Strategy will play a crucial role in generating buzz and attracting customers, factor these costs into your Financial Plan for Greeting Card Store.
• Take the time to calculate your Greeting Card Store ROI Calculation, Break-Even Analysis, and Cash Flow Projection to ensure you are on the right track to profitability.

In conclusion, building a financial model for a greeting card store is crucial for its success. It enables the business owner to understand the financial feasibility of their idea and make informed decisions. The financial plan for a greeting card store includes various elements such as sales forecast, expenses, profit margin, and ROI calculation. By accurately analyzing these factors and creating a solid financial plan, a greeting card store can ensure its profitability and sustainability. Furthermore, having a well-defined marketing strategy and cash flow projection is also essential for achieving success in this business. Lastly, performing a break-even analysis is pivotal for avoiding any potential financial setbacks.

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• Business Plans Handbook
• Business Plans - Volume 11
• Handmade Greeting Card Company Business Plan

Handmade Greeting Card Company

32 Brown Ave. Kansas City, MO 64106

Chelsea L. Aaberg

Heartsongs is a start up company that will begin operations in September of 2005. Currently, the company is developing its product lines, creative designs, inventory, and distribution base. The first Heartsongs samples/portfolio will be available by May 2005 and they will be used to target boutiques and charities within the Kansas City Metro area. Our main consumer base will be primarily women, as they purchase roughly 80% of all cards sold, and for this reason we will sell Heartsongs to small boutiques, specialty stores, florists, and gift shop owners. At this time, we are seeking several boutiques and non–profits within the Kansas City area who might be interested in carrying Heartsongs. They are awaiting the first preview of our portfolio.

The following business plan provides information regarding our product description, management and growth strategies, and financial objectives. The plan is intended to provide you with information regarding Heartsongs so that you might offer us your expertise as we seek to better our plan and business goals/objectives.

EXECUTIVE SUMMARY

What was once a creative hobby for two sisters and a central part in their efforts to stay in touch has turned into a passion, as the two sisters spend hours designing, stamping, cutting, and assembling, habitually filling each other's mailbox with cards and envelopes. This passion for cards has spread to other individuals as well, as these sisters are now skillfully creating cards that are handcrafted, personalized, and unique so that the others might benefit from and enjoy such a gift. Handwritten cards are a means of communication that touch lives, as they distinctly identify thoughts, words, and activities; they comfort, inspire, celebrate, and stir a vast range of emotions. Heartsongs is a business whose motivation is to craft that "special" card with tender hands, so that others might also be able to celebrate those meaningful moments, express their innermost thoughts, and communicate with those they cherish. Greeting cards are one of our culture's foremost tools of communications, and the greeting card industry has a constant and continual need for art and alternative designs.

Heartsongs is a newly founded organization incorporated as a limited liability company located in Kansas City, Missouri. The company's sole product is a collection of hand made greeting cards consisting of three different product lines. Heartsongs is committed to creating the finest hand made greeting cards available; each card being designed and assembled with great care by individuals who have an eye for detail. Our objective is to create hand made greeting cards, for every occasion, of unmatched quality, originality, and uniqueness. We are committed to creating an exceptional product, as our product is a direct reflection of our name and our philosophy. We want our customers to make a statement when they use our greeting cards, expressing our tagline, "Let Your Heart Sing". We have a strong work ethic that is at the core of our commitment to the values of respect, integrity, fairness, and responsibility.

To create hand made greeting cards, for every occasion, of unmatched quality, originality, and uniqueness.

Heartsongs is committed to creating the finest hand made greeting cards available. Each card being designed, embossed, stamped, cut, and assembled with great care by individuals who have an eye for detail.

Tagline Motto

Let Your Heart Sing

Crafting hand made cards which create a memory, stir emotion, and touch the lives of others.

Company Name

Legal title (pending).

Heartsongs, L.L.C.

Legal Business Form (pending)

Heartsongs is incorporated as an LLC.

Management Summary

Heartsongs' management team currently consists of a CEO, a Director of Business & Organizational Development, and a Director of Product Design. Research, business and product development, and financial analysis/feasibility have been completed by both the CEO and the Director of Business & Organizational Development; all additional help has come primarily from the advisory board, legal advisors, and academics.

• Martha Ritter, President & CEO
• Caryn Thomas, Director of Business & Organizational Development
• Frances Black, Director of Product Design

The President & CEO, Martha Ritter, has been a wife for 27 years and mother of two children ages 21 and 17. Currently, she lives in Kansas City, MO and is working at St. Patrick's Christian Academy as an Administrative Assistant to the Guidance Department, Special Services Department, and College Department. She is a registered nurse by education and had worked 18 years in the medical field concentrating mostly in Oncology. She has always had a desire to be creative; enjoying stenciling, sewing, scrap–booking, wreath–making, and home decorating. In the past five years, she has created hand made cards for her family and friends to enjoy, all the while having people tell her that she should start a card business. She feels that now is the time to get started and is looking forward to the next adventure in her life.

The Director of Business & Organizational Development, Caryn Thomas, is a student at Saint Louis University, graduating, with honors, in May 2005. She has selected majors in both International Business & Management, and will also be receiving a certificate in Service Leadership. Caryn possesses excellent writing and critical–thinking skills, as well as, a commitment to the challenge of Management, Public Relations, International Business, and Marketing activities. Her experience stretches domestically and abroad as she has both lived and traveled internationally, receiving a variety of cultural viewpoints concerning various ethnicities. While studying at the University, a variety of course work and campus involvement has allowed her to gain leadership, team experience, and public relations skills, and has helped to develop her organizational ability in order to maintain a sense of balance.

Extracurricular activities and work experience has led Caryn to actively volunteer at Employment NOW, where she has been given the opportunity to write annual reports, serve as an assistant to the director of operations and development, and promote strategies for sponsorship, grants, and new clientele. During the summer of 2004, she served as an intern/assistant to the Director of International Strategies at the RCA Dome, Indianapolis and was able to broaden her experience and sales/marketing knowledge through communication with local and international clientele and new member prospects, performing market research, assisting with responses to foreign business inquiries, and assimilating/summarizing international business contracts. Currently, she serves as an intern at Federal Bank's corporate office, gaining experience in both product management and the banking industry, while continuing weekly at her second job at Thai Bistro.

Director of Product Design, Frances Black, is the sister of Martha Ritter and aunt of Caryn Thomas. She has been a wife for 26 years and is a mother of two daughters. Residing in Ann Arbor, Michigan, she works two days per week as a public health nurse. Her off days are filled with creative design as she, like her sister, makes hand made cards and is a home decorator; she also serves as a mentor and a design coordinator for local events within the Ann Arbor community. She sees her creative background and the ambitions of her sister as a means of achieving her goal of working towards and participating in a small business.

Management—Business Ownership

Although there are three members of Heartsongs management team, each with their own title, the ownership of the business is not evenly distributed throughout the team. President & CEO, Martha Ritter will maintain 95% ownership of the business as she will be responsible for funding and growing the business over its first 3 years in existence. Martha will carry out the day–to–day activities of the business, complete a large majority of the inventory, be responsible for locating distributors within the Kansas City metro area, and manage a large portion of the finances and operations of the business. Director of Product Design, Frances Black will maintain 5% of the business as her main contribution towards Heartsongs startup initiatives and initial business will involve only creative product design inputs. The 95/5 ownership split between these two women will go unchanged within the first three years, and will only be altered in accordance with labor/product inputs and/or when Heartsongs shifts its focus to new locations within Ann Arbor, Michigan. Director of Business & Organizational Development, Caryn Thomas, will require and claim absolutely no ownership of the business as her only role is developing the business plan and growing the business in its infancy. She contributes little by way of creative input, labor, and operations of the business long–term.

Board of Advisors

These individuals have been added as members of the advisory board to serve as a complementary management team. These individuals are professionals who have expertise and/or knowledge of business planning, finance, business development, marketing, and design. Advisory members are as follows:

• Fred Pryce—Pryce's Construction Materials, Inc. Experienced product manager and business planner.
• Deborah & Bonnie Plaint—Bonnie Plaint's Boutique. Experienced boutique owners/managers.
• Additional Advisors will be those who have experience within boutiques, as they possess both industry and product knowledge.

Outside Management & Support

CPA/Accountant—Greer & Associates

• Maintain the books and financial records
• Recommend and advise on finances and taxes
• Certify validity of financial statements

Corporate Attorney—Interviews are underway to determine the appropriate law firm

• Prepare and file necessary legal documentation
• Secure trademark—name, tagline, & icon

Design Team—as needed

Martha Ritter & Frances Black will initially be the sole members and contributors of the design team

Staffing & Recruitment

Individuals subcontracted or hired as necessary, based upon the growth of the company and/or the unexpected need for additional inventory. Martha Ritter & Frances Black are currently the only staff determined as necessary to fulfill and maintain demand within the first 3 years of business.

COMPANY HISTORY

The inspiration of turning a hand made greeting card hobby into a successful business was conceived in August of 2004 between the CEO, Martha Ritter, and Director of Business & Organizational Development, Caryn Thomas, after reading of the opportunities available for female entrepreneurship. Martha had been looking for a new and unique challenge after being unfulfilled in her current job at a local private high school. She enjoyed the luxury of staying at home when she had raised her two children, and was looking once again for the chance to return home, yet did not wish to forgo the extra income.

Martha and Caryn had found that most of the women who started their own businesses were just everyday adults, teens, or kids living normal lives, however, all sharing a similar motivation. All the women who were able to attempt and/or successfully run their own business dared to strive for something they were passionate about, letting the learned abilities come along with the trial and error of pursuing their own small business and dreams. Martha realized what she was passionate about was her own crafts and artistic ability; more specifically, creating cards.

The stamping and crafting of hand made greeting cards had actually begun as a hobby between Martha and her sister, Frances Black, who used this activity as a central part of their efforts to stay in touch. The two habitually designed and assembled their own cards that became a signature item given to family and friends. Craft rooms were soon created in each woman's home as supplies and inventory grew. This leisurely hobby has now become an obsession, and the thrill of becoming an entrepreneur along with the challenge of making their business a success is the driving force behind Heartsongs creation.

Heartsongs is a start up company that will begin operations by the end of 2005. Currently the company is creating its portfolio and initial inventory, stocking/gathering necessary and additional supplies, and securing boutique locations and philanthropic placement. The preliminary Heartsongs inventory will be complete by May 2005 and available for retailers and consumers within the months following. During the first year, the company is only targeting the Kansas City metro area, as it is the location where the management team will have the most control. We will be directing our attention towards several boutiques, craft fairs, individual salespersons, and charitable events that may have an interest in distributing Heartsongs; however, such groups are awaiting the first preview of the available line. Within the years which follow initial start up, Heartsongs may move into boutiques within Ann Arbor, Michigan because that is the second location of greatest management influence/command. However, a set of boutiques, craft fairs, and individuals remain to be fully explored with the Kansas City area, and once performance within the region is determined only then will a shift to Ann Arbor be fully considered. A definite list of retailers, contingency agreements, and contracts will be locked down in the months prior to Heartsongs finalization of its necessary start up inventory (primarily between the months of May–August). Heartsongs is committed to creating the finest hand made greeting cards available. Each card being designed, embossed, stamped, cut, and assembled with great care by individuals with an eye for detail. Heartsongs … Let Your Heart Sing.

Heartsongs is a company which meticulously creates hand made cards and envelopes by individuals with an eye for detail; allowing its customers to expect nothing less than the extraordinary. Each card is hand–embossed or hand–stamped on only the finest papers and card stock available; designed, embossed, stamped, cut, and assembled with great care, making them an original gift, much to the enjoyment of each recipient. Heartsongs creates a product which is just as distinctive, personalized, and unique as the greeting written inside.

Product Features

• Design—Our greeting cards are more than simply cards or computer generated stationery, rather each and every greeting card is seen as a hand made work–of–art. The message is seen at Heartsongs to be an emotional piece of one–self and that is why Heartsongs seeks to provide the best representation of thoughtfulness and character with each and every hand made card.
• Quality—Martha Ritter and Frances Black are creative and extremely talented artists who construct all greeting cards completely by hand. There are no machines involved in the process of making these hand made greeting cards; rather, each card is hand cut, hand stamped, and hand wrapped before being delivered to the customer.
• Craftsmanship—While manufactured greeting cards are generally designed by artists or computer– generated before being printed in mass quantities in factories oversees, all of Heartsongs' products and greeting cards are hand made within the U.S., stamped by the design team, and delivered in a timely manner.
• Customization/Personalization—Heartsongs is happy to discuss any means of personalization or customization of a batch of cards, as our design team is adept in creating those cards which meet the desires and tastes of each individual customer, boutique owner, and/or non–profit organization.

Because Heartsongs creates a product which is both unique and incredibly time–consuming all of the items within the line possess unmatched beauty and charm. Both the embossed and stamped designs offer a spectacular variety of texture, color, and appearance that cannot be generated in mass quantities. The company will initially offer three main products which are intended to appeal to a variety of individuals with very different personalities, preferences, and buying power.

• Boxed Sets—Ideal for the individual who composes a number of cards and does a significant amount of correspondence. Such an individual enjoys color, variety, and a uniqueness that expresses his/her own personal style and character. Boxed sets are sold in groups of 10, and likewise have 10 variations in both simplistic and elaborate designs; Christmas and Valentine's Day are the only holidays available in a boxed set. The designs will change and be updated quarterly. Invitations and place cards are specialty cards which will only be available in boxed sets. Boxed sets will sell at two different price points. Simplistic sets will sell for $15.00 and elaborate sets will sell for $20.00. The differences between simplistic and elaborate boxed sets vary and are determined by the supplies used and labor involved in creating the cards.
• Individual Cards—Designed for those individuals who pride themselves on finding just the "right" card for any occasion. Individual cards have multiple variations under the following categories: Holiday (Christmas, Father's Day, Mother's Day, Valentine's Day, and Graduation), Anniversary, Baby, Congratulations, Encouragement, Get Well, Love/Marriage, Miss You, Sympathy, Thank You, and Just for Fun. These individual card categories were selected as they are the most demanded themes and cover the largest variety of topics; such categories will also allow Heartsongs to expand its card lines as demand increases. The individual card line commands a much more progressive variety in both simplistic and elaborate cards, priced $5.00 and $7.00 respectively.
• Personalized/Custom Cards—Designed for the individual that wants a personal touch of elegance and a card which will suit his/her tastes or will make a much desired statement. This individual exudes a longing for value, quality, and a look like no other. Such personalized/custom cards will be collectively designed by both the customer and the design team, and then constructed in a fashion that is timely and meets the exact and perfect requirements of the customer. Personalized/Custom Cards can only be purchased in boxed sets of three or more. It is important to note that specific boutiques may require a specific card that fits the niche and/or style of the shop; such requests will be managed by the design team and the boutique owner/manager and laid out within the contract. Price for such card sets will vary and be determined on the basis of the supplies necessary and the labor involved in order to complete the order.

COMPETITION

Greeting cards are already in existence within the marketplace and greeting card companies are pursuing our same clientele as they too can be found in our target boutiques. Such cards vary from computerized, mass–produced, and hand made cards which range in price from $.50—$8.50. Industry leaders are the familiar Hallmark, Inc. and American Greetings companies; also, in addition to paper cards, some companies have adapted to Internet demand and make available many lines of cards intended for electronic transmission.

Alternative greeting card companies, such as ourselves, design and publish greeting cards for all occasions and in many varieties, targeting our sales toward a specific niche; there is however, quite a bit of variation in terms of price, quality, and locations of such companies. Nevertheless, in instances of both industry giants and alternative companies, these cards and many of the lines produced by these card companies are published for mass sale, leaving hand–crafted cards and other one–of–a–kind crafted cards intended for individual sale, on a much smaller scale both competitively and in terms of market share. As the marketplace is becoming more diverse and small vendors/boutiques continue to seek new ways of meeting the needs of their customers and increase sales, Heartsongs and its closest competitors seek to provide the market with a new and fresh choice/alternative. A recent survey conducted for Greetings etc. (Greeting Card Association) polled retailers on numerous topics related to their business, from which product category has been selling best to what their top–selling license consisted of. Their answers provided few surprises, but did offer a snapshot of which products are doing best on their shelves. When asked whether retailers had seen an increase or decrease in certain product categories in the last 12 months, by far the category that respondents mentioned most as seeing an increase in is greeting cards; greeting cards and boxed cards were also most mentioned as the product category that retailers plan to add to their store in the next 12 months.

Heartsongs has identified five major competitors within the St. Louis metro area, all of which create hand made cards and are currently distributing their product in local boutiques. Although all of the cards being produced by our closest competitors are hand made, the creative designs and price vary greatly. The four identified and most aggressive competitors of Heartsongs are Open Please Cards, Ribbons and Bows, Pulp Products, and Peter's Cards. Heartsongs is currently updating its cards so that it might be a distinctive hand made card company which offers a product that is far different, by design, than its competition.

Competitive Advantages

What separates Heartsongs from everyone else is our commitment to design, quality, customization, and impractical replication. Our company seeks to continuously seek out the newest trends and incorporate them into our product, never compromising the use of the best products, technique, and artistic craftsmanship. Heartsongs also provides a unique pricing and product structure so that we can sell our cards in a manner that is compatible with the market and does not upset our boutiques/retailers. Heartsongs understands that the success of individual boutiques depends on the specialty store's own uniqueness of product; as distinguished product offerings allow each boutique the ability to differentiate itself from another. The creative ability of the design team allows Heartsongs to be extremely adaptable to the market and in its desired areas of distribution; this adaptability is one specific area of Heartsongs exclusivity. Heartsongs understands the objective and the related success of boutiques as each seeks to offer a specialty good and in doing so fill a specific market niche. The design team at Heartsongs is unlike the teams of many other card makers as they possess the creative ability and flexibility in order to match the product niche of a specific boutique; such adaptability allows Heartsongs to enter various boutiques and markets, all the while keeping a uniqueness of product with very few repetitive designs. By understanding the product, objective, and niche of each individual boutique, Heartsongs hopes to become a dominant card maker within boutiques in the Kansas City metro area. Heartsongs is determined to stay one step ahead of the other hand made card makers by incorporating both trends and concentration of consumers and retailers. By maintaining and deepening Heartsongs relationship with its small business distributors, Heartsongs will be recognized by boutique owners as a company that is committed to uniqueness of product, as a result, offering a product which their customers desire as it matches the theme/niche of each specific store. It is Heartsongs loyalty to its specialty store distributors and its creative ability to small market scope that allows Heartsongs to gain the competitive advantage.

Aside from Heartsongs adaptability to specific boutique niche, Heartsongs has gained an advantage over other hand made card distributors by targeting non–profit organizations and local charities. Heartsongs is targeting this market because of each charity's distinct mission and reoccurring fundraisers/events. Heartsongs seeks to meet the need of these charities by offering its services for mailing distributions, adapting to the uniqueness of each charity and theme of the event/fundraiser in order to create a card/mailing which will gain the desired result.

We understand the importance of valuing the relationships of both our customers and boutique owners, priding ourselves on customer service and quality assurance; therefore, if our cards do not live up to these standards, we give our customers our guarantee that we will do everything in our ability to rectify the problem and satisfy those most important to us.

Heartsongs is dedicated to its vision and the maintenance of quality, originality, and uniqueness in all of it products; therefore, absolutely every card which is produced will be designed and crafted by hand. We feel that Heartsongs is an exceptional company because it prides itself in its hand made and hand crafted ability; therefore, we would never wish to compromise its standards.

Heartsongs productions are currently operating under the sole discretion and preparedness of the two individuals of the design team, and they will be the only producers of cards through the first few years of existence; Martha Ritter being held responsible for roughly 95% of all production within the first three years. However, as the company develops production, and ultimately business ownership, will balance between the two members of the design team. Additionally, supplementary designers/employees may be needed to in order to maintain adequate production and growth of the company.

Once Heartsongs establishes itself and its orders are large enough, we will review our method of supply. At present, all of our supplies come directly through retail stores within the Kansas City, Missouri and Ann Arbor, Michigan metro areas. We realize this is costly and as a result decreases our profit margins, however, it is necessary as our sales and demand have not yet been fully utilized or determined; nonetheless, as we develop, we seek to make a majority of our supply purchases from various wholesalers and card stock suppliers. Specific wholesalers that Heartsongs is considering are online distributors: PaperProducts.com, JosephLittle.com , and CraftySupplies.com .

The subsequent tables/spreadsheets, within the financial statements, will reveal the production cost that Heartsongs will incur as well as the profit margin for each individual card and/or boxed set sold; this production cost assumes that all supplies are purchased directly through retail stores.

MARKET ANALYSIS

Market opportunity.

After researching and analyzing the market, the founders of Heartsongs have determined that our hand made cards can compete in the greeting card market, especially when positioned in high–end boutiques and specialty stores which are known for commanding a higher price for higher quality items. Heartsongs desires to have a name that is recognizably known for quality, originality, and uniqueness; delivering a product which is far different than those cards which are computerized, mass produced, and/or hand made. Our cards will be sold in boutiques and specialty stores, as such stores sell only those unique and specialty goods; these stores will allow us to gain name recognition so that we will be much more recognizably known as a source of our greeting cards and an alternative selection.

Industry Analysis

Heartsongs falls into a category with a variety of other businesses in the greeting card industry; SIC code 2771 and NAICS code 511191. In 1997, the Census Bureau compiled the following table with regards to greeting card publishers (http://www.census.gov/epcd/ec97sic/def/I2771.TXT).

Greeting card industry analysis

Research done by the Greeting Card Association has pointed to specifics about the greeting cards industry; such facts are as follows:

• The greeting card industry generates more than $7.5 billion in retail sales from consumer purchases of more than 7 billion cards.
• Of the total greeting cards purchased annually, roughly half are seasonal, and the remaining half is for everyday card–sending occasions.
• Christmas is the most popular card–sending holiday; sales of Christmas cards account for over 60% of all seasonal card purchases. Sales of Valentine's Day cards (the next most popular season occasion) account for 25% of seasonal card sales.
• Birthday cards account for 60% of the sales volume of everyday card purchases, with anniversary cards following at a distant 8%.
• Most American households purchase 35 greeting cards each year.
• The average American receives 20 cards, of which one third are birthday cards.
• Women purchase more than 80% of all greeting cards.
• There are over 2,000 greeting card publishers in America, ranging from small family businesses to major corporations, many of which license designs from freelance artists.

Not only does Heartsongs fall within the greeting card industry, SIC 2771 and NAICS 511191, but it is also within a category for independent artists and services, SIC 8999. In 1997, the Census Bureau compiled the following table with regards to Services, Independent Artists.

Independent artists services industry analysis

With regards to Services, Independent Artists (SIC 8999) the Census Bureau ( http://www.census.gov/epcd/ec97sic/def/I8999.TXT ) classified it as follows:

• Establishments primarily engaged in furnishing scientific or related consulting on a contract or fee basis.
• Establishments primarily engaged in writing books and articles; composing music; painting; sculpturing; and in similar creative arts–related activities.
• Establishments primarily providing services not elsewhere classified, such as lecturers, radio commentators, editors, and inventors working on their own account.
• Establishments primarily engaged in environmental consulting on a contract or fee basis.

Customer Profile & Analysis

Heartsongs is looking to provide a product which is distinguishable from other greeting cards available within the market. In doing so, Heartsongs will express a desire for uniqueness for those who enjoy the finer things in life and are committed to inspire, celebrate, and communicate a range of emotions through greeting cards. Therefore, Heartsongs is targeting a specific customer who is looking for merchandise that is unique and not mass produced. Heartsongs has compiled a list of data primarily from the Census Bureau and has correlated the information as to match demographic characteristics with specific consumer behavior patterns. Heartsongs looked primarily to the profile and demographics of those within Kansas City, since that is the focus of business within the first 3 years.

There are 5,505,963 people within Missouri, 2,658,831 are male and 2,847,132 are female; roughly 2,361,500 fall within a bracket of 25–55 year olds. Among these individuals, 1,513,836 live within family households and 205,975 falls within Heartsongs targeted household group with an income of $100,000 and over. The median household income within Missouri as a whole is $49,853 (2002 Census Bureau data). The individuals within our targeted segment enjoy a high–quality, healthy, and active lifestyle full of outdoor activities and travel; many of whom are technologically savvy, highly networked, possess a variety of hobbies and interests, donate to charitable causes, and enjoy arts, crafts, and collectibles (Lifestyle Market Analyst).

Boutique Profile & Analysis

Boutiques are defined as small stores that sell specialty goods or services, and because they carry specialty items they often sell their products at a premium. Boutiques, according to the national census, are in a category of gift, novelty, and souvenir stores which are primarily engaged in retailing new gifts, novelty merchandise, souvenirs, greeting cards, seasonal/holiday decorations, and curios (SIC 5947 & NAICS 453220). In 1997, data was taken on such specialty stores and it is outlined within the table that follows.

Specialty stores industy analysis

Of those nationally established boutiques, Missouri has 775 whose annual sales are over $292,262,000 (2.02% of national sales); this profile provides Heartsongs with a large retail base of distributors.

It is important to note that the customers we are targeting would fit the profile of those customers shopping at boutiques, as they are the individuals who live within the upscale/suburban areas where many boutiques are located; these are also the individuals who can afford such specialty goods.

MARKETING & SALES

Heartsongs overall marketing strategy is promoting quality, creativity, originality, and uniqueness in order to build a strong brand image. We believe that creating and protecting our brand image is of utmost importance as it is an image that is committed to creating the finest hand made greeting cards available. We understand that we must first prove our product in the boutique arena in order to build our brand; therefore, we will focus on exceptional design, assembly, care, quality, customer service, delivery, and new product development within our retail markets. Once a strong customer base has been developed and strengthened we will begin to focus our attention to a wider variety of hand made cards and stationary and/or on–line clientele which will be a strong secondary market.

Marketing Approach

Heartsongs is taking an approach which is more than strictly sales, where the customer exists for the business, rather our mindset and marketing outlook states that the business exists for the customer. The marketing concept is a management plan that views all marketing components as part of a total system that requires effective planning, organization, leadership and control. Market research has been compiled to help us define our business for our customer's interests, not our own. It is the process of learning what customers want or need and determining how to satisfy those wants or needs. The dilemma for Heartsongs' management is that, properly done, market research is quite expensive, takes time, and often requires professional expertise. Based on our limited budget, we are going to have to develop the skills to hear what our customers and potential customers are telling us. Some techniques we considered are as follows:

• User and focus groups
• Informal surveys
• Suggestion boxes
• Comparison shopping
• Customer analysis

Boutique/Retail Sale & Charities

Once Heartsongs becomes a more common brand name and boutiques begin to know us better and understand the unique differences of our product, then specialty stores will be able to differentiate themselves from other card carriers as they stock the Heartsongs line. We have identified the type of consumer boutiques where we wish our greeting card line to be available and such stores will be targeted through direct mail, phone conversations, and personal appointments. The boutiques and specialty good businesses that we are currently looking into are as follows:

• Red Flower—Three locations within the Kansas City metro area
• Cloverleaf—One location within the Kansas City metro area
• Lizzy Libby—One location within the Kansas City metro area
• Stems and Petals—One location within the Kansas City metro area
• Cards and Paper—Two current locations & one location on the way within the Kansas City metro area
• Stuck on Ourselves—One location within the Kansas City metro area
• Bunches and Bushels—One location with 8 other surrounding boutiques under different names, but the same ownership
• Home Sweet House—One location within the Kansas City metro area
• Sweet Pea—One location within the Kansas City metro area
• Maggie & Jack—One location within the Kansas City metro area
• Fruit Salad—One location within the Kansas City metro area
• Little Children's Boutique—One location within the Kansas City metro area

Interestingly, only Red Flower, Cloverleaf, and Sweet Pea carry a line of hand made cards & it is also important to note that a majority of these specialty stores do not carry a line of cards and our goal is to push them to consider making an addition to their product selection based on the uniqueness of the Heartsongs product line and how it ties in with each individual shop.

There are also a number of charities within the Kansas City metro area who have annual fundraisers and events to support their own specific cause. The following is a list of some of the major charities within the Kansas City area that Heartsongs will be specifically targeting:

• Multiple Sclerosis Foundation
• Cystic Fibrosis Foundation
• American Cancer Society

Craft/Artisan Events

The availability of Heartsongs at small craft fairs and artisan events can be helpful in building brand image. Regionally recognized events such as the Artisans Conference and MissouriFest might also allow us to identify new clientele, boutiques/retailers which foster the most appealing environment for our product, or a number of wholesalers who could provide us with less costly supplies. The exhibit that Heartsongs is most intrigued about is the Kansas City Art Fair. Kansas City Art Fair is a not–for–profit visual arts co–op gallery, organization, and advocate exhibiting work by established and emerging artists from the Kansas City region. The mission statement of Kansas City Art Fair specifically states that the organization is a visual art organization that creates exhibition, support, and growth opportunities for emerging and established contemporary artists. This organization is one which interests Heartsongs as it has featured hand made card makers and artisans, such as Open Please Cards, and presented their work in original exhibitions, educational programming, and support services to benefit artists and the community.

Another decision which we will ultimately have to make is whether we wish to market ourselves or work with an agent. The advantage of agents is that they have contacts with creative directors at a number of companies so that our work might be seen by the right people. They could also be a help and a guide as we develop our portfolio, negotiate partnerships with companies/boutiques, locate wholesale distributors, and find potential creative employees. The disadvantage of working with an agent is that they generally take a 40%–50% commission. This agent decision, will not however, be one which is made until after year 3.

Additional Marketing

Because Heartsongs is targeting the upscale market of boutiques and charity donors, Heartsongs marketing strategy needs to be directly in line with the desired niche market. For this reason, outside of personally/directly targeting boutiques, charities, and distributors, Heartsongs also desires to place ads in upscale local magazines/papers such as the Art on the Town or Kansas City Happenings. It is not enough that name recognition is built by boutiques/charities themselves, but Heartsongs feels that to become a more distinguished and desirable line it needs to be a company which does not only seek distributors, but is also sought by consumers with specific card/invitation needs. Such ads will communicate to a widened audience that Heartsongs is a company which creates a product which can be created and customized for the consumer to meet their needs and unique reasons behind a mass distribution of cards. Word of mouth is to be Heartsongs cheapest and most effective marketing strategy within the first few years of existence. Therefore, if Heartsongs can build a clientele base outside of boutiques and charitable foundations, then such individuals will be able to not only pass the Heartsongs name along to those they know who desire cards made for a specific event, but all those who receive a card for specific events will be touched by the unique designs and creative difference of Heartsongs product lines.

Additionally, today's free–distribution papers are different from paid–circulation newspapers. Although the shopper type papers contain mostly advertising and little feature material, they remain a highly productive advertising medium. Such mediums offer the advertiser most of the advantages of paid– circulation papers, including the permanence of print, the versatility of color and graphics, and high readership of personal want ads. One advantage over paid–circulation papers is their ability to reach a very high percentage of the market area. Because they are free, they are delivered to every home. Penetration and acceptance of free newspapers are estimated at more than 90 percent. One free newspaper that we are considering is the Metropolitan Circular.

Sales Strategy

Heartsongs' sales strategy is aimed at direct sales to the boutique owners and charities; additional sales to the consumer will be fulfilled through strategic ad placement within local magazines/papers. Heart-songs seeks to have five retail accounts secured within the first months of start up while additional inventory is being secured. One additional retailer/boutique within Kansas City will be added every month and one additional not–for–profit will be added every two months based upon the success of sales and Heartsongs' ability to maintain demand within Kansas City, Missouri. Sales will be accomplished as follows:

• Direct mail, personal cold calls, and personal appointments targeting boutiques within Heartsongs' immediate surroundings.
• Test marketing will be performed in initially in Kansas City and later in Ann Arbor, MI. Such markets are chosen based upon location and the close proximity of both the design team and additional family members who are knowledgeable of the stores in these areas.
• Personal cold call selling is imperative to create a positive first impression of the brand. We will contact boutiques whose forte is in specialty goods and whose existence is to distribute very specific and identifiable goods.
• To increase awareness of the Heartsongs brand name, we are seeking to develop invitations or mailers for a charitable event(s) or school fundraiser within our target markets.

Upon initial meeting with boutiques, charities, and potential customers, we hope to leave behind samples of our product for personal use for the owner or for display. Such 'leave behinds' will be left with individuals based upon the CEO and design teams' discretion. The months between May and August 2005 have been set aside in order to adequately target boutiques and charities, make proper sales, and increase inventory. Follow up, observation, and organization of distribution will be an ongoing process in order to determine sales and how well the product is being received within the market. Surveys and questionnaires will also be directed at retailers and consumers in order to monitor the performance of the Heartsongs product lines. Heartsongs projected sales timeline is as follows:

• Month One prior to Start up—begin selling to St. Louis boutiques. The market contains over 70 boutiques according to census data.
• Month Two prior to Start up—review feedback from the St. Louis test markets and based upon Heartsongs success we will begin to sell to charities.
• Month Three prior to Start up—continue with follow-up of both charities and boutiques and organize distribution, orders, and pricing with each individual charity or boutique.
• Month Four prior to Start up—process and deliver orders. Begin advertisements within local magazines and newspapers.

Marketing & Promotions

• Provide target boutiques with cards to solicit sales
• Send cards to family, friends, co–workers, & retail owners to build recognition of the product
• Approach national boutiques in order to create distribution on a wider scale under one retail name
• Price breaks and a percentage discount offered based on the quantity of purchase and bulk orders

Test Marketing

Test marketing has been completed at St. Patrick's Christian Academy where CEO, Martha Ritter, is currently employed. This initial sales attempt was performed at the school's carnival which included a small craft fair. This craft fair was unique because it is one which features a number of hand made items (ex. jewelry, artwork, and even cards). Although Heartsongs was competing with small scaled competitors, who are not foreseen as long term threats, Heartsongs was able to stand out on the basis of price, uniqueness, quality, and creative craftsmanship. It was obvious that our cards had considerably more detail, revealing the higher level of care that was taken in our products creation. These factors brought the customer to our booth and caused them to select and purchase our hand made cards. On the basis of such test marketing efforts, we feel that we will have congruent results when our products are sold within specialty stores and against some of our major competitors.

Not only are individuals purchasing our cards at various craft fairs, but our cards are being distributed and are in circulation, as they have been given as gifts and used in various forms of correspondence.

Heartsongs competitive edge will remain in the ability of our management team as we seek to stay ahead of our competitors. To put it differently, it is Heartsongs objective to approach the boutiques and charities, who currently do not supply a line of hand made cards, FIRST. Time is of the essence and if Heartsongs is able to get into these markets and to such retailers/distributors first, than we will have a dominant command/hold on a particular store; and, for specialty good stores, which pride themselves on diversity and uniqueness of product, they will not wish to stock multiple varieties of hand made cards. Heartsongs has approached boutiques and inquired about their interest in hand made cards, and those who did not currently have a selection of hand made cards seemed interested but wished to see some samples and/or a portfolio of Heartsongs product lines.

The prices of Heartsongs products are based upon what the market commands, what our customers are willing to spend, what is listed by our closest competitors, and the labor which is involved in the creation of single card. Prices are also based on the costs associated with the product as each line is priced based on the intricacies, complexities, detail, and products necessary for construction/creation. Three price points are covered for our products based upon the three different lines; however our financials are based solely on the price points of boxed sets and individual cards as the prices for customized cards and special orders are subject to change based upon the size of the order, labor, and materials involved. Heartsongs will accept sales on such customized cards as additional revenue, but because of the variation of pricing and inconsistency of the orders we feel that there is not enough stability to make it a valid category within the financial statements. These price points were developed based upon the type of card, cost of materials, and competitive pricing; we feel that these price points provide options for our customers. It is important to note that within the price points and for the three product lines there are two additional categories for pricing—simple & elaborate—based upon the complexity, craftsmanship, and decorative nature of the card itself.

Research in the retail industry shows that specialty items sell for roughly double the price of cost. Heartsongs took this information into consideration when determining its retail target prices and worked backwards. We will, however, review our pricing structure and its effects on margins quarterly. Customer and retailer feedback will also be a valuable source in order to determine our pricing strategy as compared to the value of our cards. Adjustments for pricing will be reviewed much more frequently within the first three years of production in order to ensure the greatest profit margins for the company and best marketability of our product.

It is important to note that Heartsongs competition tends to price their cards $1–$3 higher than our products, and we feel that by commanding a lower price point we can once again be set apart, not only because of affordability, but also because of the quality and the uniqueness of card as it relates to the price. Heartsongs price points are definitely in line with the higher prices which are commanded by boutiques; however, our product remains noticeably lower than our competition.

The pricing structure for boutiques will be different from charities. Some charities will be provided with Heartsongs pro bono, in order to build name recognition and a status within the eyes of non–profit groups; however, Heartsongs cannot run a business for free, therefore the price point for charitable groups will be lower than boutiques and much closer to cost ($2 per card). Additionally, cards which are sold to not–for–profit groups will require a 100 simplistic card minimum, and prices are based upon the simplicity of card, $200 minimum respectively.

There are a number of pricing strategies Heartsongs can use to achieve our growth goals. Each has the potential of producing a profit, and most are tied to the critical relationship of price–to–sales volume and stock turnover.

Pricing Strategies

• Multiple Unit Pricing—Heartsongs is using this strategy in order to increase the size of our individual sales by offering a meaningful discount for larger purchases, especially during our start up phase. For example, if a customer/retailer were going to purchase ten individual cards they would pay anywhere for $50-$70; however, boxed sets are sold for $15 and $20.
• Keystone Pricing—This is an approach taken by a few of the boutiques that we have talked to and are considering as a distributor of our product. Keystone pricing refers to the practice of setting the retail price at double the cost figure, or a 100 percent markup. If such an approach were taken, boutiques would essentially be taking 50 percent of our profits.
• Price Lining—By offering three different product types with two different pricing points, based on the complexity of the card, Heartsongs feels that this technique of stocking merchandise in several different price ranges will allow our customers to buy our product with different uses in mind and with different expectations for quality.
• Competitive Advantage—By using competitive advantage to determine price we have followed the prices set by our competition, and based on our image, set our prices equal or a little below those of our competition.
• Consignment—Some of the boutiques that we have contacted have stressed concerns over inventory build–up, especially with new products featured within the store; the solution that many had come to discover lies in consignment sales. With consignment sales, Heartsongs would maintain its own inventory and stock the boutiques as necessary, typically once a month. Heartsongs' incentive for such risk is that boutiques would only take 40 percent of profits earned on the cards. This is the approach which is listed within the financials as well as the approach that Heartsongs would prefer in our business relationship to boutiques and specialty stores.

RISK FACTORS

Heartsongs understands that there are critical risks involved in entering a market with several competitors, but be believe that our hand made greeting cards can successfully compete. We have reviewed our risks and have planned accordingly, preserving a low risk status through frequent assessment of market risk, as we stay ahead of the market and on top of the trends within the industry.

• Duplication of our products or an increased availability of hand made cards within the market.
• Increased use of Internet cards, rather than hand–written communication.
• Too much inventory or overstock of a particular card. Our pre–start projections should eliminate this problem, along with negotiations and contracts with the boutiques.
• More demand by boutiques, not–for–profit groups, and consumers than can be supplied in a timely fashion. Demand outshines production.
• Increased penetration of specialty stores, by our competitors, of hand made cards.
• Lower price is seen as lower quality.
• An unforeseeable event targeting one of the members of the management team.

Opportunities

• Introduction of new products to boutiques, charities, and consumers.
• Test marketing within Kansas City before moving into the Ann Arbor market; this providing us with the information about our product, consumer response, pricing strategy, and distribution maintenance.
• Contingency contracts during the initial start up phase to determine demand and provide us with an additional hedge of protection.
• Minimal sales of hand made cards by local boutiques and charities.
• The opportunity of Internet sales, long–term.

EXIT STRATEGY

Our exit strategy includes two options, private label or licensing our work for a fee to larger companies. Once established, we will approach companies or private label manufacturers to determine an interest level in purchasing Heartsongs to be produced for another company. If we were to develop our own private label there would be definite expansion of product lines available within the "gifting" industry. Additionally, licensing would give another company the right to reproduce our card designs for a certain time, in a certain territory, for a predetermined fee. Heartsongs would also be open to a "work–for–hire" agreement, depending upon the agreement and terms listed within the contract. The advantage of a charged licensed agreement is that we would have the money up front, and we would no longer be dependent on our cards selling successfully before we could earn additional income of them. A career as a freelance artist would essentially be another side business for our management team if we felt we were no longer capable of running our own business. There are numerous opportunities to freelance in the greeting card industry, but it does take a lot of time and effort to find a greeting card company that wants to publish artists' work. Having our own line of cards along with our own business will establish credibility, which is important in getting freelance work if Heartsongs ever decides to exit the market.

ASSUMPTIONS

• Costs are based upon expenses occurred to date and include, but are not limited to, projected future costs.
• Legal charges are determined by a per hour charge and are subject to change based upon our choice of legal firm.
• Supplies are based on the retail rate and are subject to change when and if we identify a wholesaler.
• Project inventory takes into account a increase in sales per month. Sales and inventory will grow based upon Heartsongs' increased penetration of boutiques and charities (monthly).
• Payment for product is assumed at 100% upfront in the financials. The cost of the card covers packaging.
• Only retail shops will earn a commission on card sales.
• Heartsongs is assuming very few personalized/custom card orders.

Financial Summary

• Heartsongs will use a capital investment of $3000.00, incurred solely by the CEO, to start the business. This investment will cover the supplies and materials necessary for starting the business. This capital investment is factored into Year 1 within the financial statements.
• Payment for product is assumed at 100% upfront in the financials. Negotiations surrounding such terms will occur as Heartsongs becomes more established.
• Once Heartsongs is able to break even, no additional capital investments will be needed unless high demand forces Heartsongs to produce a greater supply and/or if there is an unexpected need for an additional employee/designer.
• Heartsongs is operating with a very simple and conservative balance sheet until demand forces us to seeking financing for product production. Initially Heartsongs will be debt free and all inventory will be regarded as assets of the company.
• Heartsongs is assuming very few personalized/custom card orders until our brand image has been established; therefore, additional revenue earned from these sales is not taken into account.
• Heartsongs seeks to add one boutique every month, in addition to the five we begin with, and work for one non–profit organization every two months. Profit from non-profit organizations will come from sales estimated in batches of 500 cards per transaction.
• Heartsongs is a low risk company with little capital investment.

Balance sheet

Annual cash flow

Annual income sheet

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How to Start a Greeting Card Business from Home

The greeting card business is perfect for those who enjoy creativity and want to turn their creative minds into successful ventures. A greeting card is an illustrated piece of card or high-quality paper featuring an expression of friendship or other sentiments.

Greeting cards are a billion-dollar industry now. People need it for plenty of reasons like birthdays, anniversaries, and as well as for business reasons. The greeting card business is a fun-making, feel-good business and can be initiated with comparatively low startup capital on a home-based basis.

12 Steps to Start a Home-Based Greeting Card Business

1. understand the market.

Making Greeting Cards is a dynamic business. The trends change fast. You must conduct detailed market research on the latest demand of local as well as on the online market.

In addition, if you want to find the kind of searches people are making regarding greeting cards in the online space, Google Trends is a good option.

2. Learn Types of Greeting Cards 

There are several types of techniques available to make a greeting card. Such as rubber stamping, calligraphy, origami, paper cutting, hand-printed, with sand and color, living, pop-up cards, and musical cards. Apart from these, digitally printed cards are now having an increasing demand for their decency.

Consider your skills and as well as target consumers when determining the card types. You will need to focus on two segments. One is standard pre-designed cards and the other is customized for your client’s specific requirements.

Apart from these, digitally printed cards are now in increasing demand. Consider your skills and as well as target consumers when determining the card types.

You will need to focus on two segments. One is standard pre-designed cards and the other is customized greeting cards as per the client’s specific requirements.

3. Select your Niche

It is important to select a few categories of making and selling greeting cards when you are starting as a beginner. When profit starts coming in, you can consider scaling it up.

It is advised to visit local retailers that are selling greeting cards and find their collections. Another useful way of understanding the market is to search online on marketplaces like Amazon , Etsy, or eBay.

4. Create a Business Plan

Take some time off and start writing a business plan for your greeting card business. This plan document will help you to understand your strengths and weaknesses while starting and running the business. Your business plan must address the following aspects:

• Target market
• Where you are going to sell – offline, online, or both.
• How big is the market locally
• Marketing Plan
• Financial Plan

5. Select a Legal Entity

If you are planning to run a legally-compliant enterprise, it is essential to select an appropriate business entity. Every state and country provides different options for forming a legal structure for your greeting card business.

For example, in the United States, the four most popular business structures are sole proprietorship, partnership, limited liability company (LLC), and corporation. One can form an LLC if looking to protect their financial assets protected in case of financial disputes.

6. Licenses & Permits

Another important aspect of running a hassle-free legal greeting card company is to procure the necessary licenses and permits. For example, if you are in the United States and planning to hire manpower, it is mandatory to register for an employer identification number(EIN). It is advised to talk to a business attorney and learn more about the required licenses needed to operate a greeting card business.

7. Purchase Equipment for Greeting Card Making Business

When you have selected what cards you will be making and selling, you will need to gather several accessories for your greeting card-making business. For digitally printed cards you will need to have computers, scanners, designing software, and high-quality printers.

You can also outsource the printing arrangement. For other types of cards, you need to source beads, colors, blank card paper, and different craft-making items. You will find these materials from the local wholesale shop or you can go for an online purchase.

8. Select a Business Name for Your Greeting Card Business

Choosing a catchy and unique business name goes a long way in creating a brand. The name should be relatable and customers can easily identify with your products and services. Check this guide to know more about the steps to select a proper business name.

9. Have an Inventory Plan

The number of supplies will grow as you make more and more greeting cards. Hence, it is important to have an effective inventory plan. Create smooth communication with local wholesalers so that you are never either in shortage of supplies or have them in excess.

10. Envelope for Greeting Card Making Business

Give special attention when choosing several envelopes for your greeting card-making business. Consider the standard sizes and colors. Your cards should fit into envelopes properly. The most common sizes of envelopes are A7, A6, and A2.

11. How to Sell Greeting Cards

Card writing is also an important factor in a card-making business. Go for contemporary, creative writing that reflects the thoughts and feelings people generally want to communicate with others.

Make some sample greeting cards to show your customers. You can keep your card in local bookstores, and craft stores on a consignment basis. You can contact retailers to supply your cards on a wholesale basis.

There are also huge demands incorporate and business houses for greeting cards. You can contact those businesses who need to stay firmly established in their client’s minds, such as doctors, insurance agents, high-value retail brands, and any other business houses. Send them a greeting card of your own that explains your business and creativity. And then follow up for an appointment to show your greeting card portfolio.

12. Go Online

It is almost mandatory to have an online presence to be successful in the greeting card business.  The first step is to Create a website with an online shop. Offer some discounts, tips, or news as an incentive to your customers for online purchases.

Frequently Asked Questions :

Is greeting card business profitable.

The greeting card business is expected to grow in the coming years. The present greeting card business industry is worth over $7.5 billion annually and as per industry experts, it is poised to have more growth. In the United States alone, the total approximate revenue collection was 2.93 billion U.S. dollars in the year 2021.

On average, most greeting card business owners earn $50,000 per year. It is seen, big greeting card brands like Hallmark, make a whopping $20 billion on special occasions like Valentine’s Day.

How Much Does it Cost to Start a Greeting Card Business?

You can start a greeting card business with as low as $1000 if you start on a small scale at home. However, it can rise to $10000 if you plan it on a larger scale. The costs mainly include sourcing product sourcing, design sourcing, manpower hiring, and promotional costs.

Do you need any Software to run a Greeting Card Business?

To deliver high-quality greeting cards relevant software comes in handy.  You can create, print, and send high-quality greeting cards with a few clicks of your mouse. There are thousands of ready-to-share templates. And also you can customize them. One of the most popular free greeting card software is Adobe Spark, Canva, and Movavi.

As your greeting card-making business grows, you can apply for a Patent and Copyright License. You will need to submit the designs along with your company name with a specific application format with fees.

About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their businesses.

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