One question I’m asked by both reporters and new gift basket designers is, “How much does it take to start this business?”
The answer, although everyone wants a definitive number is, “It depends.”
Those of you who are already in business understand this response, and if you are just starting out, you’re about to realize why a specific amount cannot be determined.
1. You need baskets, supplies, and other inventory to start, but the cost depends on the type of customers you’ll service. $20 baskets are purchased by one group of clients, and $200 baskets are bought by another.
There’s a big difference in both groups and therefore a vast difference in how much it will cost to buy your inventory.
2. Computers, printers, software and administrative items keep your office, next to the workspace, in tip-top shape. The more you currently have in this category, the less you’ll have to buy.
If you have little or none of the administrative goods, you’ll have to buy it, and that means spending more money.
3. A Web site and printed marketing materials will support your promotional planning. All of it is available for a price that’s determined by who provides you with these services.
You can tell, by the above breakdown, that $100 or even $500 won’t be enough as starter capital, especially in today’s economy.
I started my gift basket business with $8,000, the proceeds from an insurance policy I no longer needed. That amount worked for me because I was still working for someone else, drawing checks every two weeks to continue my standard of living as I created my business.
Money to start your business is found through many sources, including the ones mentioned through this link.
How much did you invest at the beginning of your gift basket business?
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