Start & Run a Gift Basket Business. Mardi Foster-Walker
having your gift packages and brochures on display in a noncompeting type of business (expect to pay some type of commission for orders taken by the other business on your behalf), to actually running your operation in the same space as another business. If you decide to become involved in this type of situation, be prepared to pay a portion of the rent and other expenses. Have an agreement in writing with the other business owner, and make sure you know exactly what you are getting for your money. Before you agree to this type of arrangement, meet with the other business owner and discuss the following questions:
(a) How much space will be allotted to you for displaying your product?
(b) What portion of the rent will you be expected to pay?
(c) What other expenses will you be expected to share in?
(d) Will you be able to install your own business telephone line?
(e) Can you share the fax machine and line?
(f) Will you be allowed to have signs advertising your business outside and inside the premises?
(g) Is there sufficient storage space and work space to operate your business?
(h) Can you share other office equipment?
(i) Is the other business owner willing to market and advertise their business in conjunction with yours?
(j) Do the terms of the other business owner’s lease allow for this type of sharing?
(k) Will you be covered by the other business owner’s insurance in case of fire or theft?
Obviously, there are advantages and disadvantages to this type of arrangement, but if you find the right person and complementing business, it can be highly beneficial to both operations. One advantage is that the two of you can watch over the other’s business when it is necessary to be out of the workplace.
f. Seasonal Kiosks
During the busy December holidays, you may want to consider taking a kiosk space in a shopping mall, produce market, office, or public building. This can be as simple as setting up a table of sample gift baskets, handing out brochures, and taking orders, or a more elaborate portable structure that you have designed and built. If you run your business from your home, renting a kiosk can provide valuable added exposure to your business during this busy time. Even if you are renting office or studio space, which provides more exposure, you can attract new “walk-by” customers by setting up a seasonal kiosk.
However, keep in mind that renting a kiosk can be a large undertaking, and I do not suggest you try this the first year of your operation. Instead, during your first December of being in business, take a day or two to research locations for the following year. This will give you the opportunity to observe how others run this type of seasonal business and let you choose a location that seems to generate the most traffic.
If you decide that it is a viable option for you, start planning a year in advance. Find out who is in charge of leasing at the site you decide upon, and contact them in early January. Ask the following questions:
(a) How long is the period of operation?
(b) What hours are you expected to keep?
(c) What is the rent?
(d) What special licenses or permits do you need?
(e) What type of insurance do you need?
(f) What type of security is available?
(g) Is there a locked storage area available?
If you decide to try this type of venture, it should be because your business is successful and you are at a point where you can afford to hire someone to work the kiosk. If you cannot afford to hire a student or temporary employee to run the seasonal kiosk, then you should concentrate your efforts on running your already-established business from your home or office. The December gift-giving period is too important a time for a gift basket company to risk having you away from the office or workshop.
If you decide to have a custom-made kiosk, have a cart on wheels built. This can be rolled away at night and put in a secured area. It will also be useful throughout the year because you can use it for display and at craft shows and trade fairs. Depending on how elaborate you want to get, you should be able to have a mobile cart designed and built for around $1,000. Don’t forget to have a professionally designed sign made so your potential customers know what you are selling.
g. The Home-Based Business
The home-based business is a unique blend of family, skills, and lifestyle. To make the blend rich and prosperous, each must be considered independently. Will your gift basket business suit your home environment? Do you have sufficient space to work undisturbed? Does working from home suit your personal style?
Think carefully.
1. The business and your home
Ideally, you have a separate room where, at the end of the day, you can shut the door (and lock it from inquisitive children). There needs to be enough space for supplies, inventory, and record keeping. Walk through your home with new eyes and visualize where you could set up a place of business. Many residential floor plans make no allowances for workspace.
See if there is enough privacy. You need to work uninterrupted. Figure out where your business telephone will be. You must be able to have uninterrupted telephone conversations — they are essential to your business. A door ensures that you can separate your business from housework.
Think about noise. Will your business create intolerable noise or will other people’s noise be intolerable for your business? Most inside doors are hollow and easily allow sound to pass through. If there is potential friction over noise, it may be worthwhile to install a solid core door.
Your business should be compatible with the area you live in and cause no annoyance to your neighbors. Some area residents have closed down home-based businesses they view as a nuisance.
Remember to consider your family situation. How will you deal with child care, chores, time with your spouse, friends, etc.?
Whether or not you decide to base your business in your home also depends on the local zoning restrictions in your community (discussed further in chapter 11 on legal requirements) and the rental agreement you have with your landlord if you do not own your place of residence.
Consider your company image. There has been a growth in the number of home-based businesses in the last ten years, and the idea has become much more widely accepted. However, some people will not take seriously a business operating out of the home and it is important to follow a few guidelines that will make your home-based business look more professional.
For instance, install a separate telephone line and do not let children or other family members answer that line. If you are unable to take a call, use the answering machine or a voice messaging service. Use a post office box number as your business address if your home address is obviously a residential area or an apartment building.
If you anticipate having clients visit your home office, make sure you have a designated space, close to the entrance, that is only for business and decorated accordingly. If you do not have that type of space available, it would be wise not to invite clients to your home. Meet them outside of your home office.
The primary advantage to running a business out of your home is the small capital outlay necessary to get started. Having a lower overhead should free up money that you can use to invest in inventory and to promote and market your business.
Converting a spare bedroom or den on the ground floor of your home would be the ideal situation. A basement or attic is not as preferable because of accessibility problems and stairs. You will need an area to physically make the baskets, an office area, and a storage area. In order to have all three of these components in the same space, you would need approximately 400 square feet of space. If you do not have that much space to designate