In 2018, Americans spent over $80 billion on jewelry. If you’re thinking of starting a jewelry business, you could make some serious money.
With that said, serious planning needs to go into your business. 20% of small businesses in the US fail after their first year. Without proper planning, this could be your fate too.
Not sure where to start with your business? You’ve come to the right place! Read on to find out how to start a jewelry business.
1. Decide Your Brand
When it comes to jewelry brands, the world is your oyster. You could go for simple, high-ticket luxury items or try to appeal to a younger market on a budget. Whatever you decide, it is important to think about this before you set your business up.
Deciding your brand will play a big role in how you start your store, as it will determine a lot about your business.
It will inform the name you register under and the type of materials you need to stock, which will have a huge impact on your business’ budget.
If you’re going to make any money, you need to know how to price your items to turn a profit. Buying stock in bulk, like wholesale sterling silver chains, will significantly help you to boost your margins. Before you buy in stock, make sure this matches up with the brand you are selling customers.
When starting a jewelry line, it’s also a good idea to look at some of your competitors. This will give you a clear idea of what is already on the market and what people are willing to pay for it. It can also give you great branding tips on how to set your jewelry apart from the crowd.
2. How to Start a Jewelry Business Legally
Before you start selling your jewelry, you will also need to register your company under the company name.
Running your jewelry business from home could save you rental costs. However, if you are planning on becoming a home-based business, you will need to check whether or not this requires extra permits. You can find this out at your local clerk’s office.
You can register your business as a DBA (‘doing business as’), which minimizes your paperwork. However, this will also mean you have less legal protection if you do encounter any issues.
Because of potential problems you could face, it’s a good idea to register as an LLC (limited liability company.) You can register online in only a few moments. Being an LLC means that your assets are protected and that your tax return will be simpler.
3. Get Insurance
Every business should have insurance. This is an investment in your company that will protect you if anything goes wrong.
You should consider getting product liability insurance. As your business grows, you may also need to bring in employees. In this case, you will also need employer’s insurance.
General liability insurance is also helpful as it can protect you from several legal actions. It’s a good way to cover all your other bases.
4. Separate Your Finances
When you are starting a jewelry business, it is a good idea to keep your finances separate from the business. There are several reasons for this.
It will make it a lot easier for you to account for business spending. This can be very helpful when it comes to doing your taxes, fighting legal issues, or asking for investments.
Opening a business bank account may also offer additional benefits and features. Most business bank accounts also offer great cashback opportunities.
5. Look for Funding
There is a rule in business that you should never invest your own money. Unfortunately, small business owners across the country often fail to stick to this rule and lose money as a result.
If you’re starting your own business, there are several places you can look for funding.
You could approach private investors or banks for a business loan. To secure this, you’ll need a strong business plan and a steady financial history.
A lot of businesses also turn to online campaigns and crowdfunding sites for help getting together startup funds.
6. Secure a Supplier
For your business to run smoothly, you’ll need a reliable supplier who can provide quality materials. When it comes to finding the right one for your business, shop around.
It’s always a good idea to look for feedback from previous or current clients so that they can raise any red flags you should know about. If a supplier has poor reviews, you should look elsewhere.
Some suppliers may offer better prices than others, so shopping around could save you money.
7. Create a Website
If you want to start a jewelry business online, building a website is an absolute must. Even if you’re planning to open a brick n’ mortar shop, a website is still a good idea.
Your website creates a base to promote your brand. You can use this to advertise products and launch information about your company. This is also a great way to build relationships with customers.
When building your site, think carefully about the branding you want to use for your website. You want to present the same message throughout your marketing campaigns. Your website is a good place to start.
Time to Get Creative!
Now that you know how to start a jewelry business, it’s time to make your dreams a reality! For more help starting your jewelry business, sign up for a free trial of our courses today.
