How To Start Greeting Card Business

Birthdays, Christmas, Easter, Valentine'due south, graduation — the listing of events that telephone call for greeting cards is near endless, which is why the US greeting carte du jour industry is worth more than $four billion. If yous're a graphic designer or artist, or even if you lot but have a creative eye and a flair for words, you could commencement a greeting card business organization and bring a scrap more joy into people's lives while grabbing a share of that market.

Yous could even start from home with just a small-scale investment. But first you'll need to understand the greeting card business and how to launch a company. Fortunately, you'll find everything y'all need in this footstep-by-stride guide, creatively designed to put you on a path to entrepreneurial success.

Step 1: Decide if the Business organization Is Right for You

Pros and cons

Starting a greeting card business has pros and cons to consider before deciding if information technology's right for you.

Pros

Share the Beloved – Create cards that will brand someone'southward solar day
Flexibility – Work from habitation on your time
Good Money – High markups on cards

Cons

Saturated Market – Compete with big players like American Greetings and Authentication
Skills Needed – Artistic and unique designs are necessary to stand out

Greeting card industry trends

Manufacture size and growth

Manufacture size and past growth – The US greeting card industry is worth $4.1 billion. Information technology has declined slightly over the terminal 5 years but however offers a huge opportunity, every bit e-cards grew an estimated 24% in 2020.((https://world wide web.nytimes.com/2021/06/19/business/e-cards-pandemic.html))
Growth forecast – The traditional greeting card manufacture is expected to remain stagnant for the side by side 5 years, but online greeting cards are expected to encounter potent growth.((https://www.ibisworld.com/industry-statistics/market-size/greeting-cards-other-publishing-united-states/))
Number of businesses – In 2022, 568 greeting card businesses were operating in the Us.((https://www.ibisworld.com/industry-statistics/number-of-businesses/greeting-cards-other-publishing-united-states/))
Number of people employed – In 2022, the greeting card industry employed nineteen,335 people in the US.((https://www.ibisworld.com/manufacture-statistics/employment/greeting-cards-other-publishing-united-states/))

Trends and challenges

Trends in the greeting card industry include:

Eco-friendly greeting cards made with recycled materials or carbon-neutral paper are in demand. This presents an opportunity for a greeting card business organisation to stand out.
Handmade and personalized greeting cards are too popular, creating another opportunity to target a more niche market.

Challenges in the greeting carte industry include:

Online greeting cards are growing in demand and have become a billion-dollar industry. This means contest for physical greeting cards, but information technology also could be an opportunity for a tech-savvy entrepreneur.
The ascension cost of the materials used to make greeting cards is cutting into the profit margins of greeting bill of fare businesses.

Demand hotspots

Most popular states – The most popular states for craft artists are Oregon, California, and Texas.((https://www.zippia.com/craft-artist-jobs/all-time-states/))
Least pop states – The least pop states for craft artists are Colorado, Vermont, and Missouri.

What kind of people work in greeting cards?

Gender – 72.1% of arts and crafts artists are female, while 23.5% are male.((https://www.zippia.com/arts and crafts-artist-jobs/demographics/))
Boilerplate level of education – The average craft creative person has a bachelor'southward degree.
Average age – The average craft artist in the The states is 40.vi years former.

How much does it cost to start a greeting menu business organisation?

Startup costs for a greeting card business organization range from $4,000 to $eight,000. Costs include a computer and laser printer, design software, and newspaper or other materials to make greeting cards.

Online learning platforms like Skillshare and Udemy offer many greeting card courses if you're looking to brush up on your skills and market trends.

Commencement-upward Costs	Ballpark Range	Average
Setting up a business proper name and corporation	$150 - $200	$175
Business licenses and permits	$100 - $300	$200
Insurance	$100-$300	$200
Business cards and brochures	$200 - $300	$250
Website setup	$1,000 - $3,000	$ii,000
Newspaper, ink, design software	$500 - $one,000	$750
Reckoner and light amplification by stimulated emission of radiation jet printer	$2,000 - $3,000	$2,500
Total	$four,050 - $8,100	$vi,075

How much can you lot earn from a greeting carte du jour business?

The average toll of a greeting carte is well-nigh $5. Your cost to brand each bill of fare will be almost $.fifty. The $five price is when selling directly to consumers. You could also offer your cards to retail outlets at wholesale prices of around $2.50. Your profit margin if you sell directly to consumers online is 90%.

In your first year or ii, you could work from home and sell 30 cards a mean solar day, bringing in nearly $55,000 in almanac revenue. This would mean $50,000 in profit, bold that 90% margin. As your brand gains recognition and you become repeat customers, sales could climb to 100 cards a twenty-four hours. At this stage, you'd hire a commercial space and hire staff, reducing your profit margin to around 40%. With annual revenue of more than $180,000, yous'd make a tidy profit of near $73,000.

What barriers to entry are there?

There are a few barriers to entry for a greeting carte du jour business. Your biggest challenges volition exist:

Competition from American Greetings and Authentication, equally well as online greeting cards
Having excellent artistic skills to create unique designs

Related Business concern Ideas

If you're still not certain whether this business idea is the right choice for you, here are some related business opportunities to help you on your path to entrepreneurial success.

Footstep 2: Strop Your Thought

Now that y'all know what's involved in starting a greeting menu business organisation, information technology'south a good idea to hone your concept in preparation to enter a competitive market.

Why? Place an opportunity

Research greeting card businesses in your expanse and online to examine their products, price points, and what sells best. Y'all're looking for a market gap to fill. For case, maybe the market place is missing a handmade card business, or a quirky message greeting card business.

You lot might consider targeting a niche market by specializing in a certain aspect of your industry, such equally Christmas cards or Valentine's Solar day cards.

This could jumpstart your discussion-of-mouth marketing and concenter clients correct away.

What? Determine your products or services

You'll need to decide a theme for your cards, such equally humor, or if you want to specialize in something like birthday cards or offer a diverseness of cards. Then, go alee and create your designs.

How much should you charge for greeting cards?

The average price of greeting cards is $5. Your costs will exist limited to the price to make the cards. You should aim for a profit margin of nearly 90%.

In one case you know your costs, you tin can utilise this Pace Past Step turn a profit margin figurer to determine your mark-upwardly and final price points. Remember, the prices yous apply at launch should be subject to modify if warranted by the market.

Who? Place your target marketplace

If you sell directly to consumers, your target marketplace will be broad. You should spread out your marketing to include sites like TikTok, Instagram, and Facebook. If yous sell wholesale to retail outlets, you tin can detect business owners on LinkedIn, or you can telephone call them directly.

Where? Cull your business premises

In the early stages, you may want to run your business from home to continue costs depression. Only as your business concern grows, y'all'll likely need to hire workers for various roles and may need to rent out a production facility or fifty-fifty a store. You lot tin can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

When choosing a commercial space, you may desire to follow these rules of thumb:

Central location accessible via public transport
Ventilated and spacious, with good natural light
Flexible lease that can exist extended as your business grows
Ready-to-use infinite with no major renovations or repairs needed

Pace 3: Brainstorm a Business Name

Your business proper name is your business identity, so choose 1 that encapsulates your objectives, services, and mission in but a few words. You probably want a name that'due south short and easy to remember, since much of your business organisation, and your initial business organisation in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business organisation name:

Short, unique, and catchy names tend to stand up out
Names that are easy to say and spell tend to do improve
Name should be relevant to your production or service offerings
Ask effectually — family, friends, colleagues, social media — for suggestions
Including keywords, such as "greeting cards" or "altogether cards", boosts SEO
Name should permit for expansion, for ex: "Jim's Bakery" over "Jim's Cookies"
Avert location-based names that might hinder future expansion
Use online tools similar the Pace past Step Business Name Generator. Just type in a few keywords and hit "generate" and you'll take dozens of suggestions at your fingertips.

In one case you've got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and cheque the availability of related domain names using our Domain Proper name Search tool. Using ".com" or ".org" sharply increases credibility, so it's best to focus on these.

Finally, brand your selection among the names that pass this screening and go ahead with domain registration and social media account creation. Your business proper noun is i of the primal differentiators that sets your business autonomously. Once you option your company name, and offset with the branding, it is hard to change the business name. Therefore, information technology's important to carefully consider your choice before you commencement a business concern entity.

Step four: Create a Business concern Plan

Every business needs a program. This will office as a guidebook to take your startup through the launch procedure and maintain focus on your key goals. A business plan too enables potential partners and investors to better understand your company and its vision:

Executive Summary: Brief overview of the entire business program; should be written after the program is complete.
Business organization Overview: Overview of the company, vision, mission, ownership, and corporate goals.
Product and Services: Describe your offerings in detail.
Market Analysis: Assess marketplace trends such equally variations in demand and prospects for growth, and do a SWOT analysis.
Competitive Analysis: Clarify main competitors, assessing their strengths and weaknesses, and create a list of the advantages of your services.
Sales and Marketing: Examine your companies' unique selling propositions (USPs) and develop sales, marketing, and promotional strategies.
Direction Squad: Overview of management squad, detailing their roles and professional groundwork, forth with a corporate hierarchy.
Operations Programme: Your visitor's operational plan includes procurement, office location, key assets and equipment, and other logistical details.
Financial Plan: 3 years of financial planning, including startup costs, break-even analysis, profit and loss estimates, cash period, and balance sheet.
Appendix: Include any additional financial or business organisation-related documents.

If yous've never created a business concern programme, information technology can exist an intimidating task. You might consider hiring a business plan specialist at Fiverr to create a top-notch concern program for you.

Step 5: Register Your Business organisation

Registering your business is an absolutely crucial step — information technology'due south the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business upwardly and running.

Plus, registration is exciting because it makes the unabridged process official. Once information technology's consummate, y'all'll have your own concern!

Choose where to register your visitor

Your business location is of import considering it can affect taxes, legal requirements, and revenue. Almost people will annals their business in the state where they live, but if you're planning to expand, you lot might consider looking elsewhere, as some states could offer existent advantages when information technology comes to greeting card businesses.

If you're willing to move, yous could really maximize your business organisation! Keep in heed, it's relatively piece of cake to transfer your business to some other country.

Cull your business structure

Business organisation entities come in several varieties, each with its pros and cons. The legal construction you choose for your greeting card business will shape your taxes, personal liability, and concern registration requirements, and then cull wisely.

Here are the main options:

Sole Proprietorship – The most common structure for pocket-size businesses makes no legal distinction between visitor and owner. All income goes to the owner, who's also liable for whatever debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax render.
General Partnership – Similar to a sole proprietorship, only for two or more people. Again, owners continue the profits and are liable for losses. The partners pay taxes on their share of business organisation income on their personal taxation returns.
Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Over again, the owners are not personally liable for debts.
C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners accept profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
S Corp – An South-Corporation refers to the taxation classification of the business but is non a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an Southward-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as information technology offers liability protection and pass-through taxation while existence simpler to grade than a corporation. You can grade an LLC in every bit piffling as five minutes using ZenBusiness'southward online LLC germination service. They volition bank check that your business proper noun is bachelor earlier filing, submit your articles of organization, and answer any questions you might take.

Footstep vi: Register for Taxes

The final step earlier you're able to pay taxes is getting an Employer Identification Number, or EIN. You tin file for your EIN online or by post or fax: visit the IRS website to learn more than. Keep in mind, if you've called to be a sole proprietorship you can simply employ your social security number as your EIN.

Once you take your EIN, you'll demand to choose your revenue enhancement year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal yr, a 12-month menstruum that can start in whatever calendar month. This will determine your tax cycle, while your business concern structure will determine which taxes you'll pay.

It is important to consult an accountant or other professional to assistance you lot with your taxes to ensure yous're completing them correctly.

Step 7: Fund your Business concern

Securing financing is your side by side step and there are plenty of ways to raise capital:

Banking company loans: This is the most common method just getting approved requires a stone-solid business program and strong credit history.
SBA-guaranteed loans: The Small Business Administration can act every bit guarantor, helping gain that elusive bank blessing via an SBA-guaranteed loan.
Government grants: A handful of fiscal assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you lot.
Friends and Family: Achieve out to friends and family unit to provide a business loan or investment in your concept. It's a skillful idea to accept legal advice when doing so because SEC regulations apply.
Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
Personal: Cocky-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a greeting card business organisation. Y'all might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Licenses/Permits

Starting a greeting card business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business equally (DBA), health licenses and permits from the Occupational Rubber and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual backdrop, as well as industry-specific licenses and permits.

You lot may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the advisable person to learn more than.

You could also check this SBA guide for your state's requirements, but we recommend using MyCorporation'southward Business License Compliance Parcel. They will inquiry the exact forms you need for your business and state and provide them to ensure y'all're fully compliant.

This is not a stride to be taken lightly, every bit declining to comply with legal requirements tin result in hefty penalties.

If you experience overwhelmed by this stride or don't know how to brainstorm, information technology might exist a good idea to hire a professional person to help yous check all the legal boxes.

Read as well: Types of Business organization Licenses and Permits

Step 9: Open up a Business organization Depository financial institution Account

Before you lot beginning making money, you'll need a place to keep information technology, and that requires opening a bank business relationship.

Keeping your business finances separate from your personal business relationship makes it piece of cake to file taxes and track your company's income, so information technology's worth doing even if you're running your greeting card business concern as a sole proprietorship. Opening a business organisation bank account is quite elementary, and similar to opening a personal one. Most major banks offering accounts tailored for businesses — just inquire at your preferred bank to acquire almost their rates and features.

Banks vary in terms of offerings, so it's a practiced idea to examine your options and select the best plan for you. In one case yous choose your bank, bring in your EIN (or Social Security Number if yous make up one's mind on a sole proprietorship), articles of incorporation, and other legal documents and open up your new account.

Step 10: Get Business Insurance

Business insurance is an area that oft gets overlooked yet information technology can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating touch on on your business.

Here are some types of insurance to consider:

General liability: The most comprehensive type of insurance, acting as a catch-all for many concern elements that require coverage. If you become but one kind of insurance, this is it. It even protects against bodily injury and property damage.
Business Property: Provides coverage for your equipment and supplies.
Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has cleaved due to mechanical issues.
Worker'south compensation: Provides compensation to employees injured on the job.
Property: Covers your physical infinite, whether it is a cart, storefront, or office.
Commercial auto: Protection for your visitor-owned vehicle.
Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your piece of work.
Business owner's policy (BOP): This is an insurance plan that acts every bit an all-in-1 insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

Every bit opening twenty-four hours nears, prepare for launch by reviewing and improving some fundamental elements of your business concern.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can exist overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You may want to use industry-specific software, such as Adobe, Canva, or Print Artist, to design your greeting cards.

Accounting

Pop web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero.
If you're unfamiliar with bones accounting, you lot may want to hire a professional person, particularly as you brainstorm. The consequences for filing incorrect tax documents can exist harsh, then accuracy is crucial.

Marketing

Some of your business will come up from the casual online visitors, only you should still invest in digital marketing! Getting the discussion out is peculiarly important for new businesses, as it'll boost customer and brand awareness.

Once your website is up and running, link information technology to your social media accounts and vice versa. Social media is a great tool for promoting your business because you can create engaging posts that annunciate your products:

Facebook: Great platform for paid advertising, allows you lot to target specific demographics, similar men under age 50 in the Cleveland area.
Instagram: Same benefits as Facebook but with dissimilar target audiences.
Website: SEO will help your website appear closer to the peak in relevant search results, a crucial element for increasing sales. Make certain that y'all optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as "Buy At present". This tin sharply increase purchases.
Google and Yelp: For businesses that rely on local clientele, getting listed on Yelp and Google My Business can be crucial to generating awareness and customers.

Kickstart Marketing

Take advantage of your website, social media presence and existent-life activities to increase awareness of your offerings and build your brand. Some suggestions include:

In-Person Sales – Offer your greeting cards at local markets and retail outlets.
Postal service a video – Post a video about your greeting cards. Use humor and maybe information technology will get viral!
Limited edition – Offer a one-time version of your greeting cards.
Start a blog – Start a blog and post regularly. Change up your content and share on multiple sites.
Paid ads on social media – Choose sites that will reach your target market and do targeted ads.
Pay–per-click marketing – Apply Google AdWords to perform better in searches. Inquiry your keywords commencement.
Influencer marketing – Pay people with big social media followings to promote your greeting cards. You tin can notice micro-influencers with smaller followings and lower rates.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of meridian search engines like Google.

You can create your own website using services like WordPress, Wix, or Squarespace. This road is very affordable, but figuring out how to build a website tin be fourth dimension-consuming. If you lack tech-savvy, you tin can hire a web designer or developer to create a custom website for your business organization.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the contest. Customers today are inundated with buying options, so you'll have a real reward if they are able to quickly grasp how your greeting card business concern meets their needs or wishes. It's wise to do all you tin can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer want.

Global pizza chain Domino'south is renowned for its USP: "Hot pizza in xxx minutes or less, guaranteed." Signature USPs for your greeting card business organization could exist:

Handmade cards for any occasion
Custom birthday cards to transport your personal message
Business greeting cards – transport the perfect message to your clients

Networking

You may non like to network or use personal connections for business gain. But your personal and professional person networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a greeting card business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in greeting cards for years and can offering invaluable insight and manufacture connections.

The possibilities are endless, so it'south a good thought to review your personal and professional networks and reach out to those with possible links to or involvement in greeting cards. You lot'll probably generate new customers or find companies with which you could constitute a partnership. Online businesses might also consider affiliate marketing every bit a way to build relationships with potential partners and heave business concern.

Stride 12: Build Your Squad

If you're starting out modest from a home part, you may not need whatsoever employees. Merely as your business grows, you will likely need workers to fill various roles. Potential positions for a greeting card business include:

Greeting Card Designers – design greeting cards
General Managing director – ordering, staff management, bookkeeping
Marketing Lead – SEO strategies, social media

At some point, you lot may need to rent all of these positions or simply a few, depending on the size and needs of your business. You might as well hire multiple workers for a single role or a single worker for multiple roles, again depending on demand.

Gratuitous-of-charge methods to recruit employees include posting ads on popular platforms such every bit LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment choice, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you lot have the resources, you could consider hiring a recruitment bureau to help you find talent.

Footstep 13: Kickoff Making Money!

The greeting card industry is still live and well, even in the face of competition from online greeting cards. If you have creative skills and can make unique cards that will stand out, you can be successful. Turn a profit margins on cards are high, so you can outset from dwelling and grow your business relatively quickly.

Now that y'all've done your homework, it's time to start designing your heart out and commence on your entrepreneurial journey!

Greeting Card Business FAQs

How much does it cost to start a greeting card business organisation?

You can starting time a greeting card business for as petty as $4,000 or even less if you already accept a computer and a laser printer. You'll just need a website and some materials to make the cards.

Can a greeting bill of fare business be profitable?

Aye, a greeting menu business can exist profitable. Cards cost footling to make, and yous can sell them for $5 or more each. As long as y'all can create unique, appealing designs, you tin can exist successful.

Do I demand a license to commencement a greeting carte du jour business from home?

Yous may need various licenses and permits at the state and local levels. Check with your local governments for requirements or visit MyCorporation'south Business organization License Compliance folio.

How much can I charge for my handmade greeting cards?

Greeting card prices boilerplate around $5, but handmade or custom greeting cards can sell for even more. Check the prices of similar cards that are on the market place to make sure that your prices are competitive.

Source: https://stepbystepbusiness.com/business-ideas/start-a-greeting-card-business/