7 Things You Need to Know About Starting a Jewelry Business
Since you’re learning about how to make a jewelry business, you’re probably a creative type. And as a creative, the business-end of things probably bores you or at least turns you off.
However, it ‘s a necessary evil if you have a successful jewelry business, or at the very least, make a profit.
That means you’ll need a business plan before you put up your first Etsy listing. Don’t know what a business plan is? You can find templates online, but we’re listing some of the business-related questions you need to ask yourself, below.
Step 1: What Type of Jewelry are You Selling?
We’re not asking if you’re making necklaces or earrings – you need to think bigger than that. What kind of jewelry is it that you’re making, as in, what section of Etsy or the store does it belong in?
Is it costume jewelry? Loud statement pieces? Crystal-based necklaces for hippies? Or luxury items that would be under lock and key at a department store?
Pinpointing your category (and there are more) will help you with branding and writing your mission, which is step 2.
Don’t worry – you can always add or stop making types as you go along, you’re not tied to this genre forever.
Step 2: Write Your Business Statement
Yes, you do know how to write a mission statement. It’s as simple as stating what you make, why you want to make it, and who you’re making it for.
You don’t have to use any fancy business jargon to get your mission across; in fact, you shouldn’t. The three pieces of information we mentioned above should be enough for your customers, as long as they’re authentic!
Step 3: Think About Logistics
Now that you have an idea of who your business is (it’s its entity) let’s talk about details. Where are you going to make your jewelry? In your home? Do you need to rent office space?
Where will you get your materials from? Don’t forget to consider shipping costs, a printer, and envelopes as part of your materials. You can’t get your goods out without them!
What Are Your Operating Costs?
Before you can make a budget and price your items, you have to find out what the base cost is to run your business. This should include things like getting a business license if you need it, paying yourself (so many people forget this one!), rent, and any materials.
Once you have all that, you will need an official business budget, which you can find templates for online.
Knowing your costs will show you what kind of markup you need to put on your jewelry, to make a profit from cost.
Step 4: Order in Bulk
We know you’re itching to get this show on the road, but to do that, you’ll need materials. When you order in bulk, there are usually longer shipping times, so make sure you order what you need when you launch your business now.
It’s okay if you’re using wholesale silver jewelry to create your pieces – no one expects you to forge the metal yourself!
Step 5: Do Competitor Research
Okay – let’s take a break from all the mind-numbing numbers and details. While you’re waiting for your supplies to arrive, it’s time to put on your investigative hat and do some market research.
Who are the most similar competitors in your market? What do their reviews say they’re doing, right? What are they doing wrong? How are their prices? What do you like about their business (from the outside), and what do you dislike?
Take notes and be sure to follow your competitors on social media. While enemies is a strong word, keep your friends close but your enemies closer, as the saying goes.
Step 6: Find Your Platform
There’s a reason this step comes after competitor research. You want to find a gap in the market where your competitors aren’t, or at least where there are less of them.
Don’t make a listing just yet – take time to research what it’s like to sell on those sites. What are the pros and cons? What are the processing or listing costs? Are there tutorials on how to start listing items?
This step should take you a few days to a week – or longer if you need it.
Remember, the longer you spend planning your business, the better chance it has to succeed!
Step 7: Create Your Foundation Pieces
There are different ways to run a jewelry business. You can either make a large number of a few designs and wait for them to sell before introducing new styles, or you can make one of many styles and make the pieces to order.
There are risks to each. If you make a large number of necklaces in a certain style that isn’t popular, you’re then stuck with those. But if you have many styles and are make-to-order, it’s easy to get behind, especially if demand is high!
It all depends on your schedule, how well you know yourself, and what you think will work best.
Once you’ve got your models, take well-lit photos of them and get ready to…
Go Live With Your Jewelry Business!
Finally, we get to the exciting part, actually making your store live! All your hard work of building your jewelry business has built up to this, and now you have a fighting chance.
Remember to stay consistent and not to give up – we believe in you!