How to Start a Gift Basket Shop

Gift baskets can be made unique with different products like fruits or body washes.

Starting a gift basket business consists of various steps that require great research, planning and attention to detail. The business requires ongoing dedication in areas like advertising, product distribution, inventory, accounting and employee relations, if necessary, among other things. The main difference with starting a gift basket business in relation to a general business is the content of the product being offered to customers, which in this case are gift baskets.

Things You'll Need

• Business Plan
• Financing

Instructions

1. Decide if you will open the business alone or with someone else. This makes a difference in what kind of business you will open. Most likely the gift basket shop will either fall under sole proprietorship or partnership. A sole proprietorship is one form of business where a sole owner takes on all the business expenses and losses, while a partnership consists of two or more owners who share the business expenses and losses.

2. Develop a business plan. This is the overall directory of the business, and will serve as a guide in the initial stage as well as throughout the life of the business. The business plan will include research information about the gift basket business. The research will include the type and content of gift baskets to be sold, and the projected need for gift baskets in the proposed location.

3. Seek funding for the business. Decide whether your start-up costs will come out of pocket, from a financial institution loan, grants,or a mixture of various sources. A solid and well-researched business plan for the gift basket business can improve your chances of getting support form financial institutions. While funding to start a business is not guaranteed from banks and other sources, multiple resources are available for small business owners, especially minorities and women.

4. Apply for permits and licenses, as necessary, according to your state's policies and federal rules. Go to the small business administration website where they include a guide to required permits and licenses necessary for starting and running the gift basket business. Select the "general license" option for the gift basket business. Necessary permits and licenses should be acquired before opening the gift basket business.

5. Hire the necessary experts to help the business get off the ground and run effectively. For instance, hire an expert a tgift basket arrangement if you lack that particular skill. With the gift basket business, presentation can be the reason whether someone chooses to buy a gift basket or not. Locate suppliers and order the gift baskets and other supplies in advance to prepare items for sale.

6. Advertise the gift basket shop products in anticipation of its opening. Have an opening celebration where you can offer some kind of discount to potential customers. Perhaps you can raffle off a basket to the first 100 customers, or maybe offer discount coupons to the first 10 customers. The idea is to get potential customers interested in the gift baskets. First impression counts in opening any business so make the customers comfortable and welcomed.

Tips & Warnings

• Develop job descriptions before hiring anyone, and conduct interviews at least 1-2 months before the business's opening date.

• Be sure to calculate adequate time to dedicate to the process of starting the business (a year or more may be ideal).

References

• IRS.gov; Business Structures
• ConsumerReports.org; How to finance a new business
• SBA.gov; Search for Business Licenses and Permits
• SBA.gov; Minority Owned Businesses

Resources

• BPlans.com; Gift Shop Business Plan
• Gift Basket Wholesale Supply, 2011.