Last updated on February 14th, 2023
With umpteen new and established companies competing with their lethal marketing plans, the jewelry industry has turned into a highly competitive market. Even if yours is a new venture in this business, you must come out with something special for the customers that instantly draw their attention. Consider some time-tested pieces of advice before starting your business.
Have you already decided to take your jewelry-making talent into something more than a hobby? Then, this is a fantastic idea! Starting a jewelry business can bring you extra cash or a full-time income.
Jewelry is a popular piece of item that can either be used for personal use or for giving away as a gift. If you have the natural ability to create jewelry, you could work with different materials to make different designs. Unfortunately, there is a lot of competition in this industry. So you’ll have to work hard to get your jewelry design business noticed.
But if you compete well, there are enormous chances for fast growth of your jewelry business. As per Statista, the global jewelry market reached 270 billion U.S. dollars in 2022. The U.S. Jewelry industry alone was valued at above 70 billion U.S. dollars in 2021.
But do not be overwhelmed by the thought of competition and starting a business. In this article, we have shared the top 21 essential tips you must know before starting a jewelry business.
Here’s A List of 21 Essential Tips On How To Start A Jewelry Business
01. Write Down Your Mission Statement and Business Goals
Mission Statement! This might sound like a waste of time, but it’s not actually. The mission describes the whole purpose of your business, what is essential to you, and what you are prepared to compromise. Decide your priorities and write down those in a few sentences before starting your business.
When Writing Your Business Plan, Pay Attention To The Following Points:
- Determine who your target customers will be. This will help improve your choice of jewelry designs and marketing,
- Think about creating jewelry that stands out from your competitors’ jewelry items. This will help you create a niche,
- Decide how much money you would like to earn from your jewelry business.
02. Register A Creative Name For Your Business
Do you want a business name that is catchy enough to reflect your style and creativity and also to draw the attention of target customers? Get one such name for your business and register it from your local business registration office.
Here Are Some Crucial Points You Should Keep In Your Mind While Registering A Name For Your Business:
- Make sure to choose a name that relates to standard industry terms that your potential customers may already be familiar with,
- Select a name that isn’t already taken by others,
- You must choose a name that effectively conveys your brand message to your target audience.
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03. Know Your Target Audience
Before you move forward, make sure that you know who is the set of consumers interested in buying the kind of jewelry pieces you manufacture. So, find out who is your target customer. Then, you should define the persona of that customer.
You can only appease some customers in the market. So, pick a select bunch of customers depending on their social and financial backgrounds. For example, you should be targeting people who are in relationships for your diamond ring business.
Consider your potential customers’ likes, dislikes, lifestyle traits, interests, and shopping preferences to know them inside out. Then, target them per your jewelry category, such as vintage jewelry, premium jewelry, etc.
04. Make A Business Plan
Proceed further only when you have a well-thought-out business plan. Also, you must have a clear picture of your budgetary reach. That will keep you safe from overspending on marketing and other business aspects in the initial stage. The business plan will serve as your guide. It also is a way to evaluate your business goals and achievements.
Your business plan must include an executive summary that explains your company and what it does in a simple way. The plan will explain how you will move forward with the right steps to achieve your business goals. It must also give an outline of how you are going to do the market research.
Tell also about how you will position your company in your industry niche. The plan also includes product details. Most importantly, the plan has various options for funding your new company. It must also come up with clear marketing and sales plans.
05. Decide On The Type of Jewelry You Would Be Making
After you put a business plan in place, determine the type of jewelry you would like to manufacture. You need to be creative at this stage. Think of some innovative and trendy jewelry designs your target buyers like to possess.
However, create a whole jewelry collection rather than making a few pieces. This helps immensely in building customer relationships and a solid loyal customer base.
Also, go well prepared to make jewelry. Get some education about different aspects of jewelry making by accessing some courses. You must have all the tools, such as software and jewelry design tools. Think of accessing basic materials such as beads, gemstones, precious metals, chains, wire, clasps, etc.
You should prefer making your sample of jewelry pieces and ensure that it looks simple and unique. These samples will also work well for your product photography.
06. Find A Jewelry Manufacturer
Next, search the market for an experienced and trustworthy jewelry manufacturer. It is advisable to avoid making jewelry on your own. That is an expensive and lengthy process, which will also consume your time and energy. So, initially, let a manufacturer produce your jewelry pieces. It is also the right step if you want to scale up fast.
When considering a jewelry maker, pay attention to some proven tips. You should first look at the work samples of the manufacturer. Then, hire a trusted maker with expertise in making your jewelry type. Finally, check the sample quality before placing an order in bulk.
You can also opt for a drop shipping business model. This model allows your customers to source your jewelry pieces from a third-party supplier who will supply the items on your behalf. But you need to set up an online jewelry store where customers can place their orders.
07. Look Different
Many other jewelry makers and traders are active in your niche and are your direct competitors. And you’ll have to compete well in the market to make a name for your kind of jewelry pieces. Therefore, create jewelry that is unique, aesthetic, and simple.
Look at the ongoing jewelry designs and see what works for your competitors. Study minimalist geometric styles and other such designs. Compare them and see which ones will be good for your business. You can design jewelry pieces that look slightly different from those trendy designs.
08. Market Your Business Online
Are you interested in selling your jewelry online? If yes, create a quality website on reputable web hosting to show off your jewelry designs and give information about your company.
Create an online presence for your jewelry business and sell your jewelry pieces to customers worldwide. For this, you need to register with online local business directories and platforms like Google Places if you want to create your own website. You can also open shopping sites on Etsy and eBay and learn more about placing your jewelry in online boutiques.
These Are Some of The Best Ways To Market Your Business Online –
- Build a noteworthy Blog
- Build Video Tutorials on YouTube to reach a large audience
- Do Effective Email Marketing using tools like Saleshandy
- Social Media marketing strategies to turn potential buyers into actual customers
- Search Engine Optimization (SEO), and
- Content Marketing and Referral Marketing.
09. Create A Logo For Your Jewelry Brand
You must own a memorable logo for your jewelry business. The logo will represent your jewelry company and its unique items in a competitive market. In addition, the logo will identify your company to your customers. Jewelry logo designs help build a brand identity of a jewelry business.
These Are Some Important Steps You Need To Follow When You Are Creating A Logo For Jewelry Business:
- First of all, you should understand who your target customer is so that your logo will appeal to that segment of customers. For example, this implies that a logo for a costume jewelry line targeting teenage girls would be vastly different from a logo for high-end or expensive jewelry.
- Secondly, you should clearly understand your business’s brand personality so that you can create a logo that will represent your jewelry business well.
10. Take Persuasive Images of Your Jewelry For Websites & Marketing
Jewelry is primarily a visual product. So having clean and striking photographs of your jewelry pieces is essential for online sales and marketing purposes. Displaying images of products for some businesses may not be so crucial, but that’s not the case with the jewelry business.
No matter how aesthetically designed your jewelry pieces are, they may not draw buyers’ attention if their images are not impressive. So taking high-quality photographs and using them on your website or third-party e-commerce sites and marketing campaigns will significantly boost sales.
You should be consistent with your products’ photos, keeping similar backgrounds for every image. White, marble, wood grain, or slate are advisable to use as backdrops. Besides, you should consider taking photographs of your jewelry on a model to show styling suggestions.
11. Do A Cash Flow Forecast For Your Jewelry Designs
You should be able to predict how much cash you need to run your business smoothly for many months to come. This forecast will remind you that you must save money and avoid overspending.
Many companies failed just because they needed more cash to buy raw materials and pay salaries. So, highlight some danger areas and plan how to best deal with them. Cash flow is one of the critical tips you must consider for starting your business.
12. Do Your Market Research
Market research is another crucial step you must take if you want your jewelry-making business to succeed. Market research is an organized way of learning about your competitors as well.
There Are A Few Things Involved In Market Research, viz. —
- Exploring the marketplace,
- Finding out what a customer wants,
- Determining how you can meet those wants and needs. It also involves finding what is missing and then filling that niche.
13. Hallmark Your Jewelry
In some countries, hallmarking precious metals is essential before selling jewelry. For example, UK legislation makes it mandatory for jewelry businesses to hallmark their jewelry pieces. Any transaction without hallmarking of jewelry is illegal.
To hallmark your jewelry, you must test metals and brand them with a seal describing their making year and purity. To keep away from any legal trouble and hassles, think of choosing the precious metals that are already hallmarked. That is a secure way to trade legally.
14. Build Your Brand
Turning your jewelry business into a brand is equally important. You should make efforts to connect people emotionally with your business. Make them perceive your jewelry items as something they always wanted to wear.
One proven way to build a brand is to create impressive visuals. Your logo, website, business card, and other marketing materials must be visually appealing. Choose your fonts and color palette carefully
At the same time, create those visuals to send out a message to your target audience. Again, many tools exist, such as a video maker, domain and business name generator, logo maker, etc.
15. Get Help From Your Local Chamber of Commerce
Have you decided to start your jewelry business? First, you should register and obtain a business tax ID number to operate. You can seek advice from a local economic development center in your area. Your business must be registered to avoid legal issues and getting penalized.
Local economic development organizations provide free advice to those who want to start their own business. They can also assist with the cost and accounting you need when starting a jewelry business.
16. Effectively Utilize Social Media
Nowadays, everyone has an account on various social media channels, such as Facebook, Twitter, Instagram, Pinterest, etc. So, create business accounts on all leading social channels to get your business known. Make sure you design social media pages with utmost care to draw visitors’ attention instantly.
Since the jewelry business relies more on showcasing a wide range of jewelry items, use Instagram and Pinterest, which are image based social channels.
These Are Certain Things You Need To Follow:
- Regularly post images of your jewelry items,
- Post your Blog on social media channels regularly,
- Ensure you always include links to your products in your Etsy, ArtFire, and other online shops.
17. Make What You Love
When starting your jewelry business, you should make every piece of your jewelry look different from your competitors’ offerings. Apart from being visually appealing, you must take care of its packaging design which needs to be empirical, persuading consumers to prefer your product over the competitors.
You should be doing the creative work of making jewelry pieces from your heart. Remember that you will be working for hours. So encourage your workforce and engage yourself with your business.
18. Select A Price Point For Your Products
Make sure that your product price is just right for your target customers. For example, if your jewelry prices is priced too high, you might lose customers. But if prices are too low, customers may perceive the jewelry as inferior and impure.
You should consider the basic costs such as labor, production, shipping, warehouse, and material costs. Consider your overhead costs as well. Ensure that the pricing includes your expenses for paying employees’ salaries.
Then, it is up to you to decide on your profit margin. Start with a low profit and gradually increase the price and profit when people trust your business.
19. Set Practical Sales Targets
Your jewelry business growth will not skyrocket overnight after its launch. It will take time to build its name in your niche market. Then, with consistent branding and marketing strategies, it will register substantial growth. So, ensure you are confident in setting sales goals.
When setting up your jewelry store, consider its sales and distribution goals. Such realistic targets will give you something to work on. In addition, a growth-oriented goal will help in tracking your progress.
20. Keep A Low Profile
When you are finally ready to start, opting for a soft launch of your jewelry business is advisable. Make your business launching a low-key affair. That will help in adopting a level-headed approach.
Then, start growing your jewelry business steadily. Look for suitable retailers who have a good reach in your niche market. You can then establish a partnership with them. Search the market for investors willing to put money into your new business for its steady growth.
21. Be Patient With Yourself
It takes time to build a successful business. Do not expect to get overnight success after you open your jewelry shop. It may take even years before you taste success. So, have patience! There’s nothing wrong with having high expectations, but at the same time, you need to be realistic.
Start your jewelry business carefully with a well-thought-out plan. Make sure that your business is visible to the target audience. Create a custom logo to represent your company in a competitive market. Build an excellent social media presence by posting text and image content on different social channels. Have enough cash flow to meet any urgency until your business is finally on its own.