Feasibility study of the project of selling customized gifts.. Guaranteed profit opportunities
The business of selling customized gifts is one of the successful investment ideas, and if some gift shops do not work well, it is because of a lack of good planning.
When planning to start this venture do an analysis of the market, competitors, demographics and where the shop will be located, it is important to know who you serve, if they have money to spend in a gift shop, how many other gift shops in the area and what they sell, put in consider whether there are major retailers nearby; Where the buyer may first think of going there to get a gift.
Retail, especially in the gift sector, has become more competitive than ever, and with the evolution of the world it is possible to differentiate yourself and win more customers without competing on price or products.
Consumer Awareness and Attitudes
An important step to take when it comes to starting a business is to research well into consumer trends and how they may change in light of developments in the global market, for example: the consumer is always focused Al-Saudi is focused on quality and is constantly looking for modern and innovative things.
In order to win more customers, it is also necessary to look at other shifts, for example: cultural influences; To understand the ways in which the consumer has changed, and over the past ten years the proportion of the population with university degrees has increased; As a result, we are moving towards a more educated consumer base with different spending patterns.
Why are gifts considered profitable?
Business in the field of selling gifts is not only a great idea, but it can also be implemented without the need for more hard efforts, and in this regard, the results of some studies indicate that Personalized gifts are a core human trend.
Some dedicated gift shops may try to charge exorbitant prices for cheap products; So you need to make sure that you do not lose new customers because of the prices, and one of the best ways to do this is to offer an innovative deal that matches the tastes of customers or consumers, and you can also give discounts on many of the products that you offer.
Global Gift Market
Some reports indicate that the value of the global gift market amounted to more than $633 billion in 2020, and the size of the retail gift market is expected to grow by $12.6 billion during the period. from 2021 to 2025; This market is progressing at a compound annual growth rate of around 17.4% over the forecast period.
In light of the exceptional circumstances the world is going through as a result of the outbreak of the “Covid-19” pandemic in all parts of the world, the demand for gift products has grown significantly, and perhaps the reason for this is the limited use of cash payments in the market, and because consumers have increased their use of More efficient and secure payments for online shopping.
The project of selling customized gifts
When you take an insight into all of the above, you will notice that the project of selling customized gifts is one of the most important investment opportunities for success and profit, and one of the things worth noting here also in this project is that it gives you the real opportunity to be Creative as well as personalized gifts are always in demand on all occasions.
The idea of the project is to open a shop equipped with the latest facilities and decorations to sell customized gifts according to the customers’ requests. It is also possible to expand the scope of the project by providing additional services such as: packaging and shipping, which increases profit opportunities. It is remarkable in this project that it does not It needs high investment costs to get started, and all it needs is to use creativity and innovation in order to be distinguished from all competitors.
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Selling customized gifts is a unique business. Because it is a great opportunity to achieve more profits if it is implemented properly and choose the ideal location that contains a large population movement, in addition to that, the project targets almost all segments of society.
If you want to start your first project in the world of entrepreneurship with greater chances of success, this business may be a great option for you.
Feasibility study of the sale of customized gifts
If you are passionate and creative in the fields of making customized gifts that suit most tastes, why not start your own business to expand your income range? If you are really thinking about it, the "entrepreneurs" site presents in the following lines a feasibility study for the project of selling customized gifts, and here are the details:
First: Market Research and Competitors
If you are serious about planning to start a personalized gift business, first realize that implementing your idea without understanding your competitors is risky. Market research involves gathering and analyzing information about the market, including customers and competitors; Therefore, it is necessary to allocate sufficient time to study the market and competitors in the field of selling personalized gifts; To avoid wasting time and money.
By looking at your biggest competitors you can see how your products stack up and what kind of threat they pose to your business, competitive research also reveals market trends that could have been missed, plus the ability to identify and predict trends is a huge asset to manufacture and sell customized gifts; This contributes to improving customer value proposition.
However, in light of the rapid development witnessed by the Internet, especially social networking sites, the process of studying the market and competitors has become easier than ever before. Where you can conduct research through these sites to find out how your competitors think and what kind of products they offer to customers, which gives you the real opportunity to overcome all competitors.
Second: Defining the Target Market
Of course, understanding the target market is different from just making more expectations and assumptions. Where everything is realistic once you know the needs and motivations of the target audience, and demographic characteristics such as: age, gender, educational level, occupation and family status can help you determine what your customers need and what they want to spend, in addition to that you must also think about the identity of your customers as people: what Is their lifestyle? What do they enjoy doing in their spare time? The answers to these questions can certainly help you understand your target market on a deeper level.
Assessing your existing customers and identifying common characteristics they share is a great way to find out who could be a potential customer for you, ask them what they like about your store, how they use your products, how they heard about you and what they like about buying from you, the more you know about the buying preferences of your existing customers You'll be better able to target your marketing to potential customers who have similar needs, preferences, and characteristics.
As for customized gifts, your project can target almost all segments of society, but this requires a lot of effort and new products that contain all the specifications that meet their desires, which guarantees you gaining more potential customers.
Third: Create a perfect plan for your business
Whether you are a seasoned entrepreneur or just starting a custom gift business, orders come to you very quickly, starting from tasks to doing a lot of work to meet customer demand for gift products In this rush, writing a good business plan often seems like a waste of time, but nearly 85% of successful business owners recommend writing a business plan before starting any business.
The idea of writing a perfect business plan is all about creating a strong foundation for your custom gift business, keep in mind that without a perfect business plan it will be much more difficult to track your progress, make adjustments, and have historical information readily available for your reference when making difficult decisions, so you can That being said, creating a perfect business plan ensures you have a roadmap that outlines not only where you plan to go but where you've already been.
In the event that you lack the necessary financing to start your business, you will think carefully about the many ways to provide the financing that your business needs, and of course investors and loan providers always need to know that you have a strong understanding of your business path, that you have a strong and effective business strategy, and that your business can be Financially stable, this means having the right financial statements, forecasts, and an easy-to-understand explanation of your business model.
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Fourth: Building Your Brand
Since the brand is most people's first impression of your business and there is a lot of potential to attract a large number of customers, then a well-thought-out branding strategy helps in providing more confidence from By existing and potential clients.
When you have a professional, first-class brand, creating an ad campaign is much easier. Because you have already selected the visual elements, colors, name, logo and other things that most closely match the nature and quality of the products that you offer through your own business.
Fifth: Establishing a Legal Entity for Your Business
The idea of creating or establishing a legal entity is that your gift business will have legal rights and responsibilities, including tax returns, in addition to becoming a business that has the right In concluding contracts and agreements, and by establishing a legal entity for your business, you can borrow and pay off debts.
And if you plan well to expand your business in the gift project, know that without a legal entity there is no line between the financial resources of your business and personal responsibilities, and this means that if your store is sued or gets into debt, you may be personally responsible for That, and your personal assets could be confiscated to pay off the debt, or you could be sued personally and face more consequences.
Sixth: Issuing Permits and Licenses
Of course, the documents required to obtain the permits and licenses required to start operating a gift-selling project differ in different regions and countries, and in this important step you will need to visit the Chamber of Commerce or the competent authorities in your state to obtain accurate information regarding regulations for such work.
Applying for a business license for your own business ensures that new infrastructure, plans and policies are in line with state regulations. In most cases, customers are wary of new stores and want to be sure of the legitimacy and reliability of the business; Therefore, it is necessary to communicate with the competent authorities and officials to help you obtain the necessary licenses, and this can be achieved through the assistance of your legal advisor.
Seventh: Choose the Perfect Location
The ideal location for carrying out your custom gift project should include high traffic, proximity to similar businesses, parking percentages, local population demographics, ease of access, all These things must be present in the place you choose to implement your project.
You would probably rent the space for your custom gift shop instead of buying it. Of course, not many start-up entrepreneurs have the money to purchase the space required to run the business. So you must determine how much rent you will be financially able to pay each month and the expected income and other expenses.
Stores always tend to be more inclined to areas where customers frequently flock to; Where you can establish a custom gift shop in one of the main streets of the city, and the area is preferably not less than 30 square meters.
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Eighth: Workspace Infrastructure
After choosing the ideal location to start your custom gift shop, the next step is to prepare the infrastructure and qualify your workspace for immediate operation and start offering the products and services that you want to sell to customers. .
The rehabilitation plan includes installing some attractive decorations, painting all walls with suitable colors, installing ceramic tiles on the floors, in addition to installing high-quality lighting systems. What helps customers see the gifts on offer, in short: you need to invest well in equipping and rehabilitating the premises you choose to start your store.
Ninth: Equipment and Requirements
| Numbering | Equipment and Requirements | Usage |
| 1 | < td>Administrative OfficeCustomized gift shop needs to be equipped with an administrative office; So that the project manager can manage the store and follow up on buying and selling operations and all calculations, in addition to providing a number of chairs for customers to sit on. | |
| 2 | a computer | A computer is an important must-have in a personalized gift shop; It can be used to archive products and record purchases made throughout the day by customers. |
| 3 | Internal Communications Network | It is a good idea to provide your gift shop with a strong communications network, including high speed internet. Where it is used to manage and follow up your project accounts on social media, and to carry out some marketing work, with the ability to communicate with customers and respond to their inquiries. |
| 4 | Surveillance cameras | The store must be provided with a network of surveillance cameras inside and outside so that the project's resources are not exposed to theft. These cameras can also be used to start selling operations when you are not inside the store. | 5 | Glass Showcase | Definitely a custom gift shop needs a securit glass showcase; It is used to display new gift products, some accessories, and many other products to attract people's attention on the street. |
| 6 | Glass showcase | The store needs to provide a glass window to be used to display all kinds of modern gifts, which are in constant demand. This is to draw the attention of people on the street and urge them to make purchases. |
| 7 | Air Conditioning | It is necessary to install air conditioners in a store Selling gifts to distribute cool air in all corners of the place. |
| 8 | Medium sized display | Medium sized display is always preferred size to be attached to surveillance cameras; To be able to see the movement in and out of the store, it is also used to check the cameras from time to time. |
| 9 | Wooden Shelves | It is a good idea to install some wooden shelves on the walls inside the personalized gift shop; It is used to display, distribute and arrange products attractively; Which facilitates the process of accessing the products that the customer needs. |
| 10 | Packaging Tools | Packaging tools are among the necessities that must be provided in a custom gift shop; It includes bags with the name of the project, phone numbers and address of different sizes written on them, and they are used to place products and accessories. |
| 11 | Automatic payment machine | An automatic payment machine must be provided inside the store to receive payments from customers after completing the purchase process, especially since some people prefer physical transactions through Visa and an automatic payment machine. |
| 12 | < td>Luminous billboardThe luminous billboard is one of the most reliable ways to promote the store. Therefore, you must install an illuminated billboard on the front of the store that sells virtual reality accessories, adding the name of the project and special means of communication. | |
| 13 | Invoice Machine | The billing machine is a must-have in a virtual reality accessories store. It is used to issue invoices to customers after completing purchases.
Tenth: Determine the right supplier
It is not an exaggeration if we say that the success of a customized gift project depends greatly on the quality of the materials used in the manufacture of the gifts that the customer requests, in more clear terms: the quality of your products will be the cornerstone on which Your store's reputation, and therefore its customer base, is based on it.
Certainly there are a number of factories and showrooms that provide the necessary materials needed by your store. You can pay a direct visit to these facilities to examine the materials and ensure their quality. This tour helps you make the right decision regarding choosing the appropriate supplier.
Eleventh: Create Your Own Gift Shop Website
Creating a website for your personalized gift project is one of the most important steps that help your business stay competitive. Having a website means that Customers are always able to find you at any time and place.
Even outside business hours, your website continues to find new customers. In short: Your website provides an easy way to deliver information to your customers and target audience. You can list business hours and contact information, display pictures of your site or products, and use contact forms to facilitate inquiries. On leads or feedback from existing clients, you can also upload promotional videos to engage your customers and sell your business in a cost effective way.
You'll also need search engine marketing, social media marketing, and Google Ads, all of which are marketing strategies you can use to get more customers on your website each month.
Twelfth: Manpower
Surprisingly, the business of selling customized gifts does not need a large workforce like other businesses; Your project team could include: “a marketing manager, 3 employees who have experience in making customized gifts that match customer tastes.”
When choosing the work team, you must take into account the factor of experience. As for the management of the company, it is preferable that the owner of the project assume the responsibility of the management to follow up on the performance and review the accounts and securities related to the project.
Thirteenth: Store Marketing
Existing customers are generally more trusted buyers than new customers. When you increase up-selling and other marketing offers, existing customers are more likely to buy new products.
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In the context of marketing strategy, the number one tool that can be relied upon in effective marketing plans for a personalized gift shop is a well-designed website; And since your online presence is your biggest marketing asset, you need to do it right. Make sure you avoid common website mistakes. You'll also need to choose the right domain name, create an attractive user interface, and optimize the site for search engines.
You can also create an active social media presence on platforms such as: Facebook, Twitter, Instagram, LinkedIn, Snapchat, etc. Use it to promote the gift products you offer through your store.
Fourteenth: Expected Cost
| numbering | equipment and requirements | expected cost |
| 1 | Branding Design | The cost of a custom gift shop branding design ranges from $285 to $320. |
| 2 | Establish a Legal Entity | The cost of establishing a legal entity for a custom gift business ranges from $550 to $640. |
| 3 | Permits and licenses | The cost of legal procedures to obtain the necessary licenses for a personalized gift business ranges from $450 to $470. |
| 4 | Rent for store space | The cost of renting a 30 square meter custom gift shop premises in a major city ranges from $520 to $560 per month. |
| 5 | Administrative Office | The cost of purchasing an administrative office supported by a group of chairs ranges from 340 to 375 dollars. |
| 6 | Computer | The cost of purchasing a computer with high capabilities ranges from 260 to 295 dollars. |
| 7 | Internal communications network | The cost of installing an internal communications network, including the Internet, ranges from $170 to $210 per month. |
| 8 | Surveillance cameras | The cost of purchasing and installing a network of security cameras inside and outside the gift shop ranges from $290 to $325. |
| 9 | Glass Showcase | |
| 9 td> | The cost of purchasing and installing a glass showcase for a gift shop ranges from $430 to $480. | |
| 10 | Glass showcase | The cost of purchasing a medium-sized glass display window ranges from $240 to $265. |
| 11 | Air conditioners | The cost of purchasing and installing An electric air conditioner ranges from $430 to $535. |
| 12 | Medium-sized display | The cost of purchasing a “Xiaomi LED” screen ranges Chinese 43-inch European version from $ 260 to $ 290. |
| 13 | Wooden shelves | The cost of purchasing and installing wooden shelves in a store ranges Custom gifts sell from $460 to $515. |
| 14 | Wrapping Tools | Wrapping items, including plastic bags and ribbons, cost to purchase Funds and other $95 to $115 per month. |
| 15 | Automatic Payment Machine | The cost of purchasing an automatic payment machine ranges from $170 to $185. |
| 16 | Luminous Billboard | The cost of purchasing and installing an illuminated billboard ranges from $175 to $190. |
| 17 | Invoice Machine | The cost of an Epson invoice and label machine ranges from $173 to $185. |
| 18 | Website Design | The cost of a custom gift shop website design ranges from $1,200 to $1,350. |
| 19 | Other equipment | The cost of raising the efficiency of the infrastructure of the gift-selling project headquarters, such as: painting the walls and installing ceramics on the floors, in addition to installing some attractive decorations and other equipment, From 2650 to 2800 dollars. |
| 20 | Materials | Only the project owner has the ability to determine the costs of materials and gift products that It is presented through the gift shop according to the available capabilities and budget, however, about $ 15,000 can be allocated as the first start-up budget. |
| 21 | Manpower | The cost of wages for the workforce in the gift-selling project, who are: “a marketing manager and 2 employees,” ranges from 750 to 800 dollars per month. |
| 22 | Marketing Campaigns | The cost of marketing campaigns for a custom gift project ranges from $450 to $520 per month. |
Fifteenth: Estimated Total Cost
| 1 | Expected Total Cost | - Variable costs: ranges from $1,985 to $2,250 per month. - Fixed costs: It ranges from approximately $8,363 to $10,620. |
In the context of the study, we confirm that the aforementioned figures in the above table that relate to the costs of the details of the feasibility study for the project of selling customized gifts are recent and keep pace with the year 2021 and are based on official sources, and it is possible to refer to some famous electronic stores, such as: Alibaba; To review some prices of the equipment and requirements necessary for the project, and they may increase or decrease according to the environment or the geographical location in which the project will be established.
Sixteenth: Expected Profits of the Project
Considering the growth prospects and the changes in the global gift market, the custom gifts project can achieve its goals of achieving the expected profits during the first year of launching the project.
According to the successful entrepreneurs in the customized gift industry and careful examination of all the forecasts of the growth of the global gift market, we have come up with great profit opportunities that can be achieved if the project is implemented according to the aforementioned steps and guidelines; Where the following profits can be achieved:
The thing worth noting here is that these profits are generated after paying bills, labor wages, and monthly marketing costs. More profits can be reached if you expand your business in the personalized gift shop.
Seventeenth: Important Factors for Project Success
Also read:
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