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How To Start A Jewellery Business

how to start a jewellery business

People who love jewellery might think about starting their own business, and with the jewellery industry expected to boom from £197 billion to £263 billion by 2026, there’s never been a better time to get involved. Why not turn dreams into realities with a rewarding and lucrative jewellery business that can be operated full time or part time. 

Starting a successful jewellery business online or offline is a glamorous prospect but before you dive in there are a few things to bear in mind. In the following article we will equip you with the knowledge you need to hit the ground running, as well as some important steps to stay profitable as you progress. Are you ready for the perfect passion project? Let’s begin.

Understand the Legal Requirements

First, understand the legal requirements of setting up a jewellery business, there are a few things to keep in mind. Try to avoid going it alone initially as this can lead to issues down the line; instead, follow the steps below and consider consulting a professional business advisor.

It’s important to think about the legality of your jewellery business. Consider:

  • Business registration
  • Employer’s liability insurance
  • GDPR data law compliance.

If you intent to employ any staff, you will need to think about:

  • Equal opportunities law 
  • Right to work checks and DBS 
  • Employment contracts 
  • Health and safety protocols 
  • Payroll and pensions 

Before running a jewellery business you should decide on a suitable business model. Be aware that there are different rules governing jewellery sold or goods sold from abroad. It’s important to follow the right procedure for selling jewellery through your store, so if you have any doubts or questions, you need to research the legal requirements thoroughly to avoid legal issues.

Decide on Your Product Style

Once you have the legal side of things organised it’s time to think about what style of jewellery you want to sell, chances are you already have an idea already–a personal style you like–but this isn’t always the best style to sell. Consider what is popular on the market.

  • Bespoke or personalised jewellery
  • Fashion jewellery
  • Fine jewellery
  • Second-hand or antique jewellery
  • Costume jewellery

Also, consider the type of materials and precious stones you want to use in your jewellery designs, this will influence the cost of manufacture or purchase, and the retail prices; there might also be procurement issues for the stones: gold, silver, and crystal, are good options.

When it comes to setting up a competitive business, you need to think about your USP, and a jewellery business is no different. Even if your business is a passion project, you need people with tastes other than your own as they will be the people buying your products.

Consider what makes your jewellery business special and unique, why should someone buy from you and not the business next door? What is it that makes you excited by an item of jewellery and is this the same for your friends and colleagues? Market research can help with this task.

Research Latest Trends

In the jewellery trade, styles and trends will vary with the seasons. Summer might see a rise in boho styles, whereas more glamorous pieces are popular for the festive season between November and January. To stand the best chance of success, it’s important to stay up-to-date with the latest trends and factor them into your promotions and manufacturing timelines.

The following resources can help you to research trends:

  • Online jewellery blogs
  • Jewellery trends online
  • Jewellery magazines
  • Jewellery markets
  • Trade shows

The internet is the best place to begin when researching trends and Google Trends is your friend. This handy tool will give you the most up-to-date overview of what’s popular in the jewellery sector helping you to optimise your stock. Not only will you want to find out what is popular in the here and now, but you will also want to anticipate what will be popular in the near future.

The best advice any new jewellery shop owner should take to carry out appropriate market research before investing in jewellery stock. The more you understand about current market trends, the better you can optimise the business and make a profit. Consider your target customer and their demographics, then reach out to relevant people with some questions.

Pinpoint Your Target Audience

When it comes to marketing and selling your jewellery you must have a robust idea of your target audience–this helps you buy jewellery they would like, increasing the potential for success and reducing the need for discount sales.

A typical target audience for a jewellery business will be defined by their

  • Age
  • Gender
  • Location
  • Income level
  • Occupation
  • Marital status
  • Hobbies and interests
  • Lifestyle
  • Shopping preferences (instore or online)
  • Their jewellery wants and needs

Now that you have defined your target audience and you have an ideal persona for them, it’s time to dig into the details to find out how this information can serve your business going forward. Remember, all of your marketing efforts need to build around what appeals to your primary target audience, not what everyone else is doing!

Find out where these people prefer to socialise and spend their money, what kind of status they have and what are their typical salaries? Would it be better to target them online or offline?

Take a Look at Competitors

While you may have a solid idea for your jewellery business you need to make sure you research your competitors and find out more about the standards in your industry.

Competitor research will inform your pricing strategy and marketing effort at all times.

When researching your competitors, you must think about the following:

  • The product’s they’re selling 
  • Business marketing practices 
  • General product prices 
  • Their target market 
  • What makes them successful 

Understanding the information above will help with every aspect of your business including buying stock, setting prices, and marketing your jewellery. Through ongoing competitor research and business optimisation, you can figure out what works well and what doesn’t.

Figure Out Your Business Plan and Budgeting

Now that you’ve done the groundwork it’s time to draw up a business plan that will consolidate your ideas and help you set up the financial side of things. Your business plan should include your business goals, strategies, objectives, as well as a budget that demonstrates a robust understanding of the costs involved in setting up and running it.

There are some things a business plan cannot do without, these include:

  • Executive summary: an overview of the business 
  • Company description: Explanation of business objectives 
  • Market research: your industry position
  • Product types: Type of jewellery you intend to sell 
  • Funding and budgets: how will you fund the business 
  • Marketing plan: how to promote the items and brand

Don’t underestimate the power or importance of a business plan, not only will it consolidate your general ideas making them more focused and coherent, but it also helps you secure business loans from investors, and attract customers early on: it must be regularly updated.

Create a Marketing Plan

The next step in your passion project journey is to create a marketing plan to promote your brand and latest jewellery ranges. Marketing helps you reach your target audience and sell.

The first step is to present the jewellery in the best light, so you will need to take some high-quality pictures. The jewellery should be set against a background and a high-resolution camera must be used.

If you lack experience with marketing presentation, you might need to hire a professional. Alternatively, you can use a high-quality camera to showcase the item – there are plenty of tutorials online on how to achieve excellent product shots on a budget without buying expensive equipment!

When you have the perfect shots, it’s time to launch them through the best marketing channels for your business. Remember, the best marketing channels are defined by your target audience and competitor analysis research.

Consider;

  • Social media
  • Email marketing
  • Google AdWords
  • SEO (Search Engine Optimisation)
  • Content marketing
  • PR (Public Relations)
  • Paid advertising
  • Events, markets, and trade shows
  • Referrals from customers and partners

Developing a marketing plan ensures that you don’t waste time, effort, and money pursuing sub-optimal channels, or marketing to the wrong target audience. Planning marketing carefully means better results initially and gives you a stronger foundation to build on in the future.

Create a Website and Social Media Platforms

One thing you will definitely need as a jewellery business is a website and suitable social channels. While it is possible to sell jewellery through online marketplaces such as Etsy and Ebay, having a website shows you are more established and creates a base for customers.

For a website to be effective these days, it must be user-friendly with clear calls to action throughout. It should have fast loading times with keyword-rich website content. Consider hiring an SEO consultant if you need help optimising your website – a good one is worth their weight in gold for the returns they can get you online!

Along with a website you will need social media channels where you can interact with customers and showcase the latest ranges. Social media is a powerful marketing tool when used correctly and it will help build relationships with customers and bring them to the website.

Establishing a strong online presence is one of the best ways to reach customers, build relationships, improve brand visibility, and grow your jewellery business in a short time.

Build Your Brand

Don’t underestimate the power of a strong brand, especially for a jewellery business. Brands define the company, its products, its attitudes, and its value, and it’s one of the reasons customers choose to buy from you. Think carefully about every aspect of your brand identity and what you want it to say about your business.

When creating a brand it’s best to begin with your core values, what is it you believe in and why does this make you different from your nearest competitors. Also think about how you want to be perceived when it comes to designing your brand logo and style of your website.

Find a Supplier

There are various ways to acquire jewellery for your business, you might buy second hand antique items, make them yourself from scratch, or partner with a manufacturer to make them for you.

There are pros and cons to every avenue, so choose the one that defines your business the best.

What you need to consider about local manufacturing:

  • It can be more expensive than overseas manufacturing
  • It’s possible to visit local factories and meet the makers 
  • Local goods don’t need to be shipped, improving margins. 

What you need to consider about local manufacturing:

  • Overseas manufacturing can be cheaper than local 
  • It can be more challenging to communicate with suppliers
  • Jewellery must be shipped increase the margins

Whether you are considering a local supplier or one from overseas, it’s important to remain objective about them and select the one which serves your business the best. Once you have found the ideal supplier, it’s time to establish and nurture a good working relationship with them ensuring that your business has the best foundations to thrive well into the future.

Set Up a Jewellery Studio

Not every jewellery business has manufacturing partners, perhaps the reason you decided to start up in the first place was because you had a passion for designing and making pieces yourself. In this case, you might require a studio to bring ideas to life–it should be affordable.

Your jewellery studio should be set up with everything you need to create your designs, including:

  • Workbench or table
  • Comfortable chair
  • Quality lighting
  • Tools and materials

Don’t think that you need to hire an expensive studio when setting up a jewellery business, there are alternative options. For instance, you could hire a shared workspace reducing your overheads, or use a space you have available in your home or garage as a workshop. The main thing is you have a workspace to operate in and all the essentials to craft the jewellery.

Start Selling Your Jewellery

Although you want to start selling jewellery right away, there is lots of groundwork to be done if you want to hit the ground running and be successful. Once you have established a website and social channels, it’s time to sell your jewellery online or in a high street store.

Remember, selling jewellery is as much about the customer experience as it is about the quality of the product, so make sure you have the right ideas when it comes to a shopping experience–these include marketing to engage customers, and little extras from the brand.

Below, you can find some tips for improving your customer experience:

  • Offer free shipping
  • Send thank-you notes
  • Wrapitems nicely
  • Create quality product photos
  • Write excellent product descriptions
  • Making contacting you simple 

These tips are the little extras that can elevate your brand and transform your business overnight, remember it’s all about the customer’s experience at every point in the journey.

Final Thoughts

If jewellery is your thing and you want to find financial freedom by working for yourself, there is no better time to set up a jewellery business. Turning your passion into a successful business is something many people dream of doing, so what are you waiting for?

Don’t forget to meet requirements on the legal and financial sides by approaching your passion project with a practical business mind. It’s a good idea to step back every now and then and ask yourself if you are doing the right thing for your bottom line in conjunction with your business plan.

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