How Much Money is Required to Start a Gift Basket Business?
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?
Which Corporate Sales are on Your Summer List?
While recording chapter 6 of How to Start a Home-Based Gift Basket Business, I was reminded of my first big sale of the summer.
It was through a referral at a networking event. The person I met there told me about a big retreat planned by one of the major employers in my area. Luckily, someone who worked at the firm was at the same event.
I spoke with her, found out who was in charge of the retreat, and promptly contacted him the next morning.
It took two calls and two presentations to get the order. 700 gift baskets were delivered to the retreat’s facility about 10 miles from my office. I became overly emotional twice during the project – once when I got the account, and the second time was when I received the final payment on delivery.
I didn’t stop there. Before completing the order, I used that account to promote myself to other companies so that my summer sales would grow and continue to increase through the rest of the year.
What’s your plan for capturing summer sales?
How Do You Watch Your Back?
Competition appears online and in your community as quickly as you blink. Take your eyes off this part of your business, and here’s what may happen:
1. The corner drug store displays baskets in the store window supplied to them by a home-based business you didn’t know existed.
2. The business section of the local newspaper publishes a feature article about another designer.
3. A search of gift basket companies in your area reveals that another firm is always listed above yours.
Solving this maddening problem are part of the Golden Basket Club‘s benefits.
What are the ways you convince buyers to come to you rather than go to the competition?
Who Sells Gift Baskets on Street Corners?
Friday, before Mother’s Day, I passed an outdoor stand filled with gift baskets positioned on two tables and placed on the ground.
It’s not a marketing tactic I suggest in 101 Ways to Market Gift Baskets, because products sitting on a surface where people walk doesn’t seem to be very sanitary, especially since these baskets contained food.
In the past, we’ve talked about gift baskets being sold in this way.
Some of you have told me about what you see in your communities, and this time I saw a display in my city.
What would convince you that marketing in this manner is the best way to get sales?
Planning Puts You in the Profit Zone
Writing a business plan may not be your favorite task, but it is one that leads you to profits much quicker than not documenting how you will move your gift baskets from your workspace to the client’s hands.
My recent recording of CDs from chapter 2 of How to Start a Home-Based Gift Basket Business, which focuses on business planning, reminded me of just how critical this business-building basic is to your success.
How often do you consult your original plan, update it, and let it guide you in the direction where an abundance of customers are found?
I encourage you to review your plan today or seek expert help to put your plan together.
How has your business plan guided you to success?
Gift Basket Books
-
-
Visit Our Sponsors
