If you love jewelry, nothing is more exciting than turning that passion into a lucrative business. Whether you design your own jewelry or have a great eye for finding unique pieces from independent designers, starting a jewelry business is a great way to do what you love and make a living at the same time.
Starting a new business might sound complicated, but it can actually be simpler than you think. If you set your business up the right way, you can put yourself on the road to success. All you need is yourself, some great jewelry, and some time to do the necessary research.
You’ve already got those first two down, and as a small business owner myself, I can help you with the last part. In this article, we’ll go over the business side of things, and I’ll walk you through my 10 simple steps for starting a jewelry business.
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10 Steps to Start a Jewelry Business
Before you start snapping artsy shots of your jewelry for your website, here are some things to consider to make sure your new business has everything it needs to be successful.
1. Develop Your Brand
There’s a place on the market for every niche and every style, so there’s really no wrong answer when it comes to the question of what jewelry to sell.
That said, a focused theme or style will help you develop your brand and market your products. If a potential customer comes across a photo of one of your pieces and decides to visit your site, they’ll be hoping to find more jewelry in the same style.
To increase your sales, it's a good idea to offer different options of each product. For example, some people may prefer gold-colored chains while others may prefer silver. Many people want to find the perfect design and color, so offering multiple color options for each product can be a good way to appeal to a wider audience.
You could also consider offering a custom jewelry service for those who are willing to pay extra for a one-of-a-kind piece that perfectly matches their taste.
2. Consider Your Target Market
Your target market will affect various aspects of your business, including your marketing, your pricing, your product descriptions, and even your company name and logo.
When creating your jewelry line, it's important to consider who it's for - kids, teens, or adults. And what kind of style it has - refined, elegant, or quirky and fun? It's also important to keep your target audience in mind when designing your website, like choosing the right color scheme and overall look to appeal to them.
This process can get complicated. There are marketing experts who can help you out, but it's also possible to do it on your own. The most important thing to prioritize is consistency – if your messaging, marketing, and products are consistent in style, then you will be able to develop a strong brand.
3. Choose a Name for Your Business
Naming your business is a big step. I suggest making a list of possible contenders and refining it over time, as you work on the other elements of your business plan.
For jewelry businesses, using your own name is always an acceptable option. You are the creator, and it’s an industry standard for the designer to become the face and name of the brand.
If you’re worried about using a name that isn't closely related to the style of jewelry you offer, you can consider expressing your style through the logo instead.
4. Create a Business Plan
Even if you’re planning a solo endeavor, a business is a complex project, and you’ll benefit from a structured plan of what you intend your business to be. You can also use your business plan later down the line if you find brands you want to partner with, or if you decide to seek funding and expand your business.
For now, a well-written plan will help guide the decisions you make as you set up your initial business model. Here are some things to consider:
- A summary of your business goals
- An analysis of your target audience
- Your marketing campaign plans
- Members of your management team and their roles (this can be just you)
- Your financial goals
5. Research Licensing and Insurance
Most small businesses will need several licenses and permits to legally operate within the United States. Figuring this out might seem like a job for an expert, but you can find a lot of information online, and the U.S. government even offers free business counseling. You can also read our guide to registering a business in the United States.
It's worth noting that while some businesses may need a federal permit, the sale of jewelry is not regulated by any federal agency, so you don't have to worry about that. However, you will need to check with your state and city government to see what licenses and permits are required. You can find this information on your state's website or contacting the relevant government agencies.
There are also multiple kinds of insurance to consider. General liability insurance is the most basic and important, and it will help you if someone claims that one of your products caused them harm. If you plan to rent a physical building to operate your business out of, you’ll also need to research commercial property insurance.
6. Choose a Distribution Method
If you've been considering ways to sell your products, it's time to take action. You don't have to use all the options at once; you can start with just one channel. But if you're thinking big, you could try all these places:
- Your own online store
- Online marketplaces like Etsy or eBay
- Craft fairs and pop-up events
- Local shops and boutiques
Each of these options has its own strengths, but I personally recommend setting up your own online store, even if you plan to sell offline as well. It gives you the most control over your business and your profits, as fairs, boutiques, and digital marketplaces will all take a cut out of your revenue.
With a personal online store, you also have far more opportunities for customization, which may help you develop your brand and cultivate a reputation. You can use Pay.com to easily accept credit cards and other payment methods on your website.
7. Set Up a Payment System
Even if you haven’t yet decided how you’d like to sell your jewelry, one thing is for sure – you don’t want to be paid only in cash! Even at jewelry fairs and pop-up stores, cash payments are falling out of fashion, and offering multiple payment options will help you appeal to larger audiences.
When it comes to payment frameworks, I prefer to use a payment service provider rather than attempt to set up and manage multiple payment methods myself. As a small business owner, it’s just not where I want to focus my time and effort.
With Pay.com, you can start accepting card payments quickly and easily, no matter how small your business is. Not only can you customize your checkout page to offer your customers a smooth experience, but you can use the Pay Dashboard to keep track of the payments you receive and issue refunds if necessary.
8. Design Your Packaging
Regardless of the price tag, buying a piece of jewelry is always an indulgence and a treat. This should be reflected in every aspect of your business, including the packaging. As well as keeping your product safe during transit, jewelry packaging also speaks to the quality of the product and the company it came from.
You can choose to go down the classic route, with minimalist boxes and ribbons, or you can design something more original and exciting.
Both tactics can work well as long as you use high-quality materials and maintain a good eye for detail. Packaging is necessary when distributing through an online store, but it’s also a nice touch when selling face-to-face.
9. Choose Your Shipping Methods
Once a customer has purchased a piece of jewelry from you online, you’ll need to send it to them. One important decision you’ll have to make is who will pay for the shipping costs. There are three main options:
- The customer pays for shipping
- You cover the shipping costs, and offer your customers free shipping
- You and the customer split the shipping costs
When it comes to shipping, you have a few options. You can charge customers for shipping at checkout and calculate the exact fee. Or, you can choose to label shipping as "free" and adjust your product prices accordingly. If you prefer to cover shipping costs, you can offer free shipping and keep your product prices the same. This could be good strategy when you're just starting out.
One of the most popular strategies is sharing the cost between the seller and the buyer. This is done by charging a flat rate for all shipping. The flat rate covers a percentage of the cost, and you pay the rest yourself.
10. Create Your Inventory
When running a jewelry business, there are different types of inventory to consider. If you make your own jewelry or work with independent designers, you'll want to think about how many units of each design you'll need to stock. But if you sell more one-of-a-kind pieces, like those sourced from antique fairs or boutiques, your inventory may be smaller.
When managing your inventory, you want to make sure you always have enough of the products that sell well and try to avoid a build-up of products that don’t move quickly.
The Pros and Cons of Starting Your Own Jewelry Business
Your own jewelry business can be a fantastic source of income, but it also comes with its own set of challenges. Here are some of the potential benefits and drawbacks to keep in mind if you decide to take this route:
Pros
- You can share your personal creations or handpicked pieces with the world
- You can make money doing something you love
- You control how much time and effort you want to invest in the business
- You can work from home and choose your own hours
Cons
- You will have to deal with licensing, permits, and other business-related areas you may not be interested in
- You may have to spend a lot of time manufacturing or sourcing jewelry for your inventory
- It can take time for your business to gain momentum and begin making a profit
The Bottom Line: Is Starting a Jewelry Business Right for You?
After reading this article, you may already have your answer to this question. The process of starting your own business is generally less complicated than a lot of people think, but it does, of course, require effort.
Remember, the business belongs to you and you can make it as big or small as you want. After getting all the necessary licenses and permits, creating a website can be fun, and you can take your time with it.
When you choose Pay.com as your payment service provider, you can select your payment methods with just a few clicks, and keep track of all your transactions in one place. Click here to get started now!
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