It can seem rare when best friends team up, go into business together and build something successful. For Gabi Koshgarian and Catherine Wang, CEO's and Co-Founders of blankbox, this decision came naturally.
Pictured above, are Founders and CEOs, Gabi Koshgarian and Catherine Wang. (Photo Courtesy of blankbox)
They met their senior year of college and remained best friends beyond the walls of College of the Holy Cross. Having both worked in finance and living four blocks apart they figured there was nothing else to do besides getting in to business together. The pair, who specialize in “ready-to-Gift" gift boxes, are using blankbox to create an “elevated experience" for their customers, especially those who love gifting, are looking for something personal, customized and easy to buy. In three simple steps, one would choose a box design, select crinkle cut or tissue paper and wait on its arrival. Whether they want to celebrate the big or little things in life, Koshgarian and Wang hope to provide a resource for them to do so.
This six-month old company provides everything needed to send a “chic and customized gift" minus the gift, of course. These female co-founders sat down with SWAAY to share with us their journey into entrepreneurship, overall goal of blankbox and what they hope for in the future.
Behind the scenes of blankbox...
1. What was the inspiration behind the company's name?
We both love giving gifts, and will put in effort to make our gifts thoughtful. Unfortunately, that makes gifting somewhat of a hassle: toddler-style wrap jobs, “crap! the card!" last minute sprints, and uninspiring department store gift bags when we're really desperate. We wanted to bring a gifting experience to market that essentially solved all the hassles of gifting that we ourselves had experienced.
The name blankbox actually came to one of us in the middle of the night. Not kidding! We had been trying to find a name that captured the essence of our box, which can be used for any occasion from traditional holidays to the little things: “will you be my bridesmaid?", “congrats on your promotion", etc. We kept saying to ourselves, okay it's a ________ box' and filling in the blank, so it finally hit us: blankbox!
2. You explain how you'd both been searching for a better gifting experience prior to launching this company. How does your brand differ from other gifting services? What do other companies lack, that blankbox offers?
Before blankbox, if you wanted to give a gift you had a few options: traditional gift wrap, company branded wrap (think department store gift box), or a pre-curated gift box.
With traditional gift wrap, you get to thoughtfully choose the gifts, but then struggle with creating an elevated presentation and the inconvenience of going out to buy the wrapping supplies (does anyone actually know how to wrap well besides my mother? Also, once you become a mother do you magically gain the skills to wrap? Need to know).
With packaging, like a department store gift bag, you again get to choose the gifts but are limited to that one retailer. Giving a box [that is] branded with a company name doesn't exactly scream personal. Lastly, you have numerous companies offering pre-curated gift boxes that offer the opposite experience: elevated presentation and convenience, but lacking the personal and thoughtful gift choice.
That's where blankbox comes in.
We solve for what each of the above options lack by giving gifters the convenience and elevated presentation of a pre-curated gift box, but with the ability to personalize with any gift they'd like. We provide elevated packaging without 'in-your-face' company branding sent directly to your door. As our customer, all you do is add your gift [and] give! As a plus, with no visible branding on the box (it's on the bottom), they are meant to be kept or reused. To date, we've seen creative reuses like coffee table centerpieces, bookshelf decor, momento boxes, and of course re-gifting.
“blankbox is about so much more than the boxes" - blankbox
(Photo Courtesy of blankbox)
3. What was your journey into entrepreneurship like as best friends? Especially when you were bringing blankbox to life?
You know it's funny; we all hear these warnings about working with or employing friends and family members because feelings can get hurt if it doesn't work out. [Though], for us it's been a great experience, really fun and has made us closer [as] friends.
We have the ability to separate blankbox conversations from friend conversations. We're both very direct people in general, so when either one of us is being tough or pushing back at the other because we disagree on a business decision, it's understood that it's not personal. We've approached things differently several times, but there have been very few times where both of us feel strongly about the same thing.
If we could give one piece of advice to close friends thinking about starting a business together, it would be to make sure you “work the same way". By this I mean, you may have different skill sets to bring to the table, but you both need to have a similar work personality for it to work.
For us, we are both organized and get things done quickly. So, it's never the case where one person doesn't do something they say they would do or where one has to chase the other. This is absolutely key to maintaining our friendship and business relationship without issue.
4. You have a newsletter called, 'the fill.' How does 'the fill' carry out your company's mission and add on to the overall experience?
So excited you noticed! This is a very recent addition to blankbox and we're really excited about it. The point of “the fill' is to be for content what our boxes are for gifting. We want to create elevated content that is actually meaningful to our reader base, gets people excited and relates to their lives.
As blankbox has grown, it's become about so much more than the boxes themselves; people want to hear our story and our experience in the female founder community, and we are consistently asked for advice on what gifts to include in a blankbox (hint: it fits a bottle of wine. just saying). We figured “the fill" was a great place to start with.
For now, we're keeping it short and sweet with a once-per-month release, including founder features, tailored gift guides and behind the scenes blankbox action. We'd love to hear any ideas you or anyone else has about content to include!
'The fill' will contain monthly gift guides. Each [one] will be curated by us, with a fun twist on a holiday happening that month. Any gift on this gift guide will be brands and founders we love and have experienced enough to recommend, and will not be sponsored content. Our website will allow customers to click through to purchase on each brand's site.
Stay tuned for more exciting gift related things in the coming months!
5. What would you say keeps you motivated each day when it comes to running your business and why?
We're constantly networking and meeting new people as part of growing our brand; with that, obviously, comes explaining what blankbox is and who we are over and over! There is NO feeling in the world better than explaining what blankbox is and seeing someone's eyes light up, or hearing them say “Oh my god. That makes so much sense. I needed this…" We have heard “I needed this..." more times than we can count, and it's even more exciting when they become a customer!
We'd be lying if we said every single thing we do for blankbox is fun and exciting; there are definitely more arduous tasks (have you ever cut a massive roll of bubble wrap into the same size pieces for 2 straight hours? Not fun. [And] don't even get us started on taxes). So there are definitely nights we'd so much rather swan dive into bed than do work, but remembering that at the end of the day, we have a product that people understand and that excites them - that validates the work we're doing.
6. Did you face any challenges that almost deterred you from continuing with this business? Do you have any advice that you'd like to share for new entrepreneurs and female founders?
I would say the biggest challenge at first was not knowing how to do some of the things we needed to do: namely, designing the boxes and building our website (on a self-funded budget). We are incredibly lucky to have our designer Madeline, who is not only super talented but one of Gabi's best friends! We must have gone through thousands of designs before finalizing our [three] to launch with, so without Madeline there's no way we could have made this a reality. Same goes for our website designer Sami. He was able to visualize what we wanted, and create it without getting distracted by us constantly barking changes in his ear. Right before launch, we decided we wanted to launch with optional handwritten gift tags, as this would make the packaging even more personal - the only problem was, neither of us can calligraphy. One long social media stalk session later, and we found Brittany, a talent-turned-friend that is indispensable to our product!
Along these lines, there are always going to be skills you don't have going into entrepreneurship. In more traditional jobs, it's okay to get segmented into one skill set or another – as an entrepreneur, you're everything at once. Some of our best advice is to not panic about things you can't do. Look around at your network – friends, family, colleagues, etc. More times than not, there is someone in your inner circle who can teach you what you don't know, or help you get it done. And don't be afraid to ask. Whether it's finance, graphic design, social media, or anything else, there is always someone who knows more than you and will help you if you ask. And if not, Google is your best friend. It's definitely ours!
(Photo Courtesy of blankbox)
7. What do you hope to accomplish with blankbox in the years ahead?
We launched with [three] designs and one size to test the market - in the coming years we would love to grow our collection into more designs and more sizes! We're also exploring design collaboration ideas and would love to collaborate with NYC-based artists, designers, and/or women we admire to create limited edition collections.
On a bigger picture scale, we're so excited to continue expanding blankbox's market share and do our part to preserve the thoughtfulness and personal touch behind gifting, even as everything around us becomes less interpersonal (seamless pizza to our apartment 2 blocks away...check!)
Business entities can be defined as the corporate, tax and legal structures which an organization chooses to officially follow at the time of its official registration with the state authorities. In total, there are fifteen different types of business entities, which would be the following.
- Sole Proprietorship
- General Partnership
- Limited Partnership or LP
- Limited Liability Partnership or LLP
- Limited Liability Limited Partnership or LLLP
- Limited Liability Company or LLC
- Professional LLC
- Professional Corporation
- Nonprofit Organization
- Cooperative Organization
As estates, municipalities and nonprofits do not concern the main topic here, the following discussions will exclude the three.
Importance of the State: The Same Corporate Structure Will Vary from State to State
All organizations must register themselves as entities at the state level in United States, so the rules and regulations governing them differ quite a bit, based on the state in question.
What this means is that a Texas LLC for example will not operate under the same rules and regulations as an LLC registered in New York. Also, an LLC in Texas can have the same name as another company that is registered in a different state, but it's not advisable given how difficult it could become in the future while filing for patents.
To know more about such quirks and step-by-step instructions on how to start an LLC in Texas, visit howtostartanllc.com, and you could get started with the online process immediately. The information and services on the website are not just limited to Texas LLC organizations either, but they have a dedicated page for guiding fresh entrepreneurs through the corporate tax structures in every state.
Sole Proprietorship: Default for Freelancers and Consultants
There is only one owner or head in a sole proprietorship, and that's what makes it ideal for one-man businesses that deal with freelance work and consulting services. Single man sole proprietorships are automatic in nature, therefore, registration with the state is unnecessary.
Sole proprietorships are also suited to a degree for singular teams such as a small construction crew, a group of handymen, or even miniature establishments in retail. Also, this puts the owner's personal financial status at jeopardy.
Due to the fact that a sole proprietorship entity puts all responsibilities for paying taxes and returning loans, it directly jeopardizes the sole proprietor's personal belongings in case of a lawsuit, or even after a failed loan repayment.
This is the main reason why even the most miniature establishments find LLCs to be a better option, but this is not the only reason either. Sole proprietors also find it hard to start their business credit or even get significant business loans.
General Partnership: Equal Responsibilities
The only significant difference between a General Partnership and a Sole Proprietorship is the fact that two or more owners share responsibilities and liabilities equally in a General Partnership, as opposed to there being only one responsible and liable party in the latter. Other than that, they more or less share the same pros and cons.
Registration with the state is not necessary in most cases, and although it still puts the finances of the business owners at risk here, the partnership divides the liability, making it a slightly better option than sole proprietorship for small teams of skilled workers or even small restaurants and such.
Limited Partnership: Active and Investing Partners
A Limited Partnership (LP) has to be registered with a state and whether it has just two or more partners, there are two different types of partners in all LP establishments.
The active partner or the general partner is the one who is responsible and liable for operating the business in its entirety. The silent or investing partner, on the other hand, is the one who invests funds or other resources into the organization. The latter has very limited liability or control over the company's operations.
It's a perfect way for investors to put their money into a sector that they are personally not experienced with, but have access to people who do. From the perspective of the general partners, they have similar responsibilities and liabilities to those in a general partnership.
It's the default strategy for startups to find funding and as long as the idea is sound, it has made way for multiple successful entrepreneurial ventures in the recent past. However, personal liability still looms as a dangerous prospect for the active partners to consider.
Limited Liability Company and Professional LLC
Small businesses have no better entity structure to follow than the LLC, given that it takes multiple good ideas from various corporate structures, virtually eliminating most cons that are inherent to them. Any and all small businesses that are in a position to or are in requirement of signing up with their respective state, usually choose an LLC entity because of the following reasons:
- It removes the dangerous aspect of personal liability if the business falls in debt or is sued for reparations
- The state offers the choice of choosing between corporation and partnership tax slabs
- The limited legalities and paperwork make it suited for small businesses
While more expensive than a general partnership or a sole proprietorship, a professional LLC is going to be a much safer choice for freelancers and consultants, especially if it involves risk of any kind. This makes it ideal for even single man businesses such a physician's practice or the consultancy services of an accountant.
B, C and S-Corporation
By definition, all corporation entities share most of the same attributes and as the term suggests, they're more suited for larger or at least medium sized businesses in any sector. The differences between the three are vast once you delve into the tax structures which govern each entity.
However, the basic differences can be observed by simply taking a look at each of their definitive descriptions, as stated below.
C-Corporation – This is the default corporate entity for large or medium-large businesses, complete with a board of directors, a CEO/CEOs, other executive officers and shareholders.
The shareholders or owners are not liable for debts or legal dispute settlements in a C-Corporation, and they may qualify for lower tax slabs than is possible in any other corporate structure. On becoming big enough, they also have the option to become a publicly traded company, which is ideal for generating growth investments.
B- Corporation – the same rules apply as a C-Corporation, but due to their registered and certified commitment to social and environmental standards maintenance, B-Corporations will have a more lenient tax structure to deal with.
S-Corporation – Almost identical to a C-Corporation, the difference is in scale, as S-Corporations are only meant for small businesses, general partnerships and even sole proprietors. The main difference here is that due to the creation of a pass-through entity, aka a S-Corporation, the owner/owners do not have liability for business debt and legal disputes. They also are not taxed on the corporate slab.
Cooperative: Limited Application
A cooperation structure in most cases is a voluntary partnership of limited responsibilities that binds people in mutual interest - it is an inefficient structure due to the voluntary nature of its legal bindings, which often makes it unsuitable for traditional business operations. Nevertheless, the limited liability clause exempts all members of a cooperative from having personal liability for paying debts and settling claims.
This should clear up most of the confusion surrounding the core concepts and their suitability. In case you are wondering why the Professional Corporation structure wasn't mentioned, then that's because it has very limited applications. Meant for self-employed, skilled professionals or small organizations founded by them, they have less appeal now in comparison to an LLC or an S-Corporation.