How to Start a Fruit and Gift Basket Business From Home

Gift baskets make perfect gifts for any occasion.

A fruit and gift basket business is a great home-based business opportunity. This type of business can be started at a very low cost and provides you with a large number of potential customers. Many people are interested in offering a wonderful gift that can be personalized very easily and still remain affordable. There are many types of special events that a fruit or gift basket would make an appropriate gift for.

Instructions

1. Get licensed. Contact your state and local governments to obtain the necessary licensing and permits to run a fruit and gift basket from your home. Make sure your area is properly zoned to allow for a home-based business before opening your gift basket doors. Do not begin your business without the appropriate licensing and permits first. Note: As your business grows, you will need to apply for an EIN from the IRS if you hire employees to help you with the business.

2. Contact your insurance agent. You need to increase your home insurance coverage to cover your home-based business. Should your home be damaged in a disaster, you will lose your business as well. Talk in great detail with your insurance agent and determine the exact type of additional home insurance coverage you need to adequately protect your fruit and gift basket business.

   If you are planning on delivering your gift baskets yourself, you may also need to increase your auto insurance coverage.

3. Open a business bank account. It is critical to separate your business expenses from your personal expenses, as you will be filing two separate tax returns. Avoid confusion and open a separate bank account to run your business out of. Keep accurate financial records of all of your business transactions. Purchasing an accounting software helps in doing this.

4. Open business-shipping accounts with the United States Postal Office, Federal Express and UPS to name a few. If you are planning on shipping your baskets throughout the United States, you will business shipping accounts to facilitate the delivery of out of state baskets.

5. Design your baskets. Make a list of ideas on creative ways to make and present your baskets. Interesting and unusual baskets should be your first consideration -- there are plenty of basket companys out there offering the same thing. Grab your customers and trounce your competition by providing baskets outside the norm.

6. Locate potential suppliers for the items to fill your baskets. Fruit, chocolates and candies are great for edible baskets, while body washes, shampoos and soaps are great for gift baskets. Again, stock some unusual baskets, however, to stand apart from your competition. Open up business accounts with your suppliers and make sure to pay your bills on time.

7. Get your customers. Register with your local Chamber of Commerce to get your business out there. Advertise electronically and on paper. Design a website and make sure to place ads in your local paper. Print flyers and post them wherever legal -- target craft supply stores and gift shops in particular. Contact professionals who have a need for gift baskets. For instance, real estate agents would be ideal customers since they deal with a customer base that is making large purchases. A gift/fruit basket is the perfect way for them to not only say, "Thank you," but also, "Welcome to your new home."

8. Price your baskets. Prices will vary greatly from basket to basket. The best way to list your prices is to offer a price range for each, such as baskets from $20 to $50, another group priced from $50 to $100 and so on. This provides your customers the opportunity to narrow down options immediately and make a decision quickly and easily.

9. Fill your orders quickly and accurately. Address all of your customers needs and provide your customers with a chance to give you feedback on your baskets and business. You will learn a great deal from your customers, so be open to both positive and negative feedback.

References

• Gift Basket Business.com: Gift Basket FAQ
• SBA.gov: Starting and Managing a Business