Inside: How to Start a Greeting Card Business: the Ultimate Guide. Collaborative post.
Whether it’s to express condolences, send a love message, or celebrate a birthday, greeting cards come in handy, and the market continues to expand. The market size, estimated at US$ 7508.8 million, is expected to increase by US$ 6530.4 million by 2028. This is according to a market report by GlobeNewswire. If you are considering starting a greeting card business, this is the time to seize the opportunity.
However, you can’t just wake up one day, set up a greeting card store, and hope for your business to succeed. You must create a solid action plan, accrue adequate finance, and employ the industry’s best practices. Below we cover the steps you need to start and run a card business successfully.
Step 1: Create an Actionable Business Plan
For a small business like a card shop, a good business plan comprises the following:
- A Realistic Budget and Financial Forecast: Your budget should cover start-up costs (payroll, rent, equipment, and more). Be realistic in your estimated amounts. Remember to set aside money in a reserve fund for emergencies.
- Business Description and Structure: Describe your business (its location, the product or service you offer, and business name. Also, describe your competition.
- Market Research Strategies: What is the size of your target market? How fierce is your competition? Create a solid demand-vs-supply cover in your marketing methods.
- Management, Employees, and Contractors: Who does what for your business and at what time? How many employees do you need? Will you hire contractors? If yes, how will you maintain control over your finances?
Step 2: Choose Your Business’ Legal Entity
The main business entities to choose from include sole proprietorship, general partnership, limited liability company (LLC), and corporation. While sole proprietorship and general partnership are easy to start, they don’t offer liability protection. Your personal assets, such as cars, houses, or land, can be used as collateral to repay for business actions. Besides, these business structures are subject to self-employment taxation.
LLCs and corporations are the best options if you want a more formal structure. They offer liability protection and tax advantages. However, LLC is easier to start than a corporation and offers a better tax advantage than C-corp. Therefore, it is the best legal entity for your greeting card business.
Forming an LLC can get easier if you hire a company formation service such as ZenBusiness. The formation company will handle all the paperwork and be your registered agent. Forming your greeting card business is the main step to legally establishing your operation.
Step 3: Register for Taxes and Obtain an EIN
You must register your greeting card business for state and federal taxes. Often, the requirement varies from state to state. Even within the state, the requirement can still vary in the counties and cities. Contact your local authorities to confirm what is required to register your business.
You will need an Employer identification number (EIN) to pay your taxes. EIN is also useful if you are going to hire employees or open a business bank account.
Step 4: Get the Necessary Certifications and Licenses
You need licenses from the federal or state governments to operate your business. For example, a sales tax license allows you to collect customer sales taxes. Other licenses that you may require are Zoning laws and permit and Health department services.
However, this will vary between state or federal requirements for licensing. Check with your state or federal government to clear any doubt.
Step 5: Set up a Bank Account for Your Card Business
Your business needs a bank account to handle the cash flow. A business should have its own account separate from your personal account. Keeping your business finances separate from your personal finances offers liability protection. Your personal finances will not be used to settle debts your business is liable for.
If your personal and business finances aren’t separate enough, a court might pierce the corporate veil and hold you personally liable for business liabilities. Keeping your business’s accounts in order is the responsible thing to do in any case, and staying organized will help you avoid any financial or legal trouble as your agency grows.
Step 6: Set Up the Shop
You have four options when choosing a business location:
- Your home or apartment
- Commercial rental space
- Shared office space
- Other places (truck, trailer, e.t.c)
Check with your state government, count, or city council to find out if there are any restrictions or requirements regarding business location.
Step 7: Create Your Company Website
Every legitimate business in today’s world should have an online presence and a website. Taking your business online means you can reach a global market.
However, you don’t just create a website, sit down and do nothing. You have to make it easier to find online. Therefore, your website should have all the information about your business. Websites with written content usually rank higher on Google, so ensure you create quality content.
You should also upgrade your website and content more often to maintain a high google search ranking. The good thing is that there are website builder tools that will help you create a great website and update it.
Step 8: Buy the Cards from Suppliers or Design Your Own
You have two options here:
Design and Print the Cards
Designing the cards yourself is a traditional way of starting a card business. The only downside is that it can be time-consuming and expensive. You need a computer, designing software, materials, and a functional printer. Start small, then expand with time. You can start printing on cardstock and then switch to higher-quality papers.
Buy Pre-Made Business Cards
This option is simpler and cheaper than designing your own cards. However, the cards may be less than 100% original per your business brand. You may also pay more per card, especially if you need to buy in bulk. Ensure you explain your cards’ specifics to the supplier, including styles and designs.
Step 9: Promote Your Retail Business
There are several ways you can use it to promote your greeting card business. Social media platforms such as Facebook, Instagram, and Twitter, among others, offer you the cheapest option to reach millions of people. If you have enough funds for advertisement, you can involve other channels such as digital signage screens, TV, and radios.
Other ways to promote your business include:
- Write and distribute a press release
- Customer reward programs
- Open a Youtube channel for your business
- Use Google my business
Bottom Line
Starting a greeting card business is a sure way to build a successful business on your own terms. Use these eight steps to immediately build the business expertise and knowledge you need. Always remember that you can expand your business later. As you sell the cards, brainstorm ideas like selling gifts and adding more products to your outlet. All the best in your new venture.