Why should you start a favours business? Is it a profitable idea? Let’s see!
When organising weddings, bachelorette parties, birthday parties or other events, people are offering their guests personalised favours to show them gratitude. Depending on the occasion, they can be elegant, simple, vintage, funny, or even quirky. People nowadays have unique ideas when organising events, and they want the favours they choose to be special, so they are buying them from people who use their creativity to design one-of-a-kind things.
This business opportunity if both rewarding and fun for someone who has the needed skills to create something unique for every new client. And if your dream is to run your business from home, then this is the right moment to start it. Statistics inform that 80% of people search the internet when they want to buy something, so here is how to start this online business.
Do you have local competition?
Treat this business idea as any other one. Search locally to identify if you have competition. Don’t forget that you intend to sell the products online, so you also have to check national and even international competition, to understand what products other businesses provide. You should check local online directories to identify your competitors because not all of them are registered or have a website. You should check every one of the collections and their clients’ reviews to understand what the public is looking for. Use the web to find inspiration for the first collections of favours to offer for sale. Try to bring something new to the local market.
Study the market
Once you identify your competitors, you have to study the market to understand what products people are interested to buy. Your local competitors will not teach you about this business, but you can get in touch with a foreign favours provider to ask them what helps them stand out on the market. You can collaborate with an entrepreneur who sells wedding gifts or makes flower arrangements because you are no competition for them. They will be happy to offer business advice if you collaborate and share clients. You address to the same public, so you can promote each other.
Develop ideas for the first product line
You need to choose your target public before starting to design products. It’s advisable to address a general audience first, so you should sell favours for baby showers, bachelorette parties, graduations, weddings and corporate events. The most popular favours are fortune cookies, playing cards, honey jars, soaps, stationery, and personalised candles.
Many of your clients will want you to engrave the products to make them look special, but you don’t have to stick to engraving, you can come up with your new method of customising them.
You should offer a range of popular products your clients can choose from, and if they are looking for something different you can handmade personalise them. Let’s take the candles, you can pack them in boxes personalised in the bride’s favourite colour. Or you can add every guest’s photo to a honey jar or piece of soap. It’s a great idea to purchase wholesale products and to customise them according to your clients’ preferences. If you are a creative person you can easily transform an average product into a spectacular favour.
You need some supplies and equipment to start this business. The initial investment is small because people usually don’t leave these purchases last minute. So you should first invest in an engraving machine, average favours everyone would use, printed ribbons for favours, faux flowers, fabric and some design accessories.
Once you have a stash of wholesale products you can start promoting your business, and as the orders come, you can buy new supplies with the money you earn for the first products sold.
The best way to promote your range of products is to create one of each design and to take quality photos. It’s advisable to use the same background for all photos because it adds your portfolio a professional note. Natural lighting is best for this type of pictures. You should publish the portfolio online to allow your clients to check it.
How to deal with your customers?
When a client sends an order, you need it to be specific because you personalise each item and you need to be sure you thoroughly understood what they need. You should have a form for each client where they should write down the colour or colours they prefer, the number of products, and any dates and names they want the products to be engraved with. If one of them changes their mind and tries to blame you for products that look differently, you can show them the instructions and they will miraculously get quiet.
Before starting to create the products, you should verify the date, spelling, and other pieces of information that may influence the design of the favours. Once you print the ribbons and cards you cannot undo them without additional expenses, and extra cash is the last thing your clients want.
Decide how much you ask for each favour
You sell different types of favours so you need to establish the price tag for every one of them. You should keep in mind that your business needs to be profitable, so when you make a price list you should stick to it even if your clients are close friends. The average rule is to add from .50 to $1.00 to each product. You should calculate the expense of each of them and them according to how much work you do to personalise them, add some dollars.
Do not forget that time is money, so you need to value your time. If for some orders you need to work more than for the others because the customer has some extra requirements you should establish the price according to how much it takes to create them. And do not forget that these prices are perfect for wholesale quantities, but if one of your clients want to purchase by piece you should establish new tags.