How to Start a Gift Box or Gift Basket Company
According to Coresight Research, in 2021, the estimated U.S. market size for personal gifting was $1.18 trillion. Throw in another $242 billion in corporate gifting and the total market size for gifting in the U.S. was just over 1.42 trillion. With an 8.1% CAGR, the total U.S. gifting market is estimated to be over $1.5 trillion by the end of 2024.
Maybe, just like me, you are thinking that you would like a piece of that pie. You’re not greedy so it doesn’t need to be a big piece. I’ll bet you would probably be okay with just one-tenth of one percent of that market, which would be $1.5 billion.
Now, before you start shopping for private jets and luxury yachts, you need to figure out how you are going to build your gifting empire. It can be overwhelming to start a new business, and you might not know how or where to start. Desmond Tutu once said that there is only one way to eat an elephant: a bite at a time. The same is true for starting your own gift box company. When you tackle one step at a time, you will find that starting your company is much less daunting than you originally thought.
In this series of posts, I will walk you through several of the key steps of starting your gifting business, including the dos and don’ts I have learned through my journey. While this list isn’t meant to be an all-inclusive list of everything you need to know, it will serve as a helpful guide as you start down the road of entrepreneurship, helping you increase your chances of success.
Over the next six weeks, I will focus on the six steps to starting your own gift box company:
1) Conduct Market Research and Identify Your Niche
2) Identify Your Sales Channels
3) Prepare Your Business Plan
4) Establish and Fund Your Company
5) Sourcing Products and Packaging
6) Setting Up Your Operations