How to Start a Gift Business

Thinking about starting your own business? If you've got an eye for what makes a gift popular, or are skilled at designing your own creations, a gift business may be right for you. A gift business allows you the freedom to opt for a home-based business or a traditional store. How much you are willing to spend will largely determine which route you take.

Things You'll Need

• Sales tax permit
• Liability insurance
• Gifts or materials to make your own

Instructions

1. Assess your financial situation to see how much you can afford to put into your business. If you aren't looking to obtain financing, consider starting a home-based gift business. You can expand later, once you begin bringing in a steady profit. Write up a business plan that addresses the costs of your supplies, advertising, licenses, permits and tools.

2. Consider how you will set yourself apart. Study the market by visiting local gift shops, niche stores such as Spencer's or Hot Topic, and peruse the Internet to get ideas for your gift designs and your competition. If you don't intend to make your own creations, consider visiting local artists and craft shows to find creative and homemade gifts. Traditional gift ideas include candles, floral arrangements, gift baskets, stuffed animals, cards, bookmarks, inspirational books, vases, cardholders and frames. Consider selling less mainstream gifts, such as gag gifts, theme posters, funny gifts or gothic gifts.

3. Get a sales tax permit and federal tax identification number, which are often required when purchasing wholesale or frequenting craft shows. Consider registering your business with your local county clerk's office. Be sure to select an appropriate and memorable business name that will grab potential customers' attention. While registering your business isn't necessary if you operate out of your home, it will give your business legitimacy. If you will sell candy, you may need a food establishment license. Be sure to contact your local health department for details.

4. Select a location, if necessary. Your gift shop may thrive in a mall or a high traffic shopping center. If you will sell more traditional gifts, look for leasing space in a high-end shopping center.

5. Contact wholesale suppliers, niche suppliers and local artists about purchasing gifts or materials to make your own gifts. If you have products in mind that you would like to sell, contact the company directly. Keep in mind that without a physical location, you may have a harder time purchasing wholesale from certain suppliers. If leasing space, you'll need a cash wrap, wrapping paper, gift bags and boxes with your business logo, display tables and shelves, decor for your walls and storefront, cleaning supplies and signage.

6. Secure a website or blog for your business. Include a catchy logo, information about how you got started and the types of products you sell. Add superior images of your best gifts.

7. Frequent your Chamber of Commerce to make connections with other local business owners.

Tips & Warnings

• If you will work from home, sell your gifts at fairs, festivals, farmers markets and flea markets. Just be sure to obtain a vendor's license. Consider selling your goods on Etsy and eBay. Purchase liability insurance.

References

• Starting a Gift Basket Service

Resources

• Creative Gift Packaging
• Retail Store Fixtures