| Author | Message | ||
     Ccolleen New member Username: Ccolleen Post Number: 1 Registered: 01-2006 |
I have just joined this discussion board and I am researching the business. There is a wealth of experience out there for sure and some great advice being shared. I have been poking around the site to find information on starting a business. I have gone to the archives and looked in the starting business section (and all the others.) I am hoping someone can help me navigate to get to the basic information I am looking for. I think I know where and how to get training, marketing ideas, inventory etc. What I am needing to know is how much I can make as the sole financial provider, working full time? I have pretty solid business and sales experience and alot of motivation. I have recently been laid off, have 5 month severence and wanting to start a basket business, but not sure if the income potential is there to support my daughters and myself. Please provide guidance and suggestions for how I can determine the income potential and typical ramp up time. I read here that it is not reasonable to expect profit for 2-3 years. I hope that is not true, but if it is, I know I need to look in a different direction or head back to the corporate world YUK! | ||
| Admin Board Administrator Username: Admin Post Number: 645 Registered: 01-1997 |
There are many variables as to what you consider "income to support" based on where you live, your bills, assets and life style, but unless you have a fairly good sized nest egg to sit on for a while (a year or two)or other regular income, you might want to reconsider. Five months won't even get you to Christmas, the busiest time for this industry. Other things to consider: funds to start your inventory and expenses, Colorado law on home businesses and food products, business expenses and operating budget (separate from your personal budget). There are a lot of "get-rich-quick" books out there that will give you the answers that you want.. but based on years of seeing businesses come and go, you may want to re-consider your options. Once you check the laws in your area, you might want to think about going part-time home-based, building until the business is ready to go full-time. Sorry to be the bearer of bad news.. sure, someone "might" be able to start and make a successful business with your circumstances.. but it is so rare the odds are truly against you. I hope this helps. Keep checking the archives as there is a ton of information there. Becky McAllister, GBE Moderator http://gbexchange.net http://autumnwinds.com/bbbltd/ | ||
| Jestnotes Advanced Member Username: Jestnotes Post Number: 143 Registered: 02-2003 |
The basket world is no different than any other start-up business. It generally takes that long to see a profit, especially one in a busines involving inventory. Even if you work from your home, you will have insurance, phone/cable, marketing, computer/IT, networking meals, cost of goods, printing/office supplies, etc., etc., etc. IN ADDITION to whatever you may need for a paycheck. If you are the sole support for 3 of you, it is not reasonable to expect this to turn that kind of profit sooner than several years. And, that would be if your marketing is successful right out of the gate. Sorry if this seems harsh, but I think it is realistic. I have seen too many people start with out of line expectations and then we are buying their unwanted inventory as they go out of business. Cheryl Pliskin | ||
| Shardt Intermediate Member Username: Shardt Post Number: 79 Registered: 06-2003 |
I quit teaching full time and started this business, hoping to make (bring home) close to $20,000. I did work part-time at Sylvan, though to keep a LITTLE monthly paycheck. Now, after my 3rd holiday season, I actually can pay all MY bills and buy groceries for our family each month. There is no way we could live on just my income--avg. last year was probably around $1000-$1500 a month (I haven't done exact books yet). The problem is that I didn't even see much of that until NOVEMBER & DECEMBER!! A couple of months, my husband had to help me out! So, until you've been established for 2-3 yrs, you might not make a true profit. The best way to get steady income from this business is to land large corporate accounts or even regular size business accounts that order (and pay up!)on a regular basis. If you could do this just part time and keep steady money coming in elsewhere for a while that may give you a better chance to see how it will work out for you. Also, your area will determine a lot of how many buyers you will have. Once I relocated to the metroplex here in DFW, my sales have shot way up. Be sure to have a website, too, as that has helped me tremendously, as well. Hope this was more helpful than discouraging. It has all been worth it for me because I got time to spend at home with my daughter during her last few years before elementary school. I LOVE making baskets and helping customers. Good luck to you--I know how you feel!! Sherry Velvet Ribbon Baskets | ||
| Ccolleen New member Username: Ccolleen Post Number: 2 Registered: 01-2006 |
Thank you all for your posts. Your posts are discouraging, but I did ask for your thoughts, so I appreciate them anyway. I am confused though, because I am getting varied information. I spoke to Cynthia from Le Gourmet last week and she paints a very different picture of first year possibilities. I understand that she is "selling" me, but I would think she would not be able to sustain her business if she is blowing smoke. Also, I spoke to a woman who had first year annual sales of $43,000 working part time in my area. So, I guess one dilemma I see with working at this part time- How do you network and market when you are working full time somewhere else? I Have done a lot of networking in the past, it requires a lot of time and consistency. How have others done it working full time? | ||
| Susansmiles Advanced Member Username: Susansmiles Post Number: 196 Registered: 11-2004 |
Part 1 of 3 Hi Colleen and ALL, If you write up a business plan, then that would give you a little idea of what all you need to do. You can always change it and/or add to it. It is the inventory that pulls you down, compared to working for someone, and just marketing (using the marketing brochures, etc., they have paid for and printed for you, etc.), and selling for them. I can sale like no tomorrow, and I can produce a nice product (gift baskets) to back up my selling, however, I then have to turn around and make all of the products, in order, to fill the sells, which means even more time and money, then I have to pay myself back for all the printing, time, etc., and THEN I have to buy more inventory, supplies, etc. I end up just barely getting by some months, because of all the expenses involved with having an inventory small business. Have Delicious Day! Susan :o) | ||
| Susansmiles Advanced Member Username: Susansmiles Post Number: 197 Registered: 11-2004 |
Part 2 of 3 Hi Colleen and ALL, It sounds so good on paper that if you sell $500 dollars worth of gift baskets one day in an hour, but you aren't just the salesperson getting a 10% to 20% commission, having an office cubicle paid for, phone to use, desk to use, pens, contracts, brochures, etc., all at your disposal, like when selling for someone else that owns the business, or if you are the one that owns the business. It takes soooooo much time, just to get all the marketing, etc., printed and in place, then get out there and use the marketing material, then being by the phone to get orders, or closing the orders in person. After you have worked your rear end off doing the marketing and selling, you have to then come back to your studio, run all the numbers, get your supplies, and then get an assembly line going to get the orders completed and delivered in a timely manner. THEN you are still not finished, you have to come back to your office/home and take care of the accounting, and follow-up with the customers. It is never ending, very expensive, and labor intensive, too boot, in more ways than one, i.e. just selling or just designing, just delivering, just handling customer support issues, just handling the accounting, etc. You have to wear so many hats, and if you don't wear ALL of those hats well, you will drop the ball somewhere and your business will suffer. We aren't telling you these things to keep you out of the gift baskets business. We are trying to keep you from losing more than you can really afford to lose now, and 5 to 10 years from now. Have Delicious Day! Susan :o) | ||
| Susansmiles Advanced Member Username: Susansmiles Post Number: 198 Registered: 11-2004 |
Part 3 of 3 Hi Colleen and ALL, There are tons of success stories out there, and no I'm sure that they aren't blowing smoke up you, but they are trying to make money from you, and there are 1000s and 1000a of people getting into this business enough to where, if they get 1% of those to sign up, pay them the money, they will be able to stay in business, even if others drop out. One reason is because they probably have a business plan, and they are working it, and they have their membership fees set at a rate that will make them money, even if they only get the minimum amount projected to sign up, they can stay in business. Sorry to go on and on, but I don't want to see you fail, due to not having enough of the positive and the negative, that goes along with any business, especially an inventory based business, and I'm sure that is how the other posters above me feel, too. There are a lot of positives to this business, but 9 times out of 10, people start with no business plan, and only this high excitement, and only with the positives in their mind, and they never even stop to think about considering the negatives, until it is too late, they are so far in debt they can't see straight, and they have to close their doors. It is sad. Because if these people had of really considered what many have tried to explain, followed some of the suggestions or all of them, given by people who have already lived through it, or are living through it, they wouldn't fail, or they wouldn't fail as much, statistically speaking. They are talented, smart, high energy people, but they let their excitement cloud their judgement in most cases. It takes tons of MONEY and time if you plan and do stay in for 5 years or more. Have Delicious Day! Susan :o) | ||
| Susansmiles Advanced Member Username: Susansmiles Post Number: 199 Registered: 11-2004 |
Part 4 of 3 Hi Colleen and ALL, Okay, sorry if I sound like I'm preaching. To me it is best to get into the gift basket business with the mind-set that no paycheck will be there for 5 years. If you write up a plan, and work it, without stopping at all, and you do not have to take/rely on the business to sustain your personal life, then I can see your business succeeding, like these other success stories you have posted above. The lady that sold $43,000 working part-time, was she just the salesperson, independent sales representative, selling for someone else? Or, did she own the entire business, paid for all of her own marketing materials that she first designed, and then had printed, paid for all of her own advertising, everything like a sole proprietor, then sold that much, plus carried that much inventory in her own warehouse, that she pays for herself, plus made all the gift baskets, plus delivered and/or shipped all of them, plus did everything else, with no help at all? And, she did ALL of it by herself part-time? If not, then she will be very fortunate if she comes out with a profit, due to having to pay people to help her in different areas along the way by the end of the year. Does she totally and completely support herself, or does she have help there, too? Because I don't see how she would not be below the poverty level if she only sold that much part-time, and had to pay for everything you have to pay for, after working that hard, keeping that inventory, to sell that many gift baskets at the end of the year. And, is this her only job that pays her money, or does she have another job, or a husband, roommate, etc., that helps her with her personal bills, too? They aren't blowing smoke, but they, also, may not be giving you the nitty gritty details either, that you must try and consider. Have Delicious Day! Susan :o) | ||
| Heather Senior Member Username: Heather Post Number: 228 Registered: 02-2003 |
Just remember that $43,000 in SALES is only about $25,500 in profit. Out of this "profit" you still need to pay utilities, operating expenses, marketing and of course more inventory. These are just some business expenses before you even start looking at personal expenses. Sorry but please don't get wrapped up in SALES numbers. Wooden Crate Creations - Ontario, Canada www.woodencratecreations.com 1-866-422-5875 | ||
| Ccolleen New member Username: Ccolleen Post Number: 3 Registered: 01-2006 |
Wow, thanks for your time in responding. Especially you, Susan. You have really given some thought and I totally "get" that you are looking out for my best interest. I am going to dig into the details more to find out more specifics on the expenses that she incurred for those $43,000 in sales. You clearly have seen too many people fail or at least not reach their goals. I am actually taking a business plan class tomorrow to get a better picture of what all is involved and what I need to get out of the business. It looks as if going the part time route is the most prudent. I am still a little unclear on how you network while working full time. Any of you have insights to share on this topic. Thanks again, for your time and posts. Colleen | ||
| Susansmiles Advanced Member Username: Susansmiles Post Number: 200 Registered: 11-2004 |
Hi Colleen, You network by going to early morning meetings through BNI or the CHAMBER of COMMERCE in your area, before you start your full-time job, and by going to evening events, after work, and to events/luncheons, ribbon cuttings, etc., on your lunch hour. If you work another job, you will still have to do what the full-time people do, too. And, you can do things on the weekends. You won't get a lot of sleep at first. You, also, can advertise locally, which takes time and money, too. But, it can be done. Congratulations on taking your course on business. I'll be thinking about you and wishing you the best, now, and in the future. Talk to you soon. Bye for now.  Have Delicious Day! Susan :o) | ||
| Susansmiles Senior Member Username: Susansmiles Post Number: 201 Registered: 11-2004 |
Hi, I, also, would like to add that there is nothing wrong with people giving you their success stories,and trying to sell you on their programs. That is what they are suppose to do, and they are answering your inquiries, and trying to help you in a different way from how we are trying to help you. You can learn from every person, company, book, forum, experience, etc., good, bad, and/or indifferent. You just need to always keep an open-mind. I want to commend you on coming to the forum and asking these important questions, and understanding that we just want you to succeed, period. And, I'm sure that Le Gourmet wants you to succeed, too. Because when you succeed, they succeed even more, which is a great thing, and the way the circle of business is suppose to evolve and work, and it can be a very positive experience, as long as you don't go into anything, no matter what it is, with blinders on, if at all possible. Just wanted you, and others reading, to understand, that I wasn't trying to put a negative light on your friend that worked part-time, or on Les Gourmet, or anyone else in business. That was not, and never is, or was my intentions. I just wanted you to know some more of the questions you need to ask when talking with different people in different walks of life and business, while you are doing your research on starting your own business. When I first started, I didn't even know what questions to ask, period. I was trying to give you some more things to help you, on even knowing the questions you should ask yourself, and others, as you learn and grow. People did this for me, and I really appreciated it at the time, and still do appreciate it. We never stop learning. Talk to you later. Bye for now! Have Delicious Day! Susan :o) | ||
| Rumcakes Advanced Member Username: Rumcakes Post Number: 188 Registered: 01-1999 |
Search the archives, this topic have been covered a thousand times if not more. All the information you want is there. I learned most of what I know on this message board and many other veterans here can tell you the same. Take it from an old soldier in the Gift Basket business; You don't need to spend $3,500.00 to Le Gourmet or any other place to start a gift basket business. Use some of that money to go to conventions, shows and buy inventory. Just read these message boards, ask questions like you are doing and use your common sense. Bear in mind that anyone trying to sell you a program will make everything look pretty and surely not tell you all the pitfalls that there are. I started by buying Shirley Frazier's original book then started calling suppliers for samples. Some I paid for and some were free. After that I browsed the web, looked at what people were putting in their baskets and I started buying inventory. Now others will tell you that you MUSt get a business plan and so on. This maybe the right way to go but I didn't do any of those things until today and it's been 8 years. I'm not telling you to do what I did but that is what I did. Some good resources are this and other gift basket message boards, videos from some of these people: Shirley Frazier http://www.sweetsurvival.com/video.htm (make sure to buy her book; How To Start A Home Based Gift Basket Business) Cherie Reagor; www.cheriereagor.com/videos.html, Debra Palk; www.festivities-pub.com, Lucy Hicks; www.giftbaskets101.com There is also another lady with videos but I forgot her name. Im sure someone else will put her name here. Hope this helps Clair (Message edited by rumcakes on January 27, 2006) (Message edited by rumcakes on January 28, 2006) | ||
| Cparkman Senior Member Username: Cparkman Post Number: 290 Registered: 02-1999 |
www.maryannjacobs.com all of the above and her have great stuff C Parkman C&J Gift Baskets | ||
| Sherrill Senior Member Username: Sherrill Post Number: 225 Registered: 02-2002 |
Clair--Were you thinking of Mary Ann Jacobs. I think she's at www.maryannjacobs.com Hope that was she. Sherrill Daughter of a Rose Gift Baskets | ||
| Sherrill Senior Member Username: Sherrill Post Number: 226 Registered: 02-2002 |
Crystal--I guess you and I posted at almost the same time! LOL Have a great weekend! Sherrill | ||
| Rumcakes Advanced Member Username: Rumcakes Post Number: 190 Registered: 01-1999 |
Yes guys she is the one.....Thanks Clair | ||
| Coloredpencils Member Username: Coloredpencils Post Number: 40 Registered: 04-2005 |
Colleen, You've been given excellent advise here. I wish I even knew about these forums before I started. I blew $5000.00 my first year without even having a clue to what I was doing. Now I'm very slowly starting again. Yes, go to the trade shows, but be very carefull your first time. It is incredibly overwhelming. Unfortunately this is where I blew most of my $5000.00. I was even warned by one of the venders that I shared a table with at lunch. She told me not to buy anything at the fair and to take the catalogs home or have them sent(they get very heavy)and look over the items and then decide.I of course ignored this advise and listened to all those people that said you could start this business on a shoestring. Best of Luck Dorothy |
