Instructions

1

Obtain the required licenses and registration. You are not exempt just because the business is in your home. Since you sell the baskets to customers, also obtain a resale license to collect sales taxes. Cities sometimes require that license even if you're selling the baskets at a craft show located there and your business is located elsewhere. Foods made in your home require an inspection of your kitchen and a food handler's license in most cities and states. Check to see whether including wine or beer requires licensing.
2

Set up a business checking account. Deposit all funds from gift basket sales, including cash, into the account. Use it to pay for all gift basket-related expenses. Consider obtaining a merchant account to accept credit cards. That may be difficult when you're first starting out, since your business is brand new. If that's the case, look into an online, third-party credit card processor.
3

Research competitors. Find out what local competitors are offering and their pricing. This gives you a basis for your own prices. Check out major companies that offer gift basket and boxes, such as Harry and David's Gourmet Gifts, White Flower Farm and Gift Baskets.com.
4

Determine your market and customers. Shirley George Frazier, the author of "How to Start a Home-based Gift Basket Business," suggests targeting your market by age, gender, income and lifestyle. There are a myriad of choices for gift baskets. Narrow down your offerings to one or two niches. For example, you might concentrate on baby, toddler and pre-school gift baskets. Your customers would be grandparents, aunts and uncles and friends of new parents. Alternatively, you could choose romantic gift baskets. In that case, your customers would be boyfriends, husbands and fiancées. Another niche would be sports baskets, either by sport such as baseball or by teams, such as NFL Green Bay Packers.
5

Set up vendors and material suppliers. As a home business, you probably don't need to buy in bulk, but you do need a source of unusual items to include in the baskets. Your customers won't be happy if they find the same items in the basket offered at a big box store for half the cost. Some vendors require a sales tax license number to offer wholesale prices. Look for packaging supplies such as straw, excelsior, ribbons and cellophane. You'll need a shrinkwrap machine as well as shrinkwrap plastic if you decide to seal your baskets.
6

Market your gift basket service. Farmer's markets and arts and crafts shows are two inexpensive ways to let customers know about your service. Have sample gift baskets on display. Put together baskets to sell at the shows. Give away a gift basket by asking people to give you their business card, name and email, or name and address for a drawing. You'll have a ready list of potential customers. Demonstrate putting together an unusual gift basket at a women's club or at your church. Put your cards in noncompeting businesses or offer those business a referral fee for any customers.