Starting any new business has its risks, as well as its potential rewards. An important part of the process of deciding on starting a business, such as a gift basket business, is researching the various factors. If you are thinking about starting your own gift basket business, carefully consider the pros and cons.
Online Sales Potential
The potential of selling gift baskets through one or more online presences is a definite positive check mark on your pros and cons list. In fact, even if you have relatively little financing for your new business, a virtual store can become highly successful when properly marketed. Creating a professional website is key to selling online as is ensuring that you offer a secure method for receiving customer orders and payments.
A gift basket business is a specialized, or niche, business venture, and you need research on whether there are enough potential customers in your area. If you don't intend to sell to a larger online customer base and intend instead to have only a brick and mortar business, this type of marketing research is especially important. Don't allow your enthusiasm for your business idea, or even your skills, overshadow the data you glean from conducting surveys and other forms of research.
Virtually any business has upfront costs. Depending on your particular circumstances, the cost of starting a gift basket business can be either a pro or a con. This largely depends on what type of gift basket business you want to start. A brick and mortar business will require that you rent or buy a space. The exception is running a business from your home through relying on sales from a brochure or catalog business. You need the funds to purchase the gift baskets themselves (or the materials to make your own) as well as the items you intend to place in the baskets. You can avoid many overhead costs if you run a web-based business.
There are numerous low-cost methods of advertising your business online, such as hosting your own blog. You can also create videos for placement on video-sharing sites. The videos should be well made, and you might want to add a dash of humor to them. Fliers and/or mailers can help drum up local business.