The Glamour vs. The Grind: A Personal Journey into the Gifting Market

The gifting market is a staggering $253 billion industry, representing nearly 1% of all retail spending. This is fantastic news for gift professionals everywhere. With several major gifting holidays and countless other occasions throughout the year, opportunity is knocking at your door. But how do you get started in this vibrant and competitive industry?

Let me walk you through the basics, with insights from my own journey of starting a gift basket business.

1. Do Your Research
Who is your competition?
Understanding who you’re up against is crucial. When I first started, I spent hours researching other gift basket businesses, both local and online. I looked at their offerings, pricing, and customer reviews to understand what worked and what didn’t.

Who is your target market?
Defining your target market helps you tailor your products and marketing efforts. Initially, I thought I could sell to everyone, but I quickly realized that focusing on a niche market – like corporate clients or new moms – made my efforts more effective.

Who are your potential customers?
Identifying potential customers is about more than demographics; it’s about understanding their needs and preferences. I reached out to potential customers through surveys and informal conversations to get a better sense of what they wanted in a gift basket.

2. Write a Business Plan
A business plan will help you put your goals and ideas into a clear format and serve as a place to go back and check your progress. My first business plan was a mess, but it was a start. It outlined my mission, target market, competition, marketing strategy, and financial projections. Revisiting and refining this plan over time was key to my growth.

3. Write a Marketing Plan
How are you going to attract your potential customers?
This question haunted me initially. I realized I needed a robust marketing plan to outline strategies for reaching my target market. Social media became my best friend. I created engaging content, ran promotions, and interacted with my followers to build a community.

Will you profit from corporate clients, foot traffic, or a combination of ways?
Deciding your main revenue streams early on helps focus your marketing efforts. I targeted local businesses for corporate gifting and used foot traffic from local markets and fairs to get my brand known.

4. Choose a Business Name, Get Your Business License, and Tax ID
Take time when choosing your business name. I initially wanted something cute and fun, but as I considered my future corporate clients, I opted for a more professional name. This decision paid off when I started landing bigger corporate orders.

5. Get Business Insurance
Business insurance is crucial. It may be costly, but not having one could be devastating to your company’s financial future or, if you are set up as a Sole Proprietor, your family’s financial future. I learned this the hard way when a mishap with a delivery almost cost me a significant client. Having insurance saved the day.

6. Order Your Inventory and Start Your First Prototypes
You are now ready to order your inventory and start creating your first prototypes. This was the fun part for me. Experimenting with different products, arranging them into beautiful baskets, and getting feedback from friends and family helped refine my offerings.

7. Get a Business Phone Line
It’s important that only you or one of your trained staff answer the phone. Many of us start in our homes to be with our kids, and that is wonderful. But if your kids are screaming in the background, don’t pick up the phone. While another mom could understand your predicament, the busy assistant of a large company will probably not want to deal with that. I made this mistake early on, and it taught me the importance of maintaining a professional front.

8. Get a Website
Once you are all set for business, you’ll want to get a website so that your clients can order online if they choose to do so. In the last few years, web design costs have come down significantly, making it more affordable than ever. My website became my storefront, allowing customers to browse, customize, and order with ease.

Starting a gift basket business is a journey filled with learning and growth. Have fun, stay curious, and never stop learning. Your dedication and hard work will pay off, turning your passion into a thriving business.