Introduction on how to start a Jewelry business
Starting your own jewelry business might sound overwhelming, but it’s not as hard as you think. To assist you out we prepared for you an easy guide to opening your first jewelry business. It doesn’t matter whether you’re a licensed silversmith, a weekend crafter, or a gemologist with a side business in beaded creations. If you’ll accurately gauge the market for what your customers want to shop for, create unique stand out pieces that satisfy a distinct segment market, and deliver a top-quality product you would possibly have a future as a jeweler.
Jewelry is an accessory loved and desired by women of all ages, thus making jewelry a great business to venture into. The jewelry business is a highly profitable business that will always remain popular. Even when other business industries might be facing a downturn, the jewelry business enjoys being in demand. The business is especially lucrative in a country like India where a lot of festivals and traditions are celebrated with much fanfare and none of these celebrations, including weddings and festivities, are complete without fine jewelry.
A step by step guide to start a Jewelry business
You have found the right business idea, and now you’re able to take the next step. There is a lot more to starting a jewelry business than simply registering it with the state. We have put together this easy guide to starting your jewelry store. Surely these steps will make your new business more successful, registered properly, and legally compliant.
What do you need to operate a Jewelry business?
A cash flow forecast, a business license and legal structure, a business bank account and tax plan, a bookkeeping system, work, showcase and storage space, inventory or a design collection, tools for making jewelry and repairing jewelry, a professional website, and an active social media accounts.
Step 1: Business plan to start a Jewelry store business in India
Starting a fashion business just based on one’s creativity and artistic skill is not enough. Business skills are equally important. Every business including the jewelry business needs thorough planning while starting it to ensure a great start and a successful run. And thorough planning means a jewelry business plan to be made before physically establishing the business. The business plan requires thorough groundwork to be done as the business plan helps put into words the exact business idea conceptualized by the entrepreneur and lists the objectives of the business too. Additionally, the business plan is the document that helps procure a loan for the starting and expansion of the business.
The jewelry business plan should include:
- Stating the business goals
- Business name and identity
- Legalizing the business
- Capital requirement
- Market research and competition study
- Marketing strategy
Step 2: Creating a name for your business
Choosing a name for your jewelry business may take some time and thought, as you’ll need to choose a name that’s catchy, creative, and effectively conveys the message and mission of your company. Make sure you check to see if the name is available as a domain name on the Internet so you can build a website that can showcase or even sell your jewelry. If you want exclusive ownership to your business name, consider having your business trademarked.
You have to follow some basics carefully while naming a business.
- Pick a name of your interest
- Choose a simple business name
- Research your competitors’
- Get suggestions from friends & family
- Consider your brand message
- Play with words
- Consider your brand personality
- Explore name generators on the web
- Check for domain availability
- Registering your jewelry business name as a trademark
This is an essential step. You should start the marketing process only after naming your jewelry unit appropriately. Many businesses take the naming stage lightly and end up losing customers.
Step 3: Create a logo for your Jewelry brand
Craft a logo that reflects your brand. Creating a memorable and effective logo can help make a great first impression on potential customers. When designing your logo, remember to keep your brand and target audience at the center of your decisions. Make a list of everything you want your logo to communicate about your business, as well as any aesthetic requirements, before starting your first design.
If you have the resources, you can hire a professional designer to create a logo for you. Try searching online for designers through websites like 99Designs.
Step 4: Legalize your business
Next, you’ll need to cover all legal bases to ensure you’re running your jewelry business aboveboard. First, if you plan on running your jewelry business from your home, check with your local clerk’s office about licensing and permit requirements for home businesses.
Once you’ve created your business name, you’ll next decide on a business entity and register your jewelry business accordingly with your secretary of state. The easiest route to go is as a sole proprietorship, which doesn’t require that you register with your state. However, a sole proprietorship won’t offer you protection if your business runs into any legal issues. So the safest route to go is to register your business as an LLC. Registering as an LLC is an easy process, which you can do in a matter of minutes online.
The legal process can include the Shop Act Registration details if operating from a commercial space along with GST registration details and other legal proceedings and registrations required for the jewelry business to operate without any hurdles.
Step 5: Get a license for Jewelry store
Under the BIS Hallmarking Scheme for Gold and Silver, jewelers need to take a license for the sale of Hallmarked article from each jewelry store. A jeweler having more than one jewelry store under the same management can obtain a corporate license covering all of its sales outlets. Certain terms and conditions shall be applicable.
List of documents required to start a jewelry store business in India
1) Self-certified copy establishing the firm
2) Self-certified copy authenticating the firm’s premises (not older than 3 months)
3) Documents as identity proof of signatory on the application:
- Aadhar Card
- Driving License
- PAN card
- Voter Identity card
- Passport
- Photo Bank ATM card
- Photo Credit card
- CGHS/ECHS photocard
4) The additional documents need to be submitted with the application are:
- Agreement on Rs 100/- non-judicial stamp paper in the prescribed format
- Location map of premises from some nearest prominent
Get BIS license for selling Hallmark jewelry
A jeweler who wanted to sell Hallmarked gold jewelry is required to get a license from BIS for any particular premises of a jewelry business. The license is granted to a jeweler for a particular premises, if the application in prescribed format along with necessary documents is found in order and payment of requisite fees. You need to sign on an agreement for operating the license by the jeweler jointly with BIS. If the jeweler also wanted to sell Hallmarked silver jewelry along with gold, then another license shall be obtained from BIS by submitting a separate application and agreement.
Step 6: Get business insurance
You may also consider taking out business insurance to further protect yourself. Start by looking into product liability insurance, which protects businesses from legal fallout in case their product causes injury to a customer or other third-party; and general liability insurance, which protects businesses against a slew of common legal claims. If you hire employees, you’ll need to look into other types of insurance like workers’ compensation, unemployment, and state disability insurance.
Step 7: Finding your Jewelry style
Ideally, you want to craft jewelry on your own that has a distinctive brand to ensure it stands out from competitors. However, at the same time, your jewelry should also fall into a standard jewelry category, as picking a style can help your customers easily identify your work. Standard jewelry style categories to choose from include:
Fine Jewelry: made with precious or semi-precious gems and stones, and designed for upscale customers and special occasions.
Example: diamond engagement ring
Fashion or Costume Jewelry: made from inexpensive metals and materials, being aimed at trendy, everyday customers.
Example: ribbon choker with plated silver pendant
Mid-range Jewelry: includes an emphasis on uniqueness and design, and makes a statement.
Example: structural laser cut acrylic statement necklace
Step 8: Make what you love
When starting your jewelry business, you need to make each piece of your jewelry look different from your competitors’ offerings. Apart from being visually appealing, you want to look out of its packaging design that must be empirical and make the customer prefer your product over the competitors.
You should be doing the innovative work of creating jewelry pieces from your heart. Remember that you are going to be working for hours. So encourage your workforce and have interaction yourself together with your business.
Step 9: Do your market research
Market research is another crucial step you need to take to be a successful jewelry making business. Market research is an organized way of learning about your competitors as well.
There are few things involved in market research including:
- Exploring the marketplace,
- Finding out what a customer wants,
- Determining how you can meet those wants and needs
- Identify your target market
Step 10: Marketing techniques
As the jewelry market is competitive, you want to use a multi-pronged marketing strategy to get your work to stand out to potential customers. Create marketing materials like business cards with your website URL and email address on them. Consider developing an e-commerce site through inexpensive hosting platforms like Shopify. If your budget permits, look into hiring a PR firm to advertise your designs.
Use social media
Social media is an easy way to market your works and reach a vast audience, and a simple picture of your jewelry with an inspirational quote on Facebook or Instagram can produce amazing results. Nowadays, everyone has their social media accounts on Facebook, Twitter, Instagram, or Pinterest. So, to get your business known on diverse social media create your social media accounts. There are certain things you need to follow:
- Regularly post images of your jewelry items
- On social media channels post your blog regularly
- Make sure you always include links to your products in your Etsy, ArtFire, and other online shops.
Step 11: Select a place to sell your Jewelry
You may find success by selling your designs at some events and shows. Not only will you get the word out about your brand, but you get the chance to meet and interact with your customer base and share your passion for creating jewelry. You may also want to contact local retailers for wholesale and consignment sales of your designs.
Step 12: Start selling Jewelry
Now it’s time to make your plan real and start selling. You know what you’re selling, who you’re selling it to, how to reach your customers, and how much is it all going to cost you. The start might not be easy and each step you took before might change but, don’t be afraid of it. If you see that your products are also popular among a different clientele than you predicted, adjust your marketing strategy and business plan accordingly.
You might need a jewelry studio or a workshop depending on your idea for the jewelry business. However, selling your jewelry online through your website is one of the easiest ways. If you don’t have resources to make your website, you can begin with online shops like Etsy where you can set up your account. Setting your account at an online shop also eliminates worrying about the shipping costs.
Jewelry business startup cost
Jewelry business startup much depends on the type of business. A brick-and-mortar store will cost more to rent and maintain the overhead costs during the startup phase. A jewelry store concept requires extensive planning.
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Investment depends upon a lot of factors. Consider the following circumstances:
1) Retail space: will cost you anywhere between 15 – 20 lacs for a 500-800 sq ft store.
2) Range of jewelry: What variety of jewelry are you planning to offer to your clients? Silver, Gold, or Diamond jewelry? Range of silver and gold along with Diamond jewelry will cost you a minimum of 1Crore.
3) Marketing and advertisement: You need to invest a good amount in the marketing of your new business.
4) An all-round setup featuring gold & diamond jewelry requires or more than 1Crore.
5) A small setup with limited stock excluding diamonds will still cost 50 – 90lac.
Your setup may not be a large one, but the gradual learning will help u grow with time and resources
Tips to start a Jewelry store business in India
Following are the tips to start a jewelry business:
- Try to think of the market when you’re designing and do your research and
- Always try to improve and change things
- Stay in contact with your customers
- Check out the competition
- Pick the right markets
- Starting a business online has never been easier or more affordable
- Start your business with minimal investment
Conclusion
Keep in mind that starting a business is a time-consuming task, even if it’s just a side hustle. If you’re serious about your venture, make it a priority to carve out enough time in your schedule to dedicate toward launching and managing your business, even if that’s just an hour at the end of the day to work on a piece of jewelry, create a few social media posts, or check up on your sales reports or marketing performance.
All told, starting a business can certainly feel overwhelming; but if you think of creating your jewelry and selling it to customers who’ll enjoy your pieces as a labor of love, you can’t go wrong.
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