Baskets in Bankruptcy
It’s truly heartbreaking when your gift basket business does not work out as planned to the point where you cease business and liquidate all assets.
That’s what happened to a Minneapolis-based designer. Notice of her Chapter 7 bankruptcy appeared in StarTribune.com.
Information about the court proceedings is No. 5 on the page, just above the St. Paul-area notices.
You can read more about Chapter 7 bankruptcy and what it entails on the USCourts.gov Web site.
There is no way, even through a time line, to trace how a firm ends up in bankruptcy. You may think the company overextended itself, believing they’d have more sales than occurred. You may also feel that the owner didn’t plan well or keep orderly records. Much more can happen.
This and more is the chance we take as business owners. Once you realize that the tide will not turn your way, it’s time to take action, and that action may be to close shop. You’ll have sleepless nights, and you may cry.
But it’s okay to let go. You enjoyed your time in the business and move on to something else that fulfills your life, whether working for someone else or starting a new business in the coming years. Somehow, the shred gets into our blood and doesn’t let go. That’s okay, too.
This gift basket company has just under $240,000 in assets for disposal, according to newspaper records. I certainly wish her well.
Would you file for bankruptcy if your assets substantially outweighed your liabilities?
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How to Stop the Theft of Gift Baskets
This three-paragraph article published in The Buffalo News, about a gift basket and other items stolen from a church, reminds me of the similar problem that occurred years ago.
I was delivering several gift baskets at a community center, and the person in charge told me that we would place the baskets on a table just inside the center’s main door.
We entered the facility a third and final time with the last four baskets. It was easy to see that someone had taken two of the designs, because there was an empty space on the table where there was none about two minutes before.
Thankfully, I was paid in full before the delivery. But what if I wasn’t? I’m sure the person in charge would not have paid me for the missing gift baskets, even though it was not my fault.
How can you keep this situation from happening to you during a delivery? It comes down to security measures that protect you and educate the client.
1. Add a one-line sentence to your purchase orders and/or invoices that states: “(Your company name) is not liable for any product thefts that occur during the delivery of merchandise.” Note: This is a sample sentence. Let your attorney determine the structure of the exact sentence to be added.
2. Ask your contact, before the delivery begins, if a trustworthy person can act as a monitor while the gift baskets enter the building.
3. Suggest to the client that the gift baskets be placed in a locked room until distribution. This is a wise suggestion whether you are delivering to a church or office building.
The last thing you want to hear is that you will not be paid for gift baskets stolen while the delivery was made. Protect your client and yourself with a plan to be ready for the worst while expecting the best.
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Focus on Increasing Your Gift Basket Sales
How are your summer sales progressing? If you created plans earlier this year to promote your gift baskets now, sales may be better than last year’s. It’s not an easy task, especially in this economy, but:
1. Individuals continue to buy gifts for occasions from birthday to bereavement. Your smaller mug and container gifts may sell briskly.
2. Corporations are still going after accounts big and small. Gift baskets help them to put their best foot forward. This is a key factor in your promotions to them.
3. Charity events are in full swing, and donated baskets provide you with a way to show off your designs to a new audience.
This week’s newsletter shared other tips to increase your profits now.
This is all good news for you. Move in the direction that makes summer sales spectacular.
Now here’s news from the online gift basket world.
Flora Brown of Gift Basket Business World provides inspiration to start a Web site or give the one you have more impact. Read her blog post, and sign up for her free e-course, which you’ll find just below the article.
I’d be mad at Flora for taking this side picture of me at my California Gift Show seminar had I not shed some pounds the previous month, but we’re still friends, and I’m still a work in progress.
Lorie Obernauer of Apex Gift Foods gives you a heads-up on a new line of holiday table decor. Don’t think you have ample time to order before the holidays; stock goes quickly when the word gets out.
Lorie’s information is right on time for Laura, a gift basket designer who asked me where she can find these and other products. Read her question and answers posted by other designers at Ask The Gift Basket Expert.
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