Start & Run a Gift Basket Business Book

	Introduction	xi
1	Getting Started	2
a.	Self-Assessment	2
b.	Determining Your Market	4
c.	Market Research	4
1.	Set a time frame for completion	5
2.	Define both your primary and secondary needs	5
3.	Allocate resources	6
4.	Gather the data	6
5.	Analyze the information	6
d.	Gathering Primary Data	6
e.	Gathering Secondary Data	7
f.	Your Course of Action	8
2	Location, Location, Location	10
a.	Location Considerations	10
b.	Demographics of the Area	11
c.	Leasing Office or Studio Space	11
1.	Proximity to your potential customers	12
2.	Customer parking facilities	12
3.	Accessibility to a loading dock or freight elevator	12
4.	Storage and work space	12
d.	Signing a Lease	12
e.	Shared Retail Space	13
f.	Seasonal Kiosks	14
g.	The Home-Based Business	14
1.	The business and your home	15
2.	The business and your family	16
3	Business Resources and Equipment	18
a.	Business Resources	18
1.	Mail services	18
2.	Business telephone line and fax line	18
3.	Telephone options	19
b.	Deliveries and Transportation	20
1.	Courier companies	21
2.	Freight forwarding companies	21
3.	Local delivery companies	21
4.	Company vehicle	22
c.	Basket-Making Equipment	22
d.	Office Equipment	22
e.	Electronic Equipment	23
1.	Computer and printer	23
2.	Facsimile machine	23
3.	Answering machine	24
4.	Other	24
f.	Office Supplies	24
1.	Custom printing	24
2.	General office supplies	25
4	Your Financial Investment and Plan	28
a.	Financing Your Venture	28
1.	Personal savings	28
2.	Family and friends	28
3.	Banks	29
4.	Private investors	29
5.	Government	29
b.	Your Business Plan	30
1.	Executive summary	31
2.	Personal experience and background	31
3.	Description of product and service	31
4.	Sales and marketing strategy	31
5.	Forecasts and projections	31
5	Financial Management	34
a.	Forecasting Cash Flow	35
b.	Cost of Sales and Inventory	35
c.	Fixed Expenses and Overhead	36
d.	Marketing Costs	36
e.	Start-Up Costs	36
f.	Forecasting Sales	36
6	Planning and Pricing Your Gift Baskets	44
a.	Your Gift Basket Designs	44
1.	Establish some standard designs	44
2.	Custom-made baskets	45
b.	Keep Basic Items in Stock	46
c.	Buy Packaging Inventory	47
1.	Basket or container stuffing	47
2.	Cellophane wrap	47
3.	Ribbon	47
4.	Raffia	48
5.	Gift tags, gift cards, and gift labels	48
d.	Tips for Making Baskets	48
e.	Sources of Inventory	49
f.	Purchasing Inventory	49
g.	Inventory Control	53
h.	Establishing Terms and Credit	53
i.	Setting a Price for Your Product	54
1.	100% mark-up	54
2.	Wholesale costing	55
3.	Pricing large volume orders	55
4.	Other considerations	55
j.	Computing Your Profit Margin	55
7	Keeping Your Operations in Order	58
a.	Striking a Balance	58
b.	Hours of Operation	58
c.	Sales	58
d.	Payment	61
1.	Cash on delivery	61
2.	Credit cards	61
3.	Invoicing	62
e.	Keeping Your Non-Financial Records in Order	62
1.	Calendars	62
2.	Filing systems	62
3.	Billing, credit, and collection	63
4.	Personnel records	63
5.	Tax records	63
f.	Managing Your Time	63
1.	The long-term agenda	63
2.	The intermediate agenda	63
3.	The immediate agenda	65
4.	Learning your turnaround time	65
5.	Time management systems	65
g.	Consumer Fairs and Trade Shows	65
h.	Staying Organized As You Grow	66
8	Advertising and Promotion	68
a.	Why You Should Advertise	68
b.	Print Media	69
c.	Direct Mail	69
d.	The Yellow Pages	70
e.	Professional Design Services	72
f.	Names and Logos	73
1.	A name that sells	73
2.	A logo that tells	73
g.	Image	74
h.	Design and Copy	74
i.	Color and Photography	74
j.	Sales Brochure	74
1.	Set up the photography session	76
2.	Meet with the graphic designer	76
3.	Printing	81
k.	Internet Marketing	81
1.	Web sites	82
2.	E-mail	82
3.	Costs	82
4.	Location, location	83
5.	Getting started	83
l.	Seasonal Advertising	83
m.	Special Promotions	84
1.	Open house/grand opening	84
2.	Small giveaways	84
3.	Fairs and craft shows	84
4.	Trade shows	84
5.	Displays	84
6.	Donations	85
7.	Community events and organizations	85
n.	Measuring Advertising Effectiveness	85
9	Sales and Marketing	88
a.	Personal Contacts	88
b.	Networking	88
c.	Memberships	89
1.	Tourism, convention, or visitors' bureau	89
2.	Board of Trade or Chamber of Commerce	89
3.	Meeting Professionals International	90
4.	International Special Events Society	90
d.	Top Down Marketing	90
1.	New product launches and company promotions	91
2.	Special events	91
3.	Non-competing businesses	91
e.	Selling Your Product and Services	91
1.	Making the sale by telephone	92
2.	Making a sales presentation	92
f.	The Importance of Service	93
10	Employees and Personnel	96
a.	Being a Sole Owner/Operator	96
b.	Casual Labor and Seasonal Helpers	97
c.	Hiring an Assistant	97
d.	Office Manager/Bookkeeper	98
e.	Hiring and Keeping Good Employees	98
1.	Common sense guidelines to hiring employees	99
2.	Common sense guidelines to keeping good employees	100
11	Making Your Business Legal	104
a.	Your Legal Structure	104
1.	Sole proprietorship	104
2.	Partnership	104
3.	Limited partnerships	104
4.	Incorporation	104
b.	Using the Services of Professionals	106
c.	Choosing Your Name--Legally	106
d.	Insurance Requirements	107
e.	Leases and Rental Agreements	108
f.	Zoning Laws and Business Licenses	109
1.	Zoning laws	109
2.	Licenses	109
g.	Sales Taxes	110
h.	Employee-Related Regulations	111
i.	Miscellaneous Permits	111
j.	A Final Word	111
12	Accounting, Record Keeping, and Taxes	114
a.	Accounting and Computers	114
b.	Bookkeeping	115
c.	Sales and Accounts Receivable	115
1.	Cash sales	115
2.	Credit card sales	117
3.	Invoiced sales	117
d.	Accounts Payable	118
1.	Petty cash	118
2.	COD and cash purchases	118
3.	Payable invoices	118
4.	Company credit cards	119
5.	Personally paid company expenses	119
e.	Payroll	119
f.	Inventory	120
g.	Maximizing Deductible Expenses	120
h.	Accountants	121
13	A Final Word--Growth and Your Business	124
a.	Advertising Specialties or Promotional Merchandise	124
b.	Gifts and Awards	125
c.	Gift Basket Network	125
	Appendix	127
	Glossary	135
	Worksheets
#1	Self-assessment test
#2	Business expenses
#3	Start-up expenses
	Samples
#1	Business start-up costs
#2	Overhead and fixed expenses
#3	Marketing expenses
#4	Monthly sales forecast
#5	Tying bows
#6	Purchase order
#7	Order form
#8	Invoice
#9	Direct mail sales piece
#10	The five-point design
#11	Sales brochure
#12	Gift tag and label
#13	Advertising and promotions expense breakdown
#14	Balance sheet