It is a common practice in companies worldwide that once they have reached a certain level of operations, they start investing in their PR activities. These days PR is not only restricted to organize an event or a conference, it has become more than that. Companies have started distributing different gifts or giveaways which includes T-shirts, mugs, pens, clocks, card holders and a number of different things with their logo or brand name imprinted on them. Multinationals and local companies both have started this practice. The IBEX team has found out that the supply of these giveaways is a profitable business.
Starting the Business
Corporate Giveaways business is totally based on the contacts or public relations of the person. It is wise to start the business by getting a small order or a project of less than a million rupees and then increase it gradually. Setting up a proper office is not a necessity in this business as the businessman personally has to go to the clients in order to get projects.
Initially to make the profile of the company, the entrepreneur can get projects from his personal contacts and then increase it by hiring a person who can deal with the vendors at the backend. This employee should also be responsible for getting the new clients by marketing the business.
In this business, a large number of employees are not needed. Only 1 or 2 persons can easily deal with all the clients and the same number are required to deal with the vendors which includes printing presses, stationary shops, factories and trading, in case if you are importing the products from some other country. Number of employees depend on the size of the business and the number of projects you get every week or month. In the initial stages, only a single person will be enough to handle the business.
Dealing with Vendors
The backbone of this business is your contacts with the vendors. This does not depend on a single vendor but includes as many as you can. You should properly research the market so that you can acquire inexpensive items. You will also have to travel to other cities for the purchase of various items. Businessmen based in Islamabad usually go to Lahore due to the price difference for purchasing of many items which also includes the printing on the giveaways. If you are based in Lahore or Karachi, you won’t need to move much from your city.
There is a single vendor or a main supplier of every kind of object in Pakistan based in Karachi or Lahore who imports variety of products from China in bulk and then sells to other vendors who deal with the clients.
Quality of the Products
The quality requirement varies from client to client. Some clients require a high quality in the products and for that you have to find the best possible items without compromising on their quality. Many companies have started importing products like T Shirts from China because of their great quality.
With each passing day the competition in this business is getting higher but there is still a huge capacity for the new investors. Every major company is looking for a vendor who can offer giveaways at the cheapest rates. It all depends on your contacts with the vendors at the back end and how well you know the market from where you can make purchases at minimum prices.
Getting the Clients
Getting projects from clients is not a difficult task. Apart from your personal contacts, you can easily get a project if you have properly done your homework. You can make your profile by having a list of projects which will help you to get more work. You can easily get projects if you have vendors who can provide you with all the items at cheapest possible rates without compromising on the quality. If you have easily managed to get 2 or 3 major companies like a bank or telecom company, you will be able to get enough work to expand your business. Once you start getting more projects, you will have to increase your work force.
The profit margins in this business are very high. An entrepreneur can easily earn a minimum margin of 20% from each project. Few years back, businessmen used to earn even 100% profit but these days competition has increased and profit margins of this business have reduced but even a 20% profit is better than many businesses in these times. A project worth 1 million is considered to be a small project but even from this small project you can easily earn Rs. 2 lac. Once the business is established you can get projects worth tens of millions every month, so the monthly income from this business can be Rs 2 to 5 lac minimum.
The profit also depends on the number of projects you get every month and how you manage your expenditures. As this is a project based business so there is no breakeven time. Every project has its own breakeven time.