Tips for Starting a Home Based Gift Business

Large Gift Basket 5

Image by Isle Concierge via Flickr

Starting a home based gift business is a great way to get additional income and protect yourself financially in these uncertain economic times.  If you have a job, having a home based business will give you extra financial security in case you lose that job.  If you don’t have a job having a home based business can provide income and may even lead to a successful new career.  Starting a gift business is always a smart move because the retail gift industry remains strong no matter what shape the economy is in. Here are some tips for starting a home based gift business:

Have  a unique product – Whether the product is something you make yourself or something that you are buying elsewhere and reselling it make sure it has some unique feature that will help it stand out among the many other types of gifts that are being sold.  If you are selling a type of product that is common, like a gift basket, make sure you put a unique twist on it by filling it with unusual items.

Play up the advantages of being a small business – You won’t be able to compete with larger businesses just yet so don’t even try. Instead, focus on the advantages that small companies can provide like great service and unique items. Use your size to your advantage instead of treating it as a disadvantage.

Hire an order fulfillment company – One of the biggest reasons why home businesses fail is because they run out of room or the people running them quickly become overrun with orders that they can’t fill in a timely fashion.  Get ready for success from the start by contracting with a fulfillment service to process, pack and ship orders.  For a low per item fee you will get the warehouse space you need to store your products as well as extra customer service help and people to pack and ship orders so that they are sent out quickly. That will leave you free to focus on growing your business.

Plan for growth – If you do your homework before you start your gift business it could take off quickly. Make sure that you’re ready to embrace sudden growth by having an expansion plan, cost projections, and other plans in place from the start. That way when your business takes off you can capitalize on the momentum instead of being swamped by it.