- 1). Get the required licensing. It's best to check with local state, county and city offices to see what licensing is required. Since you're buying the items for a gift basket and reselling them as a package you'll most likely have to get a sales tax license--sometimes called a "sales privilege" license. Many states and cities require a general business license. If homemade food items are part of the gift, a food handler's license will be required. The Health Department will also inspect the area where the food is prepared.
- 2). Analyze your competitors. Your local florist shop may offer gift baskets as well as floral arrangements. Gift shops are another potential competitor. Make a list of the competitors, their products and their pricing. You'll be able to offer a basket that's different and compete on price as well.
- 3). Determine your market and who will be buying your gift baskets. Perhaps busy working mothers who don't have time to shop are your customers. Another alternative are husbands who want a romantic gift but are too embarrassed to visit the necessary stores. You might think that anyone buying a gift would be your market and in a very broad sense that's true. However, a narrower definition such as people who want a personalized gift but don't have the time to shop, or the creativity to assemble a basket, would be more workable. An example of a defined market niche would be grandparents looking for fun gifts for their grandchildren.
- 4). Define your product.One option is to provide gift baskets that are luxurious and expensive. Another is cute and affordable. Decide how will you price your product and what will make your gift baskets different. Establishing a brand goes a long way toward differentiating your gift baskets from those that can be bought off the shelf.
- 5). Find wholesale sources. The profit you make is determined by the cost of the items that make up the gift basket and what you sell it for. For example: A baby's bath gift might consist of an infant bathtub; rubber duck; terry-cloth, wrap-around, hooded, hand-embroidered, bath towel; organic baby bath products and a cotton smock to keep the parent dry while bathing the baby. If those items cost you $50, the price for the gift should be at least double, or $100. Wholesale is usually much less expensive, by 50 percent or more, than buying retail. That means more cash left over for you.
- 6). Market your company. Tell people about your gift basket business. Set up a website or blog. Obtain business cards. Pass out fliers at arts and craft shows, farmer's markets and other events. The more people who are potential customers know about your business the higher the probability you'll get orders.
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