If you’re passionate about designing and making jewelry, you should think about turning your passion into something that can bring in some extra cash. And who knows, your budding jewelry business could be successful enough for you to become a full-time entrepreneur!
Read on to learn more about starting a jewelry business of your own.
Start With A Business Plan
First things first. You need to create a solid business plan for your jewelry business. Think of this plan as a roadmap that will guide you as you launch and grow your business.
Your business plan will define the scope of the products and services you offer. When you put your plan together, you have to take a realistic look at the expenses you’ll have to cover and the kind of profits to expect.
Once you seek financing for your jewelry business, whether from family, friends, or a small business loan company, your business plan will be an important document to present how you will use those funds.
Here are some things you should include in your business plan:
- An executive summary that explains what your business is about
- A more detailed company description where you define who your customers are, what sets your business apart from competitors, and what your goals are
- You will also need to conduct a market analysis. Identify your main competitors and think about the outlook for the future of your business. Don’t forget things like seasonal trends, because jewelry sales tend to peak during the holidays.
- Your business plan needs an organization and management section. It’s fine to keep this section short since you’ll probably be the only employee at first.
- You need to include details about your product line. Now is the perfect time to figure out how much different pieces will cost to make and the amount you can price them for. It’s often best to get started with a small product line that is easy to manage and to add products gradually.
- Outline your marketing strategy in your business plan. You should define the channels you want to use to promote your business and sell your products.
- Your plan should also discuss funding. There are different options to explore, including using your savings, a line of credit, borrowing money from friends or relatives, or applying for a small business loan.
- Make some realistic projections for the future of your business in terms of sales, profits, and growth.
How To Structure Your Business
If you’ve already sold a few of your creations, chances are, you did it as a self-employed person. It’s fine to keep selling jewelry and claim your income as self-employment income. However, there are some advantages to structuring your jewelry business as an LLC or sole proprietorship.
For one thing, you’ll be able to file a DBA form and officially register your business name so that no one else can use it. If you’re unsure what you want to call your business, brainstorm a few ideas to find a compelling name before you start a jewelry business.
Registering your business as an LLC means that your jewelry business will exist as a separate legal entity. Tax and debt liabilities will remain separate from your personal liabilities.
The process for registering an LLC varies from one state to another. You will typically have to file a simple form and pay a small fee. You will also have to fill out IRS Form 2553 to get a federal tax ID for your business.
Decide Which Suppliers You Want To Work With
Did you know that repeat customers spend 67% more after two years and a half of being loyal to a business compared to their first six months? The key to achieving growth with your jewelry business is to build a loyal customer base that will make repeat purchases.
You need to deliver high-quality products to get repeat sales. Choosing the right suppliers is crucial because these partners will provide you with the materials you need to craft high-quality jewelry. You need to be able to rely on your suppliers to consistently deliver the same quality.
You should shop around and ask for samples so you can choose suppliers who offer excellent products at a good price. It also pays to develop good relationships with your suppliers, since you need to communicate with them to get a heads up if a product might be out of stock for a while.
It’s a good idea to put together a list of suppliers you’re comfortable working with to have some alternatives to consider, in case one of the materials you need is out of stock. Besides, getting quotes from suppliers early in the process of launching your jewelry business will help you price more accurately.
Managing Your Time As An Entrepreneur
Entrepreneurs wear many hats. It’s important to understand which tasks you’ll have to work on and figure out how to manage your time.
Here are some of the things you have to do after starting your jewelry business:
- Promote your business and products online and in person.
- Keep track of sales and expenses for accounting and taxes.
- Buy supplies and manage your inventory.
- Fulfill orders and ship items on time.
- Provide customer service.
These different tasks might take more time as your business grows. You should consider outsourcing things like marketing and accounting once you can afford to pay a professional to help you.
How Will You Sell Your Products?
There are different channels to consider in selling your handmade jewelry. Each has its pros and cons, and you should think about using a combination of channels.
Creating Your Own Website
Launching a website for your jewelry business is a great way to have complete control over the experience you offer to your customers. You can use your website to build a loyal following and avoid the fees that eCommerce platforms typically charge.
However, you’ll have to put in time and effort into creating content for your website. You’ll also have to look into SEO and other digital marketing strategies to bring traffic to your website.
If you want to set up an online store, you need to invest in an eCommerce solution to streamline the process of creating product pages, keeping track of orders, and processing payments.
Listing your products on eCommerce platforms like Amazon Handmade, eBay, or Etsy will give you increased visibility. The main advantage of using these platforms is that people can use them to shop and discover new products.
These different platforms will charge a percentage for each sale. However, they will process the payments for you.
You should look into using eCommerce platforms to build your following if you’re launching a new business. You can then connect with shoppers via email or social media and encourage them to go through your website for repeat purchases.
Selling Jewelry Locally
Selling jewelry locally can be a great business plan. People love supporting local businesses, and it would allow you to sell your creations without having to pay shipping fees or transaction fees on eCommerce platforms.
While renting a brick-and-mortar location is out of the question for most new businesses, you can get a booth at a local craft show or fair. You can also sell your jewelry at different farmer’s markets in your area. Get in touch with local art galleries, gift shops, and souvenir shops to see if they would be interested in selling your products.
Starting a successful jewelry business requires some planning. You should start by putting together a detailed business plan and crunching some numbers to figure out your expenses and potential profits. Good luck!