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START & RUN A GIFT BASKET BUSINESS
Introduction
1. Getting Started
a. Self-Assessment
b. Determining Your Market
c. Market Research
1. Set a time frame for completion
2. Define both your primary and secondary needs
3. Allocate resources
4. Gather the data
5. Analyze the information
d. Gathering Primary Data
e. Gathering Secondary Data
f. Your Course of Action
2. Location, Location, Location
a. Location Considerations
b. Demographics of the Area
c. Leasing Office or Studio Space
1. Proximity to your potential customers
2. Customer parking facilities
3. Accessibility to a loading dock or freight elevator
4. Storage and work space
d. Signing a Lease
e. Shared Retail Space
f. Seasonal Kiosks
g. The Home-Based Business
1. The business and your home
2. The business and your family
3. Business Resources and Equipment
a. Business Resources. 1. Mail services
2. Business telephone line and fax line
3. Telephone options
(a) Call forwarding
(b) Call alert/call waiting
(c) Programmable memory
(d) Speaker phone/hands-free
(e) Cordless phone
(f) Cellular phone
(g) Voice messaging service
(h) Long-distance carriers
(i) Toll-free phone and fax
b. Deliveries and Transportation
1. Courier companies
2. Freight forwarding companies
3. Local delivery companies
4. Company vehicle
c. Basket-Making Equipment
d. Office Equipment
e. Electronic Equipment
1. Computer and printer
2. Facsimile machine
3. Answering machine
4. Other
f. Office Supplies. 1. Custom printing
2. General office supplies
4. Your Financial Investment and Plan
a. Financing Your Venture
1. Personal savings
2. Family and friends
3. Banks
4. Private investors
5. Government
b. Your Business Plan
1. Executive summary
2. Personal experience and background
3. Description of product and service
4. Sales and marketing strategy
5. Forecasts and projections
5. Financial Management
a. Forecasting Cash Flow
b. Cost of Sales and Inventory
c. Fixed Expenses and Overhead
d. Marketing Costs
e. Start-Up Costs
f. Forecasting Sales
6. Planning and Pricing Your Gift Baskets
a. Your Gift Basket Designs. 1. Establish some standard designs
2. Custom-made baskets
(a) Secretary’s Day
(b) Valentine picnic basket
(c) Bon voyage/stateroom party
b. Keep Basic Items in Stock
c. Buy Packaging Inventory
1. Basket or container stuffing
2. Cellophane wrap
3. Ribbon
4. Raffia
5. Gift tags, gift cards, and gift labels
d. Tips for Making Baskets
e. Sources of Inventory
f. Purchasing Inventory
g. Inventory Control
h. Establishing Terms and Credit
i. Setting a Price for Your Product
1. 100% mark-up
2. Wholesale costing
3. Pricing large volume orders
4. Other considerations
j. Computing Your Profit Margin
7. Keeping Your Operations In Order
a. Striking a Balance
b. Hours of Operation
c. Sales
d. Payment
1. Cash on delivery
2. Credit cards
3. Invoicing
e. Keeping Your Nonfinancial Records in Order
1. Calendars
2. Filing systems
3. Billing, credit, and collection
4. Personnel records
5. Tax records
f. Managing Your Time
1. The long-term agenda
2. The intermediate agenda
3. The immediate agenda
4. Learning your turnaround time
5. Time management systems
g. Consumer Fairs and Trade Shows
h. Staying Organized As You Grow
8. Advertising and Promotion
a. Why You Should Advertise
b. Print Media
c. Direct Mail
d. The Yellow Pages
e. Professional Design Services
f. Names and Logos
1. A name that sells
2. A logo that tells
g. Image
h. Design and Copy
i. Color and Photography
j. Sales Brochure
1. Set up the photography session
2. Meet with the graphic designer
3. Printing
k. Internet Marketing
1. Websites
2. E-mail
3. Costs
4. Location, location
5. Getting started
l. Seasonal Advertising
m. Special Promotions
1. Open house/grand opening
2. Small giveaways
3. Fairs and craft shows
4. Trade shows
5. Displays
6. Donations
7. Community events and organizations
n. Measuring Advertising Effectiveness
9. Sales and Marketing
a. Personal Contacts
b. Networking
c. Memberships
1. Tourism, convention, or visitors’ bureau
2. Board of Trade or Chamber of Commerce
3. Meeting Professionals International
4. International Special Events Society
d. Top Down Marketing
1. New product launches and company promotions
2. Special events
3. Noncompeting businesses
e. Selling Your Product and Services
1. Making the sale by telephone
2. Making a sales presentation
f. The Importance of Service
10. Employees and Personnel
a. Being a Sole Owner/Operator
b. Casual Labor and Seasonal Helpers
c. Hiring an Assistant
d. Office Manager/Bookkeeper
e. Hiring and Keeping Good Employees
1. Common sense guidelines to hiring employees (a) Do not hire friends or relatives as employees
(b) Ask for recommendations
(c) Contact job placement departments
(d) Advertise
(e) Use job application forms
(f) Check references
2. Common sense guidelines to keeping good employees (a) Communication
(b) Consistency
(c) Congratulations
(d) Compensation
(e) Evaluation
(f) Commissions and share options
11. Making Your Business Legal
a. Your Legal Structure
1. Sole proprietorship
2. Partnership
3. Limited partnerships
4. Incorporation
b. Using the Services of Professionals
c. Choosing Your Name — Legally
d. Insurance Requirements
e. Leases and Rental Agreements
f. Zoning Laws and Business Licenses. 1. Zoning laws
2. Licenses
g. Sales Taxes
h. Employee-Related Regulations
i. Miscellaneous Permits
j. A Final Word
12. Business Ethics and Best Practices
a. Good Business Ethics Make Good Business Sense
13. Accounting, Record Keeping, and Taxes
a. Accounting and Computers
b. Bookkeeping
c. Sales and Accounts Receivable
1. Cash sales
2. Credit card sales
3. Invoiced sales
d. Accounts Payable
1. Petty cash
2. COD and cash purchases
3. Payable invoices
4. Company credit cards
5. Personally paid company expenses
e. Payroll
f. Inventory
g. Maximizing Deductible Expenses
h. Accountants
14. A Final Word — Growth and Your Business
a. Advertising Specialties or Promotional Merchandise
b. Gifts and Awards
c. Gift Basket Network
Appendix — Gift and Craft Shows
UNITED STATES
CANADIAN MARKETS
Glossary
About the Author
Other Titles in the Start & Run Series
Notice to Readers
Self-Counsel Press thanks you for purchasing this ebook
Contents
The concept of giving gifts in baskets or in useful containers is not a modern-day phenomenon. It can be traced back to ancient times and cultures. For example, the Egyptians gave beautifully wrapped gifts of essential oils and perfumes; interestingly, today one of the hottest gift basket trends is giving aromatherapy products in decorative containers. The Haida Indians of the Pacific Northwest presented herbs or dried fish in beautifully crafted bentwood boxes, and the ancient Mayans gave gifts of food in colorful woven baskets.
The trend in gift packages today is very much the same as in ancient times. The container that holds the products must be useful and very much a part of the gift. Taking time to source out interesting and unique containers will set you apart from the more mundane and predictable gift basket competitors.
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(b) Can you define who your potential customers are?
(c) Do you know who your competitors are?
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