How to Start a Home-Based Jewelry Business
Starting any home-based business requires dedication and organization to make it work. Selling jewelry, whether handmade by you or through another company, also entails some savvy selling and an enthusiastic personality. Every woman and some men (if they know what's good for them) are interested in jewelry, so you have a market ready and waiting for you. Here are a few tips to help you get started.
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Develop your business strategy. This is your chance to be honest with yourself and ask some tough questions. Keep in mind that competition in this industry is fierce, and unless you are willing to go out there and sell yourself and grow your business, you won't be able to earn a living.
Also consider your options. You can sell handmade items or sell for other companies. If you chose to sell your own product, make sure you include the time it will take to create your items, your supplies, and any art or craft show fees you'll need to pay out in your business plan. If you are choosing to sell for another company, like Premier Designs, make sure you consider any start-up fees you'll need to invest as well as the time involved in working the "parties" or fairs.
Before making any decision, you should also consider the current fashion trends, including what's hot now, what's on the way out, and what could be coming into popularity. For example, the Pandora bracelets hit the industry fast and furious. Sales are high and liable to continue to be so. This is another possibility to explore---create your own "distribution" type business.
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Create your own handmade jewelry. Working with this type of plan puts everything in your hands, from the actual design and creation to marketing and selling. Applying for a seller's permit for your area will allow you to purchase supplies at wholesale cost. Suppliers like Shipwreck Beads and Firemountain Gems as well as smaller sites like Primitive Beads all have wholesale applications that can be completed. When approved, you will be able to purchase in bulk, usually at a lower cost. You will need to design some kind of display that you can use at any shows, as well as one that is travel friendly so you can approach retail stores and specialty shops.
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How to sell your handmade jewelry is also your decision, as are the prices you charge. Some websites, like Etsy.com, allow individuals to sell their handmade items on their site for a minimal fee. This is a great way to develop an online store without the large expense of developing a website.
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Price your items. This is perhaps one of the most difficult aspects of this type of business. Using a simple formula can give you a base for each item that will allow you to make a profit. For example, add together the cost of all the supplies used in creating an item and multiply it by 4. Then add together any packaging, boxes, and other supplies. Next add in your time (if you charge $20/hour and an item took you 30 minutes to make, then you would be adding $10). Take this total and add a 10% increase for "overhead," and you will have a base price for your item. This can be adjusted either up or down depending upon your market or customers; however, understand that decreasing the price will cut down on any profit you make.
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Consider other options such as working as a sales representative for another company. In other words, you pay a discounted rate for initial samples, which you take to "parties" arranged by prospective buyers. For each item ordered from these functions, you keep a percentage of the sale and send the remainder to the company. For example, if a person orders $100 worth of jewelry from you, you keep $50 and send the remaining $50 to the company to pay for the item ordered. Because the buyer pays tax and shipping costs, you have netted $50 for this sale. In addition, for some companies, you receive a commission for any person you recruit into the business as well as a percentage of their sales. For example, if someone you have recruited sells that same $100 at an event they have participated in, you would receive $10 from the company as a commission on their sales without having to actually do any of the work.
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Become a jewelry dealer or distributor. Yet one more possibility for your business, this allows you to contract directly with a company to sell and distribute their product. Using the Pandora example, this would mean contacting Pandora and completing the paperwork to become a dealer of their jewelry, beads, and charms. This same idea can be carried out with any direct manufacturer. You will need a business strategy that would sell the company on your becoming a dealer for them. Whether it's home shows, classes, trade shows, or even a combination of the three, you will need to provide ways that you will make the sales quotas they assign to you for the privilege of handling their products.
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