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New Business and Home Business StartUp
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When starting a gift basket business, there are many things to think about,
things
to consider and things to ask yourself.
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Determine Your Market.
Do you have any idea who your customers are going to be?
Opening the doors and expecting customers to flock to
your product is just setting yourself up for a huge
disappointment. It's absolutely necessary to conduct
some research, prior to proceeding with your business.
If you don't do it now, you'll regret it later. |
Business Start-Up
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The
business of Gift Baskets is not limited to the
individual shopper. Your best paying customers will come
from setting up accounts with local companies and
businesses. Every business in your area is a potential
customer. They each have some type of program in place
for employee recognition and they buy gratuities for
their clients. If you establish a solid buying program
with 5-6 mid-size or large companies, their orders will
carry you through the traditional slow months.
For the Gift Basket business owner, the slow months are
traditionally January, March, July, August, September
and October. However, if you target your marketing
appropriately, your business will develop into
year-round customers. Many Gift Basket businesses only
concentrate on the main holidays and count on at least
50% of their yearly profits to be gained during the
Christmas period. This is a mistake. You want to
aggressively market, so your sales will be consistent
all year through. |
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Research Your Market
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Conducting intensive market research is the foundation
of any successful business. First, research your
competition. Any Gift Basket company, whether
storefront, home-based, or on the Internet, who is
serious about doing business, will be advertised in the
Yellow Pages. Most brick-and-mortar stores still put
their business name and delivery areas in the
traditional phone book, and most have trended into
submitting their company information to online
directories such as: Google Local, and online phone
directories such as: the Yellow Pages, and the White
Pages. Phone or email each company and request a
brochure or catalog. Ask about their products, what type
of Gift Baskets do they offer and the price ranges. Do
they deliver? Do they ship? Select two or three
companies that seem to be your biggest competition and
order a gift basket from each one. Evaluate their
quality and the presentation. Keep notes on all aspects
of the transaction, their customer service and their end
product. Knowing the competition will give you valuable
insight into exactly what your business should offer,
and what you can do to set your business apart from your
primary competitors. |
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Local Chamber of Commerce and Area
Companies
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Call your local Chamber of Commerce, a trade
association, an executive from a hotel, the owner of a
travel agency, various corporate executives, real estate
companies, mortgage companies, etc, and arrange a
presentation meeting. The more area businesses you
interview, the more information you will have to
determine your area market demands. Bring three samples
of your gift baskets, small, medium and large. You are
there to gather data on who they currently purchase
gifting items from and if they would be interested in
your services.
Some questions to ask:
- Do they currently purchase gift baskets for
their employees/clients?
- How often do they purchase them?
- What type do they normally purchase?
- Are they satisfied with the quality they have
been receiving?
- What is the average price they have been paying?
- Do their clients ask them for referrals of gift
basket companies?
- What type of products or packaging would appeal
to them?
- What do they think about your gift baskets?
- If not currently purchasing gift baskets, would
they consider buying from you?
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Target local area Florists. You
could sell gift baskets to them for a reduced
amount. Florists want to carry gift baskets in their
shops, but both the floral industry and the business
of gift baskets are both very labor intensive
businesses. Many florists who've set up their own
in-house gift basket business, find they can't
effectively manage both. Setting up a monthly buying
program with your area Florists will ensure another
avenue of consistent income for your business.
Also contact any business in your area that caters
to specific products, compatible with gift baskets.
Perhaps gourmet food stores, fine chocolate stores,
upscale department stores, etc. It would be
appealing to them to be able to purchase a set
number of premade baskets every month, than to have
to perform the entire assembly process themselves. |
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Review Your Data
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After you've compiled your information, ask
yourself these questions:
- Is there a market for your baskets?
- Can you define who your potential customers are?
- Do you know who your competitors are?
- What are the advantages your product has over the
competition?
- Do you know your competitor's prices?
- Do you know how to market and sell your product?
- Can you afford the costs of opening the business?
- Can you price your product competitively and still
make a product?
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