What Do I Need to Start a Jewerly Business?
If you're thinking about turning your passion for creating jewelry into a home-based business, there are legal and business issues you need to consider before getting started. Other issues are just as important. You need to learn how to make your business visible to your customers and how you to handle the orders that you hope come pouring in from your efforts.
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Business and Legal Issues
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No matter what business you're starting, whether it's selling jewelry or starting a landscaping company, you need a basic legal and business foundation. Design a business plan. A business plan is crucial to your success because it lays out the direction of your business. This includes how much financing you need, how much revenue you must produce, and what resources you need to get the job done.
The U.S. Small Business Administration offers many free resources, such as sample business plans, and a list of forms you need to get started, including IRS and other government forms. One of the most important forms, among others, is the IRS's application for an employer identification number (EIN). Filling out the paperwork can be tedious and fees are involved, but you need to complete these documents, as well as develop a plan, to create a solid foundation for your business.
Your Website
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You have designed some jewelry samples that your friends love and that you are ready to sell. Unless you have signed a lease on a store front somewhere, you need a place to display your wares. The web, of course, is where many small business owners go to find customers. Set up a website for online commerce, using design tools that properly show off your wares. Add relevant content with proper key words so your website can be found among the countless others on the Internet. Consider linking to other jewelry sites that are not in direct competition with yours. Also, link to social media sites and websites dedicated to jewelry.
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Jewelry Parties
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Conduct a series of home-based jewelry parties. Start with friends who like your jewelry. You can eventually branch out through their network of friends. Keep on hand an inventory of jewelry. And have a way for people to purchase your wares, such as a credit-card reader, since many people prefer "plastic" to money or even checks when making purchases.
Create marketing colatteral. Have a circular or a small catalog printed showing your jewelry designs.
Send out invitations to your parties. To save money, try electronic invitations, or e-Invites.
Finally, budget for food and refreshments.
Maintaining Inventory
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The most important part of your business is your inventory. As you begin your business, don't invest too much money in inventory. However, you do need enough to sell. Consider how long it takes you to create a piece of jewelry. If the process is lengthy, have enough inventory to match the supply you anticipate selling. You might be disappointed about the low customer demand at first, but, as you market your business, step up your manufacturing process. Consider purchasing enough raw materials to handle your first three months of demand, and then evaluate your inventory after that time period.
Order Fulfillment
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You have your website, your inventory and your customers, but you need a method for fulfilling orders. Purchase packing materials, boxes or padded envelopes. Postage is a big expense for any business, so find the best deals through the main carriers. Don't forget to charge your customers an appropriate amount for shipping, at least enough to cover expenses.
Do not "over buy" your shipping supplies. Start out by purchasing enough to cover one week of orders and then evaluate how much is used as you go. The idea is to keep your costs down to protect your profits and your business investment.
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References
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