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Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on March 10, 2022
Investment range
$4,050 - $8,100
Revenue potential
$55,000 - $180,000 p.a.
Time to build
0 – 3 months
Profit potential
$50,000 - $73,000 p.a.
Industry trend
Declining
Commitment
Flexible
When starting your greeting card business, keep these essential aspects in mind:
You May Also Wonder:
Can a greeting card business be profitable?
Yes, a greeting card business can be profitable. Cards cost little to make, and you can sell them for $5 or more each. As long as you can create unique, appealing designs, you can be successful.
What greeting cards sell the most?
The greeting cards that sell the most can vary depending on the occasion and market trends. Generally, the most popular types of greeting cards are for birthdays, holidays, and special occasions such as weddings and graduations.
Do greeting cards need copyright?
Yes, greeting cards are subject to copyright laws, and any original artwork, text, or design elements should be properly attributed and credited to the original creators or owners.
How do I publish my own greeting cards?
To publish your own greeting cards, you could begin by developing your designs and creating a portfolio of your work. You could then research different printing options, such as online printing services or local print shops, and consider the cost, quality, and customization options of each.
Who is the largest greeting card company?
The largest greeting card company is Hallmark, followed by American Greetings and Papyrus. However, the greeting card industry has many small to medium-sized businesses, and there are opportunities for independent artists and designers to establish their own niche in the market.
Starting a greeting card business has pros and cons to consider before deciding if it’s right for you.
Trends in the greeting card industry include:
Challenges in the greeting card industry include:
Startup costs for a greeting card business range from $4,000 to $8,000. Costs include a computer and laser printer, design software, and paper 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.
| Start-up Costs | Ballpark Range | Average |
|---|---|---|
| Setting up a business 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 | $2,000 |
| Paper, ink, design software | $500 - $1,000 | $750 |
| Computer and laser jet printer | $2,000 - $3,000 | $2,500 |
| Total | $4,050 - $8,100 | $6,075 |
The average price of a greeting card is about $5. Your cost to make each card will be about $.50. The $5 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 two, you could work from home and sell 30 cards a day, bringing in nearly $55,000 in annual revenue. This would mean $50,000 in profit, assuming that 90% margin. As your brand gains recognition and you get repeat customers, sales could climb to 100 cards a day. At this stage, you’d rent a commercial space and hire staff, reducing your profit margin to around 40%. With annual revenue of more than $180,000, you’d make a tidy profit of nearly $73,000.
There are a few barriers to entry for a greeting card business. Your biggest challenges will be:
Now that you know what’s involved in starting a greeting card business, it’s a good idea to hone your concept in preparation to enter a competitive market.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Research greeting card businesses in your area and online to examine their products, price points, and what sells best. You’re looking for a market gap to fill. For instance, maybe the market is missing a handmade card business, or a quirky message greeting card business.
You might consider targeting a niche market by specializing in a certain aspect of your industry, such as Christmas cards or Valentine’s Day cards.
This could jumpstart your word-of-mouth marketing and attract clients right away.
You’ll need to determine a theme for your cards, such as humor, or if you want to specialize in something like birthday cards or offer a variety of cards. Then, go ahead and create your designs.
The average price of greeting cards is $5. Your costs will be limited to the cost to make the cards. You should aim for a profit margin of about 90%.
Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.
If you sell direct to consumers, your target market will be broad. You should spread out your marketing to include sites like TikTok, Instagram, and Facebook. If you sell wholesale to retail outlets, you can find business owners on LinkedIn, or you can call them directly.
In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a production facility or even a store. You 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 want to follow these rules of thumb:
Here are some ideas for brainstorming your business name:
Once 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 check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Here are the key components of a business plan:
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to greeting card businesses.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your greeting card business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.
Choose Your State
The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist, and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.
Securing financing is your next step and there are plenty of ways to raise capital:
Bank and SBA loans are probably the best option, other than friends and family, for funding a greeting card business. You might also try crowdfunding if you have an innovative concept.
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 as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You 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 appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your greeting card business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be 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.
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.
You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
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 top search engines like Google.
Here are some powerful marketing strategies for your future business:
By implementing these strategies, your greeting card business can effectively attract customers looking for unique, thoughtful cards, establish a loyal customer base, and stand out in the market for its creativity and personal touch.
Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your greeting card business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your greeting card business could be:
You may not like to network or use personal connections for business gain. But your personal and professional 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 offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in greeting cards. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.
If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a greeting card business include:
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
The greeting card industry is still alive 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. Profit margins on cards are high, so you can start from home and grow your business relatively quickly.
Now that you’ve done your homework, it’s time to start designing your heart out and embark on your entrepreneurial journey!
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