Is your entrepreneurial spirit itching to emerge? If you have a knack for putting together thoughtful gifts, it could be a good idea to take advantage of your skills by starting your very own gift bundling business. Like any venture, starting a bundling business requires careful planning if you want it to succeed in the long run. Luckily, we are here to help. In this article, we guide you through all the key steps to get your gift bundling business started.
Company structure
An important first step is to work out the structure of your business. How do you want your business to operate? There are four business structures you can choose to operate under:
- Sole trader
- Partnership
- Company, or
- Trust
In a nutshell, the structure you choose will impact things such as tax, set-up costs and asset protection. If you are unsure of which structure to choose, you can take our quiz to determine the right structure for you.
Finding your niche
The possibilities for gift bundling are endless. There are many different routes you can take with this kind of business, for example, pamper baskets, cheese and wine bundles, flower and candle sets, dessert boxes, and the list goes on. Rather than having a generic gift bundling business that covers all bases, it is important to specialise in this way, since competition in the field is quite high. Take the extra time to think outside the box and find something unique that is not widespread in the market. A good first step to finding your niche business idea is to think about your target market. Who do you want to tailor your gift bundles to?
Whichever decision you make, remember that there may be certain legalities you need to consider. This is certainly the case when you are dealing with food and beverages. For example, a liquor license is not required if you want to sell a bundle containing an alcoholic drink. However, there are still certain rules that need to be followed such as the maximum volume of alcohol permitted per gift.
Once you identify your target market and a the type of bundling business, you have a good foundation to write up a solid business plan. Do not overlook this step — it will help you visualise your goals and strategies, anticipate setbacks and predict your business’ profitability. You can customise our business plan for free here.
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Get startedRegistering your business
To run a business, you require an Australian Business Number (ABN). Applying for an ABN is a simple and quick process. Lawpath offers an easy-to-use ABN registration service to help complete your application in less than 5 minutes.
Once you have your ABN, you can then register your business name. We recommend opting for a name that is nice and snappy to maximise the number of customers you attract.
Deciding on a sales channel
Nowadays, the question is whether you should operate in a physical retail shop or online. A major benefit of operating online is that it would save you a lot of money. This way, you would be able to work from home as well as cut down on costs to invest in better quality products for your bundles. On the other hand, you may desire a traditional storefront business. This will be costly at first but it can be paid off in the long run by trying to increase sale volume and higher-priced products. It all depends on how you want to interact with your customers and sell your products.
Either way, we strongly recommend making use of online platforms to market your product. You can decide whether this can be through Instagram, Facebook, or even LinkedIn if your target market is more on the commercial side. This will definitely help maximise your reach.
Sourcing your products
Now for the fun part: designing your baskets. This is where all your ideas can finally come to life as you plan the kinds of products to include in your gift range. You can be strategic by sourcing your products from local or small online businesses so they may help you in return by advertising your gift bundles. As such, a symbiotic relationship is created and you can expand your network in this manner.
Final Thoughts
Starting a business is an exciting, but also daunting, new chapter. However, if done correctly, the experience can also be enjoyable once things pick up. This is especially true when you are operating in a field you love – and what could be better than the gift of giving? If you need assistance with the set up of your business, we recommend consulting a business lawyer.
