How to Open a Jewelry Business

The right jewelry can accent an outfit or simply make you feel good while wearing it. If your passion for jewelry has you searching for beads and wire to create unique pieces, it may be time to take your pastime a step further. Opening a jewelry business is a great way to pass on your love for jewelry to the general public. Turning your casual jewelry making hobby into a successful business is easy with the right plan.

Instructions

1. Make a detailed business plan. Outline the full operation and expectations of your jewelry business. Create a comprehensive plan that addresses important issues such as growth projection and target market. This will ensure that you’re serious about opening a jewelry business and demonstrate that commitment to potential investors.

2. Gather capital. Apply for small business loans and credit cards through your bank. Use sites like business.gov (see Resources) to search for government grants offered to business owners. Let friends and family know of your plans so they can have a chance to invest in your dreams. Consider taking a part-time job or having a few yard sales to secure extra money. Taking your business plan directly to private investors can prove helpful in your search for funding.

3. Submit applicable paperwork. Check the local Register of Deeds office for an updated list of permits and licenses you’ll require to open your jewelry business. Rules can change unexpectedly so, it’s your responsibility to ensure you’re fully covered under the law. Make copies of all correspondence with regulatory offices for future reference. Avoid fines and penalties by completing all required paperwork on time. Secure business insurance with a reputable agency. Consult with an insurance agent to discuss the types and amounts of insurance your business requires.

4. Conduct research. Get a feel for what members of your target market desire. Take note of preferences for specific items like wooden beads and crystals. Although creativity is appreciated in the jewelry business, appealing to the masses is key when opening a jewelry business. As your customer base grows, you’ll have more time to introduce exotic pieces. Find the right balance of unique and customary offerings. Visit jewelry stores to form an idea of what your pricing structure should be like.

5. Secure a business location. Scout for a place that's appealing to your target customer base. Keep your budget in mind as you contact the management companies of these locations. Setup an online jewelry store to showcase your inventory further. Consider starting a home-based business if your budget is tight as many successful jewelry businesses are run from home-based locations. Using flea market and mall space is another viable option to combat tight budgets. Follow up with an insurance agent to receive quotes based on your actual business location.

6. Gather store inventory. Connect with a jewelry wholesaler like Goldie Jewelry (see Resources) to take advantage of deep discounts. Whether you choose to buy jewelry components or completed pieces, solid inventory is needed prior to the opening of your jewelry store. Attend auctions, estate sales, and liquidation sales to find bargains on jewelry as well as durable items like shelving. Consider using a drop shipper like Pop-Jewelry if your jewelry business will feature an online component. Drop shippers mail items directly to the customer on your behalf, saving you space and time.

7. Hire qualified employees. Interview for jewelry making and sales positions to ensure your business has a solid start. Choose experienced jewelry makers that can follow patterns and make appropriate suggestions. Screen your applicants by asking them to complete a series of simple crafts. Check their work for proper technique as well as flaws. Welcome your new employees to your staff prior to your grand opening to finalize employment agreements and conduct training.

8. Promote your business. Spread the word to jewelry wearers far and near by advertising your pieces on live models. Use your friends and family members as walking billboards to help promote your new jewelry business. Place advertisements in local newspapers and magazines. Host jewelry events at your home or new store to show off your inventory.

Tips & Warnings

• Making jewelry for profit can be much different then making it for fun. Ensure that your materials are high-quality.

• Never skimp on business insurance coverage. Listen to professional advice to obtain the liability, property,and worker's compensation packages you need.

• Avoid overstocking your shelves. It can be difficult to absorb the cost of reckless spending.

Resources

• Search for applicable grants.
• Connect with a jewelry wholesaler.
• Connect with a jewelry drop shipper.