Global jewelry sales are predicted to hit $250 billion in 2020.
It’s no surprise. The jewelry business has been going for thousands of years, with some shell beads having been discovered that could be as much as 100,000 years old.
With a long and proud history and so much money to be made, starting a jewelry business is a great option.
Read on as we take a look at nine things you need to know before you start.
1. You Need Defined Business Goals
Launching a business without a clear idea of what you’re aiming for is never a good idea.
You need something to aim for if you’re going to put in all the hard work required. Write down your mission plan of exactly what you want to achieve, why you are doing it, and where you’re willing to be flexible.
This should then be the starting point for creating a fully-fleshed business plan.
2. You’re Going to Need a Name
Thinking of a name for your business can be harder than you might think.
You need something that sounds professional but also memorable. It needs to clearly relate to the fact that you’re a jewelry business. You also need something that hasn’t already been taken and will leave you open a lawsuit!
Once you’ve found a name you like, register it with the appropriate agencies.
3. Know Your Target Customer
Not all jewelry is going to sell well to all people.
You need to have a clear idea of exactly who your target customer is. You also need a solid understanding of exactly the type of jewelry that this target customer wants to buy. All of this comes down to three things: research, research, and research.
The more you know about the market, your competitors, and your potential customers, the better chance you have of being successful.
4. Where Are You Going to Sell?
The days of needing a bricks and mortar store to sell your wares are long gone.
These days there are plenty of people who make a killing running a business from their own home. That said, it’s still possible for a physical jewelry store to make money if you do it right.
If you’re planning to sell online, you’ll need to take into account the sheer amount of space you’re going to need for stock, packaging materials, and more.
5. Know Your Potential Cashflow
When you’re caught up in the dream of running your own successful jewelry business, the last thing you want ruining that dream is thoughts of money.
If you don’t want to quickly see your dreams fall apart, however, then you need to sit down and work out exactly how much money you have, how much you’ll need, and what your projected cash flow will be.
The last thing you want is to have hundreds of orders but no way to fulfill them because you can’t afford to buy new stock.
6. Know Your Suppliers
Regardless of whether you’re planning to make the jewelry yourself or purchase ready-made pieces to sell on at a profit, you’re going to need to buy your materials and jewelry from somewhere.
It’s important that you find trustworthy suppliers, and also that you think about how well those suppliers will be able to cope as your business scales. If you can’t order enough wholesale silver chains to meet demand, you’re going to lose out on business.
7. Know Your Pricing
You can have the best products in the world, but if you price them incorrectly they’re not going to sell as well as they could.
Once again this comes down to research. Take a look at competitors in your niche, and compare like-for-like products to give you a ballpark figure of where your pricing should be.
There’s no harm in pricing slightly above the going rate if you feel your products are superior but remember that it’s easy for potential customers to compare prices online. Tweak your prices until you find the sweet spot between sales and profits.
8. Know Your Marketing
If you want your jewelry business to be a success, people need to know about it.
Marketing is vital for any successful business. The good news is that the internet and social media have made it easy to advertise your business without having to spend a small fortune.
Get on social media, build a website, write some blogs, do whatever it takes to get your business out there and those orders coming in.
9. Know That Success Takes Time
When you think about starting a jewelry business, you probably imagine a time when everything is running smoothly, your products are flying off the shelves, and you’re just keeping everything ticking over.
The reality is that some businesses never reach that point and those that do don’t get there overnight. Be realistic about your expectations. Set yourself short term, achievable goals, as well as your long terms goals of success.
Are You Planning to Launch a Jewelry Business?
If you’re looking to start your own jewelry business then we’re here to help.
Our site is packed with useful articles all about running a small business. As well as all the useful content, there’s also a small business forum where you can pick the brains of other entrepreneurs. We even have a selection of templates and forms to help you run your business more efficiently.
Be sure to check out the whole site, and good luck with starting your own business!