Do you want to start a jewelry store online? If YES, here is a complete guide to starting a jewelry store business from home with no money and no experience plus a sample jewelry store business plan template.
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 jewelry 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.
This is also why there are more and more women and men folks who are into the business. Whether it is the sale of jewelry or the manufacturing of it, truth remains that this is one very lucrative business; as there are loads of profit 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.
What Does It Take to Start a Jewelry Business Online?
Starting this business means that you will be a jewelry designer; who either can make pieces from scratch, or engage in the outright sale of it. Engaging in this trade 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.
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.
Pamela Doyle, co-founder of Doyle & Doyle, a high end boutique in Manhattan’s Lower East Side is specialized in estate and antique pieces, and talks of the importance of getting a strategic education about your product. She says this can be formal or informal. Thus, all that is really needed of you is to have the knack for the trade, as well as the determination.
24 Steps to Starting a Jewelry Store Business Online
1. Understand the Industry
The EuroMonitor 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.
Interesting Statistics About the Industry
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.
2. Conduct Market Research and Feasibility Studies
- Demographics and Psychographics
When it comes to the demographic and psychographics composition of those who patronize jewelers, it is obvious that both the male and female folks wear jewelries. Some of these people include; low, middle and high class women and men, teenagers, old women, young women, corporate executives, school aged people and what have you. These folks are the ones who are known to be in demand for jewelries and other related services.
However, it is needful to bear in mind that the high classed people would prefer to go for the costly precious stones and luxury jewelries, whilst those who fall in the middle/ lower class in the society would rather do the less expensive ones.
3. Decide What Niche to Concentrate On
Just the way the needs of humans are different, and the need of one person vary, so it is that there are several niche ideas in the trade. What this simply means is that one can specialize in different areas within the industry. The main thing however, is that one have got to get ample training in whatever field you choose to specialize in so that they do not operate like a mediocre.
As a result, here are some areas of specialization in the jewelry business industry- that is if you choose not to be a distributor of jewelry, but a jeweler. Bead making, be, wire works making, earrings making, bracelet making, cooper jewelry making and a whole lot of other ideas. However, it becomes really needful that one gets all the perspectives right so as to operate on the right footing.
The Level of Competition in the Industry
To say that there is a high level of competition in the jewelry business industry is to say the obvious. As such when one is looking to start the jewelry business trade, it is very needful to be conversant with the trends. There are an avalanche of women who are looking to get beautified, and hence the teeming population of people who are starting the jewelry business.
The industry can be said to be saturated and that is one of the reasons why there have got be a high level of creativity in order to penetrate the deepest parts of the market.
The capital needs to start this trade is minimal as one can choose to start out small or big depending on the scale at which you choose to operate. Whether you choose to start small, medium or really big, the idea of standing out from the pack is being able to offer your clients really unique designs that will stand the test of time.
4. Know the Major Competitors in the Industry
Every industry in the world can boast of successful brands because of the level of hard work which they have been able to put into their ventures overtime. Besides hard work, there are several other things that have continued to make these brands lead others without fail.
Some of these things include; high level of versatility, excellent customer service, and others too numerous to mention. Here are some jewelry brands that have done so well in time past:
- Harry Wins
- Van Cleef&Arpels
- Fred Leighton
- David Webb
- Tiffany & Co.
- de Grisogono
- Pasquale Bruni
- Thomas Sabo
- Kenneth Jay Lane
- Juicy Couture
- Hello Kitty
- Judith Jack
- Judith Ripka
- David Yurman
- Marco Bicego
- Carrera y Carrera
- Roberto Coin
- Erica Courtney
- Simon G
- JB Star
- Natalie K
- Michael Beaudry
- Michael B
- Jeff Cooper
- Alan Friedman
- Neil Lane
- Jose Hess
- Scott Kay
- Judy Evans
- Stephen Webster
Before setting up a jewelry business, it becomes really needful for you to undertake various research projects. This is so that you do not leave any stone unturned. There are several things that might take place during this research. However, the idea is so that you are armed with the right information that would cause you to start with the right footing.
The location of the business is a very key factor that must be considered. First off, you would need a place the can guarantee huge traffic at all times. The demand for jewelry based of concrete facts that have been realized from diverse studies, shows that the demands for it is on the increase.
As such in the next five, ten or twenty years, the demand for it would still be on the increase, as far as there are still fashion conscious folks who live on the face of the earth. This have so much caused that there is a high rate of competition in the industry.
One thing is for sure, and that is the fact that only those who are willing to learn new stuff, go the whole nine yards, in seeing that they stand out of the crowd by being creative will smile to the bank frequently. For those who look to sell only finished products, the case is also the same.
It is for this reason that jewelry businesses, who know the trick of being successful in the business despite the concentrated level of competition, will do all that is possible within their reach to stay at the top of their game. The per capita disposable income growth in this industry will to a large extent encourage newbies to delve into the business with high hopes.
5. Decide Whether to Buy a Franchise or Start from Scratch
If you have ever followed the trend of franchising in the business terms, you would find that top brands who have made a name for themselves in their respective field find it really easy to go into franchising. This is one of the reasons why businesses that have done so well take delight to have smaller coy buy into their vision. However, this might not be the right step for every business to take.
One of such business is the jewelry business. This is especially if you are looking to be a jewelry manufacturing company. This is because it becomes needful that you create your own brand consciousness, rather than ride of the back of other jewelry brand.
The case however, may be different if you are a jewelry distributor. This is because of the fact that folks may get endeared to your business because of the name of well-known brands. Over all, getting a jewelry business franchise is possible, however, you have got to be sure that you are a distributor before delving into that angle.
6. Know the Possible Threats and Challenges You Will Face
Every business has challenges and threats that possibly could befall it, and the jewelry business isn’t an exception at all.
Some of the threats and challenges that you are likely going to face when you start your own jewelry company include; global economic downturn that can impact negatively on general fashion spending, intense competition from those who target the type of consumers you want, lack of versatility due to not being creative and having great fashion foresight, and a whole lot more threats.
7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)
The nature of the jewelry business isn’t a very strict one. This is because it is easier for people to start the business on a small scale just to meet the demand s of the market available in their neighborhood and immediate communities. Thus the fraction of people who commence jewelry business on a small scale is about 40 percent.
This means that the percentage of folks who decide to start the trade as sole proprietors is almost at par with the 60 percent who would like to start on a large scale.
Conversely, if you have the picture of starting medium to big time scale, then you have got to choose the best legal entity. Doing this would be that you can get loads of orders and contracts from individuals, government and from corporate organizations.
So with this type of picture in mind, then you should consider Limited Liability Company, an LCC. Limited Liability Company. This is because you will definitely be protected from personal liability in case things go wrong in the business.
8. Choose a Catchy Business Name from the ideas Below
- Wendy’s Statement
- Hilary’s Piece
- Barky and Sanders Jewelries
- Missy’s Timeless Pieces
- Coy Jewelers
- Beulah’s Neckpieces
9. Discuss With an Agent to Know the Best Insurance Policies for You
The fact that you can run your jewelry business as a sole proprietor does not indicate that you should absolve yourself from getting the right insurance policies for your business. In the true sense of the word, you will need the right insurance.
How then can you arrive at the best insurance policy for you? You can talk to your insurance broker and he or she will be able to guide you on the best and most suitable insurance cover that you should buy for your jewelry business. In the meantime, here are some basic insurance covers that you should consider purchasing if you are looking to start your own jewelry business the united states of America;
- General insurance
- Health insurance- especially because you would be dealing with some non-tarnishing chemicals.
- Liability insurance
- hazard Insurance
- Workers Compensation
- Overhead expense disability insurance
- Business owner’s policy group insurance
10. Protect your Intellectual Property With Trademark, Copyrights, Patents
Well, starting a jewelry business generally may seem as though it doesn’t need an intellectual protect. However, if you are looking to have a training system where folks can come and learn how the jewelries are developed and finished, then you will need to get your training materials intellectually protected. This is so that you do not fall into the hands of those who may be willing to use your brainchild without compensations.
11. Get the Necessary Professional Certification
Generally, if you are tinkering with starting a jewelry business particularly becoming a jeweler; you have got to get the skill acquired. This can be done by approaching those who are already versed in the art. However, this does not undermine the fact that there are schools where you may get a certification in the profession. As a matter of fact, there are schools that exist that offer courses in becoming a jeweler in America.
Some of the advantages of wanting to walk this path, as against just being trained by some regular person include; being a certified jeweler, being trained by certified and successful teachers who are either in the trade or are business experts.
12. Get the Necessary Legal Documents You Need to Operate
These are some of the basic legal documents that you would need to successfully run a jewelry business in the United States of America;
- Certificate of Incorporation
- Business License
- Business Plan
- Non – disclosure Agreement
- Employment Agreement (offer letters)
- Operating Agreement
- Insurance Policy
- Employees Handbook
- Contract Document
- Trademark registration for your logo (optional)
- Tax Payer’s ID number.
13. Write a Business Plan
As a matter of fact, there is hardly business that does not require a business plan. If you are severe about starting a business with the aim of competing and making profits, then you should ensure that you prepare a business plan document before investing your hard earned money and time into the business.
You might not need a comprehensive business plan for a jewelry company, but it is important to at least have a business document; a business plan that will guide you and give you a clearer picture of what you intend achieving by starting the business.
A Business plan is like a blue print that is needed to successfully run a business; it is the document that will influence all your business decisions and actions. The whole idea of writing a business plan is not just for the sake of having a business document in place; but to draft strategies that will help you effectively administer and manage your jewelry business.
Your business plan should cover strategies on how you intend to generate your start – up capital, attract clients and also to expand the scope of your business. These are some of the key components that must not be missing in your business plan.
Other key components that should be included in your business plan are as follow;
Executive summary and your company’s descriptions
This is the section where you are expected to clearly state what your jewelry business is all about, your company’s corporate culture, your sales and marketing strategies, your marketing goals, your target market and perhaps what stands you out from your competitors, You are also expected to state your company’s vision statement, mission statement and the areas where you want to cover.
Lastly, other key components that should not be missing in your business plan are your products or service offering, SWOT analysis, marketing and sales analysis / strategies, pricing, costing and financial projection, publicity and advertising strategy, budget and start – up capital generation et al.
You may not have to engage the services of a business consultant to help you write a business plan for your jewelry business, you can go online to source for business plan template. With the aid of a business plan template, you can come up with a good business plan document for your jewelry business.
14. Prepare a Detailed Cost Analysis
Research and statistics shows that the cost of starting a jewelry business is not fixed. This is simply because the prices of the basic equipment needed for the business varies. While that of starting on a small scale might not be expensive, that which would be needed when starting a medium to large scale business would be more.
The start – up capital for a jewelry business can be as low as the owner of the business wants it to be. This is so because the average owner of a neighborhood jewelry business operates from home thereby eliminating the cost of paying rent for an office space.
Basically, you would need to tick most of the items listed below if you want to launch your own jewelry business in the United States of America and most likely in other parts of the world;
- The Total Fee for incorporating the Business in the United States of America: $750.
- The budget for Liability insurance, permits and license: $1,500
- The Amount needed to acquire a small Office facility with space for storage of working tools and equipment for 6 months (Re – Construction of the facility inclusive): $30,000.
- The Cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al): $3,000
- The cost for acquiring the required working tools and equipment (aluminum steels, stainless steels, beads, crystals of different designs and shapes, amongst others) 10,000
- The Cost of Launching an official Website: $600
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $1,000
Going by the report from detailed research and feasibility studies, you will need an average of $50,000 to start a small scale jewelry business in the United States of America.
If you want to start a medium scale jewelry business in the United States, you would need nothing less than $100,000. And if your intention is to start a large scale jewelry business in the United States of America, then you should look towards raising well over $200,000 as your start – up capital.
15. Raise the Needed Startup Capital
Irrespective of how fanciful your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is one key factor that must not handle with levity when it comes to starting a business. No doubt raising start – up capital for a business might not come cheap, but it is a task that an entrepreneur must go through.
The first thing to put in place before sourcing for start – up capital for your business is to draft a detailed business plan. With a good business plan, you can easily convince investors to invest in your business. The truth is that no bank can give you a loan if you don’t have a good and workable business plan.
Besides, investors will not take you seriously if you don’t have a business plan on ground before launching out to source for start – up capital to finance your business idea. There are several options when it comes to raising money to finance a start – up business. Some of the options are;
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Applying for loan from bank
- Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
- Sourcing for soft loans from family members and friends.
16. Choose a Suitable Location for your Business
When it comes to choosing a location for a jewelry business, it is important to first and foremost look for a location where there are folks who love fashion- those who are trendy. You have also got to look at places where there is vehicular and pedestrian traffic.
This is so important so that people can always checkout what you have on display. You would be doing yourself and business some disservice if you located your business in a very dull area. It is for this reason that you also need to do plenty of research so as to arrive at the best location.
Yet another thing that you may want to consider doing when you are looking to locate your business is the financial status of the residence in the location you want to start your jewelry business. Why is this important? This is especially important so that you can get through to your target audience with ease. If on the other hand you have got a good space that can serve for your jewelry business, then you may consider starting from your home.
17. Hire Employees for your Technical and Manpower Needs
Most of the equipment and tools needed to launch your jewelry business- especially if you are looking to start on a low note can be bought at an affordable price. There may be a challenge in finding fairly used products for this type of business, as is the case with other industries.
This is because all the tools and equipment needed for this kind of business has been designed specifically to be used by the first purchaser. This is so that these tools and equipment may wear and tear off easily. These are some of the equipment that you would need to fully launch your jewelry business:
- Chalk beads
- Swarovsi beads
- Neck hooks
- Ear hooks
- Wrist hooks
- Tiger tails strings
- Fishing line strings
- Packaging materials
The nature of jewelry business permits people to run the business from their home. As such, if you must get a showroom/office, ensure that it is furnished and well-structured to taste. You would need to start with employees like; a jewelry designer, creative director, marketer, Cashier, amongst others.
The Service Delivery Process of the Business
The process involved in churning out jewelry includes the following;
- Purchasing the raw materials
- Creating the designs
- Starting the production
- Finish the process of production
- Packaging it
- Marketing it
18. Write a Marketing Plan Packed With ideas & Strategies
If one of the things that is of uttermost importance to you is to make more profits, then you should take marketing really seriously. In order to have all your products known by all and sundry, then you have got to invest greatly in the advertising exercise.
It is for this reason that if you are running a medium or large scale jewelry business, which you have got to make it mandatory to be in the faces of people. One of the ways through which you can be in the faces of people is by being on the internet, the newspaper, as well as telling as much as you can about your product
Here are some tips that you can adopt to market your jewelry business;
- Introduce your business by sending introductory letters alongside your brochure to stake holders in the fashion industry.
- Promptness in delivering the orders of clients.
- Advertise your business in fashion and life style magazines and websites
- List your business on local directories and yellow pages ads
- Attend related 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 quality job for them.
- Leverage on the internet to promote your business
- Direct marketing
- Attend fashion and style networking events
- Word of mouth marketing (referrals)
19. Work Out a Reasonable Pricing for your Services & Products
One of the ways to make sure that pricing does not come across as ridiculous, and that you still maintain the best of quality, is by ensuring that you cut your operational cost to the barest minimum.
You can achieve it by operating the business from your home especially if you choose to start the business on a small scale and also purchasing used pocket friendly tools and equipment, which will help you cut cost and get the right pricing that will be a win – win for both you and your customers.
20. Develop Iron-clad Competitive Strategies to Help You Win
It is no longer news that the competition in the jewelry industry is such a complicated one. However, it is also true that a whole lot of people are making it big-time in this industry. The question therefore is; how are these players able to maximize profit?
Well, these folks are able to win loads of clients despite the competition that abounds, because of the edge they have. Some of the edges they have include; tailoring your jewelry services in such a way that it meets the demands of all classes of people.
This means that you are able to make jewelry for the low, medium and high class people in the society. This is because you will need to maximize profit on all fronts as you press to become a household name.
21. Brainstorm Possible Ways to Retain Clients & Customers
One of the surest ways of increasing customer retention in your business is to ensure that you deliver excellent services at all time. If you continue to meet or surpass your customers’ expectations whenever they engage your services, then you will not have to struggle to generate repeated business from them. The number one reason why people look for alternatives is when their needs are not met or when they aren’t getting value for their money.
As part of your plans to increase your customer retention, you must also ensure that you give out incentives on a regular basis to your loyal customers and also those hiring your services for the first time. Also ensure that you effectively manage your clientele base by maximizing your CRM software applications.
22. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
It is important to create strategies that will help you boost your brand awareness and to create a corporate identity for your business. If you are running a large scale Jewelry Company, then you should look for ways to promote your brand and if possible, hire brand experts to help you handle that aspect of your business.
Below are the platforms you can leverage on to boost your company’s brand and to promote and advertise your business;
- Encourage your loyal customers to help with Word of Mouth mode of advertisement (referrals)
- Advertise your Jewelry business in relevant magazines (real estate magazines), local newspaper, local TV stations and local radio station
- Promote your jewelry business online via your official website
- List your jewelry business on local directories (yellow pages ads)
- Leverage on the internet and social media platforms like; Instagram, Google+, LinkedIn, Badoo, Facebook , twitter, et al to promote your jewelry care business
- Employ direct coupon mailing approach to introduce your jewelry business to fashion houses and celebrities.
- Engage in road show from time to time to create awareness of your jewelry business.
- Distribute your fliers and handbills in target areas
23. Create a Suppliers/Distribution Network
Running a jewelry production or distribution business means that you have to have the plans in place for the supply of the raw materials that you use for your business, as well as have plans in place for the distribution of your products.
If on the other hand you are just a distributor, then you will also be required to have as much concrete plans on ground as possible. The bottom line is to ensure that you have good business relationships with suppliers and distributors of all you would need to carry out your job.
24. Tips for Running a Jewelry Business Successfully
One of the ways that you are able to make cool and clean cash when you do start out is by making celebrity know what you have for them. This means that you have got to provide some high end products and services that can attract the upwardly mobile celebrities that abound in the city you are located in.
In order to successfully run this type of business, you must create workable schedules; it is important to work with your clients to design a schedule, as well as the type of things they want. You may also consider sponsoring some fashion, and musical shows. This is so that you can get the attention of a lot of folks who may want to find what you do really appealing.
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