Cost of Starting Gift Shop, Permission, License, Loan: Gifts shop tradesproduce a noteworthy amount of revenue across the globe. Globally, this business has perceived a striking progress in the past decade for the increase in application for inventive products and extension in the client base. What are we waiting for? Let’s get into the details of cost of starting a gift shop in India and required permissions.
A guide to cost of starting gift shop, permission, license, loan
Gifts shop business hold a great demand as well as it generates revenue from all over the world, especially in countries like, United States, Australia, Canada, India, UK. This type of business can be expected to get greater returns on investment. The gift shopfactorymostlycontains of individual as well as for corporates.The market research survey shows thatthe personalized gifts shop is rising and will last to grow progressively during the next 4 years and post a CAGR of more than 9% by the year 2021.
Below are the stages which you must follow to begin your gift shop business-
Gift shops generally sell a range of gifts and novelty goods as well as relics to their market. The industry is growing as more and more people are choosing selecting to look for gifts which are exclusive or can’t be easily found in stock& discount retail shops. These stores stock acollection of items because there are numerous niche thoughts available for this industry for a person looking to stand out, therefore it issignificant that you carry out detailed research with the objective to find out current voids in the industry which are worthwhile and will control circulation for your target market.
Here are few niche ideas for you choose from:
- Card and gift shop
- Artisan gift shop selling arts and crafts
- Flower Bouquet
- Ethnic gift shop
- Holiday store
- Gift Boutique
- Art and Craft Gift
- Personalized gift shop retailing items that can be personalized e.g. for weddings
- Souvenir gift shop
- Specialty gift shop selling gifts for person who refer to a particular group:
- Based on interests (for example; science buffs, gifts for pet owners, nature lovers, etc.)
- Based on demographics (for example; religion, gifts for a particular age group, gender,etc.)
As long as you are having the passion, you can develop a fruitful gift shop. There is no special training or any kind of knowledge needed to get into this business trade to succeed.
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List of Documents Needed for the Gift Shop
Legal documents that are required if you want to any hassle with the legal system. The list of documents could vary for place to place and from regions to countries; you must visit the city council in your area or authority office to get the exact information. Here I am showing a basic list for the legal papers needed for this business:
- Certificate of Incorporation
- Business License and Permit
- Operating Agreement for registration
- Business Plan
- Sales Tax Permit
- Insurance Policy
- Tax Identification Number – TIN
- Employer Identification Number – EIN
- Contract Documents
- Insurance Policies Needed
Since you will be dealing with many records, it very essential that you insure your stuff so that in extreme cases like that of disasters- either natural or manmade, you will not be at stake.
It is very important and also a challengingwhile selection of an insurance policy thatcovers all you requirements.
Few of the basic insurance policies which you can refer while buying when looking to start your gift shop include:
- Insurance for Product Liability
- Insurance for General Liability
- Insurance for Workers’ Compensation
- Insurance for Commercial Property
Choosing a Suitable Location
The place where you would like to initiate out your gift shop business must be carefully chosen since this may have agreat impact on your business success especially once you are going with brick and mortar business. Mostly the shops are situated in places where there are probabilitiesof having tourists or in urban cities where you can get concentratedpace of people. If you are unable to select the areaswith tourist abundance, then you can select any section of city which is densely populated and encompassesmajor traffic. Whatever region you settle on, ensure that your catalogue, as well as retail price, are adapted to fit fine with the general earnings of the people in that location. So either choose the place as per the rating of your products or price merchandise as per the region. When choosing the place for a shop, consider the subsequent points:
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- Try to get 3 way open shops or at least 2 sides’ open shops.
- The shop wall should be made of glass to lure customers from a distance and to attract them.
- The name board of the shop should be clear, bright in color with good lighting and nice font.
- If you are selecting a shop which is inner to a mall, your shop must be noticeable from the main entrance.
- Prefer the shop which is on the ground floor, if it is not possible, then see for the shops which are in close proximity to lift or elevator or stairs.
Online Selling Options
If you want to trade your gift products on web, there are several e-commerce websites that could assist you out. You can sell your products through your own website, but for this, you will need to invest a major part of capital for web development, online marketing tools and SEO. Nowadays, selling on e-commerce is mostly preferable and recommended for this kind of business. Here are some of the best websites wherein you can add your products to sell goods online:
- Ali baba
Marketing and Advertising
Marketing is a very significant aspect of any trade as it is the core aspect with the help of which business produces revenue that will withstand as well as raise. Apart from the income generation, business alertness created among the potential marketplace as well as competitors is also an essential aspect to be focussed.
Here are few of the marketing strategies and thoughts for this gift shop business:
- Contact the firms for corporate gifting.
- Reach out to the college/institute students to gain quick sales.
- Use Adwords to stimulate your gift items.
- Give promo codes and offers to people who are referring new customers to you.
- Post your goods on top-rated e-commerce sites to make it widespread.
- Promote your business through emails and using social media like-Twitter, Facebook, Pinterest, and Instagram to create awareness for your store.
- You can also be assisted by SMS campaigns too.
- Marketing via content which is SEO friendly, blogs and posts for your business and gift items.
Costs involved in setting up the gift shop
In order to start a successful gift shop business, you will have to spend a significant amount in a proper way. If you are planning to sell your products both online as well as offline platforms, then you have to spend a little bit more budget than the budget you planned for. However, you have more potential to produce if you startmarketing on both platforms.
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The average budget that is required to start a gift shop in India is described below includes-
- Advance for renting the shop is Rs. 50,000
- Costs involved in rent is Rs. 20,000
- Costs involved in insurance for the shop is Rs 10,000
- Costs involved for shop furniture is Rs. 50,000
- Costs involved in computer/printing equipment/software is Rs. 50,000
- Costs involved in availing all the licenses and permits is Rs. 20,000
- Costs involved in opening Ads and Promos is Rs. 50,000
- Costs involved in start-up inventory is Rs 1,00,000
- Costs involved in getting all the materials, requirements etc. is Rs. 3,00,000
Loans available for starting a gift shop
All of these would need a finance and banks helps in financing for the loan. You can avail the business loans for starting the gift shop. All themajor banks like ICICI, HDFC, Axis, Kotak Mahindra etc. and other financial institutions like Bajaj Finserv, Tata Capital, Fullerton etc. are now lending business loans for expansion as well as to start ups. Here are the few points which should be noted to avail the loans.
Eligibility for availing a gift shop loan
- The age limit of the individual should be from 21 to 65 years.
- The shop owned by you should have at least 3 years old.
- The turnover of the shop should be atleast Rs. 50 lakhs per annum and should have a minimum profit of at least Rs. 2 lakhs per annum should be there in the balance sheet.
- The shop should have all the licenses required and as per the rules.
List of documents required to process the gift shop loan
The banks or financial institutions providing loans for gift shops would need to have different standards when they lend business loans, where few of the documents required are mentioned below-
- Certificate of registration
- Business License and Permit
- Operating Agreement
- Business Plan
- Sales Tax Permit
- Insurance Policy
- Tax Identification Number
- Power bill
- Contract Documents
- Insurance Policies availed
- Rental agreement
- Profit balance sheets of 3 years if you are planning to expand
- Profit analysis and break-even analysis for at least 3 or 5 years
- Registration documents
The conclusion of cost of starting a gift shop in India
The above information may be applied to starting a gift shop in Karnataka, starting a gift shop in Tamilnadu, the cost of starting a gift shop in Telangana, starting a gift shop in Maharashtra, starting a gift shop in Andhra Pradesh, the cost of starting a gift shop in Kerala, starting a gift shop in Bihar, starting a gift shop in Madhya Pradesh, starting a gift shop in Uttar Pradesh, starting a gift shop in West Bengal, the cost of starting a gift shop in Gujarat, starting a gift shop in Rajasthan, starting a gift shop in Punjab, starting a gift shop in Haryana, the cost of starting a gift shop in Uttarakhand, starting a gift shop in Chhattisgarh, starting a gift shop in Odisha, starting a gift shop in Assam, starting a gift shop in Himachal Pradesh, starting a gift shop in Nagaland, starting a gift shop in Meghalaya, starting a gift shop in Tripura. You might be interested in Low-cost Agriculture Business Ideas.