Do you want to start gift basket business?

It is always difficult to find a gift that matches the recipient’s mood, occasion, and of course the price range. If you are looking for a business where you can earn profits while also interacting with different people round the clock, this may be the right choice for you.

A gift basket business provides customizable and standard gift baskets for people of all ages and professions. The business is profitable as people usually exchange gifts with each other on special occasions and meetups.

The first step before starting this business is exploring how to open a gift basket business and making a business plan for gift baskets. For your help, we’re providing a sample of a business plan written for gift business startup, Gifters’ Stop.

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Executive Summary

2.1 The Business

Gifters’ Stop will be a registered gift basket business based in New York. The business will aim at offering gift baskets, general gift items, and decoration pieces to its customers.

2.2 Management of Gift Basket Company

Gifters’ Shop will be providing its services both in-store and online. Therefore, to manage it, the business owner will be hiring a large team including co-managers, delivery personnel, store operators, website manager, and customer’s guide.

Though the business doesn’t contain large-scale operations, still there is a need for a proper management plan to run it. This is because the sales in this business hugely depend on how well you treat your customers. And how quickly you convince them to buy a certain thing.

In this gift basket startup plan, we will be listing everything you need to know about how to set up a gift basket business. This blog will also be sufficient in case you’re looking for how to start a gift basket business online.

2.3 Customers of Gift Basket Company

The customers of gift basket company belong to various areas of life. To study their demands and needs we’ve divided them among the following groups:

  • Family Members
  • Working Class
  • Corporate Owners
  • College and High School Students

2.4 Business Target

Our target is to achieve a customer satisfaction score above 90% within a year of our launch. Moreover, our financial targets for the first three years of our launch are demonstrated here.

Gift Basket Business Plan - 3 Years Profit Forecast
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Company Summary

3.1 Company Owner

Angelica Diaz will be the owner of Gifters’ Stop. Angelica is a master’s in Management Sciences. She worked for one year after completing her degree and decided to leave her job to manage her family and children.

3.2 Why the gift basket company is being started

Angelica wanted to run a business along which she could manage her family life and children easily. She was first thinking about starting a gift basket business from home. But due to the explicit advantages, one gets through physical presence, she decided to offer her services in both ways.

3.3 How the gift basket company will be started

Step1: Plan your Business

The first step to start a business is detailed and accurate planning of all of its aspects. To have an idea of what details to include in your business plan for investors you can take here from this gift basket business plan example. In this gift basket business plan sample we’re listing all the details of Gifters’ Stop.

Step2: Define your Brand

The next step is to search for gift basket company name ideas that can help you catch peoples’ attention. Get registered and define your offerings and competitive aspects so that people can recognize you in the market.

Step3: Start the Recruitment

Employees for a gift business must be hired after careful interviewing. It is because the interaction of customers and employees largely depends on the behaviors and communication skills of your workers. Therefore, after establishing your presence, you should start hiring the required employees.

Step4: Promote & Market

To reach out to your target customers, start advertising and promoting your startup way before you actually launch your business.

Step5: Establish a Web & Social Media Presence

Lastly, to manage online sales and to grab the attention of more and more people, you’ll need to establish and maintain a strong website and social media presence.

Gift Basket Business Plan - Startup Cost
Start-up Expenses 
Research and Development$24,000
Expensed Equipment$55,000
Start-up Assets$320,000
Cash Required$340,000
Start-up Inventory$46,000
Other Current Assets$201,000
Long-term Assets$230,000
TOTAL ASSETS$1,137,000
Total Requirements$1,524,200
Start-up Expenses to Fund$387,200
Start-up Assets to Fund$1,137,000
Non-cash Assets from Start-up$1,503,000
Cash Requirements from Start-up$346,000
Additional Cash Raised$51,000
Cash Balance on Starting Date$31,000
TOTAL ASSETS$1,931,000
Liabilities and Capital 
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$43,000
Other Current Liabilities (interest-free)$0
Planned Investment$1,524,200
Investor 1$0
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$334,800
Total Funding$1,524,200
Any questions? Get in Touch!


    Before you start your own gift basket service you should decide your offerings. You should clearly state your services and products in your gift basket service business plan so that you can make all other arrangements accordingly.

    Premade Gift Baskets

    Our primary offerings will be premade gift baskets of all sizes for people of different ages and lifestyles. Our gift baskets that will contain things like chocolates, perfumes, skincare products, automated gadgets, jewelry, and many more things, will be categorized as follows:

    • Best for Her
    • Best for Him
    • Best for Foodies
    • Best for Sweet Lovers
    • Delight for Mom
    • Treat for Dad
    • Movie Night Themed
    • Success Themed

    Customizable Gift Baskets

    In this service, our customers will be able to include/ exclude anything in the gift basket.

    Gift Cards/ Customized Apparels & Other Items

    We will also offer creative gift items including

    • Printed Mugs
    • T-Shirts with Customizable Graphic Designing
    • Fun Printed T-Shirts
    • Gift Cards
    • Watches
    • Chocolate Boxes
    • Toys for Kids
    • Skincare Products

    Decoration Pieces

    Lastly, we’ll offer a wide range of decoration pieces and home décor accessories such as

    • Elegant Candles
    • Garden Vases
    • Picture Frames
    • Wall Artwork
    • Fun Stickers & Wallpapers
    • String Lights
    • Small to Medium-Sized Decoration Pieces

    Marketing Analysis of Gift Basket Company

    Valentin Marinov

    excellent work

    excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

    ∙ Valentin Marinov

    Before opening a gift basket business you should carry out a detailed marketing analysis. Your marketing gift baskets analysis should study all the facts about your stakeholders. For example, knowing who your customers are, and how much they would be willing to pay for a medium-sized gift basket, will enable you to set your product quality and prices. Similarly, having an idea of how many customers will you be able to get on a monthly and yearly basis, can enable you to gather sufficient resources and personnel.

    In this blog on how to write a gift basket business plan, we’re providing the business plan developed for Gifters’ Stop. From market segmentation to product pricing, we’re listing all the marketing analysis details that might help you.

    5.1 Market Trends

    Gift basket businesses are in high demand in the United States. As gifts are considered a lovable and respectful gesture, people of all backgrounds and incomes purchase them many times a year. According to IBISWorld, more than 57k gift shops and businesses are successfully running in the United States. The industry that also includes gift card stores holds an annual market size of $17 billion. And is also responsible for employing nearly 163k employees.

    5.2 Marketing Segmentation

    Before starting your gift basket business, it is necessary to explore the groups of target customers. In the case of a physical store, people living in your vicinity will be your frequent buyers. However, in the case of starting gift basket business home your customer base would be larger. You can serve more customers in case of serving online but you’ll be required to hire more delivery persons to ensure fast shipping.

    Gift Basket Business Plan - Marketing Segmentation

    5.2.1 Family Members

    Our biggest customers will be the families living in New York. Family members usually exchange gifts with each other on special occasions like birthdays, anniversaries, mothers’ or fathers’ day. Besides, this group is also expected to purchase our décor equipment.

    5.2.2 Working Class

    Our second target group will comprise the working class. People who are financially stable and secure usually prefer to give expensive gifts. Moreover, they frequently purchase printed mugs, watches, and gift cards for their colleagues, seniors, and supervisors.

    5.2.3 Corporate Owners/ CEOs

    Our third category includes business CEOs and owners who strive to create a healthy organizational culture. This group usually purchases gift packs in bulk to appreciate the performance of employees or to celebrate special events and occasions.

    5.2.4 College & High School Students

    Our last group of target customers will comprise students who exchange gifts with their fellows, teachers, and families. However, this group is expected to make small and occasional purchases.

    Market Analysis       
    Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Family Members36%42,00044,00045,00047,00048,00010.00%
    Working Class29%31,00032,00033,00035,00036,00010.00%
    Corporate Owners/ CEOs24%25,00027,00028,00029,00030,00010.00%
    College & High School Students11%12,00013,00014,00015,00016,00011.00%
    Any questions? Get in Touch

    5.3 Business Target

    The business targets of Gifters’ Stop are listed below:

    • To earn a net profit margin of $25k per month by the end of the third year.
    • To achieve and maintain a CSAT score above 90% within a year of our launch.
    • To increase our sales by 30% by the end of four years of our launch by expanding our product line.

    5.4 Product Pricing

    Our prices almost within the same range as our competitors. However, the prices for our customizable themed baskets are a little higher than our business rivals.

    Marketing Strategy

    In your gift basket business plan template you must also include the ways that can help you in attracting and retaining your target customers. To develop an influencing gift basket marketing plan it is essential to explore what interests your customers and which medium of advertisement is more likely to be noticed by your target customers.

    6.1 Competitive Analysis

    Gifters’ Stop will be having the following competitive advantages over others:

    1. We have the largest collection of gifts in the entire city. All of our products are high-quality and are made to ensure longevity.
    2. Only we among all of our competitors are offering customized T-Shirts. Through us, the customers will be able to get anything written and drawn on the gift T-shirt.
    3. Our staff is highly respectful and collaborative. They will guide the customers unless they are fully satisfied.

    6.2 Sales Strategy

    To attract our target customers, we will:

    • We’ll carry out a strong social media campaign. And advertise our fun customizable apparel.
    • We’ll advertise our services through local magazines, social media, and Google Local Ads services.
    • We’ll offer a 40% discount on all of our services for the first two months of our launch.

    6.3 Sales Monthly

    Gift Basket Business Plan - Sales Monthly

    6.4 Sales Yearly

    Gift Basket Business Plan - Sales Yearly

    6.5 Sales Forecast

    Gift Basket Business Plan - Unit Sales
    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    Premade Gift Baskets40,00042,40044,944
    Customizable Gift Baskets57,00060,42064,045
    Gift Cards/ Customized Apparels & Others12,00012,72013,483
    Decoration Pieces18,00019,08020,225
    TOTAL UNIT SALES127,000134,620142,697
    Unit PricesYear 1Year 2Year 3
    Premade Gift Baskets$38.00$44.08$51.13
    Customizable Gift Baskets$49.00$56.84$65.93
    Gift Cards/ Customized Apparels & Others$41.00$47.56$55.17
    Decoration Pieces$60.00$69.60$80.74
    Premade Gift Baskets$1,520,000.00 $1,868,992.00 $2,298,112.56
    Customizable Gift Baskets$2,793,000.00 $3,434,272.80 $4,222,781.83
    Gift Cards/ Customized Apparels & Others$492,000.00 $604,963.20 $743,862.75
    Decoration Pieces$1,080,000.00 $1,327,968.00 $1,632,869.45
    TOTAL SALES$5,885,000.00 $7,236,196.00 $8,897,626.60
    Direct Unit CostsYear 1Year 2Year 3
    Premade Gift Baskets$35.00$40.00$47.00
    Customizable Gift Baskets$46.00$52.00$60.00
    Gift Cards/ Customized Apparels & Others$39.00$44.00$51.00
    Decoration Pieces$58.00$65.00$76.00
    Direct Cost of Sales   
    Premade Gift Baskets$1,400,000.00 $1,696,000.00 $2,112,368.00
    Customizable Gift Baskets$2,622,000.00 $3,141,840.00 $3,842,712.00
    Gift Cards/ Customized Apparels & Others$468,000.00 $559,680.00 $687,643.20
    Decoration Pieces$1,044,000.00 $1,240,200.00 $1,537,084.80
    Subtotal Direct Cost of Sales$5,534,000.00 $6,637,720.00 $8,179,808.00

    Personnel plan

    Business plan for investors

    While you write gift basket business plan you should also include a list of required employees along with their qualifications, selection criteria, and average salaries. This will eventually help you in hiring the most suitable employees that meet your requirements as well as budget.

    7.1 Company Staff

    Angelica will hire the following people for her running her business:

    • 1 Co-Manager to help manage the business
    • 2 Sales Managers to manage online and in-store sales
    • 3 Salesmen to attend customers and maintain store’s display
    • 1 Website & App Developer to maintain online presence
    • 1 Accountant to maintain financial records
    • 1 Sales Executive to promote the company
    • 1 Customer Care Officer to resolver customers’ concerns/ complaints
    • 3 Drivers to deliver orders
    • 2 General Assistants
    • 1 Receptionist/ Call Operator

    7.2 Average Salary of Employees

     Personnel Plan   
     Year 1Year 2Year 3
    Sales Managers$23,000$25,300$27,830
    Sales Executive$7,000$7,700$8,470
    Web Developer & App Developer$6,900$7,590$8,349
    Customer Care Officer$7,800$8,580$9,438
    General Assistants$14,000$15,400$16,940
    Receptionist/ Call Operator$6,500$7,150$7,865
    Total Salaries$141,200 $155,320 $170,852

    Financial Plan

    To achieve your financial goals, just increasing sales isn’t enough. In fact, your business can run into loss even with increased sales, if you fail at managing your resources and investments. Understanding the importance of financial planning, Angelica decided to consult a financial expert before developing a strategy. While carefully analyzing taxation, expenses, and income from sales, she developed a financial plan.

    The cash flow tables, profit and loss projections, gross margins charts, and balance sheets developed by her are given here. If you need any help to create a gift basket business plan for your business, you can have it from here free of cost.

    8.1 Important Assumptions

     General Assumptions   
     Year 1Year 2Year 3
    Plan Month123
    Current Interest Rate8.19%8.21%8.24%
    Long-term Interest Rate8.34%8.36%8.39%
    Tax Rate22.92%23.09%23.33%

    8.2 Break-even Analysis

    Gift Basket Business Plan - Break-even Analysis
     Break-Even Analysis 
    Monthly Units Break-even5334
    Monthly Revenue Break-even$132,900
    Average Per-Unit Revenue$234.00
    Average Per-Unit Variable Cost$0.67
    Estimated Monthly Fixed Cost$164,955

    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss   
     Year 1Year 2Year 3
    Sales$5,885,000 $7,236,196 $8,897,627
    Direct Cost of Sales$5,534,000 $6,637,720 $8,179,808
    TOTAL COST OF SALES$5,534,000 $6,637,720 $8,179,808
    Gross Margin$351,000 $598,476 $717,819
    Gross Margin %5.96%8.27%8.07%
    Sales and Marketing and Other Expenses$129,000$126,000$128,000
    Leased Equipment$0$0$0
    Payroll Taxes$27,000$28,000$29,000
    Total Operating Expenses$307,189 $319,610 $338,580
    Profit Before Interest and Taxes$43,811$278,866$379,239
    Interest Expense$0$0$0
    Taxes Incurred$8,762$55,773$75,848
    Net Profit$35,049$223,093$303,391
    Net Profit/Sales0.60%3.08%3.41%
    Any questions? Get in Touch!

      8.3.1 Profit Monthly

      Gift Basket Business Plan - Profit Monthly

      8.3.2 Profit Yearly

      Gift Basket Business Plan - Profit Yearly

      8.3.3 Gross Margin Monthly

      Gift Basket Business Plan - Gross Margin Monthly

      8.3.4 Gross Margin Yearly

      Gift Basket Business Plan - Gross Margin Yearly

      8.4 Projected Cash Flow

      Gift Basket Business Plan - Projected Cash Flow
       Pro Forma Cash Flow   
      Cash ReceivedYear 1Year 2Year 3
      Cash from Operations   
      Cash Sales$52,000$56,160$60,653
      Cash from Receivables$15,400$16,632$17,963
      SUBTOTAL CASH FROM OPERATIONS$67,000 $73,030 $78,872
      Additional Cash Received   
      Sales Tax, VAT, HST/GST Received$0$0$0
      New Current Borrowing$0$0$0
      New Other Liabilities (interest-free)$0$0$0
      New Long-term Liabilities$0$0$0
      Sales of Other Current Assets$0$0$0
      Sales of Long-term Assets$0$0$0
      New Investment Received$0$0$0
      SUBTOTAL CASH RECEIVED$67,000 $74,000 $79,000
      ExpendituresYear 1Year 2Year 3
      Expenditures from Operations   
      Cash Spending$33,900$34,600$36,000
      Bill Payments$17,000$17,600$18,000
      SUBTOTAL SPENT ON OPERATIONS$50,000 $51,000 $54,000
      Additional Cash Spent   
      Sales Tax, VAT, HST/GST Paid Out$0$0$0
      Principal Repayment of Current Borrowing$0$0$0
      Other Liabilities Principal Repayment$0$0$0
      Long-term Liabilities Principal Repayment$0$0$0
      Purchase Other Current Assets$0$0$0
      Purchase Long-term Assets$0$0$0
      SUBTOTAL CASH SPENT$50,000 $54,000 $58,320
      Net Cash Flow$16,000$17,000$18,000
      Cash Balance$25,000$26,000$27,000

      8.5 Projected Balance Sheet

       Pro Forma Balance Sheet   
      AssetsYear 1Year 2Year 3
      Current Assets   
      Accounts Receivable$24,000$26,880$30,213
      Other Current Assets$1,000$1,000$1,000
      TOTAL CURRENT ASSETS$270,000 $302,400 $339,898
      Long-term Assets   
      Long-term Assets$10,000$10,000$10,000
      Accumulated Depreciation$16,000$17,920$20,160
      TOTAL LONG-TERM ASSETS$19,000 $21,280 $23,940
      TOTAL ASSETS$282,000 $315,840 $355,320
      Liabilities and CapitalYear 4Year 5Year 6
      Current Liabilities   
      Accounts Payable$16,300$18,256$20,520
      Current Borrowing$0$0$0
      Other Current Liabilities$0$0$0
      SUBTOTAL CURRENT LIABILITIES$14,900 $16,688 $18,757
      Long-term Liabilities$0$0$0
      TOTAL LIABILITIES$13,900 $15,568 $17,498
      Paid-in Capital$30,000$30,000$31,000
      Retained Earnings$50,000$54,500$59,950
      TOTAL CAPITAL$282,000 $307,380 $338,118
      TOTAL LIABILITIES AND CAPITAL$295,900 $315,840 $355,320
      Net Worth$296,000$322,640$354,904

      8.6 Business Ratios

       Ratio Analysis    
       Year 1Year 2Year 3INDUSTRY PROFILE
      Sales Growth7.13%7.90%8.75%3.00%
      Percent of Total Assets    
      Accounts Receivable9.21%10.20%11.31%9.80%
      Other Current Assets2.11%2.34%2.59%2.40%
      Total Current Assets149.50%149.00%150.20%158.00%
      Long-term Assets11.40%11.32%11.39%12.00%
      TOTAL ASSETS100.00%100.00%100.00%100.00%
      Current Liabilities4.93%4.97%5.02%4.34%
      Long-term Liabilities0.00%0.00%0.00%0.00%
      Total Liabilities7.47%7.53%7.60%7.38%
      NET WORTH101.02%101.83%102.76%110.00%
      Percent of Sales    
      Gross Margin95.99%98.58%101.34%99.00%
      Selling, General & Administrative Expenses93.57%96.10%98.79%97.80%
      Advertising Expenses1.50%1.54%1.58%1.40%
      Profit Before Interest and Taxes40.92%42.02%43.20%33.90%
      Main Ratios    
      Total Debt to Total Assets0.18%0.17%0.17%0.40%
      Pre-tax Return on Net Worth73.92%74.02%74.70%75.00%
      Pre-tax Return on Assets96.09%100.89%105.94%111.30%
      Additional RatiosYear 1Year 2Year 3 
      Net Profit Margin33.40%34.44%35.50%N.A.
      Return on Equity55.06%56.77%58.53%N.A.
      Activity Ratios    
      Accounts Receivable Turnover7.67.77.8N.A.
      Collection Days100100100N.A.
      Inventory Turnover32.634.2334.8N.A.
      Accounts Payable Turnover15.916.0116.2N.A.
      Payment Days272727N.A.
      Total Asset Turnover2.42.52.6N.A.
      Debt Ratios    
      Debt to Net Worth-0.04-0.03-0.02N.A.
      Current Liab. to Liab.111N.A.
      Liquidity Ratios    
      Net Working Capital$238,000$251,328$265,402N.A.
      Interest Coverage000N.A.
      Additional Ratios    
      Assets to Sales0.850.860.87N.A.
      Current Debt/Total Assets1%1%0%N.A.
      Acid Test29.229.329.45N.A.
      Sales/Net Worth2.12.22.3N.A.
      Dividend Payout000N.A.

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