The listings are on message boards, eBay, and CraigsList.

People who wanted to start gift basket businesses decide to close up shop and sell their remainders by the lot or piece.

The reasons are vast. Some of them didn’t realize they had to be creative and business minded. Others are relocating and cannot take everything with them.

No matter what the reason, you now have an opportunity to buy what they are selling. Is this a good thing or problem waiting in the wings?

The answer is — it depends.

Equipment purchases can be valuable if it’s in working order and the cost is significantly lower than if you purchased it brand new.

Supplies are also a buying candidate, especially if the discount for baskets, shred, and ribbon is hefty. But does it contain bugs due to storage mishaps?

Foods look well packaged and ready for sale. The question with edibles is: can you guarantee customers that the contents are at the freshness and quality standards associated with your own inventory?

Make a checklist of what’s acceptable and what you will steer clear of before you purchase anything from another person. Your business reputation is riding on it.

Shirley George Frazier

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I thought an Email recently sent to me was a story about a woman who increased her gift basket sales, but that thought quickly ended when I read that the designer had passed away after suffering a stroke.

None of us can imagine our businesses closing due to death. We think that we’ll end the business on our own because of relocation or another situation under our control.

Sometimes that’s not the case.

How have you prepared your business for inheritance, sale, or closure if you suddenly die?

This is not a fun subject, but it is one that’s necessary to discuss. You don’t want your family burdened with figuring out what to do with all of the inventory after the burial is done. It’s one more situation that they have to address, and in the case of your business, they won’t know which way to turn if you leave no instructions.

Many years ago, I discussed with my husband how to handle the disposal of all the products and my entire business if my demise occurred. The story I read in the paper reminds me to take the next step — document in writing exactly what to do and how to proceed. I don’t want my loved ones burdened with anything more than necessary.

What’s your plan to hand over your business, sell it, or close up shop when your life ends?

Shirley George Frazier

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What goes into the decision to buy an existing gift basket business?

It’s true that you must check the company’s books to make sure you’re buying a sound enterprise, but there’s more.

This story, about an entrepreneur in Washington State, features insight into how this new designer transferred her creative passion into ownership of a gift basket business.

Here are some article quotes:

“…found a way to turn her passion for shopping and crafting into a business.”

“…(discussed) the idea with her husband,…”

“…there’s a lot more to the business than putting together beautiful baskets.”

“…her background is in administration, human resources and management.”

I’m pleased to read about this owner’s management foundation so that she doesn’t only concentrate on designing; she’s also prepared to maintain the books, a critical component that ensures the business has the best chance to thrive.

If you learn that a competitor is selling their business, what’s your first question to the seller as you decide whether or not buying a gift basket business is for you?

Shirley George Frazier

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Every once in a while, and especially around the holidays, I read online listings from designers who are selling their gift basket businesses for an average of $5,000.

Why is the price so low?

My first thought is that these designers, selling to pursue other opportunities or because they put more emphasis on creativity and not the business side, don’t realize how much value there is within their firm.

There will always be inventory to sell, and those items (equipment, supplies, etc.) will always retain some value even if it’s half the initial cost. Here are areas where the business’s value is well above the $5,000 price tag.

1. Branding/name recognition, including business name, slogan, and logo.

2. Back office structure, which is all programming and software that organizes the firm.

3. Web site, the online real estate that’s worth gold in terms of keywords, back links, and shopping cart.

There are eight more areas of your business that bring its value up to a minimum $200,000 when you’re ready to sell that I haven’t mentioned.

What value would you place on your gift basket business right now, and why?

Shirley George Frazier

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Not all businesses closing shop are ending because of poor management or slow sales.

Sometimes the owner is ready to retire, and rather than close outright, they prefer to sell the inventory and client list to a buyer.

Since 1990, I’ve helped about 24 owners successfully make this transition.

What the seller hopes is to find someone with as much passion as they have to take over.

What the buyer wants is a true accounting of the documented information so they can pick up where the seller left off.

There are at least 10 very-important points to review before buying a gift basket business. Do you know what they are?

Shirley George Frazier

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