Increasing awareness of fashion and style has made jewelry making business an immensely potential business opportunity for startup entrepreneurs. A person having a creative mind, knowledge about the current fashion trends,, and passion for jewelry can start a jewelry-making business.
Industry experts predict that the jewelry market worldwide to grow at a compound annual growth rate of 8.1% from 2019 to 2025. It is expected to reach USD 480.5 billion by 2025.
Jewelry Making Business Plan Guide for Beginners
Here are the 10 steps to start a profitable jewelry business:
1. Research the Competition
The one constant aspect of jewelry making business is that of changing trends and styles. Before jumping into an actual business, it is most essential to gather as much information as possible to understand the local and online buying mindset of customers.
Furthermore, do not forget that the jewelry industry is competitive. There will be reputed existing players catering to the market. It is, therefore, extremely important to learn more about the products, pricing, and target customers. It will help you to locate and explore the gaps that exist in the market.
To do that, in-depth market research is a must. It is obvious since jewelry is a lifestyle industry, one needs to be innovative and fashion trendy to become successful.
2. Acquire the Skills of Making Jewelry
It is advisable to have some special training in jewelry making techniques before starting the business. Turning the hobby into a jewelry-making business demands some professionalism.
Various online jewelry making tutorials are available on the internet. Also, you can have training in person from any fashion institute near you.
3. Select Your Niche
The jewelry industry is big. There are a wide variety of jewelry items that are bought by customers. But as a beginner making a new entry with a low budget, it is advised to find a specific niche and cater to the specific target customers.
Broadly the jewelry products can be classified into two categories. One is traditional jewelry and the other is modern fashion jewelry. In addition, there are various types of jewelry that you can explore to make. Some of the popular types are listed below:
- Finger Rings
- Nose Rings
- Hair Pins
- Tie Clips
- Belly Chains
4. Create a Jewelry Making Business Plan
If you are planning a long-sustainable jewelry business, documenting a business plan is essential. A well-researched business plan not only works as a blueprint for the future course of action but also a very important piece of document for pitching for funds to prospective investors.
Writing a business plan is not that difficult as most beginners feel it. The best way to document a business plan is to write the essential factors that will drive the business. Below we have listed down the basic issues that you need to address:
- Startup and recurring costs
- Your target customers
- Your jewelry products and pricing
- Are You manufacturing jewelry items of your own or reselling products from other manufacturers?
- Is your jewelry business home-based or will be run from rented office space?
- Manpower hiring plan
- Define your unique selling proposition(USP)
- How and where you plan to sell?
Furthermore, one thing you must keep in your mind is that a business plan is a dynamic document. As your business grows, the business plan needs to be modified as per new challenges and opportunities.
5. Register Your Business
Registering your venture is advised if you plan to start and run it hassle-free and legally compliant jewelry business. Every country and state offer a wide range of company formation structure based on resources and scale of operation. You need to select the one that fits you best.
For example, in the United States, the most popular legal company formations are sole proprietorship, partnership, and limited liability company for small businesses. If you are looking to protect your personal assets in case financially sued in the future, forming an LLC must be your preferred option.
One can personally form an LLC following some easy steps. You can visit the official site of SBA to learn more about the process. However, you can also hire professional company formation providers to do the job by paying some extra fees.
6. Name Your Business
Though often not given due importance, selecting a proper business name is in fact a very important decision to make a successful venture.
A properly chosen name for your jewelry business not only helps in getting more customers but also enhance brand personality. Select a catchy name for your jewelry business that customers can relate easily to your product range.
There are certain factors to consider while naming a business. Check this guide to know more about naming a business.
Learn more: List of Catchy and Unique Jewelry Business Names
7. Procure Licenses and Permits
Talk to the local competent authority and procure all the licenses required to run a legally compliant jewelry business. In the United States, you can talk to the local clerk’s office for more information and guide.
Also, consider buying business insurance to further protect insurance. negotiate with the local insurance provider and get the required insurances that cover your jewelry business at the best price.
Finally, open a business bank account for carrying out financial transactions.
8. Arrange Funds if Required
If you are new to the business, it is a matter of fact that sourcing funds from banks and private investors is a difficult task. It is better to finance your jewelry business with your own money or taking funds from family members or relatives.
You can also reach out to crowdsourcing platforms where getting funds for startups are a little easier.
9. Find Suppliers and Buy Equipment to Create Jewelry Pieces
After you finish all the legal formalites, it is time now to concentrate on creating attractive and creative designs for your jewelry items.
The first step in making jewelry pieces is to find an fix suppliers who can can provide you with necessary raw materials.
In addition, you will need to buy some basic equipment to carry out making jewelry items. Buy tools like chain nose pliers, wire cutters, round nose pliers, flat nose pliers, nylon tipped pliers, toenail clippers, rulers, etc. Also, you will need to have different wires, beads, etc. Check your local wholesale suppliers and also online. Gather the supplies as per your requirement.
In a jewelry-related business, it is important to make your jewelry presentable. Use innovative packaging wrappers and boxes. Also, use the price tag of your own brand.
10. Have a Marketing Plan to Sell Jewelry Items
You can start selling within your community, friends, and family. You can go for establishing your own jewelry shop. Attend trade fair and crafts fair to showcase your jewelry and to build a brand. Also, you can make contracts with local jewelry retailers.
Creating a logo and exploring social media platforms are essential for beginners who are starting new. You can consider promoting your brand with paid stuff one profit starts rolling in.
Make an online presence for your jewelry making business is essential for business owners at present. You need to create a website and promote your jewelry pieces by creating an online storefront.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.