How To Start A Gift Baskets Business

Updated: January 18th, 2023

How To Start A Gift Baskets Business

You've stumbled upon the idea to build a gift baskets business and now you're ready to take the next steps.

There's a lot to think about when building a business, so we put together a guide on how to get started, launch, grow and run your gift baskets business.

We also provide you with real-life case studies and examples of founders running successful gift baskets business (and how muchπŸ’° they're making today).

avg revenue (monthly)
$2K
starting costs
$35.3K
gross margin
25%
time to build
240 days
average product price
$47
growth channels
Handwritten notes
best tools
Instagram
time investment
Full time
pros & cons
33 Pros & Cons
tips
1 Tips

πŸ’‘ Introduction To Starting A Gift Baskets Business

Is Starting A Gift Baskets Business Right For You?

There are many factors to consider when starting a gift baskets business.

We put together the main pros and cons for you here:

Pros of starting a gift baskets business

β€’ Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

β€’ Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

β€’ Meaningful business connections

You never know who you will meet as a gift baskets business. This could be the start of an incredible business opportunity!

β€’ High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

β€’ Gain exposure and experience

This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!

β€’ Unlimited income potential

With starting a gift baskets business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.

β€’ Amazing perks and discounts

Working in the gift baskets business comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.

β€’ Predictable income stream

Your businesses income stream tends to be predictable based on the number of customers you have signed up. This makes financial planning and outlooks much more seamless!

β€’ Higher likelihood of getting referrals

This business is all about referrals, which can be a a very impactful way to attract and retain customers. It's critical that you have a great referral program in place that incentivizes your customers to tell their friends about your product.

β€’ Simple business model

A gift baskets business has the advantage of a simple business model, which makes launching and building the business more seamless.

β€’ Greater Income Potential

With this business, the sky is the limit in regards to your income potential.

β€’ Express your opinions

With starting a gift baskets business, you can express your opinions and knowledge to your audience, which allows you to build your own reputation and identity.

β€’ You get to inspire others

Your business is one that encourages and inspires others, which in itself, can be very fulfilling.

β€’ You can promote and sell your product on Amazon

Although there are some disadvantages to consider when selling your product on Amazon, there are also a host of benefits. Mainly, Amazon is the world's largest online retailer, so you're bound to tap into new business and reach an entirely new audience.

β€’ You establish yourself as an expert

With starting a gift baskets business, you establish yourself as an expert in your niche, which builds your credibility. In return, customers are more likely to trust you and refer you to other friends and family.

β€’ Can build solid foundation of clients

It's unlikely you will have one-off customers as a gift baskets business. Typically, you have a solid foundation of clients that use your product and services regularly.

β€’ Results and revenue happen quickly!

Unlike other businesses, it can be relatively quick to start seeing results and revenue. As long as you follow all the steps to validate your idea before launch, you are likely to see quick results and ROI.

Cons of starting a gift baskets business

β€’ Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

β€’ Longer Sales Process

A gift baskets business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

β€’ Low margins

The gross margins for your gift baskets business are typically around 25%, which can make it more challenging to incur new expenses and maintain profitability.

β€’ High employee turnover

In the gift baskets business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

β€’ Taxes

As a gift baskets business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

β€’ Niche Market

A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.

β€’ High overhead expenses

With starting a gift baskets business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

β€’ You may need to charge sales tax

If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article

β€’ Churn

In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.

β€’ Time commitment

With starting a gift baskets business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.

β€’ Impatient customers

You may offer an engaging user experience for your customer, but customers expect a lot and may be impatient if they aren't pleased with your product or service.

β€’ Difficult to scale

With a gift baskets business, it can be challenging to find ways to scale. Check out this article that discusses scaling your business and the challenges that come with it.

β€’ Learning Curve

When you start your own business, you no longer have upper management to provide you with a playbook for your roles and responsibilities. You should know the ins and outs of every aspect of your business, as every decision will come down to you.

β€’ Equipment Breakdowns

Over the years, your equipment can get damaged, break down, and may need repairs which can be expensive. It's important you prepare for these expenses and try to avoid damages/wear & tear as much as possible.

β€’ Technical issues can be frustrating

Technical issues are common in this business. If you struggle with the technical side of things, you may want to consider outsourcing this responsibility to save yourself the time and frustration.

β€’ More challenging to earn passive income

It can be more of a challenge to make passive income in this business. Often times, the amount of revenue you bring in is limited by the amount of time you have in the day.

Players

Big Players

Small Players

Search Interest

Let's take a look at the search trends for gift baskets over the last year:

How To Name Your Gift Baskets Business

It's important to find a catchy name for your gift baskets business so that you can stand out in your space.

Here are some general tips to consider when naming your gift baskets business

  • Avoid hard to spell names: you want something easy to remember and easy to spell for your customers
  • Conduct a search to see if others in the space have the same name
  • Try not to pick a name that limits growth opportunities for your business (ie. if you decide to expand into other product lines)
  • As soon as you have an idea (or ideas) of a few names that you love, register the domain name(s) as soon as possible!

Why is naming your gift baskets business so important?

The name of your business will forever play a role in:

  • Your customers first impression
  • Your businesses identity
  • The power behind the type of customer your brand attracts
  • If you're memorable or not

It's important to verify that the domain name is available for your gift baskets business.

You can search domain availability here:

Find a domain starting at $0.88

powered by Namecheap

Although .com names are the most common and easiest to remember, there are other options if your .com domain name is not available. Depending on your audience, it may not matter as much as you think.

It's also important to thoroughly check if social media handles are available.

As soon as you resonate with a name (or names), secure the domain and SM handles as soon as possible to ensure they don't get taken.

Here's some inspiration for naming your gift baskets business:

  • Indue Group check availability
  • Talent Pro check availability
  • Strange Present check availability
  • The Greatest check availability
  • Loge Co check availability
  • Taxable Endue Collective check availability
  • Greatest Giving check availability
  • Invest Spot check availability
  • WonderfulGift check availability
  • The Prevalent Tradition check availability
  • Literary Indue Co check availability
  • Spiritual Indue Spot check availability
  • The Bin check availability
  • The Sealed Drawer check availability
  • Mysterious Present check availability
  • Pure Indue Co check availability
  • Indue Spot check availability
  • The Ordinary Tailored check availability
  • Rustic Custom check availability
  • Special Invest Trading Co check availability
  • Bin Collective check availability
  • Alert Boxwood check availability
  • Glorious Genius check availability
  • Happy Giving Place check availability
  • CreativeGift check availability
  • TinyBox check availability
  • Cyst Gift check availability
  • Mist Gift check availability
  • Rain jacket Basket check availability
  • Fantastic Basket check availability
  • Overturned Basketball Co check availability
  • Great Endowment check availability
  • Spiritual check availability
  • GenerousGift check availability
  • Giving Spot check availability
  • The Pretty check availability
  • Ancient check availability
  • Perfect Present check availability
  • Precious Endow check availability
  • The Laden Handbasket check availability
  • Wonderful check availability
  • Endue Trading Co check availability
  • Valid Indue Place check availability
  • Creative Talent Pro check availability
  • Spanish Tailor Made check availability
  • Trustful Custom check availability
  • Talent Collective check availability
  • Crate Trading Co check availability
  • The Royal Endow check availability
  • The Open check availability
  • Endowment Trading Co check availability
  • The Welcome check availability
  • Gratuitous Grants check availability
  • Bespoke Spot check availability
  • The Priceless Empower check availability
  • The Munificent check availability
  • Frontal Custom check availability
  • Outright Talent check availability
  • Drawer Pro check availability
  • Pretty Tradition Co check availability
  • The Peculiar check availability
  • Magic check availability
  • GraciousGift check availability
  • The Pretty Ball check availability
  • The Prophetic Empower check availability
  • Empower Spot check availability
  • The Magic Loge check availability
  • MedievalCustom check availability
  • Plastic check availability
  • Mailing list Gift check availability
  • Rich Indue Trading Co check availability
  • Invest Pro check availability
  • The Royal check availability
  • Flat check availability
  • Egyptian Bespoke Pro check availability
  • Indue Collective check availability
  • Best Empower check availability
  • The Heavy Drawer check availability
  • FrequentCustom check availability
  • Hatchet Basket check availability
  • Peculiar Invest Spot check availability
  • The Indian check availability
  • Props Box check availability
  • Royal Giving Trading Co check availability
  • Inverted check availability
  • GenuineGift check availability
  • Given Genius check availability
  • The Egyptian Usage check availability
  • GreatestGift check availability
  • The Handsome check availability
  • The Singular check availability
  • Best Give Group check availability
  • Endue Co check availability
  • Grist Gift check availability
  • Glorious Give check availability
  • PeculiarGift check availability
  • Heavenly Natural Endowment check availability
  • Extraordinary Invest Pro check availability
  • Drawer Collective check availability
  • Heavenly Natural Endowment Trading Co check availability
  • The Top check availability
  • Custom Made Spot check availability
  • Regular check availability
  • Box Seat Collective check availability
  • Former Usage check availability
  • Greatest Giveaway check availability
  • Knockout drops Box check availability
  • The Fatal Talent check availability
  • Wonderful Give Collective check availability
  • The Royal Loge check availability
  • Literary check availability
  • Gracious Indue Spot check availability
  • Welcome check availability
  • ExcellentGift check availability
  • Bin Spot check availability
  • The Drawer Pro check availability
  • Singular Giving Trading Co check availability
  • Strong Loge check availability
  • Blue Boxwood check availability
  • Package Collective check availability
  • Annual Bespoken Spot check availability
  • Rich Indue Spot check availability
  • The Welcome Indue check availability
  • The Appropriate check availability
  • Pleasant check availability
  • Close check availability
  • StrongBox check availability
  • Give Pro check availability
  • Beautiful Talent Place check availability
  • Genuine Endowment Collective check availability
  • Quaint Tradition Co check availability
  • Yellow check availability
  • Brown check availability
  • Golden check availability
  • Bespoken Spot check availability
  • Anonymous Give Collective check availability
  • Greatest Goody check availability

How To Create A Slogan For Your Gift Baskets Business:

Slogans are a critical piece of your marketing and advertising strategy.

The role of your slogan is to help your customer understand the benefits of your product/service - so it's important to find a catchy and effective slogan name.

Often times, your slogan can even be more important than the name of your brand.

Here are 6 tips for creating a catchy slogan for your gift baskets business:

1. Keep it short, simple and avoid difficult words

A great rule of thumb is that your slogan should be under 10 words. This will make it easy for your customer to understand and remember.

2. Tell what you do and focus on what makes you different

There are a few different ways you can incorporate what makes your business special in your slogan:

  • Explain the target customer you are catering your services towards
  • What problem do you solve?
  • How do you make other people, clients, or your employer look good?
  • Do you make people more successful? How?

3. Be consistent

Chances are, if you're coming up with a slogan, you may already have your business name, logo, mission, branding etc.

It's important to create a slogan that is consistent with all of the above.

4. Ensure the longevity of your slogan

Times are changing quickly, and so are businesses.

When coming up with your slogan, you may want to consider creating something that is timeless and won't just fade with new trends.

5. Consider your audience

When finding a catchy slogan name, you'll want to make sure that this resonates across your entire audience.

It's possible that your slogan could make complete sense to your audience in Europe, but may not resonate with your US audience.

6. Get feedback!

This is one of the easiest ways to know if your slogan will be perceived well, and a step that a lot of brands drop the ball on.

Ask friends, family, strangers, and most importantly, those that are considered to be in your target market.

Here's some inspiration for coming up with a slogan for your gift baskets business:

  • Gifts With Danger
  • For The Gift You Don't Yet Know.
  • Everyone Should Believe In Gift.
  • Gift Is The Buzz.
  • You Can On A Gift, Can Do!
  • Natural Pledges Are What We Do
  • Gift Reaching For The Stars.
  • Free Giving, Greatest Valentine
  • I'm A Secret Gift Drinker.
  • All The Gift That's Fit To Print.
  • Look, Ma, No Gift!
  • Gifts With Hospitality
  • Gift, The Problem Solver.
  • Gift - Empowering People.
  • Buy Gift Now!
  • Live Gift.
  • Nothing Is Faster Than Gift.
  • Natural And Glamorous
  • Gift Unscripted.
  • Endless Possibilities With Gift.
  • Work Hard, Give Harder
  • Gift, Fun For The Whole Family.
  • Behold The Power Of Gift.
  • Free Present, Natural Natural Endowment
  • I'm Lovin' Gift.
  • I Wish I Had A Gift.
  • Gifts With Amount
  • Precious Gift, Built For You
  • You'll Wonder Where The Yellow Went, When You Brush Your Teeth With Box.
  • Wonderful Gift, Better Results
  • For Mash, Get Gift.
  • Gift - To Feel Free!
  • I Am Stuck On Gift, 'Cause Gift's Stuck On Me.
  • Don't Play With Fire, Play With Gift.
  • It's Nothing But Gift
  • See You At Gift.
  • Work Hard, Treat Harder
  • You Too Can Have A Gift Like Mine.
  • Great Empires Are What We Do
  • There's Only One True Gift!
  • Gifts With Way
  • Gift Takes It To The Next Level.
  • Work Hard, Presents Harder
  • Would You Give Someone Your Last Gift?
  • Gift, Where Success Is At Home.
  • Basket Works Like Magic.
  • Have A Break. Have A Gift.
  • From Worst To Finest
  • Gift, And On, And On...
  • Promise Her Anything, But Give Her Gift.
  • Wonderful Giving, Generous Indue
  • General Personaliseds Are What We Do
  • Work Hard, Offered Harder
  • Spot Of The Indue
  • Something Special In The Gift.
  • Natural Gift, We Take Care Of You!
  • You Can Be Sure Of Gift.
  • Natural Valentine, Generous Donation
  • The Original Gift.
  • I Learned It By Watching Gift!
  • Gift Keeps Going, And Going, And Going...
  • Gift, Since 1845.

Learn more about starting a gift baskets business:

Where to start?

-> How much does it cost to start a gift baskets business?
-> Pros and cons of a gift baskets business

Need inspiration?

-> Other gift baskets business success stories
-> Examples of established gift baskets business
-> Marketing ideas for a gift baskets business

Other resources

-> Gift baskets business tips

🎬 How To Start A Gift Baskets Business

article

How Much Does It Cost To Start A Gift Baskets Business

If you are planning to start a gift baskets business, the costs are relatively low. This, of course, depends on if you decide to start the business with lean expenses or bringing in a large team and spending more money.

We’ve outlined two common scenarios for β€œpre-opening” costs of starting a gift baskets business and outline the costs you should expect for each:

  • The estimated minimum starting cost = $62
  • The estimated maximum starting cost = $70,447
Startup Expenses: Average expenses incurred when starting a gift baskets business. Min Startup Costs: You plan to execute on your own. You’re able to work from home with minimal costs. Max Startup Costs: You have started with 1+ other team members.
Office Space Expenses
Rent: This refers to the office space you use for your business and give money to the landlord. To minimize costs, you may want to consider starting your business from home or renting an office in a coworking space. $0 $5,750
Utility Costs For Office Space: Utility costs are the expense for all the services you use in your office, including electricity, gas, fuels, telephone, water, sewerage, etc. $0 $1,150
WiFi & Internet: Whether you work from home or in an office space, WiFi is essential. Although the cost is minimal in most cases, it should be appropriately budgeted for each month! $0 $100
Total Office Space Expenses $0 (min) $7,000 (max)
Employee & Freelancer Expenses
Payroll Costs & Fees: Payroll cost means the expense of paying your employees, which includes salaries, wages, and other benefits. This number depends on if you decide to pay yourself a salary upfront and how many employees you have on payroll. At first, many founders take on all responsibilities until the business is up and running. You can always hire down the road when you understand where you need help. Keep in mind, if you do plan to pay yourself, the average salary founders make is $50K. $150 $250
Employee Hiring Expenses: Apart from payroll and benefits, there are other hiring employees costs. This includes the cost to advertise the job, the time it takes to interview candidates, and any other turnover that may result from hiring the wrong candidate. $1 $2
Employee Rewards: It's vital to acknowledge and reward workers, whether they hit their goals or do a great job. This does not have to be costly. In fact, simply taking workers out to a meal or giving a gift or bonus is among the many ways to show how the worker is valued! $0 $100
Total Employee & Freelancer Expenses $151 (min) $352 (max)
Website Costs
Website Builder: The cost of your website will vary depending on which platform you choose. There are many website builders on the market, so it's important you choose the right one for your business and overall goals. To learn more about your options + how to build a great website, check out this article. $10 $500
Web Designer: Web design includes several different aspects, including webpage layout, content creation, and design elements.If you have the skills and knowledge to design your website on your own, then outsourcing this to an expert may not be necessary. There are plenty of other ways you can design a beautiful website using design tools and software. $200 $6,000
Domain Name: Your domain name is the URL and name of your website - this is how internet users find you and your website.Domain names are extremely important and should match your company name and brand. This makes it easier for customers to remember you and return to your website. $12 $200
Business Email Hosting Service: An email hosting runs a dedicated email server. Once you have your domain name, you can set up email accounts for each user on your team. The most common email hosts are G Suite and Microsoft 365 Suite. The number of email accounts you set up will determine the monthly cost breakdown. $1 $15
Website Hosting Costs: Server hosting is an IT service typically offered by a cloud service provider that hosts the website information and allows remote access through the internet. A hosted server can help you scale up and increase your business’s efficacy, relieving you from the hassles of on-premise operations. $0 $300
Website & Live Chat Tool: If your business values high-end customer service, you must consider utilizing a website chatbot. Website chatbots play a pivotal role in converting site visitors into long-term customers. Typically, there are different tiers of pricing and features offered by Live Chat service providers. $0 $200
Total Website Costs $223 (min) $7,215 (max)
Business Formation Fees
Small Business Insurance: Depending on which state you live in and the business you're operating, the costs and requirements for small business insurance vary. You can learn more here. $500 $2,000
Permit and License Fees: Depending on your industry, there are certain licenses and permits you may need in order to comply with state, local, and federal regulations. Here is an article that goes over all the permits and licenses you may need for your gift baskets business. $50 $700
Trademark: Filing trademark registration will protect your brand and prevent other businesses from copying your name or product. USPTO has several different types of trademarks, so the cost to apply can vary (typically anywhere from $400-$700). $0 $700
Lawyer Fees: Although you may want to avoid attorney fees, it's important that your business (and you) are covered at all costs. This comes into play when creating founder agreements, setting up your business legal structure, and of course, any unforeseen circumstances that may happen when dealing with customers or other businesses. $0 $1,500
A Patent: Patents provide protection against others stealing or selling your idea.Securing a patent can be very valuable, but it's important that you are 100% sure this will be a smart business move for you, or if this is something to consider down the line.The process of securing a US patent can be both lengthy and pricey, and typically includes filing an application with the USPTO. $5,000 $15,000
Set up business: LLC & Corporations: The first step in setting up your business is deciding whether your business is an LLC, S Corp or C Corp. The cost for this depends on which state you form your business and which structure you decide on. We put together an article that goes over the 10 Steps To Setting Up A Business. $50 $500
Total Business Formation Fees $5,600 (min) $20,400 (max)
Equipment & Supply Expenses
Cleaning Supplies: Cleaning supplies are essential products we used daily at home and in almost all places worldwide. These items are used to effectively and safely remove dirt and germs to control allergens and prevent the spreading of contagious diseases, helping us stay healthy. $63 $200
First-aid Equipment: First-aid kits can be bought as a set if not gathered one by one. These are vital in all places of work, homes, and even in cars, especially when you plan to travel or go camping. So, to protect your workers, clients, and kinsfolks, you must always keep a well-stocked first-aid kit handy. $3 $500
Total Equipment & Supply Expenses $66 (min) $700 (max)
Retail Business Expenses
Shop Decor: If you plan to operate a physical store, you may want to consider decorating the place with wall decor, furniture, plants etc. $0 $5,000
Utilities (storefront business): This refers to the cost of monthly utilities for your storefront location, which is typically based on a per-square-footage rate. $0 $1,000
Building improvements and remodeling: If you plan to operate a physical location, you may find yourself dealing with building improvements and remodeling costs. Even if these costs are minimal, this is something to consider when renting/buying a physical location. $0 $950
Storefront Property Rent: This refers to the storefront space you rent or buy for your business. The cost depends largely on the city and the size of the space. Keep in mind that other costs may be involved with your base rent and your lease will define additional expenses you are responsible for. $1,250 $3,500
POS System: Gone are the days of cash registers! Many businesses now use point-of-sale systems for their checkout needs and to track sales and inventory. Here is a list of the best POS systems for small businesses! $0 $1,200
Total Retail Business Expenses $1,250 (min) $11,650 (max)
Inventory Expenses
Upfront Costs For Inventory: This includes all upfront inventory you will need in order to launch. Be sure to compare prices of wholesalers to ensure you're getting the best deal and margins remain high. $300 $5,000
Inventory Storage: If you decide to have a physical space for your gift baskets business, whether it be used for inventory or as a showroom, you may have monthly rent payment or a large down payment associated with renting/buying the space. $0 $5,000
Package Design: Packaging refers to wrapping and protecting products during distribution, shipping, and sales.Your package design is your customer's first impression of your brand, so it's important you spend some time and energy to get this right from the start.Many businesses design their own packages using design software and tools. There is always the option to outsource this to a design expert, but that route tends to be much more expensive. $50 $3,000
Shrinkage: Shrinkage refers to the loss of inventory at any point between the purchase from your supplier and the purchase by your customer. Although you will try to avoid this at all costs, this does happen sometimes (especially in the learning stages of your business), and it's important to plan ahead financially in case this happens. Fortune states that retail shrinkage costs U.S. retailers approximately 1.4 percent of their total sales. $0 $1,000
Distribution costs: Depending on what distribution plan you choose, expenses such as renting vans, hiring delivery drivers and gas costs can add up. If you are looking to save money upfront, you may want to consider conducting distribution on your own. $0 $750
Total Inventory Expenses $350 (min) $14,750 (max)
Software Expenses
Design Programs & Software: These programs might include the Adobe family of design tools: Photoshop, Illustrator, InDesign and others. This is typically a monthly subscription ranging from $10-$50/mo. $0 $50
Email marketing tool: If you plan to grow your email list and email marketing efforts, you may want to consider investing in an email marketing platform (ie. Klaviyo, MailChimp). We put together a detailed guide on all of the email marketing tools out there + the pricing models for each one here. $0 $100
IT Support: IT support installs and configures hardware and software and solves any technical issues that may arise.IT support can be used internally or for your customers experiencing issues with your product/service.There are a variety of tools and software you can use to help with any technical issues you or your customers are experiencing. This is a great option for businesses that do not have the means to hire a team of professionals. $150 $2,000
Accounting & Invoicing Software: It's important to have an accounting system and process in place to manage financials, reporting, planning and tax preparation. Here are the 30 best accounting tools for small businesses. $0 $50
CRM Software: CRM (customer relationship management) software system is used to track and analyze your company’s interactions with clients and prospects. Although this is not a necessary tool to have for your business, implementing this, in the beginning, may set your business up for success and save you valuable time. $12 $300
Project Management Software: You may want to consider using a project management and collaboration tool to organize your day-to-day. This can also be very beneficial if you have a larger team and want to keep track of everyones tasks and productivity. For a full list of project management tools, check out this full list here. $0 $25
Internal Communication Tool: If you plan to have multiple members on your team, you may want to consider an instant message tool such as Slack or Telegram. The cost is usually billed per month (approx $5/user/month) or there are freemium versions available on many platforms. $0 $20
Social Media Management Tools: If you plan to do social media marketing for your gift baskets business, you should consider investing in a social media automation or publishing tool. This will save you time and allow you to track performance and engagement for your posts. Here is a list of 28 best social media tools for your small business. $0 $50
Payroll Software: The main purpose of payroll software is to help you pay your team and track each of those payments (so that you don't have to do it manually). If you do not have any employees or have a very small team, payroll software may not be necessary at this stage. Here are the 11 best payroll tools for small businesses! $0 $200
File Hosting Service: It's important to make sure the information for your gift baskets business is stored and protected should something happen to your computer or hard drive. The cost for this is affordable and depends on how much data you need to store. To learn more about the different options and pricing on the market, check out this article. $0 $299
Total Software Expenses $162 (min) $3,094 (max)
Advertising & Marketing Costs
Business Cards: A gift baskets business involves quite a bit of customer interaction, whether that is attending tradeshows, sales calls or simply having face to face interaction with prospective clients. Business cards are a great way to stay front of mind with your clients. $0 $50
Customer Research & Surveys: Many gift baskets business's conduct industry and consumer research prior to starting their business. Often times, you need to pay for this data or hire a market research firm to help you in this process. $0 $300
Business Signage: Business signs let people know they're in the right place and are one of the first impressions your customer will have of your business.The cost for signage depends on a variety of elements:- material- size- number of colors- durability- installation and laborThere are plenty of design tools and software to create your own signs, or you can hire a sign business to do this for you. $75 $2,486
Direct Campaigns, Printing and Mailing: Although it may sound old-school, traditional marketing methods can be a cost-effective way to drive awareness for your brand. This includes flyers, postcards, sales letters, coupons, special offers, catalogs and brochures. $0 $300
Affiliate Marketing Commission & Fees: If you want to increase revenue for your gift baskets business, affiliate marketing is a great way to promote your product to a new audience. When determining affiliate commission rates you will offer, you will want to take into account the price and margin for your product to ensure affiliate marketing is worth it for your business. According to Monitor Backlinks, the average affiliate commission rate should be somewhere between 5% to 30%. To learn more about how to set commission rates, check out this article.. $0 $250
Influencer Marketing: Partnering with like-minded influencers is one of the most effective ways to grow your social media presence. Many small businesses simply gift a free item in exchange for an influencer post, or pay the influencer directly. $0 $750
Press: If your business and story is unique enough, press and media attention may come to you, but odds are, you may need to do your own outreach and budget for this. We put together a guide here that discusses different press opportunities (both free and paid). $0 $500
Google Ads: With Google Ads you have the ability to control how much you spend by simply setting a monthly budget cap. Additionally, with these ads you only pay for results, such as clicks to your website or phone calls! It's okay to start with a small budget at first and make changes accordingly if you see valuable returns. $0 $300
Facebook & Instagram Ads: With Facebook and Instagram ads, you set your budget and pay for the actions you want (whether that be impressions, conversions, etc).You can learn more about pricing based on your impressions here. $0 $350
Total Advertising & Marketing Costs $75 (min) $5,286 (max)
Total Starting Costs $62 (min) $70,447 (max)

Raising Money For Your Gift Baskets Business

Here are the most common ways to raise money for your gift baskets business:

Bootstrapping

You may not need funding for your gift baskets business.

In fact, many entrepreneurs take this approach when starting their own business, whether they have a little amount of cash or a substantial amount to get started.

So what exactly does the term "bootstrapping" mean?

This method essentially refers to self-funding your businesswithout external help or capital and reinvesting your earnings back into the business**

Bootstrapping means building your company from the ground up with your own, or your loved ones, personal savings and reinvesting all earnings back into the business

Here are some tips to consider when bootstrapping your business:

  • Use your savings as your capital - one of the best ways to bootstrap your business is to collect your savings and use them as startup capital. This will also help you avoid using your personal or business credit cards when getting started.
  • Determine exactly how much capital you need and how much capital you have to get your business off the ground. Generally, when bootstrapping your business, you may want to consider starting a business that involves less startup capital.
  • Consider starting a business that will generate immediate returns so you can put money back into the business
  • Be as lean as possible - this refers to cutting down expenses as much as possible, such as payroll, fancy software tools, unnecessary travel, renting an office, etc
  • Consider outsourcing instead of hiring - in the beginning, you may not need to hire someone permanently to help run your business. It tends to be much less expensive to outsource work to a freelancer and hire someone permanently down the road!

Want to learn more about bootstrapping your business? Check out this article

VC Funding

VC funding is a traditional and long process, but an effective way to raise money for your business.

The term "VC funding" refers to venture capital firms investing in businesses in exchange for equity.

The VC's (venture capitalists) are an individual or small group investing in your business and typically require substantial ownership of the business, with the hope of seeing a return on their investment.

VC's are typically the best approach for businesses with high startup costs - where it would be very difficult to raise the money on your own or through a loan.

When deciding whether to take this approach, it's important that you have a few things in place first, and know what you're getting yourself into:

Determine if your business is ready

Having an idea is not enough to get VC funding.

Typically, VC's will check to make sure you have these things in place prior to closing any deal:

  • An MVP (Minimal Viable Product)
  • A founding team with all proper documents in place (articles of organization, business formation)
  • A validated idea with actual customers buying your product/service

Get everything in place and build a pitch deck

A VC individual or firm will be expecting a fine-tuned presentation that gives an overview of your business.

Here's what you should consider including in your pitch deck:

  • Management team, their previous experience + current roles in the business
  • Market challenge and solution
  • Company financials - including a P&L statement, cash flow statement, and projections
  • Company progress
  • Investment amount - how much do you need and why?

Research the right VC to fund your business

Research the types of VC investors out there and what niche they focus on.

Then, put together a list of target VC's you want to approach and your strategy around setting up meetings.

Be sure you have everything in place (as discussed above) before setting up any meeting!

Make sure the terms and expectations are right for your business

Committing to VC funding is a big deal and a decision that should not be made lightly.

Although the money and experience from VC's can help your business quickly grow, you are also giving away a stake in the company, and the money comes with strings attached.

Be sure you do your due diligence in finding the right investor - one that truly believes in the growth and success of your business.

What Skills Do I Need To Succeed In Starting A Gift Baskets Business?

As a gift baskets business, there are several essential skills and characteristics that are important to identify prior to starting your business.

Let’s look at these skills in more detail so you can identify what you need to succeed in your day-to-day business operations:

*Negotiation Skills

The ability to negotiate on behalf of your client will be an essential part of your every day job.

This is one of the most important qualities you can have when starting a gift baskets business, so it's important you practice and perfect these skills.

Here's what this looks like:

  • Ability to analyze all parts of the deal: your biggest power is to understand and analyze all parts of the deal for your client, choose when to walk away, and know to what lengths you can negotiate a deal.
  • Building rapport: This is key in the gift baskets business. You are much likely to reach an agreement and favorable terms if you spend just a few moments getting to know each other before talking about the deal at stake.
  • Be diplomatic: Being in control of any situation presented and showing intention with your words are key qualities for someone in this line of work. This includes asking good questions and listening actively.

Becoming a good negotiator does not happen overnight, but as long as you are persistent with practicing these skills and putting them into action, you will see growth day by day!

Self Motivation Skills

Self motivation and discipline skills are critical in order to become successful in this field.

It's likely that you will find yourself starting and running your gift baskets business from home, which could mean there are more distractions for you.

Here are the basic skills needed for self motivation & discipline:

  • Becoming a self starter: It's important that you are capable of independently completing a task without the help or direction of anyone else
  • Listening and following directions: When you are given direction by others, it's critical that you are able to follow directions and ask the right questions in order to get your job done
  • Taking the initiative in problem solving: Instead of taking the easy route, you'll need to learn to troubleshoot issues on your own as much as possible.

Crafty Skills

Whether you are on the creative side or the business side of your product, crafty and creative skills are a must for starting a gift baskets business.

Here are a few skills that are important to have for starting a successful gift baskets business:

  • Knowledge of materials and their skillful use: It's critical that you are knowledgable about art supplies and able to get the most out of everything.
  • An open mind: The best gift baskets business's are the ones that have a unique perspective and an open mind on life and gift baskets.
  • Patience: Some of your work may take weeks, months or even years! This combined with starting a business will involve a lot of patience and trust in the process.
  • Energy & Focus: Starting a gift baskets business means you will need to have a great deal of both physical and mental energy to think creatively, reflect, and focus.

Customer Service Skills

Friendly communication with customers and the ability to address service issues is a critical part of the job.

Here are some customer service skills you may want to consider prior to starting a gift baskets business:

  • Professionalism: The way you act, present yourself, and respond to situations all leave an impression on your customer. It's important to stay professional at all times when handling customer requests or issues.
  • Problem-solving: When issues arise, it's important that you are able to think quick on your feet and address the situation with a calm and clear solution
  • Friendly-manner: This is an obvious one, but customers truly appreciate someone that can respond in a quick, efficient, and friendly manner.
  • Proficient in writing: These skills include the ability to write well-crafted emails, service tickets, and any other programs used by the business (ie. chat functions, SMS texting)

Business Savvy Skills

When starting a gift baskets business, there are a few fundamental business skills you will want to learn in order to be successful:

  • Leadership and training skills: A great team starts with YOU. Make sure you have all company policies and training procedures in place prior to hiring your team
  • Decisive and self-confident: Over the course of your career, you will need decisions that could impact your business significantly. It's important you are able to think clearly and rationally about these decisions.
  • Ability to understand the financials: You don't need to be an accountant, but it is important that you are able to clearly understand and define metrics such as expenses, revenue, profit, margins, COGS, etc.
  • Strategic Thinking: Setting clear goals and benchmarks, identifying opportunities, risks. Ability to effectively communicate these insights to your team.

These are a few of many business savvy skills you should have (or work on) when starting a gift baskets business.

For a full list, check out this article here.

Design Skills

Whether you are the one designing the product or the decision-maker for the product, an eye for design is critical when starting a gift baskets business. Here's what this looks like:

  • Creative Thinking - the ability to develop or design different products or ideas
  • Visualization - being able to imagine or visualize how the product will look
  • Articulation - the ability to communicate what the design will look like and how it will be executed
  • Detail-oriented - paying close attention to all of the small pieces when designing or working on a project
  • Some technical skills - knowledge of the design software you are using to create the product or build prototypes.

Other skills that may be valuable to have when starting a gift baskets business include digital marketing skills, branding experience, and basic business knowledge.

Advice For Starting A Gift Baskets Business

We've interviewed thousands of successful founders at Starter Story and asked what advice they would give to entrepreneurs who are just getting started.

Here's the best advice we discovered for starting a gift baskets business:

Valentina, founder of Really Luxe ($2K/month):

Be patient. One of the mistakes people make is losing patience and giving up early.

Read the full interview ➜

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Write a Business Plan

Writing a business plan from the start is critical for the success of your gift baskets business.

Why?

Because this allows you to roadmap exactly what you do, what your overall structure will look like, and where you want to be in the future.

For many entrepreneurs, writing out the business plan helps validate their idea and decide whether or not they should move forward with starting the business.

You may want to consider expanding upon these sections in your business plan:

  • Executive Summary: Brief outline of your product, the market, and growth opportunities
  • Overviews and Objectives: Overview of your business, target customers, and what you need to run your business
  • Products and Services: Specifics on the products and services your business will provide
  • Market Opportunities: Analysis of customer demographics, buyer habits and if your product is in demand
  • Marketing: Outline of your marketing plan and how you plan to differentiate yourself from other customers
  • Competitive analysis: Analysis of your competition and the strengths and weaknesses therein
  • Operations: Hierarchal structure of the company and what it will take to run the business on the day-to-day
  • Leadership Team: Detailing roles and responsibilities of each manager based on their specific skill-set
  • Financial Analysis Understanding of all expenses, operating budgets, and projections for the future.

Learn more about how to write a business plan here

Determine Which Business Bank Account You Need

There are hundreds of banks out there, and it can be overwhelming to find one that's right for your business.

Here are some factors you may want to consider:

  • Location - Is your bank close enough that you can easily make deposits or get cash?
  • Low Fees - Make sure to understand any and all fees associated with setting up and maintaining your bank account. Ask for a list - banks usually try to keep this hidden and in the fine print.
  • Online Banking Services - Make sure you can easily navigate through your online portal and you have easy access to everything you need.
  • Line of Credit - What do your options look like (even if you don't need this now, you may need this down the road).
  • Every bank has something that differentiates them from the rest, so make sure whatever that is applied to your needs and values.

Check out this list of the 13 Best Banks for Small Business in 2020 and what makes them so unique.

When it comes to setting up your business, you may find yourself in a place where you have to make some financial and legal decisions.

The first thing you'll want to decide on is whether you want to be an LLC, S-Corp, or C-Corp.

These three options are found to be the most common when starting a small business, and all serve to protect your personal assets and also provide you with certain tax benefits.

  • LLC: All income and expenses from the business are reported on the LLC personal income tax return.
  • S corp: Owners pay themselves salaries + receive dividends from profits.
  • C Corp: C Corps are separately taxable entities that file a corporate tax return (Form 1120). No income tax is paid at the corporate level and any tax due is paid at the owners individual expense.

Depending on where you're conducting business, you'll also want to consider securing the proper permits, licenses and liability insurance.

Learn more about securing the right permits and licenses ➜

Need to start an LLC? Create an LLC in minutes with ZenBusiness.

How Do I Pay Myself As A Small Business Owner?

Most entrepreneurs start a business to do something they love- but at the end of the day, you still have bills to pay (maybe now more than ever).

But it's important to strike the right balance - if you pay yourself too much, you could be putting your business at risk.

There are two common ways to pay yourself as a business owner:

1. Owner's Draw

Many entrepreneurs pay themselves through an owner's draw. This means that you are technically sean as "self-employed" through the eyes of the IRS and are not paid through regular wages.

At the point that you collect money from the draw, taxes typically are not taken out - so make sure you are prepared to pay these taxes once you file your individual return.

As an owner who takes a draw, you can legally take out as much as you want from your equity.

This type of compensation is suited for Sole props, LLCs, and partnerships. If you’re an S corp, you can pay yourself through both a salary and draw if you choose.

2. Salary

If you decide to pay yourself a salary, you will receive a set and recurring amount. This will be taxed by the federal government and the state you reside in.

The reality is that it can be really complicated to set your own salary, so we have some tips for you to consider:

  • Take out a reasonable amount that allows you to live comfortably but also sets your business up for success
  • Consider the number of hours you are working weekly + the type of duties you are performing.
  • Set your salary based on your industry-standard, location, and profits (or projected profits)
  • Look at your P&L statement: Deduct your own pay from that amount. This is important so you can first tackle important business expenses, and then pay yourself from the amount leftover.
  • Pick a payroll schedule (and stick to it)! In the US, it's most common to pay yourself and employees twice a month.

https://media.giphy.com/media/xT0xeLTRncS90ptpfi/giphy.gif

To learn more about how to pay yourself and what is a reasonable amount, check out this article.

How To Price Your Gift Baskets

One of the most challenging aspects to starting a gift baskets business is determining how much to charge for your gift baskets.

When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.

Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.

On the other hand, when businesses over-price, this tends to be just as damaging to the business.

When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.

Here are some factors to consider when pricing your product:

Understand your customer

It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:

  • Customer demographic: Age, gender, location, etc.
  • Buying habits of your customer: What they buy + when they buy
  • Level of price sensitivity with your customer

All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.

Understand your costs

When pricing your gift baskets, it's critical that you first identify all of your costs and consequently mark up your gift baskets so you can factor in a profit.

The actual cost of your gift baskets may include things like:

  • The actual cost to make the product (ie. raw materials, supplies, manufacturer).
  • Shipping + overhead fees
  • Rent
  • Operating costs to run your business

You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.

Create revenue goals

When determining the price of your gift baskets, you'll want to create goals for revenue + how much profit you want your gift baskets business to make.

This process is simpler than you may think:

  1. Think about your breakeven cost (by completing the above step).
  2. Create a revenue goal based on your break-even cost
  3. Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
  4. Divide your revenue goal by the number of items you plan to sell

This figure will help determine your estimated price per product in order to meet your revenue goals.

Evaluate your competition

The last piece in determining how to price your gift baskets is by simply looking at your competition.

The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your gift baskets fits best in the marketplace.

All of these factors play an equal part in pricing your gift baskets, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.

Case Study

Understanding Your Costs

Example from Ishan, founder of Ugly Duckling

First objective: profitability

Our profitability is OK at this point but definitely not where it should be yet. To this day I have not paid myself a regular salary yet...and it’s been 4 years!

The problem is not the cost of goods which are well under 20% of sales, which is good by any standard. The problem is fulfillment costs. In 2018 we transitioned from our first fulfillment company to a much bigger company. We did this because we wanted to provide faster shipment speeds and a better quality of packaging. In hindsight, we chose a company which would have been more suitable for a larger company with bigger volumes. We ended up being tied in with some pretty large minimum monthly payments. So currently fulfillment costs are currently around 45% of sales...way too high.

We are now looking to transit to another fulfillment center. Our target is to get our fulfillment costs down to around 30% of sales which I believe from what I have researched, is possible.

Just to be clear, when I say fulfillment that includes transportation costs also - FedEx, USPS, etc. Not just storage, picking, and packing. I am pretty sure that it is possible to get fulfillment costs down even lower, and I suspect that some large pro sellers on amazon.com work with around 20-25% of sales.

So our target P+L for 2020 looks something like this:

  • Cost of goods, including inbound freight and clearance - around 22% of sales.
  • Fulfillment - around 30% of sales.
  • Digital Advertising & Promotion - around 15% of sales.
  • Other marketing and office costs, including salary costs - around 10% of sales.
  • That would leave us around 23% of sales - enough to pay me a liveable salary and for the company to make a profit and finance future growth.

That's the first objective for 2020: to right-size the P+L so that we are profitable at our current sales level

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Ishan Dutta, on starting Ugly Duckling ($60,000/month) full story ➜

Price Calculator: How to Calculate The Price For Your Gift Baskets

Our calculator is designed to be simple and easy to use.

The goal is to help you set realistic expectations and understand the amount you should be charging to make your desired profit.

Please input below:

Tips For Pricing Your Subscription Box

If you decide a subscription box offering is right for you, it's important to make sure you price your box properly.

As a rule of thumb, it's recommended to price your box with at least a 40% profit margin to have a sustainable business.

Here are some calculators created by cratejoy to help get you started:

What Type Of Customers Will Buy Your Gift Baskets

It's important to first establish who you will be selling to, whether it's to businesses or consumers.

Typically, in this industry, products are sold to B2C markets (business-to-consumer).

Let's take a look at what this means for your gift baskets business:

B2C (or business to consumer) is a transaction where businesses sell their products or services to the consumer directly.

In this market, consumer behavior is the primary driver for your business decisions - so it's important that you truly identify who your customer is, and what their buyer habits are when building your product/service.

The advantage

B2C is that you are able to cast a very wide net when targeting your customers. Your product may interest a large number of consumers or a specific niche.

The disadvantage

B2C is that consumers hold all the power - so if your website is not the most user friendly, or does not rank in the top search results on Google, chances are, your customer is going to shop elsewhere.

When building your gift baskets business, it's critical that you hone in on who your target audience is, and why they need your product over your competition.

Here are some items to consider when identifying your buyer persona:

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Source

Design A Prototype

Turning your idea into a reality can feel like a daunting task - but it's critical that you have an idea of what your product will look like (even if it's just a sketch) prior to finding a manufacturer.

Here are some common ways you can design your prototype:

  • Draw Your Initial Design on Paper
  • Form pieces of fabric together
  • Consider Taking A Generic Product And Putting Your Own Brand On It
  • Try Making the Product Yourself
  • Consider Building A Prototype With A 3D Printer

To learn more about how to design and prototype a product, check out our latest guide here.

Leeanne Antonio, founder of Bad Day Box dives deep into the process of designing and prototyping their product:

Case Study

I designed Bad Day Box as a way to package up the empathy shown to me when I hit bumps in the road so that others could easily send and receive self-care when they need it the most. I looked around and saw friends going through health issues, grieving deaths, and struggling with heartbreak. I realized that we all have bad days sometimes, and there is not always a card or a gift that feels right. There are times when we don’t know what to say, but we still want to show that we care. The traditional flowers, plants, or edible arrangements can feel generic.

I didn’t create a product, I specifically created a brand with lots of marketing opportunities; no detail is too small. I leaned into my knack for stretching no budget and focused on storytelling and ways to visually reinforce the logo and Bad Day Box sentiment. With the curveballs of this pandemic, I reminded myself what this brand stands for: showing up for each other.

Each box is themed to inspire healing in hard times with options for all genders. Two big personas I wanted to target were males and busy moms. There are not enough gifting options for either of these groups. It’s easy to buy someone a drink or bring them some treats but what if they live across the country? I wanted to make sure that sentiment was acknowledged from wherever you’re located.

Moms (new ones especially) have very little time for any kind of care. A very good friend of mine is the mom of two sets of twins. I wanted to create something she could use in her normal routine and that’s how the Shower Crying box came to life. Because let’s be honest, the shower is the most adult place to cry.

Night of the living dread

Pretty bitter

Intentional reset a gift for self-care at home

Shower crying a gift for your heartbroken friend

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Leeanne Antonio, on starting Bad Day Box ($550/month) full story ➜

How To Find A Supplier For Your Gift Baskets Business

Here are the steps to consider when finding a supplier/manufacturer:

Know your design

One very critical step to finding the right supplier is having an initial idea of what your design/product will look like.

Sketching is one of the most simple ways to get started in the design phase.

What's great about sketching is that you can practically do this anytime, anywhere - even on the back of a napkin.

To get started, all you need to do is pick up a pen and paper and start drawing - or if you are working on a virtual/software product this can be a diagram that outlines the user interface or experience.

Decide your supplier type

You'll want to identify the type of supplier you are looking for.

Here are some questions you may want to ask yourself prior to searching for a supplier

  • Are you looking for a manufacturer to produce your product idea?
  • Do you want to find a supplier that can simply purchase existing products for you?
  • Do you want a drop-shipper to supply and fulfill orders?
  • Do you want a domestic supplier or an overseas supplier? Read more about the pros and cons of each here

Where to start your search

Once you have an understanding of what type of manufacturer/supplier will be best to bring your idea to life, there are several areas you can start your search:

Domestic Suppliers

Overseas Suppliers

Manufacturing Your Product In House

It's also very common to manufacture your gift baskets on your own - either from your home or in a commercial space.

In order to get the product right, you may want to consider experimenting with different designs and recipes until you find the perfect one.

Some founders choose to manufacture their product in-house so that they can control quality, manage costs, and easily handle production/logistics.

Down the road, you can always choose to outsource your gift baskets.

Case Study

Leslie Eisen, founder of AlmondClear discusses how to manufacture products in house

If you want to start a line of unique products, then you have two basic options: you can make them yourself, or you can find a manufacturer to work with that creates custom formulations for their clients.

I knew that I was trying to build a larger-scale business and that the home-made model wasn’t right for me, so I had to find the right manufacturing partner. It took a lot of research, phone calls, and emails before I found the laboratory that met my needs.

I wanted to create unique products (as opposed to private label), so I worked with the manufacturer’s chemist who specializes in skin care formulations. This process takes some time!

First, you have to tell the chemist what kind of product you’re looking for, the ingredients that you want to include or leave out, and what you want the final product to look like/feel like/smell like, etc.

Then, the manufacturer sends you the first sample, you try it out or give it to others to try, and then provide feedback for revisions. In my case, the first two products came together fairly easily because I only needed to make small changes to stock formulations.

There are many, many rules and regulations around cosmetics and skin care products. If you want to sell products that contain FDA regulated ingredients then you have to register and get a permit.

My products aren’t FDA regulated, so I didn’t have to go through this step, but I did have to be aware of the many guidelines and standards around labeling and safety warnings. Some people hire a lawyer to help them through this process, but my manufacturer was able to guide me through the regulatory process.

The entire process, from researching labs to work with to having the first finished products shipped out to me, took around six months.

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Leslie Eisen, on starting AlmondClear ($15,000/month) full story ➜

Purchasing Inventory For Your Gift Baskets Business

When first starting out, it's important to start small with your overhead to get a gauge for what people want.

Just remember - if you order a line of items that don't sell, it's nearly impossible to recoup the money lost.

Buying the right inventory takes research and planning in order to get it right.

  1. Identify your target audience: Identify the age, gender, annual income that you will be selling to. This is a defining factor in ordering the right inventory that will sell.
  2. Research your competition: Conduct market research and identify the different types of styles, price points, and materials being used. This will help you see what's trending and ways that you can improve/stay ahead of the competition.
  3. Create an inventory wishlist: Identify what you need for the launch of your business and create a budget that you will stay within. Remember, it's okay to start small.
  4. Find a supplier Make sure to first compare prices and analyze different options.
  5. Delivery timing: Schedule the inventory delivery to match with seasonality and trending buying seasons

Pro-tip: It's easy to become biased based on your own fashion preferences on what types of shoes/apparel to purchase. This is where a lot of fashion businesses go wrong. It's important to base purchase decisions on current buyer behavior, trends in the market, and specific to your niche.

Case Study

Erin Hooley, founder of Bailey's Blossoms tells us how poor inventory projections led her to lose over $2M

When we first launched Peyton Bre we did so in a social or direct sales model.

Through poor inventory projections we were forced to change models but only after losing $2 million dollars.

It was a devastating time for us and one we were not sure we could survive.

I have since become very intentional about the way that we project our inventory needs and we continue to refine that quarterly and even monthly. We have created a KPI for the cost of goods sold to help us hold ourselves accountable.

Ultimately, the better we manage our inventory the less we have need to discount and the healthier our profit margin becomes.

This is, of course, a very high-level overview of the importance of inventory control.

To see the full breakdown on how to manage inventory, check out my guide over on my blog..

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Erin E Hooley, on starting Bailey's Blossoms ($750,000/month) full story ➜

πŸš€ How To Launch Your Gift Baskets Business

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Build A Website

Building a website is imperative when launching your business, and with the right tools in place, this can be a simple task to check off the list (without having to hire someone).

  1. Pick a domain name that's easy to remember and easy to type
  2. Choose a Web Hosting Plan (ie. Shopify, Squarespace)
  3. Make sure you choose the right theme and design
  4. Implement the proper page structure (ie. about page, contact page, pricing etc)

To learn more about how to build a stellar website with little stress, we give you all the details on this step-by-step guide.

Web Design

Once you have chosen the domain, web hosting, and platform, it's time to get started with the design phase.

Themes are a great way to produce the fundamental style and identity of your website - this includes everything from your font design to your blog post styles.

One of the best ways to get started is to simply explore the various themes (free or paid depending on what you're looking for) and test them on your site.

If web-design really isn't in the cards for you, you may want to consider outsourcing a web designer to help bring your vision and brand to life.

Launch Strategies For Your Gift Baskets Business

There are various different ways you can launch your gift baskets business successfully.

Here are a few different strategies to get customers excited about your gift baskets business.

  • Build hype with a landing page: you can effectively do this through waiting lists, discounts, countdown timer etc
  • Create a teaser video: even just a 30 second video is a great way to exposure for your gift baskets business, and possibly even go viral
  • Reach out to influencers: The right influencer for your product has the ability to reach your audience with just one post, and because of their loyal following, this could lead to a big return for you.
  • Get Press: Whether you plan a PR stunt or get exposure through a popular news outlet, this is a great way to attract initial customers
  • Launch on popular sites: A great way to get buzz about your gift baskets business is to submit your launch to popular startup sites.

Here are a few popular sites to launch on:

Learn more about how to launch your business successfully ➜ here

Leeanne Antonio, founder of Bad Day Box dives deep into the process of launching the business:

Case Study

I introduced the brand to my family and friends back in December 2019 over my birthday and showcased what I called Beta Boxes and sold two initial boxes called Expletives & Hygge. In March 2020, I planned to launch a Kickstarter. The world shut down simultaneously and it didn’t feel like the right time to launch and ask for funding.

I spent the remainder of 2020 creatively and scrappily pivoting. While I held off on launching my Kickstarter, I reminded myself what this brand stands for: showing up. So I launched giveaways for our frontline medical community, sending gratitude in a box to nurses and other heroes. In a year when all small businesses were struggling, I found ways to keep Bad Day Box growing while supporting my friends’ businesses in the same breath.

Before the end of the year, I took on a custom holiday gift order and it triggered financing terms with my wholesale website that enabled me to launch 8 new boxes just in time for the holidays. The shifting landscape of 2020 forced me to make some natural leaps and some uncomfortable ones too. I didn’t expect any of this to happen the way it did but I’m so grateful for the foundation it built. Sometimes you don’t have a Plan B but it unfolds anyway with your community and good intentions.

I gave crowdfunding another go in 2021, trying again to launch on International Women’s Day, and in less than 48 hours my project was declined by Kickstarter because it included a resale component. I searched through various Facebook groups I belonged to while I was in line for my second vaccine. Later that night, I submitted my project to iFundWomen and when I woke up with a very sore arm, it was approved and I launched as planned. In a lot of ways, those stars aligned for me. It’s a much smaller community that is invested in women in business, and women of color and provides resources and opportunities. I was able to recoup some of my expenses from starting up but more importantly, I was able to pay my designer and dear friend who brought my vision to life.

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Leeanne Antonio, on starting Bad Day Box ($550/month) full story ➜

Make Sure You Get The Package Design Right

The way you package your gift baskets business is often the first impression your customer has - so it's important to get it right.

You may want to ask yourself these questions:

If my product is on a shelf next to hundreds of other similar products:

  • Will my gift baskets business stand out?
  • Will the branding/packaging create a connection with my customer, and hence, lead them to buy?

There are hundreds of tools you can use to help with packaging and design:

  • Canva - Allows non-designers to create beautiful Instagram/Pinterest posts, flyers, business cards, etc.
  • Stickermule - High quality custom stickers you can include on or in your packaging.
  • Noissue - Custom tissue paper and compostable mailers
  • Rollo Label Printer - A great tool to print all shipping labels at home
Case Study

Sheets & Giggles explains the motive behind their "Premium Unboxing Experience"

I had a particular vision for our packaging centered around one goal: because we were a DTC company and wouldn’t do physical retail in year 1, we needed to focus entirely on an incredible unboxing experience that made the product feel as premium as possible.

Outside: a white box, nice wax coating, logo front and center with no other copy, easy to open, nice and sturdy.

Inside: make people smile from the get-go, have a social call-to-action, include free extra surprises (a knapsack that wraps the sheets and an eye mask), put funny copy all over the place, and add a donation bag that people could use to donate their now-defunct cotton sheets (sheets & blankets are the #2-most-requested item at shelters behind socks).

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Colin McIntosh, on starting Sheets & Giggles ($200,000/month) full story ➜

Marketplaces

There are various different marketplaces that you can effectively sell and promote your gift baskets business, whether that's local or online!

Here are some of the most common ones:

  • Your own website! Shopify is known to be the best for e-commerce stores
  • Local places! Gift shops, farmers markets, festivals, grocery stores etc
  • Etsy - E-commerce website for craft supplies
  • Craft is Art Marketplace to buy and sell handmade crafts & fine art
  • Aftcra Online marketplace where you can buy and sell handmade products
  • Storenvy Marketplace for authentic brands
  • Amazon

Etsy Tips From Founders

Etsy is one of the most common marketplaces for this business type, however, there are some tips and tricks from other founders you'll want to consider prior to listing:

Case Study

Financially speaking, Etsy is a really great way to start a business because it’s essentially free until you start selling. It cost nothing to launch besides my 20 cent listing fees.

Etsy has been encouraging free shipping with a lot of pushback from sellers, but I built everything into our prices about a month ago and introduced free shipping shopwide, which seems to have improved conversion rates and search visibility already.

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I honestly attribute the bulk of my success to photography. I was a photographer first so obviously very lucky to have no issues launching with great images and it’s something I consistently produce.

With Etsy especially, there are a ton of mediocre amateur photos so it was an easy way to set myself apart from the start, and I don’t think Etsy themselves would feature my products and market them so often otherwise. We’re also able to compete fairly well on price because 80% of customers are American, and our dollar is much weaker.

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Sasha Weekes, on starting Timber Grove Studios ($6,500/month) full story ➜
Case Study

One big mistake I’m seeing from other people selling handcrafted items is regarding Etsy. I’m seeing people do one of two things:

  1. Under-utilize the platform
  2. They are solely using the platform

What I mean by this is that I’m seeing a whole lot of handcrafters that only use Etsy because it’s easy. But referring people to an Etsy page as your webpage isn’t as professional as a dot com webpage, plus, Etsy’s fees are much higher than Shopify. Also, when Etsy makes changes to its marketing structure, I’ve seen people who have no other website get absolutely screwed and their shops go under.

The other camp is those that refuse to use Etsy at all. Etsy is a marketplace, with a built-in audience that is often searching for exactly the product you make! Both camps are making the mistake of not diversifying their markets. Use Etsy, it’s an amazing sales tool, but don’t rely on it solely.

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James Wolfer, on starting Valhalla Wood Forge ($8,500/month) full story ➜

Get Press Coverage For Your Gift Baskets Business

The more buzz around your brand - the more the phones ring, the more traffic to your website, and the more customers as a result.

Here are a few ways you can get press for your business:

Press releases:

Press releases are a great way to share big announcements or news, but in order to get any traction, you'll need to find a way to make your press release stand out amongst others.

Try to convey a story that really matters, not just to you, but to the reporter and to their audience.

Here are some things to consider when submitting a press release:

  • Craft a catchy subject (keep it short and sweet).
  • Acknowledge the journalist's past work and interests - this is key!
  • Include the main point of the story in the first paragraph, heck, even the first sentence. Reporters want to hear the juice first and foremost.
  • Focus on the facts and try to limit the amount of jargon used.
  • Pitch yourself! Help them put a face to the story.
  • Make sure your topic is newsworthy. If it's not, find a way to!
  • Try not to include any attachments of your release!

Email is one of the most effective and preferred way to send your press release, so as long as you keep your pitch brief, interesting and personalized (no cold emails), you should stand a chance!

Get Press Using HARO

HARO, otherwise known as "Help a Reporter Out" is an outlet for journalists to source upcoming stories and opportunities for media coverage.

The best part is, HARO is free to use! There are, of course, premium versions you can purchase, but the free version is still an accessible way to get press.

Once you set up an account, HARO essentially will email you based on stories (that are relevant to you) that need to be covered where you will then have a chance to essentially "bid on the story."

Here are some tips when crafting your pitch:

  • Discuss your experience and expertise in the space. Make sure it's obvious why you're relevant to this story.
  • Answer the question in 3-4 sentences. Try and be as direct as possible
  • Offer to provide the reporter with more information and make sure to give them your contact info

Plan a Publicity Stunt

Planning a publicity stunt is an effective and quick way to raise awareness for your brand and gain some traction from the press.

If you're looking to plan a stunt, the objective should be to be bold and create something memorable

However, being bold has a fine line - it's important that you consider the timing of your stunt to ensure you don't come off insensitive or unethical. For example, timing may not be in your favor if you plan something during the general election, or in most recent cases, a global pandemic.

In order to measure the success of your stunt, it's important that you first determine your end goal, for example:

  • Is the stunt aimed to raise money for your business or a particular organization?
  • Is the stunt aimed to drive more traffic to your website?
  • Is the stunt aimed to get more followers and engagement on Instagram?

Here are a few tips for creating a great publicity stunt:

  • Research to ensure that there haven't been similar stunts done in the past by other businesses - this could easily turn off journalists and your audience.
  • Make sure you can explain the stunt in one headline - this will help grab the media's attention. In other words, simplify!
  • The stunt should be related to the product you are promoting. Even if the stunt is a success in terms of viewers, but it doesn't tie back to your original goal, then it's not useful.
  • Keep the stunt visual with videos/images.
  • Leverage the internet and social media platforms for your stunt by sharing your message across a variety of audiences. This will help with word of mouth and the overall success of your event.

To learn other strategies on how to get press, check out our full guide here.

🌱 How To Grow Your Gift Baskets Business

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Consider Selling On Amazon

In addition to selling your products directly on your site, you may want to consider selling on Amazon to reach a wider audience and attract new customers.

Here are some pros and cons of selling on amazon:

Pros

  • Easy and seamless process to get your product listed on Amazon
  • There are roughly 100 million thoroughly committed prime customers, so you're bound to tap into new business
  • Can help grow your business exponentially and reach new audiences

Cons

  • You may encounter some "copycats" and counterfeit products
  • Amazon owns the relationship with the customer (you lose control over product reviews + customer service)
  • If you already have a low-markup, amazon may not wrth your while and you could end up losing money
  • Commissions and listing fees are high - it's easy to lose control of your offering

Follow these instructions to get your product listed on Amazon or check out the video below on how to get started:

Case Study

Cory Stout, founder of Woodies ($250K/mo) provides us with specifics on how to rank better on amazon:

Our main product is walnut wood sunglasses that I sell for $25 on Amazon and Woodies.com.

I dedicated myself to becoming an Amazon expert. I listened to all the podcasts and read all the blog posts I could find. Shoutout EcomCrew I took the basic fundamentals that are out there and I added a couple of my own twists.

Amazon brings me, 100 brand new customers, every day for very little acquisition cost. If I tried that on my own, it would take a TON of work and it wouldn’t be nearly as effective as Amazon, so I took the easy road on this one.

Here's an article I wrote on how to rank better on amazon (30+ Tips):

5/5: ESSENTIAL

  • Beautiful images (minimum 5 images) especially lifestyle images I use UpgradedImages.com for product photography (hey Ken!)
  • Keywords in your title (but it still needs to sound human)
  • Competitive price (contributes to high conversion rate)
  • NOT having 1-star reviews
  • DON'T STOCKOUT: it's such a killer and if you DO stockout, definitely DON'T raise your price right before you do, if anything LOWER your price for the last 10-20 units before you stockout, each ASIN has a 'memory' for when you do get back in stock so that will help you regain ranking quickly
  • DON'T VIOLATE AMAZON TOS: just don't
  • Perform QC on your stock before you send it in (I sent in a wrong box once and I had to 'remove' over 3,000 pieces so I could sift through them and remove the 150 contaminated pieces 0/7 would not recommend

4/5: Pretty Friggin Important

  • Minimum 10 5-star reviews (do this before you do anything below this)
  • Well optimized PPC campaigns (could do a whole post on this, keep ACOS under 40%) here's a screenshot of some of my campaigns I use a combination of manual campaigns with exact phrases and high bids...and auto campaigns with a broad range of products and very low bids
  • Turning on FeedbackGenius for auto review requests (it's not as good as it used to be, but it's still worth it)
  • Get a trademark and get Brand Registry, this protects you from hijackers and other unscrupulous sellers
  • Quick response to customer messages (under 12 hours) here are my stats my mom does all my customer service "Employee of the Year" status
  • Drive outside traffic (amazon loves outside traffic because they don't have to spend so much to acquire customers) Facebook, Instagram, and Google Adwords are the usual suspects
  • Use ocean shipping to save mucho $$$ on unit costs (use flexport)

Read more about amazon tips here.

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Cory Stout, on starting Woodies ($190,000/month) full story ➜

How To Market & Sell Your Product To Grocery Stores

The goal for most gift baskets businesses is to be able to sell their product in grocery stores and other marketplaces.

With a bit of time, research and energy, you can make this a reality for your gift baskets business!

Here are the steps you should consider taking when you are ready to market your gift baskets business to grocery stores:

1. Permits: Make sure you have the right permit by contacting city and state officials

2. Creative label and packaging design: Your packaging should be functional, creative and also meet all U.S. Food and Drug Administration labeling guidelines

3. Price your product appropriately: Make sure your product pricing is fair but also allows for you to make a profit. Check out what other gift baskets business's are selling for at grocery stores in the area.

4. Create a target list: Conduct research in the area and decide which grocery stores you would like to sell your product to.

5. Contact stores and present your product: Introduce yourself and request a meeting with the grocery stores on your list - bring a presentation with the market research you've conducted and samples of your product.

Consider Working With Instagram Influencers

Partnering with like-minded influencers (within your industry) is one of the most effective ways to grow your social media organically.

Industry influencers already have an established and loyal following. With one post, your product immediately establishes a connection with a brand new audience. It's that powerful.

When finding influencers to promote your product, do your research and make sure that their following will actually be interested in your product.

It's easy to be blinded by any influencer with a huge following, but if those followers don't resonate with your product, there may not be any value there... so make sure you do your research!

Case Study

Evan Marshall, founder of Plain Jane discusses how "micro-influencers" have impacted his business:

Influencer marketing has been huge for us. Our approach is pretty simple. We give out samples of our products and ask people to post about us on social media aka a micro-influencer strategy.

We really like this approach because we get authentic stories and content. We cannot really control the messaging so the product has to speak for itself. We don’t really take product photos at all. Our customers take the photos and we ask to reuse them.

With any influencer strategy, you have to be very sure you’re targeting the right people and engaging with them. You can make sure you’re targeting the right influencers by looking through their posts and then looking through the profiles of their engaged followers.

It takes more time per influencer but the payoff is certainly worth it. Make sure their followers look like your existing customers.

It takes a ton of time and work to grow a social media following this way but it’s worth it. Other accounts have tried to grow themselves through botting or other manipulations. As a CBD company, we didn’t want to give Instagram any reason to shutdown our account so we’ve done everything through content and real engagement. It’s not magic to make this happen. You just have to post consistently and then reply or like every single comment you get. It takes months but it works

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Evan Marshall, on starting Plain Jane ($275,000/month) full story ➜

Experiment With Pay Per Click Ads (PPC)

Pay-per-click (PPC) is a performance-based marketing method that allows you to show specific ads for services or products oriented to a very defined target, with the goal that the user visits your website or landing page.

Here are some tips to consider:

  • Consider connecting the ad to your corresponding landing page so that the audience receives the necessary information after clicking on the ad.
  • Conversion Tracking: When running PPC campaigns, be sure to run the ads with conversion tracking.
  • Focus on quality keywords, even if there are few as this will save you time and money. When assessing the performance of a keyword, it's important to track the expense, conversion, and cost per conversion, as well as the ROI.

PPC advertising can be a very important lead generator as long as it's done properly. Your PPC campaign is intended to drive traffic to your website and help the business scale.

Additionally, if the campaign is not having the desired results, you can make the necessary changes immediately to improve them.

Case Study

Ryan Schortmann, founder of Display Pros talks about their investment in PPC Ads:

My name is Ryan Schortmann and I’m the founder of Display Pros. We are a custom trade show display booth company offering easy to use portable display β€œkits” for small and medium businesses wanting to get into the trade show game.

It did not take long to come to the realization that to compete at any reasonable level, we were going to need to take the plunge and invest in Pay Per Click ads and display.

From experience, I know that it is important to give Google’s hivemind some time to settle in before each campaign starts seeing consistent results (this is largely dependent on budget).

A certain amount of PPC budget must be viewed as a β€œmarketing research” expense and then you can look at the analytics data and make informed decisions on where to refine, tweak or plain scrap an idea.

Google Shopping was an entirely new concept for me. You can’t assign keywords to products so at first, I was asking myself β€œHow the hell do you refine these?”. Then I found some good reading material and courses and learned of some advanced methods that the pros are using. It turns out you can utilize negative keyword lists combined with the priority setting on each shopping campaign to β€œshape” the keywords that are coming in and how much you are spending on them.

To learn more about PPC Ads and Google Shopping, check out this video to learn everything you need to know!

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Ryan Schortmann, on starting Display Pros ($30,000/month) full story ➜

Improve your SEO

SEO is not just about driving traffic to your site, it's about driving the RIGHT traffic to your site, and ultimately, converting leads into customers.

One of the most important aspects of SEO is understanding what your customers are searching for, otherwise known as "keyword research."

Here are some tools that can help you choose the right keywords for your gift baskets business.

Publish Great Content

Finding keywords is an important piece of the puzzle, but Google also ranks your site based on the actual content you produce, as this is what your customers are reading and engaging with.

There are various different "forms" of content that you may want to consider diversifying on your sites, such as blog posts, articles, studies, and videos.

So let's discuss what google considers "good content:"

  • Length - This will vary depending on the page, however, generally having a sufficient amount of content helps search engines recognize that your site is a good source for a specific topic
  • Engagement - The longer people stay on your website to read your content, the higher Google will rank your website. It's important to have informative and "thick" content that keeps people reading
  • Avoid Duplicating Content - Google will recognize this and may consider your content to have low value
  • Ensure pages load quickly - This will also help with engagement and time spent on your website
  • Shareability - Create content that people want to share, and is easy for them to share, especially to their social media accounts (ie. "click to tweet" is a great example of this).

Another element of creating good content is creating consistent content.

If (and hopefully you are) publishing content frequently, it's important to stick to a schedule - this helps build brand trust and easy user experience with your customers.

Planning out your content with a content calendar is key to staying consistent.

Here are a few great content calendar tools that can help you:

  • Trello
  • Airtable
  • If you prefer to keep it simple, your average spreadsheet is just as useful!

Backlinks

Backlinks are an important piece to SEO, as they allow for other websites to link to your content.

Search engines recognize that other sites are essentially "verifying" your content and essentially rank you higher because of this.

Of course, some links are more valuable than others and can affect your site in different ways.

For example, if a highly valuable and credible site like the New York Times links to a page on your website, this could be remarkable from an SEO perspective.

Aside from organically getting mentioned from other sites, there are other ways that you can increase and earn backlinks:

  • Create infographics with relevant data that people want to share
  • Promote your content on different sites/look into "guest blogging"
  • Contact influencers/journalists/bloggers and ask them to mention you!
  • Write testimonials for other sites in exchange for a backlink
  • Leverage existing business relationships

Learn more about the fundamentals of SEO ➜ here and check out Neil Patel's 3 Powerful SEO Tips below

Build A Blog

One of the most effective ways to build brand awareness and grow your business is through consistently blogging.

We've outlined some useful tips for you to consider when creating content:

Consistency and Quantity

Quality is important, but it should be the standard for any content you publish.

What’s more important is consistency and quantity.

Consistency is as simple as committing to publishing and sharing a certain number of posts per week. For me, that’s three per week right now.

This kind of commitment is key, because one day, a random post will blow up, and you will have never expected it.

Oversaturation

The easiest mind trap is to think "I’m posting too much", and β€œI need to give my readers/audience/this platform a break”.

This is nonsense.

There is no such thing as oversaturation. Well, there is, but it is just someone else’s opinion.

For every person that tells you you are posting too much, there is another person that wants even more of your content.

You should ignore people’s opinions on how much you post.

Patience & Persistence

Keep posting, keep trying, and keep putting out good content on the regular. Your time will come, and when it does, it will change everything.

The only thing you have control over is your content.

You can’t control how people will react to it. You can’t control pageviews, likes, or shares.

So the only metric you should focus on is how much content you can put out in a week, month, etc.

Where to share your blog content

Mailing List

I know it sounds obvious, but the best places to share your content is on your mailing list. It is guaranteed traffic and it is a great way to get rapid feedback from your most loyal readers.

Send newsletters often. I have done once a week since starting, and I’m moving to twice a week soon.

Work on increasing your mailing list as well. Look into ways to increase your conversion rate to your mailing list. I added a flyout popup thing to my site and now I’m collecting ~30 emails per day.

An email newsletter is one of the most powerful assets you can have and it is worth its weight in gold.

Reddit

Reddit is one of my favorite places to promote content.

It is a very scary place because you will often get banned or heckled, but it can really pay off.

Create social media accounts for your blog, the main ones I use:

Twitter Facebook Instagram LinkedIn

Set up Buffer and share all of your blog posts to all of your accounts. All of these little shares really do add up.

Automate this as much as possible. I automated all of my social media for Starter Story.

Facebook Groups

When I started out, I put together a spreadsheet of relevant Facebook groups for my niche, and I would post to these groups whenever I had a big story I wanted to share.

Grow Your Email List

The more engaged list of emails, the more engaged customers, which ultimately leads to more sales.

One of the best ways to start growing your list is by providing your customer with something free (or discounted) in return.

This could also be anything from:

  • Ebook
  • Fascinating case study
  • Video series
  • Free week of the product
  • Discount on the product

Learn more about how to grow your email list and improve email marketing ➜ here.

Case Study

Dylan Jacob, founder of Brumate states their email collection tactic that is proven to work:

We use Spin-a-Sale for this (you spin a wheel for a discount code in exchange for subscribing to our email list). This has been the best email-collecting tool we have found because the customer truly feels like they won a prize rather than just a coupon code.

Even if a customer doesn’t convert right away, if we have their email we have a 19% chance of converting them into a future customer whether that is through future promotions, new releases, or simply just sending an email at the right time for a purchase to finally make sense for them.

We also have a return customer rate of over 14%, so one out of every 6 people we convert will end up buying from us again with an average order value of over $60.00.

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Dylan Jacob, on starting BrüMate ($12,000,000/month) full story ➜

Add an exit-intent popup to your online store

A great way to double, or even triple, your email opt-in rate and to grow your list is to add an exit-intent popup to your site, and offering a discount or content upgrade for subscribers.

Here's an example of what that might look like:

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Case Study

One thing that I spent years NOT doing, that I now kick myself about, is adding an "exit intent pop-up" to our site, which lets people enter a sweepstakes to win a Xero Shoes gift certificate.

That one idea has added over 100,000 subscribers to our email list, which is one of our most effective marketing channels.

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Steven Sashen, on starting Xero Shoes ($4,000,000/month) full story ➜

Improve Your Email Marketing

Different types of emails

Here are the most common types of email campaigns you can send to your customers and their benefits:

  • Welcome emails - the perfect way to provide information from the start with a clear CTA. Make sure to tell your customer everything they need to know about your product or service.
  • Newsletters - a great way to give customers updates or send out your latest content
  • Product launch emails - the quickest (and easiest) way to increase sales is by selling to current customers. Make sure they're the first on the list to know about your new product
  • Promotional emails - promote discounts, deals coupons etc. Try and make this feel exclusive and for a limited time only
  • Abandoned cart emails - give your customers a reason to complete their purchase!

Here's a great resource for finding curated email designs, for all types of email campaigns!

Abandonded Cart Flow

The abandoned cart workflow is one of the most effective strategies for turning your lead into a customer, and a powerful tool to have if you're an e-commerce business.

Think about all the times that you went on a shopping frenzy only to add items to your cart and then either forget or realize nows not the right time to pull the trigger.

Then, minutes later you receive an email saying "Hurry up! Your cart is waiting - and we want to provide you with 20% off your order."

Maybe that's the special touch (and discount) you needed to pull that trigger.

Implementing this workflow can automatically trigger this for your business every time a customer abandons their cart.

Here's a great example of an abandoned cart email from Brooklinen:

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Things they do well:

  • Showcase 5-star reviews from other customers
  • Offer a small discount + free shipping
  • Great design + clear call to actions!

Social Media Advertising

Social Media Advertising is one of the leading ways to get the word out when it comes to gift baskets business.

There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

Let's talk about a few of the main platforms and what makes them unique:

  • Facebook Advertising - more than 2 billion monthly users. Facebook is the best for lead generation + capturing email addresses for e-commerce businesses.
  • Instagram Advertising - approximately 500 million monthly users and has a higher audience engagement rate than any other platform. Instagram ads are best for linking to a product page or landing page and reaches the 18-29 age group most effectively.
  • Twitter Advertising- Small businesses typically use twitter ads to drive brand awareness, but the platform is meant more for organic engagement (and is not as heavily used for paid advertising)
  • Pinterest Advertising - 175 million monthly users and most effectively reaches the female audience. Pinterest is great for promoting products without "promoted". The promoted pins have a way of blending right in.
  • LinkedIn Advertising - 227 million monthly users and is geared towards the B2B market and generates the highest quality leads. Great platform for recruiters, high-end products and services that will help businesses

It's important to first define your goal/objective so that you don't waste time and money into the wrong platform:

Here are some different questions to ask yourself as it relates to your goals:

  • Do I want to simply drive brand awareness?
  • Do I want to drive users to my website to gather information?
  • Do I want to increase sales and get my customer to take action?

From there, choose the platform that targets your audience best and start experimenting!

Learn more about social media advertising ➜ here.

Case Study

Founder Andy Hayes talks about mastering FB ads and the pixel:

The biggest bang for your buck will likely be mastering Facebook and it’s platform - which we all know is pay for play, so you’ll have to come up with a small amount of budget to start for marketing.

We’ve spent countless hours (and paid numerous coaches) before we cracked the code that works for us on Facebook, but it is working really well for us now.

Some of the most important things to know when it comes to FB Ads:

  • Start with retargeting (that’s showing ads to people who already know you but did not purchase). Master this - and start building information on your Facebook Pixel - before you do anything else
  • Once you have that down, try working with the 1% β€œLookalike” audience to prospect for new customers. This may take awhile because your pixel audience is small, so try layering on interests - 1% Lookalike and your largest competitor, for example. Don’t use interest-only targeting until you master this.
  • Great photography and videography is key, as is smart copy. Research what’s out there in your industry and constantly test - what works for one company may not work for other people.
  • Make sure you have good offers. For example, we have a $5 trial for our subscription, which converts affordably - if we promoted our subscription with the standard $30 front charge, it wouldn’t be as cost-effective.
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Andy Hayes, on starting Plum Deluxe Tea ($75,000/month) full story ➜

Host A Social Media Giveaway

People love free stuff and love competition. Giveaways and contests are a great way to create awareness for your brand, grow your email list, and eventually convert leads into customers.

If your goal is to gather email addresses, make sure the entry criteria is to "enter your email." You can do this by leading customers to your landing page where they can then enter their email to be in the giveaway.

One of the most important aspects of promoting a successful giveaway is having an amazing prize. The better the prize, the more engagement you'll get.

This doesn't necessarily mean choosing an iPad or an expensive/trendy watch, but instead a prize that is actually relevant to your brand/target audience.

Case Study

Giveaway Example and Tips

Example from TJ Mapes, founder of RIPT Apparel

Our most recent successful giveaway was when we gave away a PS4 + the new Spiderman game. I hosted the giveaway on our site and then let our audience know about it via email/social channels.

Entrants earned different amounts of entries for entering in different ways (tongue twister!), for instance; enter via email, get 10 entries. Follow us on Facebook, get 5 entries. Subscribe on Messenger and get 25 entries.

how-three-friends-launched-2-4m-t-shirt-startup-ript-apparel

I also built out a drip sequence in Klaviyo that contained four emails to encourage entrants to take more action, like referring friends and liking us on social.

Email #1: Thanks for entering!

how-three-friends-launched-2-4m-t-shirt-startup-ript-apparel

Email #2: Explained how to earn bonus entries:

how-three-friends-launched-2-4m-t-shirt-startup-ript-apparel

Email #3: About us

how-three-friends-launched-2-4m-t-shirt-startup-ript-apparel

Email #4: Coupon for entering

This last email in the sequence just thanked them again for entering and also included a coupon to a specific (related) collection of designs with an expiration date on it to incentivize purchases.

how-three-friends-launched-2-4m-t-shirt-startup-ript-apparel

how-three-friends-launched-2-4m-t-shirt-startup-ript-apparel
(this screenshot is actually a flow from when we gave away an xbox, but you get the idea - huge open and click rates πŸ’―πŸ’―πŸ’―)

PS4 Giveaway Results:

We ran it for 2 weeks and recorded results in a meticulous spreadsheet to analyze the data. Here are some of the highlights:

  • Giveaway page pageviews - 67,355
  • Total entrants - 26,137
  • Conversion rate - 38.80%
  • Total entrants in Klaviyo (not suppressed) - 24,515
  • New emails acquired - 16,363
  • Emails we already had - 7,521
  • % of new emails - 66.75%
  • Cost of item - $350
  • Instagram visits - 10,618
  • Instagram followers gained - 3,496 ( total followers lifted by 6.9% )
  • Twitter followers gained - 4,194
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TJ Mapes, on starting RIPT Apparel ($200,000/month) full story ➜

Form partnerships for your gift baskets business

Starting a gift baskets business is all about building relationships and becoming an integral part of your community.

Many entrepreneurs make the mistake of thinking they can do everything on their own. In reality, other businesses (even your competition) and members of your community can be a huge piece of your growth strategy.

When forming any type of partnership, a lot of energy and time can go into this. To ensure it's worth your while, dive deep into the vetting process and ask yourself (and them) the following questions:

  • What are your businesses values and priorities?
  • Who are your customers? What matters most to them?
  • In what ways can we both bring value to each others businesses? Cross promotions? Clout/credibility?
  • Should we do a trial run first to make sure this partnership works out before finalizing an agreement?
  • What will the agreement look like?

Once you have an idea as to what the ideal partnership agreement looks like, that's when the outreach begins (the hardest part)!

Here are some different ways you can meet other entrepreneurs and form partnerships:

  • Simply talk to other people in the gift baskets business industry. You'd be surprised as to how willing other entrepreneurs are to share their knowledge with you
  • Host an event: By inviting people to your event in your community and industry, you may be able to form partnerships and expand your clientele
  • Join a facebook community: Nowadays, everything is online. A great way to meet other people is to become 'active' on a public forum or community
  • Use other social networks such as LinkedIn or Twitter to aid your outreach. This can be a very powerful tool if used properly.

Forming partnerships and building relationships within your community can be a very valuable tool, but it's important that you do your due diligence and avoid going in blind to any sort of partnership. This can save you months, if not years of time.

Case Study

Mike Aspinall, founder of The Crafty Gentlemen discusses how brand partnerships are the most important part of his growth strategy and revenue stream:

My main revenue stream is sponsored brand partnerships, whereby a company pays me a fee to feature their product within one of my blog posts.

Over the years, I’ve worked with some really cool brands – Etsy, Hobbycraft, Cricut, Pinterest, Gorilla Glue, Singer, Janome, Brother, Bosch, and lots more.

For a long time, I was hesitant to charge for my work – I was happy to work in exchange for products. But there came a point where I was being offered more work than I could have said yes to – something had to change. So I started to charge for partnerships. And brands agreed, no questions asked!

The last 6-12 months have been the most successful yet for my business. I’m making regular revenue through multiple streams, including sponsorships, media appearances, influencer work, and passive ad revenue. My website traffic is at an all-time high, and growing – as are my social media followings:

article

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Mike Aspinall, on starting The Crafty Gentleman ($1,200/month) full story ➜

πŸƒπŸΌβ€β™€οΈ How To Run Your Gift Baskets Business

article

How To Retain Customers For Your Gift Baskets Business

Retaining customers is one of the most effective ways to grow your gift baskets business.

Oftentimes, it's easy to find yourself focusing on generating new customers, vs retaining your current ones.

Look at it this way - you are 60-70% more likely to sell a new product to an existing customer than you are a new customer.

That's not to say that finding new customers and revenue streams is not important, however, the easiest (and most inexpensive) source of new revenue is right there in front of you.

Here are some ways you can retain customers for your gift baskets business:

  • Responding to comments on social media
  • Send discounts (or freebies) to loyal customers
  • Provide valuable content, for free
  • Write a hand written thank you note
  • Provide awesome customer service and build relationships with customers

To find out more tips and tricks on retaining customers, check out this article ➜ here

Leeanne Antonio, founder of Bad Day Box dives deep into the process of attracting and retaining customers:

Case Study

I had a lot of visibility and forward momentum with my crowdfunding campaign. Because of this, I was able to be featured in Forbes. This was such a pivotal moment for me because it showed me this idea had equity. You can read the entire article here.

Without this Forbes article, I would not have been able to get an email from CNN. Yes, CNN, is the news media channel. They wanted to feature my business on a segment called Start Small, Think Big. I would not believe this opportunity was real until a producer and photojournalist showed up to film in San Diego. This opened up my business to the eyes of the masses. You can watch the video below:

https://youtu.be/UhvpRr34Fy4

Both of these features provided me with great SEO and a lot of credibility for future features with other content producers. Say yes to any opportunity that provides you with SEO! This also is great networking whether you realize it or not!

There will always be someone who has more financial wherewithal than you, who is more educated than you, or who has more direct experience than you. It’s truly up to you to believe in yourself and realize what you bring to the table.

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Leeanne Antonio, on starting Bad Day Box ($550/month) full story ➜

Diversify Your Product Line

Adding new products to your business is a great way to expand into new markets and grow your business.

It's important to note that adding new products and diversifying may not be in the cards for you right this moment, and that's okay. You can always consider it down the road.

Here are some reasons you may want to considering adding/diversifying your product

  • Meeting the needs of your customers
  • Establish yourself as a top provider in your industry and stay ahead of the game with competition
  • Resistance to downturns/trends fading
  • Create new revenue streams

Provide Great Customer Service

Providing exceptional care and creating relationships with clients is a great way to build your reputation and retain customers.

Whether you are an online business or a physical business, it's highly important to communicate with customers and make them feel like they are the priority.

Just remember: customer service represents your brand, values, vision and YOU as a person.

Build a Referral Program

Word of mouth is one of the best ways to get the word out about your business and acquire new customers. Especially when you are starting out, it’s important to build a solid referral program to encourage existing customers to help you find new ones.

A great way to do that is by offering a reward (ie. credit on your service or cash) to customers that refer you to their friends and family.

A fantastic referral program will help with clout, credibility, and establishing yourself in the space.

Outsourcing

If you can afford to hire someone to help support your gift baskets business, outsourcing is a great way to save you time and energy.

Most importantly, outsourcing can help you focus on the core growth of your business, versus spending your time on day to day tasks that other people can do just as well!

If you do plan to outsource your work, it's important to be hyper-familiar with the actual work involved.

Why is it important to be hyper-familiar with the work?

  • So you can understand how long it takes
  • So you understand the full process, edge cases, things that can go wrong.
  • So you can explain it in detail to your employee.
  • So you can make sure it actually works (for example - how do you know cold email works for your business if you’re not on the ground floor trying it out?)
  • Understanding the tasks at a deep level will save you a lot of time and money.

Word of Mouth

The most tried and true way to grow a gift baskets business is through word of mouth - some entrepreneurs would say it's more important than all social media.

Why you should focus on word of mouth:

  • Consumers trust word of mouth above all other forms of marketing
  • 92% of consumers believe recommendations from friends and family over all forms of advertising
  • 64% of marketing executives indicated that they believe it is the most effective form of marketing

Learn more about word of mouth in our guide: 30 Ways Founders Grow Their Business ➜

Resources

We put together the best resources on the internet to help you start your gift baskets business.

Tools

Books

Web Resources

Videos

Case Studies

meet the author
Pat Walls

I'm Pat Walls and I created Starter Story - a website dedicated to helping people start businesses. We interview entrepreneurs from around the world about how they started and grew their businesses.