Gift Basket Business Plan

If are wanting to start a gift basket company and need investment, it is likely that you will require a business plan. Pro Business Plans has worked with many gift basket companies to create professional plans for investment and strategy. This article outlines what is typically included in a plan and how it should be structured.

The business model of a gift basket company is how you intend to profit from customers. This will include a description of the gift baskets, how they are to be prepared, and their distribution method. Some gift basket companies compete on price and sell low quality processed goods with a streamlined arrangement. Others may take a more custom approach by compiling custom arrangements of premium products at a higher price, but requiring a lower turnover ratio. Investors will seek to understand the unique positioning of your gift basket company and how you intend to communicate this positioning to the market.

If you are seeking funding from investors for the gift basket company, it is likely that they will request three to five years of financial projections. Investors will seek to understand that your gift basket company will either repay its debt or be able to yield adequate returns on equity. Custom financial modeling can also help your company to plan ahead by determining the appropriate market prices and break-even point. The most effective way to form these projections is based on prior operating history, unless you are a Startup, in which case the financials of comparable companies are used as the basis to the projections.