Whether you are a jewelry enthusiast who enjoys collecting jewelry, or a creative entrepreneur looking for a new entrepreneurial outlet, starting a jewelry business can be a fulfilling and exciting journey.
In addition to being your own boss and choosing the direction of your company, you can start a jewelry business with minimal upfront costs. In this guide, we’ll walk you through each step and answer common questions about how to get started.
Not sure a jewelry business is right for you? Hope you can find the answer through this article.
Here’s our suggested step-by-step guide to starting a jewelry business:
(1) Choose a niche market.
(2) Choose a business model.
(3) Understand your potential customer base.
(4) Brainstorm jewelry business names and brands.
(5) Create an online jewelry store.
(6) Make your jewelry business official.
(7) Find suppliers of jewelry materials and products.
(8) Calculate the costs of starting a jewelry business.
(9) Determine the price of jewelry products.
(10) Learn about manufacturing.
(11) Develop marketing strategy.
(12) Launch your online jewelry store.
1. Choose a niche market:
First, you need to identify your niche. Your niche and business model are closely related, but first define your niche. A niche defines who you decide to sell to and what you sell. Once you start building your brand, it becomes the focal point of your business. Here are some questions to ask yourself to determine your niche. What type of jewelry would you like to specialize in? Consider whether you want to offer one type of jewelry, such as earrings, necklaces, and bracelets, or multiple types.
What is unique about your jewelry products? Determine what qualities and features make your product or business stand out from the competition and establish your unique selling proposition (USP). For example, you can use unique or up–cycled materials. Or your jewelry may have a specific theme, color or design. Who is my target market? Think about who your ideal customers are, including their age range, interests, buying habits, income level, and values. The more you know about your audience, the easier it will be to create and source jewelry that appeals to them.
Can you solve the problem for the customer? For example, if you are a metal-sensitive buyer, you can choose not to be sensitive or make jewelry with high-quality materials.
2. Choose a business model:
The business model defines how products are selected and marketed. There are several common business models that are suitable for your jewelry business, but a combination of these models may better suit your business goals, aspirations, and target market. For example, you can combine a custom jewelry model with a drop shipping business model to increase variety, expand market share, and earn additional revenue.
Here are some examples.
(1) Custom Jewelry Models:
This business model specializes in creating custom jewelry for customers. Custom jewelers can often charge higher prices for their customization services. Additionally, the people who follow you are likely to be true fans of your work because your designs are unique and cannot be found anywhere else.
(2) Handmade Jewelry Business Model:
Create a line of handmade jewelry and sell it online. You can also create unique pieces, designs, or both.
(3) Carefully selected jewelry styles:
Choose your favorite styles from a variety of jewelry suppliers and designers. Consider specializing in a certain quality or style of jewelry and reselling selected items to customers for a profit.
3. Understand your potential customer base:
Before you start your business, find out who will buy the jewelry you sell and the price they will pay for such items. The better you understand your target audience’s interests, demographics, and buying habits, the better equipped you will be to create and curate products they want.
Here are some methods you can use to understand your audience.
(1) Competitor research
Search online to find jewelry retailers that sell products similar to yours. Analyze your marketing strategy, target audience, and customer feedback.
Create online surveys to collect feedback from your audience. Consider offering attendees something to entice them to the store, such as coupons, small gifts, or tickets to win handmade jewelry.
(3) Local events
Attend local industry events such as conferences and craft shows to connect with your target audience and get first-hand feedback about your products.
(4) Website analysis
Once your website is up and running, review your visitor demographics to gain insight into where your visitors are coming from, what pages they visit, and how long they spend on your site.
4. Brainstorm jewelry business names and brands:
(1) Create a great business name
Your business name is an integral part of your brand image on your website, invoices, product packaging, labels, signage, and more. Your business name can be something meaningful or personal to your business. Generally, a good business name should be short, easy to remember, and easy to spell. The easier your name is to remember, the more likely your customers will buy from you again.
(2) Create a logo
When it comes to creating a logo for your business, you have two options: design a logo yourself, or have a designer create one for you. This logo can be combined with your business name, or you can use a special and meaningful graphic or pattern to create this logo.
5. Create an online jewelry store:
After these steps you can start creating an online store to expand your business reach. Customers can learn about your company information and product types through your official website, and help them purchase products more conveniently and quickly.
6. Make your jewelry business official:
At this point, you’ve done most of the preparation for opening a jewelry store, and it’s time to formalize your business by registering your business and obtaining the necessary licenses. You need to apply for a business license and open a corporate bank account to start your jewelry store business.
7. Find suppliers of jewelry materials and products:
Whether you plan to sell handmade jewelry or source pre-made products from a jewelry wholesaler, it’s good to identify your suppliers ahead of time. This will help you estimate startup costs and plan for ongoing expenses appropriately.
8. Calculate the costs of starting a jewelry business:
Once you have a handle on your products and material sources, you can start calculating your startup costs. When it comes to product sourcing, a simple way to calculate costs is to do virtual shopping with suppliers. You can make a list of products you might purchase to estimate product costs.
9. Determine the price of jewelry products:
There are several variables involved when pricing jewelry, including time spent, cost of materials, overhead, hourly rate, and the price point your target audience is willing to pay. The price should not be set too high to avoid customers losing the desire to buy immediately after seeing the price. Prices that are cost-effective for customers can be set for different customer groups.
10. Develop marketing strategy:
Part of building a successful jewelry business is learning how to increase customer traffic. A marketing strategy helps plan which marketing methods you will use to drive traffic and where you will focus most of your efforts. You can set up some promotions to attract people passing by to come into the store and make a purchase. The promotion of online stores can gain customers through SEO website operations. Contact us to get more ideas on how to attract customers.