How to Start a Handcrafted Jewelry Business in Massachusetts

You love making handcrafted jewelry and you want to open your own handcrafted jewelry business in Massachusetts. Opening a small business requires more than just great crafting skills. Research from the United States Bureau of Labor Statistics concludes that about half of all small businesses fail; most fail in less than two years. Proper planning can help your Massachusetts handcrafted jewelry business overcome the statistics and prosper.

Instructions

1. Name your handcrafted jewelry business. Research to be sure the name is not taken and does not infringe on the intellectual property of another person or business. Consider how your business name will allow you to grow your business. For example, if you use your own name, how will that impact new business partners? If you use the name of your town or state, how will that impact future moves or expansion into other jurisdictions? If you include the terms "hand crafted" or "jewelry," how will that impact your ability to create large-scale-production jewelry or to expand beyond jewelry making as your business evolves?

2. File a "doing-business-as" certificate with the clerk of the city or town in which the handcrafted jewelry business is located, if your business name is different from your legal name. File the certificate where the business is headquartered if the business has multiple locations (for example, if you operate out of your home and a retail space or you operate out of both your home and that of a business partner).

3. Write a business plan for your business. The business plan is your blueprint for business success. It will outline how you plan to turn your craft into a profit-making business. The business plan should explain how your product is different from or better than those already on the market and why you are the right person to run your business. You will need a business plan to secure financing for your handcrafted jewelry business.

4. Select a location for your business. Locate space suitable. Consider how the space fits in with the short-term and long-term plans outlined in your business plan. Check the local zoning laws and the rental or mortgage agreement to verify you can operate a handcrafted jewelry business on the premises.

5. Decide whether or not you will sell your handcrafted jewelry on the Internet. If you plan to operate on the internet, then register your business name as a domain name. If the business name is not available on the Internet, verify that the name you do use will not infringe on the intellectual property of another person or business. Be sure that your business plan reflects how you create a Web presence. For example, consider whether you will need your own website, or will direct traffic to an online store you operate on a commercial website dedicated to hand-made crafts. Consider how social network tools will factor into your advertising presence on the Web.

6. Decide the legal structure for your business. If you plan to operate as sole proprietorship, then there is no legal paperwork that must be filed. If you plan to operate as a corporation or other legal form that limits your liability to the extent of your investment in the business, then you will need to seek legal counsel to help you form your business.

7. Obtain financing for your business. Financing is often the most challenging part of setting up a business. If you use your own funds or the funds of a family member, be sure to document the investment in the business and determine whether the investment is a loan to be paid back or the value invested for a secured interest in the business. If you seek outside financing, prepare the documents needed to apply for financing from a commercial bank, venture capital firm or other financier (including government programs sponsored by the Small Business Administration).

8. Get an Employer Identification Number (EIN) from the U.S. Internal Revenue Service if you expect to have any employees. The EIN is the number the IRS uses to track the taxes you must withhold from employee paychecks and pay on their behalf to the IRS.

9. Register your business with the Massachusetts Department of Revenue so it can pay Massachusetts state taxes.

10. Obtain all needed licenses and permits for your handcrafted jewelry business. Check the "Permit Me" tool on Business .gov to get a listing of federal, state and local permits, licenses, and registrations you will need to run your handcrafted jewelry business.

11. Review the Massachusetts Consumer Protection Law to be sure your business complies. For example, you will need to post your refund/return policy where it can be readily noticed and understood by the public.

Tips & Warnings

• This article is intended as an overview and is not intended to give specific legal or business advice. Your facts and circumstances may change the legal and business analysis. See an attorney to see how the law applies to you.

References

• Small Business Administration, Boston District Office
• Massachusetts Small Business Guide
• Permit Me Tool
• United States Bureau of Labor Statistics: Survival and longevity in the Business Employment Dynamics Data