How to Start a Gift Basket Business

Gift baskets are considered by many people to be the perfect gift simply because they can be personalized to suit the gift giver's specific needs. If you have a flair for arts and crafts, and you are looking for a great entrepreneurial idea, then starting a gift basket business could be ideal for you.

One of the great things about gift basket businesses is that they can generally be started up for very little cost. In fact, most people who get into this field start their businesses from home, so the only start up costs involved will be the essentials that you need to purchase in order to create your baskets.

Getting Started

To get started, you will first need to decide what type of gift baskets you want to sell. Particularly in the beginning, you might want to keep your business a bit specialized; otherwise, you will find yourself spending a lot of money on supplies so that you can make dozens of different types of baskets for customers.

Try to keep your focus as you begin your new business. While you can certainly pursue both individual and corporate customers, you want to start out by pursuing customers in your local area. Have some professional looking business cards created and pass them out everywhere you go. The more people who know about your business, the better, simply because word of mouth is one of the best ways to acquire new customers.

You should also create a website to showcase your baskets and promote your business. If you don't think you can handle this part on your own, then have a professional do it for you. If money is an issue (as it is for most people who are starting a business), talk to several different website designers to see if any of them are willing to give you a discount. It never hurts to ask, and you never know when you might get lucky and find someone who is willing to take a bit of a cut in pay to get a new client.

As you design your business plan, you will need to determine what you absolutely have to have versus what you can live without. This is especially important if you are on a tight budget. Some of the items that you will need include the following:

o Baskets (try to choose between 8 and 15 different kinds, initially)

o Packaging materials (including shrink wrap and labels for the baskets, as well as shipping supplies)

o Inventory (items that you plan to use in your gift baskets such as chocolates, stuffed animals, candies, jewelry, candles, etc.)

Making Money with Gift Baskets

If you work hard and you are able to dedicate a lot of time and effort into your new business, there is no reason why you shouldn't be able to generate a decent income. Even if you only work on a part-time basis, you should be able to gross at least $8,000 per year. Some people earn quite a bit more than that, even in their first year.

You should plan to price your baskets so that you earn about 30-40% profit off of each one. Doing this can be a bit tricky, particularly in the beginning, so you will have to use your best judgment until you get the hang of it.

Your busiest (and most profitable) times of the year will probably be around the holidays, so plan to be available to work during those times. Don't make the mistake of marking the price of your products up during those times, however, or you will run the risk of losing customers.

Pamella Neely writes about how to start a bakery and how to start a home bakery.