With so many people turning to the internet for online shopping, there are plenty of opportunities for entrepreneurs to create new businesses with different and unique products. However, starting a jewelry business can be a bit more difficult because this is an item that people often prefer to buy in person. If you’re going to sell jewelry online or in stores, you need to gain your customers’ trust and prove that your products are authentic and beautiful.
When it comes to sourcing precious gems like diamonds, there’s also a moral responsibility to ensure that these items are coming from areas that are not experiencing human or environmental conflict, as this is a major factor that buyers consider before making a jewelry purchase. If you’re thinking about creating your own jewelry business selling men’s gold chains, pendants, or bracelets, follow these tips to have the best chance at success.
Before Starting Your Business
Develop a Business Plan with Specific Goals
You can’t begin the process of sourcing jewelry until you’ve created a well-developed plan for how to run the company. The first step for anyone considering becoming a business owner is to conduct a lot of research on the industry and understand the barriers to entry, the cost of running the business, and your target market.
As you gather this information, you need to write out a business plan to keep yourself organized and help you receive financial help in the form of a business loan. Without a business plan, it’s easy to forget steps, lose focus, or have that much-needed loan declined. If you’re wondering how to write a business plan, you’ll need to create sections that thoroughly explain a number of aspects of the company. Determine the purpose of the business, the target demographic, your intended marketing strategies, the types of products you’ll offer, and an estimate of your net sales or overall financial gain.
Determine Your Product Line
While there are many important segments to a successful business, determining your products and ensuring that they are unique and of high quality is essential. If your customers do not like your products or consider them to be cheaply made, you’ll have a hard time rallying a loyal customer base and receiving word-of-mouth recommendations.
For those who are jewelry-makers themselves, this is a bit easier to control because you are the one creating the products and purchasing the materials needed. However, most fine jewelry retailers need to source their products from elsewhere, meaning they have a limited amount of control over the quality and the process behind the production.
When first starting out, don’t make the mistake of purchasing too many products to offer. It’s best to start with a few staple items like different styles of gold chains or a handful of pendant options. This can help you avoid overstocking your business and subsequently losing money on items that don’t sell. As your business grows, you can consider adding different jewelry items to your store and analyze how consumers respond.
Work Out Financial Details
It’s no surprise that you need to have money to make money, especially when trying to open a business. Before you can start bringing in the bucks, you’ll need to dish out some cash on expenses such as an eCommerce site or a brick-and-mortar store, products, marketing efforts, and essential programs like accounting software.
When opening a fine jewelry store, your inventory expenses are probably going to be much higher than other businesses because your products are so valuable, to begin with. Most entrepreneurs don’t have enough cash on hand to start a business on their own, leading them to seek out financial aid.
As a business owner, you’ll probably want to apply for a business loan to help get you started. To get approved for a loan, you need a concrete and impressive business plan and good-standing credit. Before getting approved, you should carefully consider how much money you plan to borrow and how you’re going to pay the loan back without losing money in the long run.
Market Your New Business
Once you’ve sourced your products and set up shop, you need to start attracting customers. Sometimes, this can be the most frustrating part of starting a new business. How do you expose people to a brand that they’ve never heard of? Solid marketing strategies. Luckily, the internet is a major source of retail marketing, and it’s relatively cheap and easy compared to print advertisements.
You should build anticipation around your brand before you’ve officially opened by running social media campaigns on Instagram, Facebook, and, potentially, Twitter. Then you can use paid search advertising to target your specific demographic and attract the attention of potential buyers. Once you’ve started to drum up business, you should pay careful attention to how you treat your customers and try to give them the best experience possible, as word-of-mouth advertising is considered one of the most respected forms of marketing.
Tips for Sourcing and Selling Fine Jewelry
Source Responsibly from a Reputable Source
As a new jewelry retailer, you’re competing with other major brands that have been around for decades. Most people tend to trust brands that they recognize, making it difficult, at first, for new businesses to gain a following. Offering high-quality, sustainably sourced products is a great way to demonstrate value to shoppers. Diamonds, in particular, need to be sourced responsibly as there is a lot of conflicts that surround the mining and production of this sought-after gem. If you’re going to offer gold chains with diamonds, you need to find a reputable source that uses diamonds from conflict-free zones and market this to your customers so they know where their gems are coming from.
You’ll also want to seek out respected sources to ensure that your products are authentic. It can be easy to create counterfeit jewelry, but it’s even easier to identify it. As a business owner, the quality of your products reflects directly on your business. Even if you’re intending to sell authentic products, receiving fake gold chains from your manufacturers will make it seem as though your business is trying to sell counterfeit jewelry.
Do your research and consult others in the industry to find a trusted source, and always be honest with customers about jewelry content and quality.
Source Your Jewelry Wisely
There is a great deal of work and motivation that goes into creating a new business and, if you don’t plan every aspect carefully, you’ll suffer the consequences. Before you can begin selling, you need to create a solid business plan and secure the funds necessary to get your business up and running. Then, determine which products you’re going to sell and be extremely diligent about where your products are sourced.
High-quality products, excellent customer service, and well-developed marketing strategies are the perfect recipe for a successful new business.