Do you want to start gift shop business?

Is it difficult for you too, to find the perfect gift for your loved ones, matching the occasion? Well, it is a tedious and difficult part of other’s life as well, and that’s from where the scope of the gift shop business starts. You can provide ease to the people living near you if you know how to open a gift boutique. By opening a gift shop, you’ll be running a profitable business, while continuously interacting with people of all ages.

The business provides a platform to grow, so if you think you are well suited for the type of this business than don’t hesitate a minute and start working on it. To help you with making gift shop business plan, we are providing here one, for a startup named, ‘Gift Galore’.

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Executive Summary

2.1 The Business

Gift Galore will be based in Las Vegas, owned by Meryl Walters; based on providing all types of gifts ranging from interesting presents for children to luxurious gifts for adults and old.

2.2 Management

Gift Galore will not only be operating through its store but also be providing home delivery of gifts by taking online orders. So, our management framework will consist of the salespersons, web developers, transport persons for gifts delivery, and a general co-manager. If you want to know more about how to start a gift shop business, go through this gift shop business plan template which we have provided free of cost.

2.3 Customers

We’ll have our customers of all age groups who can be the residents or tourists residing in Las Vegas. Later in this souvenir shop business plan, we’ll be making groups of our customers in more detail.

2.4 Target of the Company

Our target is to be the best and the most popular business of our type in whole Las Vegas and to earn a profit margin of $10k per month by the end of the first year.

3 years profit forecast - gift shop business plan
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Company Summary

3.1 Company Owner

Meryl Walters will be the owner of Gift Galore. Meryl is a graduate in Sociology from the University of Nevada. She has an eight-year experience of working as a management counselor.

3.2 Why the Business is being started

People and society are a subject for Meryl. After working for eight years as a management counselor, she wanted to do something different and interesting. After research on businesses which can link her directly to people, she is starting a gift shop business.

3.3 How the Business will be started

Before taking a startup, you have to create a business plan for a gift shop. After making your business plan gift shop will be easy to run as you will be able to prioritize your business. If you don’t know much about writing a gift shop business plan covering all the aspects, you can take help from here.

A building will be taken on rent and will be converted into a beautiful and well-lit shop to make the entrance appealing. We’ll gather an assortment of various types of gifts, greeting cards, hats and bags, handmade collections and much more. To run the shop Meryl will hire salespersons, web developers and transport persons along with some other staff as will be discussed later.

Startup cost - gift shop business plan

The detailed start-up requirements, start-up expenses, total capital and liabilities as forecasted by experts, is given below:

Start-up Expenses 
Legal$55 300
Insurance$32 750
Rent$32 500
Research and Development$32 750
Expensed Equipment$32 750
Signs$1 250
Start-up Assets$220 875
Cash Required$332 500
Start-up Inventory$32 625
Other Current Assets$232 500
Long-term Assets$235 000
Total Requirements$245 000
Start-up Expenses to Fund$151 875
Start-up Assets to Fund$123 000
Assets$23 125
Non-cash Assets from Start-up$18 750
Cash Requirements from Start-up$0
Additional Cash Raised$18 750
Cash Balance on Starting Date$21 875
Liabilities and Capital$0
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$0
Other Current Liabilities (interest-free)$0
Capital$620 125
Planned Investment$620 125
Investor 1$0
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$313 125
Total Funding$255 000


Any questions? Get in Touch!

    We’ll be providing our services by hand to hand manually and through our online site. So, even if you are looking for online gift shop business plan, you can take help from here. The products we’ll be providing are:

    • General Gift Items: We will have a complete assortment of all types of usual gifts such as stuffed animals, chocolates, toys, greeting cards.
    • Decorative Artworks: We will have beautiful handmade artworks, baskets, small and large decoration pieces, picture frames, decorative and scented candles, etc.
    • Specialty Gifts: We’ll keep a collection of somewhat expensive gifts including jewelry sets, books, technology items, gift bags, etc.
    • Customized Apparel: We’ll be having gift sweaters, T-shirts, jackets, pants, and designed shirts for men and women.
    • Accessories: We’ll be having a very large collection of handbags, wrist watches, hats and caps, hair accessories, keychains, perfumes, etc. in our store.

    Marketing Analysis of Gift Shop Business

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    After having decided the products you’ll provide in your shop, its time now to develop a marketing plan for gift basket business. Knowing just about how to start a souvenir business, is not enough to run your business successfully. To survive and achieve more than your competitors, you have to develop an accurate gift marketing strategy after analyzing the market trends and target customers.

    5.1 Market Trends

    Gift shop businesses are running from a long time before and have experienced several growths and falls. According to IBISWorld, more than 61 thousand gift shop businesses are running in the United States at this time generating an annual revenue of $17 billion. The industry is responsible for employing more than 187 thousand people around the U.S. Although latest statistics haven’t reported a positive growth rate overall, but we expect to achieve our goals due to our unmatched competitive advantages.

    5.2 Marketing Segmentation

    Our customers belong to every age group. To understand the needs of our customers, Gift Galore has divided them into three groups, as given here:

    Marketing Segmentation - gift shop business plan

    UK Start-Up Visa Business Plan

    5.2.1 Children & Teens: The biggest group of our target customers will mostly comprise of the children, college going girls and boys who give small and normal priced gifts to their friends. We’ll be having gifts in affordable prices for them to fulfill the need of giving gifts without disturbing their budget.

    5.2.2 Senior Citizens: The second category will comprise of the elder citizens, men, and women who give small gifts to their partners, friends and colleagues. We will be having a wide collection of gift items for this group so that they won’t need to search for the desired item by visiting many shops.

    5.2.3 Young & Adults: The third category includes the young and adults, they are expected to purchase mostly the specialty gifts or little expensive gifts. As they can afford giving gifts by their own incomes.

    Any questions? Get in Touch

    The detailed market analysis of our potential customers is given in the following table:

    Market Analysis       
    Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Children & Teens48%22 33432 34443 66552 54466 43210,00%
    Senior Citizens32%12 86714 43315 99917 56519 13115,32%
    Young & Adults20%11 43313 34416 55318 74520 54513,43%
    Total100%46 63460 12176 21788 854106 1089,54%

    5.3 Business Target

    Our target to be achieved over the course of three years are:

    • To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year
    • To balance the initial cost of the startup with earned profits within six months of the launch

    5.4 Product Pricing

    To achieve our business targets while gaining and maintaining potential customers, we have decided to price our items in similar ranges as our competitors.


    After opening a gift shop business, you have to devise an effective business strategy services to let your customers know about the products you have bought for them. Before you start gift shop business find ways to let people know about the best part of you.

    6.1 Competitive Analysis

    To take a lead upon our competitors, we have come up with several competitive advantages, the biggest one of which is our online delivery system. Only we among our competitors are providing the facility to shop online. Our customers can choose the packages from the web, and get it at their doorstep within 12 hours by paying online. Secondly, we have ideas to make our entrance so creative and attractive that everyone would come to see inside. Lastly, we’ll have excellent customer care service, we’ll guide our customers about the gift that suits the event and will make sure that they are getting more than that they expected from us.

    6.2 Sales Strategy

    To advertise its services, Gift Galore will follow the following techniques:

    • We will carry out a social media campaign to get introduced to a wider audience
    • We will offer a 25% discount on home delivery services for the first two weeks
    • We will advertise us through effective and creative billboards and posters

    6.3 Sales Forecast

    Sales Monthly - gift shop business plan

    6.4 Sales Yearly

    Sales YEarly - gift shop business plan

    6.5 Sales Forecast

    Considering the quality of our services and our exceptional customer service, we expect our sales to increase by years. Our experts have forecasted the following sales on a yearly basis which are summarized in the column charts.

    Unit Sales - gift shop business plan

    The detailed information about sales forecast, total unit sales, total sales is given in the following table:

    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    General and Specialty Gifts1 887 0302 680 3202 588 240
    Decorative Artworks802 370815 430823 540
    Customized Apparel539 3207702301 002 310
    Accessories265 450322 390393 320
    TOTAL UNIT SALES3 494 1704 588 3704 807 410
    Unit PricesYear 1Year 2Year 3
    General and Specialty Gifts$140,00$150,00$160,00
    Decorative Artworks$600,00$800,00$1 000,00
    Customized Apparel$700,00$800,00$900,00
    General and Specialty Gifts$2 149 800$2 784 000$3 383 200
    Decorative Artworks$120 050$194 500$268 500
    Customized Apparel$50 110$71 600$93 000
    Accessories$139 350$194 600$249 850
    Direct Unit CostsYear 1Year 2Year 3
    General and Specialty Gifts$0,70$0,80$0,90
    Decorative Artworks$0,40$0,45$0,50
    Customized Apparel$0,30$0,35$0,40
    Direct Cost of Sales   
    General and Specialty Gifts$989 300$1 839 000$2 679 700
    Decorative Artworks$66 600$119 900$173 200
    Customized Apparel$17 900$35 000$52 100
    Accessories$19 400$67 600$115 800
    Subtotal Direct Cost of Sales$1 294 100$1 699 400$2 104 700

    Personnel plan

    Any questions? Get in Touch

    You can start a gift shop business with a little or no staff, for if you are starting on a smaller scale. Meryl will be opening her shop on larger scales and, has decided to provide online services as well, so she will need additional staff to run her business smoothly.

    7.1 Company Staff

    Meryl will act as the General Manager, and will initially hire the following people:

    • 1 Co-Manager to help in managing the shop
    • 1 Accountant to maintain financial records
    • 2 Sales Executives responsible for marketing and discovering new ventures
    • 2 Decorators to decorate the shop interior and exterior
    • 4 Drivers to bring the equipment and to provide home delivery service
    • 1 Customer Care Officer
    • 6 Salesman to attend the customers
    • 2 IT Experts to manage company’s site, online systems, and payments
    • 1 Front Desk Officer to act as a receptionist
    • 1 Security Officer

    7.2 Average Salary of Employees

    The following table shows the forecasted data about employees and their salaries for the next three years.

     Personnel Plan   
     Year 1Year 2Year 3
    Co-Manager$85 000$95 000$105 000
    Accouontant$50 000$55 000$60 000
    Sales Executives$187 000$194 000$201 000
    Decorators$55 000$60 000$65 000
    Drivers$85 000$95 000$105 000
    Customer Care Officer$50 000$55 000$60 000
    Salesman$245 000$252 000$259 000
    IT Experts$85 000$95 000$105 000
    Front Desk Officer$50 000$55 000$60 000
    Security Officer$85 000$95 000$105 000
    Total Salaries$435 000$462 000$489 000

    Financial Plan

    After you have decided to start a gift shop business, a general question arises that how much does it cost to open a gift shop. Well, this business doesn’t require a very large investment. The only expenditures you will have to do will be buying the inventory for your store business plan, expenses of advertisement and the salaries of your employees. These expenses can easily be balanced by the earned profits provided that you plan and market your business successfully. All the financial details of Gift Galore are provided in this sample gift shop business plan pdf. Anyone who is looking for how to open a gift shop business and run it successfully while achieving all goals can take help from here.

    8.1 Important Assumptions

     General Assumptions   
     Year 1Year 2Year 3
    Plan Month123
    Current Interest Rate10,00%11,00%12,00%
    Long-term Interest Rate10,00%10,00%10,00%
    Tax Rate26,42%27,76%28,12%

    8.2 Brake-even Analysis

    Brake-even Analysis - gift shop business plan
     Brake-Even Analysis 
    Monthly Units Break-even5530
    Monthly Revenue Break-even$159 740
    Average Per-Unit Revenue$260,87
    Average Per-Unit Variable Cost$0,89
    Estimated Monthly Fixed Cost$196 410

    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss   
     Year 1Year 2Year 3
    Sales$309 069$385 934$462 799
    Direct Cost of Sales$15 100$19 153$23 206
    TOTAL COST OF SALES$15 100$19 153$23 206
    Gross Margin$293 969$366 781$439 593
    Gross Margin %94,98%94,72%94,46%
    Payroll$138 036$162 898$187 760
    Sales and Marketing and Other Expenses$1 850$2 000$2 150
    Depreciation$2 070$2 070$2 070
    Leased Equipment$0$0$0
    Utilities$4 000$4 250$4 500
    Insurance$1 800$1 800$1 800
    Rent$6 500$7 000$7 500
    Payroll Taxes$34 510$40 726$46 942
    Total Operating Expenses$188 766$220 744$252 722
    Profit Before Interest and Taxes$105 205$146 040$186 875
    EBITDA$107 275$148 110$188 945
    Interest Expense$0$0$0
    Taxes Incurred$26 838$37 315$47 792
    Net Profit$78 367$108 725$139 083
    Net Profit/Sales30,00%39,32%48,64%

    8.3.1 Profit Monthly

    Profit Monthly - gift shop business plan

    8.3.2 Profit Yearly

    Profit Yearly - gift shop business plan

    8.3.3 Gross Margin Monthly

    Gross Margin Monthly - gift shop business plan

    8.3.4 Gross Margin Yearly

    Gross Margin Yearly - gift shop business plan

    8.4 Projected Cash Flow

    Projected Cash Flow - gift shop business plan
     Pro Forma Cash Flow   
    Cash ReceivedYear 1Year 2Year 3
    Cash from Operations   
    Cash Sales$40 124$45 046$50 068
    Cash from Receivables$7 023$8 610$9 297
    SUBTOTAL CASH FROM OPERATIONS$47 143$53 651$59 359
    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$47 143$53 651$55 359
    ExpendituresYear 1Year 2Year 3
    Expenditures from Operations   
    Cash Spending$21 647$24 204$26 951
    Bill Payments$13 539$15 385$170 631
    SUBTOTAL SPENT ON OPERATIONS$35 296$39 549$43 582
    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$35 296$35 489$43 882
    Net Cash Flow$11 551$13 167$15 683
    Cash Balance$21 823$22 381$28 239

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet   
    AssetsYear 1Year 2Year 3
    Current Assets   
    Cash$184 666$218 525$252 384
    Accounts Receivable$12 613$14 493$16 373
    Inventory$2 980$3 450$3 920
    Other Current Assets$1 000$1 000$1 000
    TOTAL CURRENT ASSETS$201 259$237 468$273 677
    Long-term Assets   
    Long-term Assets$10 000$10 000$10 000
    Accumulated Depreciation$12 420$14 490$16 560
    TOTAL LONG-TERM ASSETS$980$610$240
    TOTAL ASSETS$198 839$232 978$267 117
    Liabilities and CapitalYear 1Year 2Year 3
    Current Liabilities   
    Accounts Payable$9 482$10 792$12 102
    Current Borrowing$0$0$0
    Other Current Liabilities$0$0$0
    SUBTOTAL CURRENT LIABILITIES$9 482$10 792$12 102
    Long-term Liabilities$0$0$0
    TOTAL LIABILITIES$9 482$10 792$12 102
    Paid-in Capital$30 000$30 000$30 000
    Retained Earnings$48 651$72 636$96 621
    Earnings$100 709$119 555$138 401
    TOTAL CAPITAL$189 360$222 190$255 020
    TOTAL LIABILITIES AND CAPITAL$198 839$232 978$267 117
    Net Worth$182 060$226 240$270 420

    8.6 Business Ratios

     Ratio Analysis    
     Year 1Year 2Year 3INDUSTRY PROFILE
    Sales Growth4,35%30,82%63,29%4,00%
    Percent of Total Assets    
    Accounts Receivable5,61%4,71%3,81%9,70%
    Other Current Assets1,75%2,02%2,29%27,40%
    Total Current Assets138,53%150,99%163,45%54,60%
    Long-term Assets-9,47%-21,01%-32,55%58,40%
    TOTAL ASSETS100,00%100,00%100,00%100,00%
    Current Liabilities4,68%3,04%2,76%27,30%
    Long-term Liabilities0,00%0,00%0,00%25,80%
    Total Liabilities4,68%3,04%2,76%54,10%
    NET WORTH99,32%101,04%102,76%44,90%
    Percent of Sales    
    Gross Margin94,18%93,85%93,52%0,00%
    Selling, General & Administrative Expenses74,29%71,83%69,37%65,20%
    Advertising Expenses2,06%1,11%0,28%1,40%
    Profit Before Interest and Taxes26,47%29,30%32,13%2,86%
    Main Ratios    
    Total Debt to Total Assets2,68%1,04%0,76%67,10%
    Pre-tax Return on Net Worth66,83%71,26%75,69%4,40%
    Pre-tax Return on Assets64,88%69,75%74,62%9,00%
    Additional RatiosYear 1Year 2Year 3 
    Net Profit Margin19,20%21,16%23,12%N.A.
    Return on Equity47,79%50,53%53,27%N.A.
    Activity Ratios    
    Accounts Receivable Turnover4,564,564,56N.A.
    Collection Days9299106N.A.
    Inventory Turnover19,722,5525,4N.A.
    Accounts Payable Turnover14,1714,6715,17N.A.
    Payment Days272727N.A.
    Total Asset Turnover1,841,551,26N.A.
    Debt Ratios    
    Debt to Net Worth0-0,02-0,04N.A.
    Current Liab. to Liab.111N.A.
    Liquidity Ratios    
    Net Working Capital$120 943$140 664$160 385N.A.
    Interest Coverage000N.A.
    Additional Ratios    
    Assets to Sales0,450,480,51N.A.
    Current Debt/Total Assets4%3%2%N.A.
    Acid Test23,6627,0130,36N.A.
    Sales/Net Worth1,681,290,9N.A.
    Dividend Payout000N.A.

    Download Gift Shop Business Plan Sample in pdf

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