Which Business Structure for Your Gift Basket Business?

Learn about business structures before choosing one for your gift basket business
Flora asks:

“Is it necessary to hire a lawyer with help setting up an LLC? I’ve heard that you can save money by setting it up yourself.”

An expert (I don’t remember the person’s expertise) who recently responded to a newspaper Q&A discouraged against incorporating a business without legal assistance.

I can understand that, but in my opinion, registering a company as an LLC (limited liability company) is not as complicated, so depending on your ability and willingness to review documents with meticulous care, I believe it’s possible to set up an LLC without legal assistance.

I do, however, suggest that you review the pros and cons of sole proprietorship, LLC, and incorporation to make sure you’ll be satisfied with your business structure choice. You’ll find a handy chart comparing each structure on the Nolo.com site.

Some states may not recognize LLC formation, and other states may make the process so complicated that hiring a lawyer to complete the job is preferred.

For example, New Jersey once did not recognize LLCs, but now they do. I was able to apply for and complete the paperwork online and pay a nominal, one-time fee, all without legal assistance.

California, as another example, provides business structure information on this page, making it easy for business owners to determine each step.

The book, How to Start a Home-Based Gift Basket Business, also introduces you to business structure options. Even if it’s not as detailed as updated state and country sites, it still provides a blueprint for one to consider before registration.

After you review the LLC formation details, you’ll know if it’s right to proceed without a lawyer or if one’s help is mandatory.

How to Make a Gift Basket on a Silver Tray

Mary asks:

“I am trying to do a gift on a silver tray but is having trouble making the items stay. What do you recommend that I do?”

Here are two options.

1. Cut cardboard shaped to fit inside of the silver tray’s bottom, omitting the elevated scalloped edge. Put glue, tape, or another sticky substance between the tray and cardboard to hold the cardboard in place.

Put the gift and/or food items on top of the cardboard and use glue, tape, or another temporary substance to anchor each product. Add shred and enhancements. Close the gift with cellophane, tulle, or shrink wrap.

2. Create your tray gift by placing gift and/or food items in a lay-down position with shred and enhancements between the items to minimize product rolling and shifting. Shrink wrap the gift.

The addition of tape and glue in the No. 1 option may make it difficult for the recipient to unstick the contents, making a messy delivery and unfavorable memories. You’ll have to experiment with this more to determine how to minimize this procedure.

The lay-down gift explained in No. 2 may not be as glamorous as the outcome in No. 1, but it can be elongated and determined to be of great value with the addition of a tall fan and large bow at the top.

What Should I Buy to Make Gift Baskets?

Buy gift basket products according to what customers want

Erica asks:

“I’m trying to decide what products to buy for my business, and I can’t make up my mind.

There are so many choices. I’m starting to get dizzy.

How can I choose the best products to offer my customers?”

Before you buy anything, make sure you thoroughly understand the people who will buy your gift baskets.

What are their likes and dislikes? Popcorn, nuts and chocolates are products that regularly appear in baskets, but plush animals are a specialty item. If customers aren’t the plush-loving type, buying plush will be a waste of money.

You’ll find basket ideas at the Baskets site and product/supply ideas at GiftBasketWholesaleSupplies.com.

Many designers start by buying enough inventory to make 12 baskets. Others start with more or less; it all depends on the amount of capital on hand and the initial size of your business.

Try not to buy products that you think are cute. If it’s too unique, customers won’t want it in their baskets, and that case of product will decorate your home while depleting your money.