How to Open a Gift Shop in 10 Easy Step
Gifts shop businesses generate a significant amount of revenue all over the world. Globally, this business has witnessed a striking growth in the past decade because of the increase in application for inventive products and extension in the customer base. Here’s how to open one in 10 easy steps.
1. Choose Your Niche
Normally, gift shops sell a variety of gifts and novelty merchandise as well as souvenirs. The industry is proliferating because more people are choosing to look for gifts that are unique or hard to find in traditional merchandise and discount retail stores.
Gift shops stock an array of items. There are several niche ideas available for this industry for individuals looking to stand out. Here are some of the niche ideas you can choose from:
- Artisan gift shop selling arts and crafts
- Card and gift shop
- Ethnic gift shop
- Indoor gardening and Herbs
- Holiday store
- Gift Boutique
- Personalized gift shop selling items that can be personalized e.g. for weddings
- Art and Craft Gift
- Souvenir gift shop
- Based on interests (for example; gifts for pet owners, science buffs, nature lovers, etc.)
- Specialty gift shop selling gifts for individuals who refer to a particular group:
- Based on demographics (for example; gifts for a particular age group, religion, gender, etc.)
2. Get your Docs Ready
Legal documents are necessary if you want to avoid trouble with the authorities. The list of documents differs depending on the region or country. To get precise info, you will need to visit the city council in your area or authority office. Below is a general list of legal documents needed for this business:
- Business License and Permit
- Certificate of Incorporation
- Business Plan
- Sales Tax Permit
- Operating Agreement for LLCs
- Insurance Policy
- Tax Identification Number (TIN)
- Contract Documents
- Insurance Policies Needed
- Employer Identification Number (EIN)
It’s imperative that you get insurance in case a disaster strikes because you’ll be dealing with many inventories. One thing that can be very challenging when thinking to purchase insurance policies is the choice of a suitable one. General insurance policies that you can look at when starting your gift shop include:
- Insurance for Commercial Property
- Insurance for General Liability
- Insurance for Product Liability
- Insurance for Workers’ Compensation
3. Set your Budget
You will need to spend a significant amount of money to start an awesome gift shop business. You will need a little bit more budget than the budget needed only for offline business if you are making your mind to sell your products on both online as well as offline platforms. Still, you will be having more potential to earn if you are selling on both the platforms.
4. Financing the Initiative
Financing is another essential thing to do when starting a gift shop. It is generally recommended to have a comprehensive business plan because sourcing for finance to start a gift shop business can be a very tricky task. This is the best approach through which you can convince your targeted investors of how serious and dedicated you are.
Here are some financing options to take into consideration:
- Applying for a loan from a commercial bank
- Sourcing for soft loans from friends and family members
- Sourcing for startup capital from an external investor
5. Online Selling Options
There are lots of e-commerce sites if you want to sell your gift products online. You can create your own website to sell your products. To this end, you will need to invest a lot of money in
- eBay
- Amazon
- Etsy
6. Choosing the Place
Choose the location where you want to start your gift shop business carefully because this will have a great impact on your business success if going for a traditional brick and mortar outfit. Most gift shops are located in areas with a high flow of tourists or in metropolitan cities where you can get maximum footfall.
When choosing the location for a shop, consider the following:
- The name board of the shop should be bright in color with good lighting.
- Wall of the shop should be made of glass so that customers can view it from distance.
- Prefer shop which is on the ground floor, if it is not possible, then look for the shops that are close to the stairs, lift or elevator.
- If you are choosing a shop which is inside a mall, your shop should be visible from the main entrance.
7. Marketing
Marketing is a crucial aspect of a business as it is the major way with the help of which business produces revenue that will sustain as well as grow. Business awareness is created amongst the potential marketplace as well as competitors.
Here are some marketing strategies and ideas for this gift shop business:
- Approach college students to get quick sales
- Contact companies for corporate gifting
8. Advertising
Use Adwords to Promote your gift items and give discounts to people who are referring new clients to you. Advertise your business through email marketing, post your products on top-rated e-commerce sites to make it popular, and use an SMS campaign.
9. Business Roadmap
After doing these all, you need to plan a business roadmap, which acts as a core of the business. Include some or all of the following:
Inventory- Inventory management (pos system) must always be controlled and monitored. As your business develops, do research on the software program for management of inventory.
Payment Methods- What payment methods will be used? Cash, debit, credit cards, and even local checks could be accepted. If you prefer to allow the personal checks and card purchases, just get the needed equipment.
Hiring Employees – if you have a lot of workloads, it is needful to hire employees to carry out the everyday operations. You can hire them by posting advertisements, from referrals or through recruitment agencies.
Shop Security- The security of your shop is also important. Explore theft avoidance technology, such as an alarm system or closed-circuit security cameras to ensure that your gift shop is secure.
Combo Packages- Create suitable combo packages to increase your sales.
10. Customize
Customers will like your services if you offer them exactly what they want. You can increase your business opportunities by arranging gifts for particular occasions in advance. For example, prepare and arrange gifts suitable for occasions in advance.
In Summary,
If you follow all of the above tips you will be able to open your gift shop very easily. In addition, you will run a very successful and tight operation. Both of which are important when running a gift shop.
