Are you interested in starting a jewelry line business from home? If YES, here is a complete guide to starting a jewelry line with little money and no experience.
Okay, so we have provided you an in-depth sample jewelry line business plan template. We also took it further by analyzing and drafting a sample jewelry line marketing plan backed up by actionable guerrilla marketing ideas for jewelry line businesses. In this article, we will be considering all the requirements for starting a jewelry business. So put on your entrepreneurial hat and let’s proceed.
Jewelry is a popular piece of item that can either be used personally or given as a gift item. If you have the talent to create jewelry, you could work with different materials to create different designs. The business is one that is very lucrative but will need you to work hard to get your jewelries noticed, as this is a competitive field.
What Does It Take to Start a Jewelry Line Successfully?
The first thing you would need to do in starting your jewelry line business is to first start designing for friends and family, this way you could work on perfecting your imperfections, and comparing your pieces to that of your competition, so as to determine if you are ready to start your jewelry line business.
Running a business is different from having a hobby, so if you intend to start a jewelry line business, you will need to learn how to run a business as you would be responsible for various important aspects of your business such as marketing, finance, and accounting.
Sourcing for materials to use for your jewelry line business will mean you looking for reliable suppliers and getting your materials in bulk so as to cut down on overhead cost, and make your jewelry affordable. You would also need to create an inventory system for your materials so that you could be alerted when they run low.
After creating your jewelry pieces, you would need to look for a suitable location for your business. For this kind of business, there are many options available. You would need to decide if you intend to if you intend to sell your jewelry line in just one location, or use a combination of different sales platform to sell your jewelries.
It is worthy to note that your jewelry sales are dependent on the effort you input into selling them as well as your target market. You would also need to create a unique logo for your jewelry line business, this is so as to set you apart from your competitors as well as ensure that customers can recognize your jewelries when they see your logo.
Starting a Jewelry Line Business from Home – A Complete Guide
- Industry Overview
The jewelry market is based on consumer demand, which is dependent on how the economy grows or falls. The jewelry industry in the United States has grown 10.7% from a 6% sales increase the previous year. The total value of the industry is estimated at $71.3 billion, with 40% of the global jewelry demand being consumed in the United States. Specialty jewelers have a 43% stake in the whole industry’s total.
- Interesting Statistics About the Jewelry Industry
Specialty jewelers are however losing their market share to wholesalers, manufacturers and retailers. All the jewelry businesses in the United States have however been on a slow single percentage decline yearly.
The revenue for jewelry by industry saw fine watches sales increase by a 5.8% with total sales of $9.4 billion, fine jewelry had a 6% increase with a total of $61.9 billion, suppliers that were involved in wholesale jewelry increased by a 2.4%, while diamond saw a revenue of $27 billion.
However, the online market for jewelry has grown tremendously having performed well for the past five years which is due to the convenience gotten by customers from having to make their purchases. Also, disposable income has caused the revenue of the industry to grow.
The top four companies in the industry account for 27.7% of revenue as at 2015. This is due to the fact that the industry has a low market share concentration. However, IBISWorld expects the concentration in the industry to increase in the years to come.
Starting a Jewelry Line from Home – Market Feasibility and Research
- Demographics and Psychographics
The demographic and psychographic composition of those that patronize jewelers can be classified as everyone regardless of their status. However, while upper class folks might go for high end luxury jewelry, while the low class folks will only go for jewelries that they can afford.
The age doesn’t matter as well, as it ranges from teenagers, young folks, middle aged folks, and the aged ones.
List of Niche Ideas within the Jewelry Line Industry
As regards the niche ideas within a jewelry line business, it depends purely on the target market you as an entrepreneur have in mind regarding your jewelries.
In essence, some of the areas of specialization in the jewelry business industry include; gemstones, wire works making, bead making, cooper jewelry, bracelet making, earrings making, and a whole lot of niches. While starting out, you can specialize in a niche that you are proficient in, however as you expand, you might decide to include more areas of specialization so as to get more customers.
The Level of Competition in the Jewelry Line Industry
The jewelry business is not difficult depending on the scale you intend to venture into, however, this business is filled with tough competition that might make it difficult for new jewelers to break through. The fact that the world’s population is continually on the increase, does not mean that your jewelries except they are unique will make an instant hit in the market; you will need to ensure that certain conditions are the way you want them to be.
There are certain trends of the industry that you would need to understand before you can hope to beat competition. The best bet for a start-up business is to concentrate on a niche, garner awareness from this niche and use this niche to scale into the industry, so as to be able to actively compete.
List Of Well – Known Brands in the Jewelry Line Industry
Every industry has well known brands which are seen as the icons in that industry. These well-known brands became so due to being consistent and standing the test of time regardless of how volatile the business environment is. Most of these companies have several strategies that have worked for them which might include; excellent customer service, offering several niches, creating strategic public awareness and so on. Some of the well known jewelry line brands in the United States of America include;
- Tiffany & Co.
- Sterling Jewelers Inc.
Carrying out a thorough research and analysis is necessary before venturing into your jewelry line business. The demand for jewelry has consistently increased over the past few decades, and this is due to the fact that more and more people are becoming fashion conscious, and almost everyone on earth, makes use of one kind of jewelry or another.
This will enable you get the right information necessary to start your business, ensuring you start on the right note. Certain factors to consider include the kind of jewelry you intend to make and the niche you intend going into. This will enable you answer questions as regards the target market you intend to make your jewelries for.
Firstly, you would need to determine if you have the required funds necessary to start the business on the scale you want to. Also, no business operates in isolation and so you should expect to face stiff competition when you go into this business. You would need to draft strategies that will enable you to beat your competition and stay proactive in the business as well.
Is a Jewelry Line Worth Starting from Scratch or is Buying a Franchise Better?
Starting from the scratch for your jewelry line business would mean you starting from a very small scale so as to garner experience as regards fashion trend and business experience. Starting from the scratch will also enable you to control how your business grows, and how you attract and retain customers for your business. It also means you can change strategies whenever you want to suit your business changing needs.
Buying a franchise is a safer option depending on the type of business, it is however not applicable to the jewelry line business. A jewelry line business involves creating jewelry pieces which is a creative process and so cannot be franchised. A franchise is only possible in the end process which is sales of the jewelries.
Possible Threats and Challenges You Will Face When Starting a Jewelry Line
Threats and challenges are faced by every business, either start-up or a going concern. The jewelry line business is no exception in the challenges and threats the business would face; as there would be challenges such as downturn in the economy, as people would prefer to buy essentials than a fashion accessory.
Another challenge that you would face is from your competitors especially if customers perceive the jewelries from your competitors as more unique than yours. The issue isn’t in the challenges your business faces, it is in overcoming these challenges and making your business stringer from the experience.
Starting a Jewelry Line from Home – Legal Matter
- Best legal entity to use for a Jewelry Line business
Having a legal entity is very important for your business, if you are starting off on a very small scale, and have already started transacting business, then you are already a sole proprietor. Most small businesses start out as sole proprietorships, but then change the legal structure later as their business expands so as to suit the needs of the business, and also avoid any legal implications. If you intend to operate your sole proprietorship, you can use a fictitious name that is not yours where you will need to file a certificate for ‘Doing Business As’ (DBA).
If you and a trusted friend or investor decides to run your jewelry line business together, it means you would need to run a partnership. The process of a partnership is simple and inexpensive, as profits are handled like that of a sole proprietorship, which flows to the individual’s personal income tax returns.
However, if you intend to run a medium or large scale business, then your best bet would be to go for a Limited Liability Company (LLCs). A sole proprietor or a partner can be held liable for all debts and obligations but this is not so with an LLC, as your personal exposure to liability is reduced.
Catchy Business Name ideas Suitable for a Jewelry Line Business
- Feisty Jewelries
- Sparkle ’n’ Shine
- Glittering Pieces
- Wrists and Ankles
- Vera’s Signature
- Ears and Rings
The Best Insurance Needed for a Jewelry Line Business
Getting insurance for your business is a wise decision that would benefit you and your business in the long run. Every business that intends on being taken serious is expected to own insurance. An insurance policy protects your business from unforeseen risks and ensures that you do not pay from your pocket when you get these risks.
To get the best insurance policy for your jewelry line business, you would need to consult with a professional insurance agent or broker, who will guide you on the best policies for your business. Some of the basic insurance covers that you would need to consider purchasing if you intend starting your jewelry line business in the United States of America include;
- General Insurance
- Health Insurance
- Liability Insurance
- Hazard Insurance
- Workers’ Compensation
Intellectual Property Protection and Trademark?
If you are thinking if you should get an intellectual property protection for your jewelry line business, it is not necessary to. Most jewelers in the jewelry line business do not consider getting an intellectual property protection a priority, however, if you decide you still would need one, then you might consider getting an intellectual property for your business name or logo.
Is Professional Certification Needed to Start a Jewelry Line?
If you intend to start your jewelry line business, it would not be necessary for you to obtain a professional certificate, however you would be required to handle non toxic chemicals.
It is however important to note that experience is very important in this field, and so while you might attend courses to learn about different types of jewelries, and what variety works best; it is far better for you to train under an experienced jeweler, as practical experience is best in this field. However, you might combine theoretical experience and a practical one, this way you are likely to hit the ground running when you start your own jewelry line business.
List of Legal Documents You Need to Run a Jewelry Line Business
Listed below are the basic documents that you would be required to have before you can successfully launch your jewelry line business in the United States;
- Certificate of Incorporation
- Business License
- Business Permit
- Insurance Policy
- Operating Agreement
- Contract Document
- Employment Agreement
- Non Disclosure Agreement
Writing a Business Plan for Your Jewelry Line
Regardless of how fantastic your jewelry line business might look like when you think about it, it all comes to naught if it cannot be coherently in a clear and concise manner for others to read and understand the plans you have for your business.
Every business requires a business plan, and if you are thinking of starting this business, then you should look at having a business plan. The aim of your business plans so your ideas can be fleshed out your ideas, which will also result in you also identifying areas that you might not otherwise thought of.
If you have already started the business already without a business plan, it isn’t too late for you to create one. Your business plan will be needed when you require financing for your business as it will enable investors determines if you are serious with your business. It is noteworthy to know that your business plan can be updated; this is due to trends changing and a volatile business environment that might need you to change your strategies.
Your business plan should therefore be regarded as a guide that will help you successfully run your jewelry line business, whilst influencing the decisions and actions you might take concerning your business.
Your business plan should contain an executive summary which would be based on the information that is contained in the different sections of the business plan, particularly your financing and other key attributes. It can be a one to three page summary of what your business plan entails, and should be written in such a way as to keep the reader hooked enough to want to read the entire business plan.
Other components that your business plan should contain include your management and owner information. You would also need to discuss the qualifications, certifications as well as the experience the owners are bringing to the table. The location of your intended business has to be stated, and when the business is likely to start.
Your business plan should also contain market analysis, as well as an analysis of your competition, the demography for your business and your target market. Marketing strategy where you address advertising, pricing and incentives, and promotions is also needed.
Another important aspect is your financial projections, which will document key assumptions such as anticipated sales and expenditures, break even analysis, cash flow statement, income statement and balance sheet for a period of three years.
Writing a business plan is not considered an easy exercise except you already have knowledge on how to prepare one. If you do not feel adept at creating one, you could approach a business plan writer to help you in getting a comprehensive business plan written or you can check online for sample business plan templates that will help you in writing yours.
A Detailed Cost Analysis for Starting a Jewelry Line Business
In determining how much will be needed for you to start your jewelry line business will be dependent on what your research tells you. Research is very important because with it you can determine the exact costs for the materials you intend to use in creating your jewelries.
Your cost of material will also be dependent on what kind of jewelries you would be producing. If you are going to produce beaded jewelries, you could get your materials in bulks, if you however intend to enter into the precious stone niche, then it might not be easy for you to get your materials in bulk.
Another cost factor that will need to be analyzed will be your location. If you intend to rent a facility, then your costs might be easily determined. Other cost factors that would need to be analyzed include inventory, display cases for your jewelries, insurance and how many employees you intend to own.
Some of the basic requirements that you would need to have carried out so as to ensure that your jewelry line business is launched successfully in the United States of America include;
- Total fee for business incorporation $1,500
- Insurance policy, business license and permits $1,000
- Renting of facility for jewelry creation and display at least for one year $10,000
- Office utilities (computer, phones, power) $3,000
- Equipping the office facility with display cases, cash registers, and high end security devices $2,000
- Acquiring the necessary work tools such as stainless steels, aluminum steels, magnifying glass, and other such materials $5,000
- Launching of official website $500
- Other miscellaneous expenses such as business cards, signage, and fliers $500
From the above detailed research, it is obvious you will need an average of $23,500 to start a small scale jewelry line business in the United States of America. If you intend to start a medium scale jewelry line business in the United States, you would need nothing less than $50,000.
And for anyone intending to start a large scale jewelry line business in the United States of America, then you should look to sourcing for well over $100,000 as your start – up capital.
- Financing Your Jewelry Line Business
Even if you have the best idea for a business, but have no finance, sooner or later that business idea is bound to fail. This goes to show that finance is very important when it comes to starting a business. Even though raising capital is not an easy task for an entrepreneur, nevertheless if you intend for your business to be successful, you would need to source for finance either externally or internally.
This is why a business plan is important, and also why it must be comprehensively written. Once you have a comprehensive business plan, you would be able to source for funds from investors. Investors can only consider investing in your business if they see a document that convinces them of your serious intent.
It also tells the investor how they would be able to recoup their investment and when. Even if you approach a bank or a financial institution, they will require a business plan from you, and would not give you a loan till they see one. Several of the options that are available when it comes to sourcing for finance as start-up for your jewelry line business includes;
- Applying for loan from a bank in your state or locality
- Raising money from family and friends
- Getting money from personal savings as well as sale of properties
- Approaching an investor for loan
- Pitching your business idea to a venture capitalist
Choosing a Suitable Location for your Jewelry Line Business
Choosing a location for your business is essential. It is important to get a facility that is large enough to accommodate a production room as well as a display room for you, so that you do not lease two facilities. It is also important to get a facility that is close to heavy pedestrian and vehicular traffic, so that passersby can always check out what you have on display. If you intend to locate your business in a quiet highbrow area, it would have to be that you have carried out plenty of research to determine if the area would best suit your business.
A key consideration when locating your business will be the financial status of those either residing, or working around the area of your location. This is important so you do not locate your business away from your target market. If you create high end jewelry pieces, then you have no business locating your facility in a low or middle income neighborhood, as that might lead to low patronage, with the people around you unable to afford your jewelry and the high income individuals finding it rather inconvenient for them.
When it comes to the type or level of facility to use for this type of business, you don’t need to break the bank to source for money to lease an office or showroom. You can as a matter of fact start your jewelry business from home, and then liaise with brick and mortar storefronts or retailers to help in selling your jewelry pieces. You would need to find a suitable space – garage, den, basement, attic – for administrative work and to store your tools and equipment as well.
The only reason why you would need a large facility is if you would be starting off the business on a medium or large scale, and also have a number of employees working for you.
Starting a Jewelry Line from Home – Technical & Manpower Details
Most of the tools that you might use in making your jewelries may be gotten for fairly used, the only items that you might need to get brand new are certain materials that would be needed to create the jewelry and would probably be discarded after use. You could get some of the tools online or have a local craftsperson have some tools done for you, whichever route might be cheaper for you, especially if you are starting in a small scale.
Some of the equipment that you would require if you intend to fully launch your jewelry line business includes;
- Hooks (Ear, Neck, Wrist)
- Beads (Chalk, Swarovski)
- Non tarnishing materials
- Strings (Fishing line, Tiger tail)
- Packaging materials
- Display cases
- Magnifying glass
If you are producing your jewelry on a small scale, then you can run this business from home, however if you intend to go into medium or large scale, then you might need to rent an office facility. Getting an office facility is because you would need to employ those that will handle different aspects of making the jewelries, as you wouldn’t be able to handle a large scale operation alone. An office facility also gives your business a legal look, and also allows you bid for jobs from reputable organizations.
The number of people that you would need to help run your jewelry line business varies depending on the scale of the business you intend to run. While one person might effectively run this business on a very small scale, it would require more people to run the business if you intend to run this business on a medium or large scale. You would need to employ Manager, Marketing Executive, Sales Executive, Jewelers, Front Desk Executive, and Security Personnel. This is about 6 to 10 people.
The Production Process in Jewelry Line Business
The production process involved in the production of jewelries is one that is basically the same for most of the jewelries, the only difference being in the kind and type of jewelry. The processes range from sourcing for raw materials, purchasing raw materials, and creating a design, starting and finishing production to create jewelry pieces.
Other processes include packaging the jewelry, creating awareness for the jewelry and eventually marketing the jewelry with the intention of making sales.
Starting a Jewelry Line from Home – The Marketing Plan
- Marketing ideas and strategies for a Jewelry Line
Marketing your business effectively is vital for the success of your business. In a profit-oriented business, marketing is very important as they establish the basis for sales, which will not only generate profit but grow your jewelry line business as well. Marketing also helps in determining the loyalty of your customers as well as how your brand is perceived by potential customers and competitors. However, before you carry out any marketing strategy, you would need to understand what your customers want, and then ensure that your marketing strategy covers their wants.
To be successful in your marketing strategy, you do not need to break the bank or overstretch your budget. Small scale jewelry line businesses can become unique and use different means to get to their customers, especially as more and more businesses are now using different free and cheap marketing options and still getting great results for it.
Below are some of the marketing ideas and strategies that you can use for your jewelry line business;
- Introduce your jewelry line business to retailers and jewelry stores by sending colorful brochures and catalogs that displays your best pieces
- Advertise your jewelry line in relevant fashion, beauty and lifestyle magazines
- Send a news release about jewelries and your jewelry line business to your local newspaper
- Ensure that your business is listed in local directories and yellow pages
- Attend fashion shows, pageantries, beauty events, and sponsor some
- Make use of your official website to promote your jewelry line business
- Engage in direct marketing
- Make use of social media platforms to market your jewelry line business
Factors That Will Help You Get the Right Product Pricing for your Jewelry Line business
When setting a price for your jewelry line business, you would need to take into account how much you got your supplies, and how much your labour is worth. Other factors you would need to take into account include your operating costs and your initial investments. Your jewelry prices will also be dependent on your target market and niche. This is due to the fact that what might be affordable to the upper class might not be to the middle or lower class.
Possible Competitive Strategies for Winning Your Competitors in Jewelry Line Industry
The jewelry line business is a lucrative one but filled with competition. If you intend to succeed in this industry, you would need to have strategies that would set you apart from your competitors. If you are producing your jewelry more expensive than your competitor, check to see that they are not deliberating intending to cause a price war, if they aren’t, then see what business aspect you would need to trim so that you don’t chase away your customers from your business.
Another competitive strategy you would need to adopt that would help you compete favorably with your competitors is if you produce your jewelry pieces or all classes of clients. If you produce only luxury jewelries for upper class customers, you could still create jewelries that even the middle and low class can afford without compromising on quality.
Another strategy is in offering services that your competitors aren’t offering.
Possible Ways to Increase Customer Retention for your Jewelry Line
One secret of successful companies is in their customer retention rate. According to experts, companies that had an increase in customer retention had healthy bottom lines and improved in all aspects than companies that acquired customers every now and then. Also, companies that had an increased customer retention rate had more room to grow and expand into other opportunities whilst still continually improving on your services.
Another way to increase customer retention is to craft good jewelry pieces and also deliver excellent services all the time in such a way as to surpass that of your competitors. If you continually offer excellent services to your clients, you would not find it hard to get repeated business from your customers as opposed to your competitors.
Strategies to Boost your Brand Awareness and Create a Corporate identity for your Jewelry Line
Creating strategies is very important for your business as it will help boost your brand awareness while creating a corporate identity for your jewelry line business. If you create the right strategies, it will help your brand get the necessary awareness it deserves. If you intend to start your jewelry line on a medium or large scale, then you might need to consult with experts as to ways you would need to promote your brand.
Some of the platforms that you would require in boosting your company’s brand as well as advertise your business includes;
- Sponsor relevant shows – fashion, music, pageants, charity events – that would raise the profile of your jewelry line business
- Ensure that your jewelry line business in listed in relevant directories as well as yellow pages.
- Use your official website to promote your business online
- Encourage your customers to help spread the word about your jewelry line business
- Distribute handbill and fliers in target areas
- Make use of relevant social media platforms – Facebook, LinkedIn, Twitter, Google Plus – to create awareness about your jewelry line business
Creating a Suppliers/Distribution Network for your Jewelry Line
In starting your jewelry line business, you will need to source for suppliers of materials who will supply you with what you will need to create your jewelries. You will also need to partner with distributors to help you in getting your jewelries to your customers.
It will be highly beneficial to your jewelry line business if you are in a good relationship with your suppliers and distributors because it will help in improving the bottom line of your company. Your suppliers could let you know of materials that are likely to move in the market and advice you as well on the varieties of materials you can use.
Also, your distributors could help in passing along information on what trends there are as well as what customer demands are tending towards. This means that if you are producing low end jewelry you could always switch to what customer demands are.
Tips for Running a Jewelry Line Business Successfully
To run your jewelry line business successfully, you would need to have a clear vision of what you intend to do, and might just have gotten into the jewelry line business because your friends were getting into it as well. This will spill over into every aspects of your business especially your target market, as you might have a hard time selling your collection. So, if you intend to be successful, ensure you design with your clients in mind.
Another way at running your business successfully is in setting the correct price for your jewelry line business. The easiest way most businesses especially those that are crafts or creative in nature is that they are most times not sold for the correct value, and so overtime the business starts accumulating debt till it can no longer operate. Setting the price for your jewelries correctly, will lead to a satisfying experience for both you and your customers.
Another way you can run your business successfully is to always publicize your jewelry line business by offering additional services such as jewelry lending services to celebrities for occasions. Also, you could sponsor beauty, shows, pageantries, fashion shows, and other such related shows.