Although starting (or expanding) a gift basket business requires a smaller amount of capital than many other types of businesses, it still can be a sizable sum. Even if you plan to operate your gift basket business from home on a seasonal, part-time basis, you will still need to have enough capital to pay for your "start-up costs", to purchase inventory, possibly to do some advertising and to process the orders once they are received. Like countless struggling entrepreneurs before you, the financing of your venture may come from a variety of sources including your own personal savings, family & friends (also known as "Love Money"), business partners, investors and banks & other lenders. Most small businesses generally, and gift basket businesses specifically, are started with a combination of several of these sources.

Without a doubt, the easiest and least stressful way to finance a gift basket business start-up is to use your own personal savings. If you have the personal resources to be able to start and operate a gift basket business until it becomes profitable, you are certainly in an enviable position. If you can "start small" and keep your initial costs as low as possible, this may be possible. If, however, your Business Plan indicates that you will require capital above and beyond what you are able to invest personally, you will need to find alternative sources of funding.

With many start-up businesses (and gift basket businesses are no exception!), the struggling entrepreneur often must turn to his own family and friends for assistance with financing. Often, family and friends know the person(s) starting the business and have sufficient confidence in them to "invest" in them personally. If you are in this situation, we recommend, in the strongest possible manner, that you complete a detailed Business Plan (see our outline for completing a Gift Basket Business Plan). By so doing, you will have an infinitely better chance of being successful in your gift basket business and be able to re-pay any loans that you borrow from your family and friends.