Beginner’s Guide to Starting Your Own Jewelry Business

You’ve got a talent for jewelry design and making. Now you’re thinking about starting a jewelry business (or maybe you’ve already started)!

Now, jewelry making and selling your jewelry are two entirely different things. There’s a lot to consider when making the transition from a jewelry side hobby to a money making business.

Start your home-based online jewelry business

If you are an artist like me, you might not naturally think about how to launch a jewelry business the right way. When I started my first jewelry business in college, it wasn’t some master plan I carefully thought out. It just sort of…happened.

I’d been selling jewelry to my family and friends and my client base was expanding beyond my personal network. At that point, it made sense to try starting a legit jewelry business. While it sounded good on paper, my creativity got in the way, and I ended up making some big mistakes.

They say time is money, and I don’t want you to waste your time making the same mistakes I did. I put together this 11-step plan for starting a jewelry business from home and setting up your business the right way.

Step 1: Define your Niche

The jewelry industry in the United States is expected to reach $480.5 billion by 2025. Although extremely competitive and saturated, this market still offers plenty of opportunities for new designers and savvy entrepreneurs who can carve out a niche.

NARROW DOWN YOUR JEWELRY CATEGORY

Successful jewelry businesses need to have a clear vision and understanding of their niche style and market. In order to define your niche, you should first determine which type of jewelry you want to sell. Understanding the market your jewelry caters to will help you identify your target audience and competition in order to discover trends and opportunities.

While there are many types of jewelry, most accessories fall under 3 main categories:

COSTUME JEWELRY

Costume jewelry is your everyday, fashionable accessories made out of a range of materials such as metal, copper, wood and plastic. Since costume jewelry is meant to mix and match with style, it is affordable and usually costs under $100.

FINE JEWELRY

Fine jewelry describes precious stones like diamonds, gemstones, and rubies and metals like solid gold and sterling silver. This type of high-quality jewelry is considered luxury and tends to have a higher price point than costume jewelry. A piece of fine jewelry can range anywhere from $100 to $3,000 or more.

A designer who sells fine jewelry will have a completely different market than one who designs costume jewelry.

HANDMADE JEWELRY

The demand for handmade jewelry has become extremely popular over the last decade thanks to sites like Etsy which have allowed independent, creative artists to sell their jewelry online. Handmade jewelry is usually made-to-order, not mass-produced.

From engraved deer bone bracelets to necklaces made from recycled skateboards, handmade jewelry is perfect for carving out a niche, however it can be a challenging business model to produce at scale. This type of jewelry ranges in price depending upon the materials and labor involved in the production.

IDENTIFY JEWELRY TRENDS

Staying up to date with the latest jewelry and fashion blogs, following influencers, and industry specific publications helps you discover new and upcoming trends in your space.

Current events and culture shifts also lead to emerging trends, so keeping your eyes on parallel industries and economic factors can also help identify new consumer habits and needs.

Step 2: Understand Your Potential Customers (And Why They Want Your Jewelry)

Fun fact: the looks and styles that you like might be a little different from the people interested in buying from you. For years, I only designed what I personally liked instead of thinking about who I was actually designing for.

One of the biggest mistakes in jewelry design is assuming that everyone will like your pieces. When you follow the mentality of “designing for the masses”, chances are you’ll end up losing the features of your work that make you unique and special. Even worse, you’ll likely lose sight of designing for your dream customers. This can put you on a fast track to having to close down your business.

Before you really dive into planning and producing a jewelry line, take a hard look at who your dream clients might be. Take time to research the age range they fall into, where in the world they live, what their day-to-day lifestyle is like, and the type of accessories and styles they prefer.

You should also take stock of your existing situation. Have certain pieces of jewelry you made sold like crazy while others sat on your shelf gathering dust? Asking thoughtful questions to your previous customers about what made them purchase a specific piece can help you better understand your true customer base and what they actually want to buy from you.

Step 3: Develop a jewelry business plan

Once you’ve found a niche for your jewelry business your next step is to start developing a business plan.

A business plan is a documented roadmap for the future of your jewelry business and ensures an organized strategy to set you up for success.

A well-written business plan answers the following types of questions: What is the purpose of my business? What does the market look like? Who are my customers? How will I finance my jewelry business? Potential investors and business lenders will often require a business plan before considering working with you.

A typical business plan includes:

Executive summary
Company description
Market research
Service/product details
Marketing and sales plan
Funding
Financial forecast and projections
Appendix

Step 4: Get Legit! Make Your Business Legal

Your business name is arguably one of the most important steps in starting your own jewelry business and building a successful brand. A business name should be unique and representative of both your message and your jewelry. Ideally, names shouldn’t be long or over-complicated, in fact, two to four syllables are recommended.

Once you’ve chosen a name, the next step is to research its availability through corporate registries such as trademarks, patents, and website domain names. Your website domain name should include your business name. Ideally, .coms are the best choice for most businesses.

Now that you have your name picked out, it’s time to set up a business banking account. When I was in college and beginning my jewelry design career, I was buying supplies on my personal credit card. This became a big issue when tax time came around because it was challenging to show which expenses were personal and which were for business.

The best way to avoid getting in trouble with the government? Open a separate banking account for your business so you can easily separate personal and business expenses. In the United States, the IRS frowns upon mixing personal and business expenses, and it could even result in an audit.

The next order of business is to register your business with your state. The requirements and paperwork will depend on your business details and location. The U.S. Small Business Administration suggests that anyone operating a small business register their name with state and local governments.

In most situations, the only information you need to register your business is your business name, business purpose, and business structure. Remember, registering your business isn’t just for tax purposes, it also helps protect you and your business, too.

CHOOSE A BUSINESS STRUCTURE

Sole proprietorship

Many independent business owners register as sole proprietors where one person handles and is responsible for all of the company’s profits and debts. This is the easiest option and doesn’t require much paperwork aside from industry specific licenses. However, this option doesn’t offer liability protection which can put you and your personal assets at jeopardy.

LLC

The other, safer option is to register as a Limited Liability Corporation (LLC). As an LLC you register at the state level. Your business exists separately from the owner(s) of the company, so in the event of liability such as a debt, the business is responsible not your personal assets.

You will also want to check your state’s requirements for any additional business licenses and permits.

BUSINESS INSURANCE

As mentioned above, liabilities are a risk, and making sure your jewelry business is protected is something you should have in place before you launch. Since you’re selling a physical product, or jewelry, you should have product liability insurance to protect you against potential injury claims from customers. Additionally, most businesses also purchase general liability insurance which protects you against a wide variety of potential lawsuits such as negligence and advertising damages.

Step 5: Plan an Entire Jewelry Collection, Not Just Random Products

Each aspect of starting your own jewelry business should be strategized to help you achieve your end goal: making money. A big mistake designers can accidentally fall into is creating jewelry that doesn’t fit into a cohesive collection. While it can be fun to just run with your ideas and follow your heart, that strategy won’t necessarily encourage customers to buy multiple pieces from you at once.

Designing for a collection is important for all jewelers, whether you’re wholesaling your work, selling online, or direct to consumers. A collection of pieces takes your customers on a journey and tells a specific story. This ties each piece in the collection together with a common theme which helps you create a memorable brand. A really good collection inspires customers to buy multiple pieces and look forward to immersing themselves into the story of each release.

Step 6: Price Your Jewelry Correctly

Your jewelry line should be priced appropriately based on the quality and value of your materials and design work. Many designers fall into the trap of competing with the ultra-low prices of mass-produced jewelry from overseas. While you might be tempted to compete on price, we highly encourage you to fight the urge and price at what you’re truly worth. Otherwise, designers are likely to end up disheartened and scraping by financially.

If you’re worried about overcharging or are just unsure how to price your jewelry, try this exercise. On a sheet of paper or Google Docs, write down all the value you bring to your customers with your jewelry line. This list should include the cost of the materials and tools, but also the experience you bring to the table, the time you invest to create something unique, attention to detail, and the heart you put into giving each customer a special experience. Are you surprised by how long your list is? That’s the value you provide, and you shouldn’t be afraid to ask to be compensated for what you’re truly worth.

Step 7: Create Your Jewelry Marketing Plan

Remember that old saying, “build it and they will come”? Unfortunately, these days, that’s not really how things work when it comes to starting your own jewelry business. Just because you have an incredible product, doesn’t mean your audience knows about it or how to buy it!

It’s up to you to make sure your dream audience know about your jewelry line. Take time to create a strategic marketing plan that you continually work on year round so you’re always marketing! A successful marketing strategy requires multiple channels, or tactics, to truly achieve your brand goals.

Here are a few marketing channels to consider using to promote your jewelry business:

Social Media
Email Marketing
SEO (Search Engine Optimization)
Paid Ads
Video Content Marketing
Virtual Events or Shows
Pitching for Publicity Features in Magazines or Websites
Networking Events
Trunk and Trade Shows
Special Events and Expos

Conclusion

How to create your own jewelry business is quite energy-consuming, for example, it is crucial to find a reliable supplier of wholesale jewelry. Here is a suggestion for you.

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Ranging from fashion wholesale earrings, necklaces, rings, chokers, brooches, hair accessories, and body jewelry to key chains, we offer a wide variety of fashion jewelry at great prices and no minimum order quantities.

We can provide jewelry buyers, jewelers, and wholesalers with seamless access to high-quality products at affordable prices.

Our mission is to offer our customers a hassle-free experience, whether you’re ordering your first piece or your hundredth.

Wholesale bulk jewelry by weight

Wholesale bulk jewelry by weight is a cheaper purchasing model than regular wholesale prices. The jewelry is randomly placed in the package, and the price is calculated according to the weight. It is a cost-effective procurement model.

Here are some key points that set us apart: