How To Start A Jewelry Business

How To Start A Jewelry Business - Background Info:

Starting your own jewelry business can require a bit more startup money than a lot of business plans, simply because of the financial scale of the jewelry business.

This is true whether you want to design and sell your own handcrafted, garage-made jewelry for your jewelry business, or if you want to set up a jewelry business retail store of your own.

If your tastes tend towards diamonds, gold and silver, expect to take out a sizable loan or get some serious investors involved in your jewelry business. On the other hand, pendants, and stainless steel beads can be astronomically cheap.

In creating your own jewelry to stock your jewelry business inventory, you'll need to outfit yourself with a few tools. You may want to convert part of your garage or a part of your home into your personal shop. Even if you don't intend to create jewelry from scratch, you'll probably be asked to do repairs.

What you'll need if you want to set up your own jewelry business in the form of a retail store is, of course, a jewelry business shop in a part of town that gets a lot of foot traffic (see if any shopping malls have an open spot).

Something you'll need for your jewelry business shop is good atmosphere. If your jewelry business is into selling upscale, high end jewelry, a somewhat classy presentation for your jewelry business is in order. Make sure your shop is well lit and clean, keep display cases well polished to allow your wares to sparkle.

You'll also need a good variety to start out with. If you don't want to pay a fortune to distribute items from deBeers and the like, you can take a look on Craigslist.org or eBay.com for affordable, used jewelry, as long as your jewelry business patrons know that their items have been gently used.

Security is also an issue. Jewelry business owners are at relatively high risk with regards to theft and robbery. Keep display cases locked and make sure your employees know to do the same. Invest in a security system and insure all of your merchandise.

Make sure your employees understand that their job is to sell the jewelry, not to defend it with their lives. It's cliche, but it's cliche because it's repeated often, and it's repeated often because it needs to be repeated often; don't be a hero. There's never a reason to put yourself, your jewelry business employees, or your customers at risk.

If you're looking to start a high end jewelry business, please make absolutely certain that you are only dealing with conflict-free diamond sellers. In countries like Sierra Leone and Liberia, atrocities are being committed to obtain diamonds to fund war and terrorism.

Even through the Kimberley Process, so called blood diamonds are being sold on the international market as clean diamonds. Make certain your diamonds are certified and can be traced back to their source. Jewelry business isn't worth compromising one's ethics.

Setting up an actual jewelry business shop in town may not be necessary. Not only can you purchase from Craigslist.org or eBay.com, you can also make a good living by keeping your jewelry business entirely online, by selling through those sites, or setting up your own website.

If you just jump right in making a bunch of jewelry and start selling it where ever you can find a place so you can make the most money the fastest way possible then chances are you will get burned out quick. So, it is important to looking into how to start a jewelry business and do your research in advance.

Should you sell your jewelry at craft shows? At home jewelry parties? On eBay? To shops and galleries? Consign it? Wholesale it? Build your own website for it?

Basically, just jump in and experimented with selling jewelry via all these methods and many more. You will decide the only way to find out what direction to go with your jewelry business is to try everything.

How To Start A Jewelry Business - Tasks And Skills Needed:

Business Specific Tasks:

If you are planning to do all the business tasks or hiring or subcontracting tasks, here's a list of tasks that need to be attended to when it comes to the business side of running a jewelry business:

Bookkeeping

Scheduling

Website/maintenance

Inventory Control

Customer Service

Advertising/Marketing/Promotion

Industry Specific Tasks:

Same as above if you plan to do everything yourself or get help, here are some of the tasks necessary to operate a jewelry business:

Import/export of raw materials

Design jewelry pieces on order

Jewelry repairs

Watch repairs

Travel to home parties

List items for sale on the internet

Develop a niche for the type of jewelry you are selling

How To Start a Jewelry Business - Approximate Daily Hours Needed:

General Hours of Operation: - When your business is open - You will hold retail business hours if you have a storefront; if you do parties, craft shows, and online sales, your hours will vary and are of personal choice.

Hours Needed to Prepare - Before Opening and After Hours Activities - Clean and store jewelry, record sales, jewelry orders and fulfillment, shipping, clean work area.

Number of Employees Needed To A Jewelry Business:

Minimum Number of Employees -During the Start Up Phase: You can start this business yourself on a full-time basis.

Number of Employees - Once Your Business is Up and Running Successfully:

Website maintenance

Record/Bookkeeping

General office

Customer Service

Skill Requirements for This Business:

Love of jewelry

Thorough knowledge of gems and metals

Know how to determine gem authenticity

Attention to detail

Patience

Good with people

Ability to envision and perform good design

Sales experience

Licenses:

You need to know about choosing and registering your jewelry business name, obtaining your business license and resale tax number, setting up a separate bank account for your business, dealing with the IRS, and keep good records.

As for getting started legally, check with your city and county on any needed licenses and permits and to make sure you are zoned to operate a business from home . You will also need to register your business with your Secretary of State and prepare all the necessary tax forms. Generally cities have a lot of information about what you need to do to get started legally, and since regulations vary widely from location to location, it's best to start with your city. You can also check with your local chamber of commerce, Small Business Development Center and SBA office.

Approximate Minimum Start up Cost:

Bare essential: - The average startup cost is $1,500-$5,000.

Minimal exposure - There are several ways to advertise for free but you need consider getting business cards and possibly brochures that can be passed around.

Necessary Equipment to Run A Jewelry Business:

Necessary Start-Up Equipment & Supplies:

Computer

Printer

Cell phone

Website

Soldering iron

Various metals, beads

Copper wire

Diamonds and other precious stones

Polymer beads

Silver, gold

Stainless steel

Jeweler's loupe

Polishing cloths and solutions

Ring seizers

Magnifying glass or glasses

Good lighting

Pliers, tweezers

Clamps

Digital camera

Supplementary Equipment: - Equipment or helpful products that you can acquire to once your business is off and running:

Tumbling drums for stone polishing

Kiln

Wax (for lost wax method freestyle jewelry design)

Jeweler's glasses with magnifier and built-in light

Storage drawers for materials

Digital camera with macro lenses

Portfolio

Monthly Expenses To Consider:

Wages
Phone/cell phone
Internet access
Permits
Advertising/Marketing
Electricity
Water

Special Requirements and Considerations For A Jewelry Business:

Find out all you can about the trends in the industry. Know your competition, in particular, their strengths and weaknesses. This will help you identify your competitive advantage. In other words, this will help you figure out what you can give your customers that they're not getting from the other businesses. And keep from emulating the competition's strategy. Instead, make the most of your own advantage points.
Purchase your beading and stringing materials at low cost stores such as Walmart, Hobby Lobby, or the Artbeads website. Their prices offer low prices on their supplies if you are starting on a low budget.
Purchase your first business cards from the Vistaprint website. You can order 250 business cards for free during their specials and only pay shipping and handling.
Use the back of the business cards to place your earrings on. This can market your business and still allow a nice backing for earrings.
Place your projects in sandwich baggies as storage. This keeps them clean from dust or any other dirt.

Pros And Cons of Opening A Jewelry Business:

The Pros of Running a Jewelry Business:

Your hours are your own

Jewelry can be a very profitable business

You have many avenues in which to sell jewelry

Jewelry 'repair' can be a side niche

Jewelry design is in demand

The Cons of Running a Jewelry Business:

It can be expensive to get into

Jewelry sales can be low if the economy is low

Competition is high

It can be difficult to provide unique items

Catering to different tastes can be hard

Type of Customers You Need to Attract:

The type of customers you need to attract come from all walks of life around the globe and include men, women and children.

Jewelry sales depend partly on consumer income. Small jewelers can effectively compete with large chains because price isn't the main factor determining retail sales. Profitability depends on the volume of sales because sales costs are high and fixed. Because gross margins are very high, often 50 percent, mass merchants like Wal-Mart have taken market share by controlling costs and cutting prices.

Depending on your niche, your jewelry customers can be anyone who loves to wear fine or custom-designed jewelry to trendy bead and other element designs such as using copper.

Jewelry Business Statistics:

Jewelry is often classified as bridal merchandise (engagement, bridal and anniversary rings - about 35 percent of the market); fashion jewelry (rings, bracelets, earrings, pins, gold chains); and watches, silver flatware, and other giftware. Diamond jewelry and loose diamonds account for the largest share of total jewelry store sales (46 percent); gold jewelry for 11 percent; colored gemstone jewelry (rubies, sapphires, emeralds, etc.) 9 percent; and watches 4 percent.

The most current reports are available at Valuation Resources

Jewelry Business Revenue:

The US jewelry retail industry generates annual revenues of about $44 billion from 28,000 specialty, department, and discount stores. Specialty retailers hold about 50 percent of the market. Wal-Mart is the biggest jewelry retailer in the country, followed by Zale, the biggest specialty jeweler with over 2,000 stores and kiosks. The industry is highly fragmented: the top 10 jewelry chains hold less than 25 percent of the market. Other large specialty retailers are Tiffany and Sterling, the US branch of British jeweler Signet Group.

Jewelry Business Resources:

Industry-Specific Websites:

Home Jewelry Business Success Tips

How to Start a Handmade Jewelry Business

How To Start a Jewelry Business on a Small Budget

How to Start a Jewelry Business

Courses:

Rena Klingenberg (online)

Become a Jewelry Designer

Ultimate Guide To Jewelry Business Success

Equipment and Supplies:

Bead and Jewelry Supplies and Tools

Nile

Forums:

How to Have a Successful Jewelry Business

Supply Jewelry

Beading Design Jewelry

Jewelry Forum

Franchises:

Franchising.com

Associations:

World Jewelery Association

Canadian Jewellers Association

Jewelers.org

Books:

Jewelry Selling Secrets (e-book)

Ultimate Guide to Your Profitable Jewelry Booth (e-book)

101 More Great Jewelry Selling Techniques (e-book)

Sell your jewelry at home parties (e-book)

How to Run a Home Based Jewelry Party Business for Fun and Profit (e-book)

Businesses To Related to a Jewelry Business:

Watch repair and sales
Boutique clothing and hats
Bridal shows and parties
Craft show and fair sales
Body piercing
Heirloom jewelry refurbishing