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Home > Start a franchise > Franchise guides

Selling gift cards

A highly flexible business with comparatively small overheads

  • Internet franchises
  • Plumbing franchise
  • Vending machine franchise
  • Interior design
  • Hummingbird Bakery: Tarek Malouf

  • How to set your start-up employees up for success

  • The Secret Entrepreneur: Work life balance

  • How to start a... Market stall

What is it?
Costs?

What can I earn?
Tips for success

 

With most clients paying you in straight from the till, your business could be as much as 90% cash. As such one temptation is to just dip into funds when you need a £10 note for your shopping. Guard against this, says Eleanor Johnson, "£10 here and £10 there could leave you without the money to pay for your next stock."

Also make sure you visit the retailer often - not doing so can be a problem for two reasons. Obviously a half-empty stand looks bad but also good service is very important. Just as you don't want a client to be late in paying, if you are late merchandising the shop and in collecting monies, the retailer is under pressure with extra cash in the till.

There are other providers about - as the three here demonstrate - and your client will have nothing to lose by giving your shelf space to someone else.

Another reason to visit often is that shops can disappear overnight. Watch the shelves for dwindling stock or lack of attention in the presentation. You have to run the risk with sale or return but providing you keep in contact with your clients you shouldn't experience problems.

But this doesn't mean you should stay with clients no matter what. If cards aren't selling in an otherwise apparently prosperous business then withdraw from it. There is no point in wasting your time or your stock on an outlet that won't see a satisfactory return.

The number of outlets you serve will probably fluctuate regularly - this is normal as new shops open and others close. But that is why you need to be focused on going out each day and keeping the number up. The key to the business is persistence - and of course to enjoy it.

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