The cost of starting a gift shop varies from place to place. Much of it also depends on your business plan.
Nevertheless, we're here to give you an estimate of the cost of starting a gift shop in India. And, trust me, it's going to surprise you!
When you build your own gift shop, keep in mind that you are starting a business.
When you start building your business, it is very easy to lose yourself with the shiny new strategies.
To make your gift business successful, the key thing is to not get lost in the world of latest and greatest gifts you can sell and services you can offer.
Today's post lists the multitude of things you need to do to build your own gift shop and how much it will cost you.
If that is what you are interested in knowing, you are at the right place! Welcome to Kaivalya.me. Let's jump right in!
Cost of Starting a Gift Shop
Okie! To start a physical gift shop in India, you need 2 key ingredients: the place and manufacturers. Let's get a breakdown into each of them:
1) The Place
The very first step of building your own gift shop is to get the place. After all, this is where you are going to showcase and sell gifts!
Location's everything. A better location means more foot traffic. But... the harsh fact is, a place in the prime is a burden to the pockets!
Therefore, we suggest to not go crazy on getting the best place ever (unless your parents are loaded).
Your money is best spent, hear me out, on ads!
Ads are going to be one of the most significant investment for your business when things are set up the right way. But more about that, later.
After working closely with multiple gift business owners over the last five years, we strongly suggest you spend no more than $140 to $210 (₹10,000 to ₹15,000)/month.
This will keep your cost of starting a gift shop in control while also getting a decent location.
For a gift shop, the location is important, yes. But it gives you the best results when coupled with right marketing.
But don't get us wrong. We aren't sending you into a remote village!
What we mean is this:
Prime Location < (Okay Location + Superb Marketing)
The above cost applies to metropolitan cities. If you don't live in a metropolitan city, you save a heck of a lot each month!
Check out Quickr to find some great places around you!
2) Getting Manufacturers
Now, your business model can be of two types: making your own gifts and retailing them or buying wholesale and then retailing.
If you're the former, then the last thing you need is getting manufacturers! You can skip this part.
On the other hand, if you are buying wholesale (which most of you will), you need the best manufacturers who can give you a bang for the buck.
A key rule in the manufacturing industry is bigger the order, lesser the costs per unit.
Therefore, it requires a careful examination of how many customers are around your area and what's your market like.
Moreover, there are so many manufacturers out there that quantifying the price of getting manufactured toys can be tricky.
If you're an expansionist type, check out our Free Audit and Consultation. This will help you determine the market trends and consumer behavior in your locality (we could also get you cheap and good manufactures 😉).
However, again, if you're looking for the general overview, consider spending in the neighborhood of $263 (₹20,000) to control the cost of starting a gift shop.
Again, this is just an estimated cost of starting a gift shop and it totally depends on where you're situated.
Apart from the manufacturers, you also need to know what you're going to sell at your gift shop in India. Check out our post on 15 Best Gift Shop Items to Sell.
3) Advertising
This is the most crucial part! People need to know who you are, where you are, and what you do!
This isn't the 1900s where customers will look at your board and decide to walk in.
With Google on everyone's head, people these days search where they're going to go beforehand, so the last thing they do is look at shop boards for entertainment.
But, we're here to help! You need 2 key things to nail advertising: a great business profile on Google AND a phenomenal marketing team/agency.
People search for "gift shops near me". Then they see your business profile there.
The profile better have great ratings, amazing images, and details such as location, website, and phone number on it.
Your business profile should inspire customers to visit your shop.
The best part is this does not increase the cost of starting a gift shop.
However, investing in a great advertising is of paramount importance, and it's guaranteed ROI!
At advertising, most gift shops in India try to cut their costs. BIG MISTAKE!
If you want to see success for your gift business, you need to invest anywhere in the neighborhood of $135 (₹10,000) a month. This cost varies with location and season.
The advertising cost of starting a gift shop may seem a little hefty for a small gift shop, but it's what'll keep you running in the long run.
You could reach out to our Free Audit and Consultation service which can help you find great agencies at great cost near you!
Now that we've established the various factors to starting a gift shop in India, I'm sure you're wondering what is the overall
Cost of Starting A Gift Shop In India
In summation, the cost of starting a gift shop in India is around $580 to $650 (₹44000 to ₹50,000).
At this cost, your gift shop in India will survive in the long run and will generate good profit for you, all in a shoestring budget!
That's an ideal gift business. But keep in mind, these are still estimations and the numbers vary based on location and season.
Great! Now that we've established the cost of starting a gift shop in India, considering starting an online gift business.
This will allow you to cross the geographical barrier a physical gift shop. Read our post on how to start an online gift store on a shoestring budget.
