Are you about starting a jewelry making business? If YES, here is a complete sample jewelry making and retailing business plan template & feasibility study you can use for FREE.
From time immemorial, women have always been caught with jewelries. As a matter of fact, there isn’t any modern woman-both young and old, who doesn’t know what jewelry is. It is for this reason that even the men folks give wearing one form of jewelry or the other a chance.
This is because they are aware of the magic impression that comes about when one carefully accessorizes the outfit with a statement jewelry can give. This is also why there are more and more women and men folks who are into the business.
Table of Content
- Why Start a Jewelry Making Business?
- Industry Overview
- Executive Summary
- Our Product and Services
- Our Mission and Vision Statement
- Job Roles and Responsibilities
- SWOT Analysis
- MARKET ANALYSIS
- Our Target Market
- SALES AND MARKETING STRATEGY
- Sales Forecast
- Publicity and Advertising Strategy
- Financial Projections and Costing
- BUSINESS GROWTH: Sustainability and Expansion Strategy
Why Start a Jewelry Making Business?
Whether it is the sale or the manufacturing of jewelry, truth remains that this is one very lucrative business, as there are tons of profits to be realized from the trade. In the internet for instance; there are several jewelry businesses being advertised on a daily basis.
Furthermore, the market is a wide one, as more and more people learn about this unique trade from the internet. This is one business that isn’t hard to start. This is because with your capital at hand, you are able to learn the skills required, be an importer of already finished ones, or perhaps deal in jewelry on a wholesale basis, and thereafter sell at a really good price.
Starting this business means that you will be a jewelry designer; who either make pieces from scratch, or engage in the outright sale of it. Engaging in this means that you have got to purchase the tools and the training to become vast.
On the other hand, you can start the business by purchasing already made ones, as earlier stated, from a supplier. This also means that you choose the type of jewelry design you want to specialize in, such as earrings, rings, necklaces, wrist watches, bracelets, and what have you.
A Sample Jewelry Making and Retailing Business Plan Template
Starting your own jewelry business can be a worthwhile and profitable enterprise. In 2002 for instance; the U.S. Census recognized that 28,625 jewelry business establishments existed, and that approximately 149,000 people was gainfully employed.
The jewelry retail stores together generated more than $23 billion. This represented a nearly 26 percent increase in sales between 1999 and 2002.The Euro monitor site says that the value sales of jewelry registered growth of 2% in 2015, to reach US$63.3 billion. With improved consumer confidence in the US economy, consumers are willing to spend more on mid- to upper-tier jewelry than lower-tier jewelry.
It is as a result that the average unit prices of both real jewelry and costume jewelry increased by 4% and 2%, respectively, in 2015, which donated to the growth of the overall jewelry market. They also stressed that the US jewelry market is very fragmented, and no single jeweler company represented more than 7% share in 2014.
This also goes to show that the US jewelry market still has significant opportunity for growth for manufacturers, since there are no main players in the market yet. The demand for personal accessories remains positive, and Internet retailing continues to see fastest growth ever. The US personal accessories remain very uneven and diverse and so it has become that specialist retailers remain leading channels.
There are several factors that have emerged over the years as stuff influencing the trade. The major factors influencing the demand for jewelry are personal income and the global prices of major commodities such as gold and silver.
Other factors driving the growth of the industry are growing number of employed women and economic growth since 2009. The very facts have starkly made the jewelry industry unprotected to the flows of economic and financial conditions predominant all over the world.
This is exactly in key retailing markets and sourcing destinations. Bearing in mind that there are numerous elements utilized in jewelry market, gold has always conquered the industry because of its rich physical and chemical properties like luster and ease of fabrication.
Therefore, because of the fact that it is being traded on the commodity exchanges, gold price movements are also reproduced in the gold jewelry consumption. This isn’t the case with only yellow gold; other metals engaged in the jewelry manufacturing industry include platinum, silver, titanium, palladium and tungsten carbide, and a whole lot more.
LA Chic Accessories is a U.S based and world class web design company. We have been able to secure a standard and well – positioned office facility in a central business district of New York. We are set to take the jewelry making industry by storm with our very creative statement pieces. We plan to fit in accordingly into this very competitive industry.
La Chic accessories will offer all types of products that will represent its brand well. This is one of the reasons why we will leave no stone unturned in garnering world class jewelry skills that will represent us well, as well as meet the teeming demands of our clients.
Our business goal is to become one of the leading Jewelry making and retailing business company in the united states and we will make sure that every product we churn out meets the demands of all the authorities in charge. Our workers are going to be selected from a pool of talented and highly creative jewelers in and around New York City and also from any part of the world as the business grows.
We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading jewelry making and retailing companies in the United States and throughout the globe. We have put plans in place to build a state of the art jewelry making business. Our studio will be well equipped and we will ensure that we follow the trend in the industry.
At La Chic, our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients. La Chic Accessories is founded by Laura Chucks and her partner of so many years Anjali Bantam. They have a combined experience inn beads making, wire works, and tiger tail works, amongst many others
Our Product and Services
La Chic Accessories was established with the aim of maximizing profit in the female fashion and beauty industry. We want to compete favorably with the foremost jewelry making companies in the United States which is why we have but in place a competent quality assurance team that will ensure that any product and service rendered meet and even surpass our customers’ expectations.
We will work hard to ensure that La Chic Accessories products is not just accepted nationally in the United States of America, but also in other parts of the world. Our products and services are listed below;
- Designing of all types of accessories
- Training jewelers on how to become an expert.
- Retailing of products
- Repairs of types of jewelry
Our Mission and Vision Statement
- Our vision is to establish a standard and world class jewelry making and retailing business. Company whose services and brand will not only be accepted in the United States of America, but also in other parts of the world.
- Our mission is to provide professional and highly creative concept and other related products and businesses.
- We want to build a jewelry making and retailing business’ company that can favorably compete with other leading brands in the industry.
Our Business Structure
La Chic Jewelry making and retailing business is a company that intends to start small in New York and then grow accordingly. We will no doubt compete favorably with leading jewelry making companies in the industry both in the United States and on a global stage.
We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.
At La Chic Accessories, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement would most definitely be put in place so that our senior management staff can benefit. This will definitely be based on their performance for a period of five years or more. In view of the above, we have decided to hire capable and proficient hands to occupy the following positions;
- Chief Executive Officer
- Creative Director
- Human Resources and Admin Manager
- Sales and Marketing Executive
- Jewelers (5)
- Client Service Executive
Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Serve as project manager of the organization; works directly with employees
- Responsible for designing concepts for jewelry to be developed for client (s)
- In charge of copy writing and laying out new designs that should be explored.
- Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
- Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
- Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
- Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
- Maintains quality service by establishing and enforcing organization standards.
- Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
- Make certain that production and development department perform efficiently, coordinate employee efforts, and facilitate communications between management and graphic designer
- Ensures that the organization work in line with international best practices.
Human Resources and Admin Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office and factory activities.
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and makes sure that products get to consumers.
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Creates new markets cum businesses for the organization
- Empowers and motivates the sales team to meet and surpass agreed targets
Accountant / Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for La Chic Accessories.
- Serves as internal auditor for La Chic Accessories
- Liaises with clients to determine their requirement and budget
- Responsible for searching out latest designs that can be implemented
- Responsible for developing concept and layouts for products.
- Responsible for managing client proposals and giving them what they want.
- Responsible for reviewing final designs and layouts and suggests improvement if necessary
- Responsible for working with clients, briefing and advising them with regards to design style, color and what have you.
- Researches and advice the organization on style, color ,and other trendy info as it relates to jewelry designs,
Client Service Executive
- Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the creative director in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
La Chic Accessories employed the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured Jewelry making business that can favorably compete in the highly competitive web design service industry in the United States and the world at large.
Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for La Chic Accessories. Here is a summary from the result of the SWOT analysis that was conducted on behalf of La Chick Accessories.
Our core strength lies in the power of our team; our workforce. We have a team of creative and highly proficient jewelers, with excellent qualifications and experiences built around various niche areas in the jewelry making and retail industry. Aside from the synergy that exists with our employees, our designs and services will be guided by best practices in the fashion industry.
As a new jewelry business in New York, we know that it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive fashion industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.
No doubt, the opportunities in the jewelry making and retailing industry is massive considering the number of individuals and corporate organizations whose businesses depends on the services of web designers and graphic artist. As a jewelry making and retailing company, we are ready to take advantage of any opportunity that is available in the industry.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new jewelry making companies in same location where our target market exists and who may want to adopt same Business model like us.
- Market Trends
The trend in the jewelry making and retailing industry is that the target market keep expanding, people and organizations more than ever before are beginning to see the need for them to have an official website and also to engage the services of professionals who will help bring the best in their products through branding or packaging their products and services or in helping them create animations that will help them communicate their brand to a wide range of clients.
Another common trend in the jewelry design industry is that, with the evolvement of the internet, most jewelry businesses no longer settle for clients within the location where their physical office is located but also from any part of the world.
The truth is that with the advent of the internet, it is now easier to work for clients in any part of the world. As such, a jewelry making and retailing company can be located in the United States of America and have their biggest client in Africa.
Many thanks to the power of the internet which has brought the world closer to us. Also, the jewelry making and retailing industry will continue to evolve due to the advancement of computer technology and software applications designs et al.
Our Target Market
Before commencing a jewelry making and retailing business, we are certain that there is a wide range of both corporate and individual clients who cannot do without on form of jewelry or the other. Some of which include; earrings, chains, rings, and what have you.
In view of that, we have created strategies that should enable us reach out to various corporate organizations and individual who we know can’t afford to do without our services.
We have conducted our market research and survey and we will ensure that all our products get to the right people and at the right time. Below is a list of the people and organizations that we have specifically market our products and services to;
- Banks, Insurance Companies and other related Financial Institutions
- Blue Chips Companies
- Corporate Organizations
- Manufacturers and Distributors
- Real Estate Owners, Developers, and Contractors
- Research and Development Companies
- The Government (Public Sector)
- Schools (High Schools, Colleges and Universities)
- Celebrities, Politicians, Public Figures and Public Speakers
- Sport Organizations
- Religious Organizations
- Political Parties
- Television Stations
- Printing Press (Publishing Houses) and Authors
- Branding and Advertising agencies
- Entrepreneurs and Start – Ups
- As well as all types of individuals
Surviving in the business world as a jewelry maker and retailer requires more than just expertise. This means that one must know how to deliver standard web designs, but also how to network with key people that matter, and decision makers.
Without a shadow of doubt, there are loads of big time investors, that have a stake in the jewelry making trade; but one thing is certain, there is room big enough to accommodate both the big jewelry making and retailing business and the small ones. All the areas where a whole lot more can be tapped from has to be explored to get the best of this trade.
We are quite aware that to be highly competitive in the jewelry making and retailing industry means that you are not only expected to be able to deliver consistent quality products, but you must be able to meet set targets. No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects.
It is for this reason that our competitive advantage lies in the power of our team; our workforce. We have a team of creative and highly proficient jewelers, a team with excellent qualifications and experience various niche areas in crafts and fashion industry. Aside from the synergy that exists with our carefully selected jewelers and services will be guided by best practices in the industry.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups jewelry making businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
SALES AND MARKETING STRATEGY
We are mindful of the fact that there is stiffer competition in the jewelry making and retailing industry, hence we have been able to hire some of the best marketing experts to handle our sales and marketing.
Our sales and marketing team will be recruited based on their vast experience in the fashion industry and they will be trained on a regular basis, so as to be well equipped to meet their targets and the overall business goal of La Chic Accessories.
Our corporate goal is to grow La Chic Accessories to become one of the top 10 jewelry brands in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the United States of America but also in other parts of the world.
La Chic Accessories is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our jewelry making and retailing company by sending introductory letters alongside our brochure to individuals, corporate organizations, religious organizations and key stake holders.
- Promptness in bidding for jewelry products contracts from the government and other cooperate organizations
- Advertise our business in relevant business magazines, newspapers, TV stations, and radio station.
- List our business on yellow pages ads (local directories)
- Attend relevant international and local fashion expos, seminars, and business fairs et al
- Create different packages for different category of clients in order to work with their budgets and still deliver excellent design and services
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
Sources of Income
La Chic Accessories is established with the aim of maximizing profits in the jewelry making and retailing services industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.
La Chic Accessories will generate income by offering the following fashion related services;
- Designing jewelry for both corporate clients and individual clients
- Developing unique designs on a large scale
- Training and grooming newbies
- Offering consultation services to fashion organizations
It pay a great deal to have our sale forecast established at the outset. One thing is certain; there would always be corporate organization and individual who would need the products and services.
We are well positioned to take on the available market in fashion industry and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow and develop our jewelry making and retailing company to enviable heights.
We have been able to critically examine the jewelry making market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in New York.
Below is the sales projection for La Chic Accessories, it is based on the location of our business and of course the wide range of our services and target market;
- First Year-: $150,000
- Second Year-: $450,000
- Third Year-: $100,000,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same jewelry products and services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Our Pricing Strategy
One of the tools that we plan to employ is to make our pricing a free for all affair. At La Chic Accessories we will keep the prices of our services below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations who would hire our services.
In addition, we will also offer special discounted rates to all our customers at regular intervals. We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.
- Payment Options
We intend to make things extremely simple for our clients, and that is why we want to make sure that there are several payment options. At La Chic Accessories, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them.
Here are the payment options that we will make available to our clients;
- Payment by via bank transfer
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
- Payment via mobile money
- Payment with cash
In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.
Publicity and Advertising Strategy
We strongly believe that for a business to make it, it has to be in the faces of all and sundry. We have been able to work with our in house brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to become the number one choice for both corporate clients and individual clients in the whole of the United States and beyond which is why we have made provisions for effective publicity and advertisement of our jewelry making and retailing company.
Below are the platforms we intend to leverage on to promote and advertise La Chic Accessories
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant fashion community based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
- Install our Bill Boards on strategic locations all in New York.
- Engage in road show from time to time in targeted neighborhoods
- Distribute our fliers and handbills in target areas
- Contact corporate organizations by calling them up and informing them of La Chic Accessories and the services we offer
- List our web cum graphic design company in local directories / yellow pages
- Advertise our jewelry business in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.
Financial Projections and Costing
We are aware of the extreme importance of projecting and essentially financially. Therefore, in setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.
As for the detailed cost analysis for starting a jewelry making and retailing business; it might differ in other countries due to the value of their money. However, this is what it would cost us to setup La Chic Accessories LLC in the United of America;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Acquiring an office space or warehouse that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
- Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
- Amount required to purchase the needed software applications – $ 3,500
- Launching an official Website will cost – $500
- Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand (250,000) U.S. dollars to successfully set – up a medium scale but standard jewelry making and retailing company in the United States of America.
Generating Funding / Startup Capital for Nine & Ten Technology®, LLC
La Chic Accessories is a business that will be owned and managed by Laura Chucks and her friend and business partner for many years Anjali Bantham. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings and sale of her stocks
- Generate part of the start – up capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $100,000 (Personal savings $85,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
BUSINESS GROWTH: Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting La Chic Accessories is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our jewelry products a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
La Chic Accessories will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a standard office facility for our studio: Completed
- Application for business license and permit: Completed
- Purchase of All form of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the start – up capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Secure trademark for our products: In Progress
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Creating Official Website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in various industries: In Progress