Learn how to start and operate a gift basket business from a North American leader.
Create unique gifts for a variety of occasions Work from home or seasonally ' and profit Develop effective marketing tools Learn the step-by-step basics of running your own business
With little more than some working space and a few basket-making items, an ambitious and creative person can cash in on the gift basket boom. The potential for unearthing new markets and finding motivated clients is unlimited in this easy-to-run small business. Topics covered include:
Researching the existing market Finding a suitable work space Pricing the gift baskets Creating theme and seasonal baskets Dealing with wholesalers Finding clients Advertising and promotion
INTRODUCTION xi1 GETTING STARTED 1a. Self-Assessment 3b. Determining Your Market 4c. Market Research 61. Set a time frame for completion 72. Define both your primary and secondary needs 73. Allocate resources 84. Gather the data 85. Analyze the information 8d. Gathering Primary Data 9e. Gathering Secondary Data 10f. Your Course of Action 112 LOCATION, LOCATION, LOCATION 13a. Location Considerations 15b. Demographics of the Area 16iiiCONTENTSc. Leasing Office or Studio Space 171. Proximity to your potential customers 182. Customer parking facilities 183. Accessibility to a loading dock or freight elevator 184. Storage and work space 18d. Signing a Lease 19e. Shared Retail Space 20f. Seasonal Kiosks 21g. The Home-Based Business 221. The business and your home 222. The business and your family 243 BUSINESS RESOURCES AND EQUIPMENT 27a. Business Resources 291. Mail services 292. Business telephone line and fax line 303. Telephone options 31b. Deliveries and Transportation 331. Courier companies 342. Freight forwarding companies 343. Local delivery companies 344. Company vehicle 35c. Basket-Making Equipment 35d. Office Equipment 36e. Electronic Equipment 371. Computer and printer 372. Facsimile machine 373. Answering machine 384.Other 38f. Office Supplies 391. Custom printing 392. General office supplies 39iv Start & run a gift basket business4 YOUR FINANCIAL INVESTMENT AND PLAN 43a. Financing Your Venture 451. Personal savings 452. Family and friends 463.Banks 464. Private investors 475.Government 47b. Your Business Plan 481. Executive summary 492. Personal experience and background 493. Description of product and service 494. Sales and marketing strategy 505. Forecasts and projections 505 FINANCIAL MANAGEMENT 51a. Forecasting Cash Flow 54b. Cost of Sales and Inventory 55c. Fixed Expenses and Overhead 56d. Marketing Costs 56e. Start-Up Costs 56f. Forecasting Sales 566 PLANNING AND PRICING YOUR GIFT BASKETS 63a. Your Gift Basket Designs 651. Establish some standard designs 652. Custom-made baskets 67b. Keep Basic Items in Stock 69c. Buy Packaging Inventory 701. Basket or container stuffing 702. Cellophane wrap 703.Ribbon 714.Raffia 71Contents v5. Gift tags, gift cards, and gift labels 71d. Tips for Making Baskets 71e. Sources of Inventory 72f. Purchasing Inventory 75g. Inventory Control 77h. Establishing Terms and Credit 77i. Setting a Price for Your Product 781. 100% mark-up 792. Wholesale costing 803. Pricing large volume orders 804. Other considerations 81j. Computing Your Profit Margin 817 KEEPING YOUR OPERATIONS IN ORDER 83a. Striking a Balance 85b. Hours of Operation 85c. Sales 86d. Payment 891. Cash on delivery 892. Credit cards 893.Invoicing 90e. Keeping Your Nonfinancial Records in Order 921.Calendars 922. Filing systems 923. Billing, credit, and collection 924. Personnel records 925. Tax records 93f. Managing Your Time 931. The long-term agenda 932. The intermediate agenda 943. The immediate agenda 944. Learning your turnaround time 94vi Start & run a gift basket business5. Time management systems 95g. Consumer Fairs and Trade Shows 95h. Staying Organized As You Grow 968 ADVERTISING AND PROMOTION 97a. Why You Should Advertise 99b. Print Media 100c. Direct Mail 101d. The Yellow Pages 103e. Professional Design Services 103f. Names and Logos 1061. A name that sells 1062. A logo that tells 106g.Image 107h. Design and Copy 107i. Color and Photography 107j. Sales Brochure 1091. Set up the photography session 1092. Meet with the graphic designer 1133.Printing 115k. Internet Marketing 1151. Websites 1162.E-mail 1173.Costs 1174. Location, location 1185. Getting started 118l. Seasonal Advertising 119m. Special Promotions 1201. Open house/grand opening 1202. Small giveaways 1203. Fairs and craft shows 1204. Trade shows 1205.Displays 121Contents vii6.Donations 1217. Community events and organizations 121n. Measuring Advertising Effectiveness 1219 SALES AND MARKETING 125a. Personal Contacts 127b.Networking 128c. Memberships 1281. Tourism, convention, or visitors' bureau 1292. Board of Trade or Chamber of Commerce 1293. Meeting Professionals International 1294. International Special Events Society 130d. Top Down Marketing 1301. New product launches and company promotions 1312. Special events 1313. Noncompeting businesses 131e. Selling Your Product and Services 1321. Making the sale by telephone 1322. Making a sales presentation 133f. The Importance of Service 13410 EMPLOYEES AND PERSONNEL 135a. Being a Sole Owner/Operator 137b. Casual Labor and Seasonal Helpers 138c. Hiring an Assistant 139d. Office Manager/ Bookkeeper 140e. Hiring and Keeping Good Employees 1401. Common sense guidelines to hiring employees 1412. Common sense guidelines to keeping good employees 14211 MAKING YOUR BUSINESS LEGAL 145a. Your Legal Structure 1471. Sole proprietorship 1472. Partnership 147viii Start & run a gift basket business3. Limited partnerships 1484. Incorporation 148b. Using the Services of Professionals 150c. Choosing Your Name Legally 151d. Insurance Requirements 152e. Leases and Rental Agreements 153f. Zoning Laws and Business Licenses 1551. Zoning laws 1552.Licenses 155g. Sales Taxes 156h. Employee-Related Regulations 157i. Miscellaneous Permits 158j. A Final Word 15812 BUSINESS ETHICS AND BEST PRACTICES 159a. Good Business Ethics Make Good Business Sense 16313 ACCOUNTING, RECORD KEEPING, AND TAXES 167a. Accounting and Computers 169b. Bookkeeping 170c. Sales and Accounts Receivable 1711. Cash sales 1712. Credit card sales 1733. Invoiced sales 173d. Accounts Payable 1741. Petty cash 1742. COD and cash purchases 1753. Payable invoices 1754. Company credit cards 1755. Personally paid company expenses 176e. Payroll 176f. Inventory 177g. Maximizing Deductible Expenses 178h. Accountants 179Contents ix14 A FINAL WORD GROWTH AND YOUR BUSINESS 181a. Advertising Specialties or Promotional Merchandise 183b. Gifts and Awards 184c. Gift Basket Network 185APPENDIX 187GLOSSARY 193WORKSHEETS1 Self-assessment test 52 Business expenses 583 Start-up expenses 60SAMPLES1 Business start-up cost 412 Overhead and fixed expenses 573 Marketing expenses 594 Monthly sales forecast 625 Tying bows 736 Purchase order 767 Order form 878 Invoice 919 Direct mail sales piece 10410 The five-point design 10811 Sales brochure 11012 Gift tag and label 11413 Advertising and promotions expense breakdown 12214 Balance sheet 172
