A jewelry line business is a business that designs and produces different types of jewelry. Jewelry is defined as ornaments that people wear, and they are often made of gems and precious metals. Jewelry is sold in retail locations and/or through online stores.
Statistics have it that the global jewelry market size was USD 330.0 billion in 2019 and is projected to reach USD 266.53 billion by 2027, exhibiting a CAGR of 3.7% during the forecast period. Please note that since 2014, jewelry consumption advanced from $59.1 billion to $62.3 billion in 2020, and jewelry retailer sales grew from $31.1 billion to $33.3 billion, a 7% increase.
Steps on How to Start a Jewelry Line With No Experience
Table of Content
Conduct Market Research
The first step in the market research process for your jewelry line business is to develop market-based research questions in line with your overall business goal and objective.
In this regard, you should source information that will help you maximize your business, information that will give you reliable data on what your potential market will be looking out for from a jewelry line business, and also help you operate your jewelry line business with less stress and of course, build the business to profitability within the shortest time frame.
a. Who is the Target Market for Jewelry Line Business?
Although the target market for jewelry is all-encompassing and covers both males and females, it is important to note that nearly a quarter of the jewelry market consists of consumers under age 35. Two-thirds of all jewelry expenditures in America are made by consumers under the age of 55. Unfortunately, far too many jewelry stores continue to cater to older consumers.
b. Is Jewelry Line Business a Profitable Business?
Yes, the jewelry line business is quite profitable. The value of the jewelry market is expected to increase from about 230 billion U.S. dollars in 2020 to about 307 billion dollars by 2026. For example, in 2018, almost 45% of Americans between 18 and 29 years old owned fashion jewelry, Statista shows. A similar percentage, 43.6% of consumers between 30 and 49 years owned fine jewelry, pieces that are made of precious stones and metals
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to jewelry lines.
d. Who are the Major Competitors?
- 3DM Jewelry Design Studio
- Casting House
- American Gemstone Group
- Custom Fashion Jewels
- Signet Jewelers
- Tiffany & Co.
- Harry Winston
- Van Cleef & Arpels
- David Yurman
- Godfather’s Jewelry
- Stuller, Inc.
- Lee’s Manufacturing Co., Inc.
- MKM Jewelry, Inc.
- Au Enterprises, Inc.
- Fire CZ Jewelry Collection.
e. Are There County or State Regulations or Zoning Laws for Jewelry Line Business?
Yes, there are county or state regulations and zoning laws for the jewelry line business especially if you choose to open a production factory, and players in this industry are expected to work with the existing regulations governing such business in the county or state where their business is domiciled.
f. Is There a Franchise for Jewelry Line Business?
Yes, there are franchise opportunities for jewelry line businesses. Here are some of them;
- Fire CZ Jewelry Collection
- Direct Jewelry Outlet Franchise
- Carter Jewelers
- WATCH IT! Incorporated
- Valley GoldMine
- Uptown Cheapskate
- Style Encore®
- Fast-Fix Jewelry & Watch
- Bijoux Terner.
g. What Do You Need to Start a Jewelry Line Business?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- A Good Production Facility and Showroom
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
- Equipment, Machines, and Raw Materials
- Startup and Working Capital
Choose a Memorable Business Name
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for a jewelry line business are;
Creative Jewelry Line Business Name ideas
- Rose Signature® Jewelry Line, Inc.
- Isabella Tyson® Jewelry Line, Inc.
- Zara and Zoe® Jewelry Line, Inc.
- Ted Capstone™ Jewelry Brands, Inc.
- Grace Lane® Jewelry Line, Inc.
- Rosa Park® Jewelry Line, Inc.
- Dame Kate® Jewelry Line, LLC
- Cloe Johnson® Jewelry Line, LLC
- Golden Rule® Jewelry Line, Inc.
- Kelly Benson® Jewelry Line, Inc.
- Joy Signature® Jewelry Line, Inc.
- Stella Marris ™ Jewelry Line, LLC
- Felicia Lamp™ Jewelry Line, Inc.
- Billy Jones™ Jewelry Line, LLC
- Sandra Signature® Jewelry Line, Inc.
- Julia Knox® Jewelry Line, Inc.
- Royal Signature© Jewelry Line, Inc.
- Rita Bella™ Jewelry Line, LLC
- Lovelyn Garcia™ Jewelry Line, Inc.
- Uriel Amstrong® Jewelry Line, Inc.
Register Your Business
a. What Type of Business Structure is Best for Jewelry Line Business?
Even though there are several options when it comes to the business structure of a jewelry line business, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.
Please note that an LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Jewelry Line Business?
- General Business License
- Seller’s Permit
- Fire and Safety Permit (Fire certificates)
- Federal Export Licenses
- Zonal Permits
- Signage Permit
- State Occupational Licenses
- Operational State Facility Inspections (Building Permits)
d. What Type of Certification is Needed to Open a Jewelry Line Business?
You don’t need any certifications to open a jewelry line business.
e. What Documents are Needed to Open a Jewelry Line Business?
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Contract Document
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a jewelry line, you may need to file for intellectual property protection or trademark. This is so because the nature of the business makes it possible for you to challenge anybody in court for illegally making use of your company’s intellectual properties especially as it relates to your designs or logo.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Jewelry Line Business?
When it comes to starting a jewelry line business, the startup costs vary and could range from $10,000 to over $500,000. This is so because the startup inventory and the equipment and machines needed to start either on a small or a large scale will greatly influence the overall cost of starting the business.
b. What are the Costs Involved in Starting a Jewelry Line Business
- The Total Fee for Registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, and other software) – $3,300.
- Marketing promotion expenses for the grand opening of for business for $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for $3,580.
- Cost for hiring a Business Consultant – $2,500.
- Insurance (general liability, workers’ compensation, and property-casualty) coverage at a total premium – $2,400.
- Cost for payment of rent for 12 months at $1.76 per square foot in the total amount of $53,300.
- Cost for facility remodeling (construction of racks and shelves) – $5,000.
- Other start-up expenses like stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for equipping the production factory – $45,000
- The cost for start-up inventory (raw materials and supplies and packaging materials et al) – $65,000
- Cost for store equipment (cash register, security, ventilation, signage) – $3,750
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound systems, tables and chairs et al): $4,000.
- The cost of launching a website: $600
- The cost for our opening party: $3,000
- Miscellaneous: $5,000
c. What Factors Determine the Cost of Opening a Jewelry Line Business?
- The size of the jewelry line business
- The choice of location
- The required licenses and permits
- The type of jewelry line business
- The cost for branding, promotion, and marketing of the business
- The cost of furnishing and equipping the facility
- The cost of the insurance policy covers
- The cost of registering the business
- Source of your supplies and ongoing expenses
- Cost of recruiting and training your staff
- The cost of the purchase and customizing of uniforms
- The cost of the grand opening of the jewelry line business.
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
It is not compulsory to build a new facility for your jewelry line business, but if you have the required finance, it will pay you to build your own facility. The truth is that building or reconstructing a facility for your jewelry line business will help you come up with a facility that will perfectly fit into your overall business goals and vision.
e. What are the Ongoing Expenses of a Jewelry Line Business?
- Rent and lease
- Supplies and inventory
- Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
- Maintenance of machines
- Salaries of employees
f. What is the Average Salary of your Staff?
- Chief Executive Officer (President) – $65,000 Per Year
- Factory Manager – $38,000 Per Year
- Merchandise Manager – $35,630 Per Year
- Jewelry Designers – $35,000 Per Year
- Accountant (Cashier) – $30,500 Per Year
- Marketing and Sales Executives – $28,000 Per Year
- Factory Workers – $28,100 Per Year
- Customer Service Executive – $26,000 Per Year
- Security Guard -$24,000 Per Year
g. How Do You Get Funding to Start a Jewelry Line Business
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Julia Knox™ Jewelry Line, Inc. is a standard jewelry line business that will be located in an industrial area in Las Vegas, Nevada. We have been able to secure a long-term lease agreement for a facility in a strategic location with an option of a long-term renewal on terms and conditions that are favorable to us. The facility has government approval for the kind of business we want to run and it is easily accessible.
b. Products and Service
- Antique Jewelry
- Temple Jewelry
- Bead Jewelry
- Nose pin
c. Mission Statement
Our mission is to build a highly successful jewelry line business that will design and produce custom jewelry made from precious and non-precious metals, including recycled and environmentally friendly materials. We will offer design, welding, casting, engraving, stone setting, and plating services.
Our vision is to be among the top 10 jewelry line brands in the world.
d. Goals and Objectives
The goals and objectives of a jewelry line business are to design and produce different types of jewelry for the market.
e. Organizational Structure
- Chief Executive Officer (President)
- Factory Manager
- Merchandise Manager
- Jewelry Designers
- Accountant (Cashier)
- Marketing and Sales Executives
- Factor Workers
- Customer Services Executives
- Security Guard
a. SWOT Analysis
- Ideal location for a jewelry line business
- Highly experienced and qualified employees and management
- Access to finance from business partners
- Excellent customer testimonials.
- A high volume of unique designs and styles of custom jewelry, including gold, silver, diamond, and brass pieces.
- Financial Constraints
- A new business that will be competing with well-established jewelry brands.
- Inability to retain our highly experienced and qualified employees longer than we want
- A rise in people who want to use jewelry
- Online market, new services, new technology, and of course the opening of new markets
- Increase the number of the human population within our target market area.
- The arrival of a new jewelry line business within our market space
- Unfavorable government policy and regulations.
- Steady wage expenses
- Economic uncertainty
- Liability problems
b. How Does Jewelry Line Make Money?
Jewelry lines make money by selling;
- Antique Jewelry
- Temple Jewelry
- Bead Jewelry
- Nose pin
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales & Advertising Strategies
- Place adverts on both print (newspapers, lifestyle and fashion magazines) and electronic media platforms
- Sponsor relevant community-based events/programs
- Leverage the internet and social media platforms like; Pinterest, Instagram, Facebook, Twitter, YouTube, Google + et al to promote your products
- Install your Bill Boards in strategic locations all around your city or state
- Distribute your fliers and handbills to target areas
- Contact students, entrepreneurs, business people, celebrities, and every adult in the neighborhood where your jewelry line business will be located informing them about your business and the products you retail
- List your jewelry line business in local directories / yellow pages
- Advertise your jewelry line business on your official website and employ strategies that will help you pull traffic to the site.
- Position your Flexi Banners at strategic positions in the location where your jewelry business is located.
- Ensure that all your staff members wear your branded shirts and that all your vehicles and trucks/vans are well branded with your company logo et al.
a. How Much Should You Charge for your Product/Service?
The price of jewelry depends on the type, size, and brand of the product.
b. How Much Profit Do Jewelry Line Business Owners Make a Year?
It depends, but the available report shows that the national average earnings for jewelry line business owners are approximately $51,000 per year. Jewelry line business profits can average between $23,751 and $140,935 or even more, depending on your location, line specifics, expenses, marketing efforts, and company size.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the jewelry business
- The location the jewelry business is covering
- The management style of the jewelry business
- The business approach of the jewelry business
- The advertising and marketing strategies adopted by the jewelry business.
- The number of years the jewelry line is in business
d. What is the Profit Margin of a Jewelry Line Business Product/Service?
A jewelry line business gains a handful of profit on all their products. Margins usually range from 20% to around 60-70%. So, the revenue you would be making will be based on sales made by you monthly and the expenses that you incur while running the business.
e. What is the Sales Forecast?
- First Fiscal Year (FY1): $1 million
- Second Fiscal Year (FY2): $2.5 million
- Third Fiscal Year (FY3): $3.5 million
Set Up your Shop
a. How Do You Choose a Perfect Location for Jewelry Line Business?
- The demography of the location
- The demand for jewelry in the location
- The purchasing power of businesses and residents of the location
- Accessibility of the location
- The number of jewelry lines and other fashion outlets in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Jewelry Line Business?
- Las Vegas, Nevada
- Los Angeles, California
- Chicago, Illinois
- Boston, Massachusetts
- Silver Spring, Maryland
- Rowland Heights, California
- Portland, Oregon
- New York City, New York
- Atlanta, Georgia
- Dallas, Texas
c. What Equipment is Needed to Operate a Jewelry Line Business?
- Jewelry Pliers.
- Jewelers Anvil
- Nylon-Jaw Pliers.
- Jeweler’s saw
- Looping & Mandrel Pliers.
- Memory Wire Pliers & Cutters.
- Cutters, Shears & Jewelers Saws.
- Drills, Bits & Hole Punches.
- Jewelry Soldering Tools & Supplies.
- Metal Stamping Tools
- Bench Hammer.
When it comes to hiring employees for a standard jewelry line business, you should make plans to hire a competent chief executive officer (president), factory manager, merchandise manager, accountant (cashier), sales executives, factory workers, jewelry designers, and security guard.
Launch the Business Proper
In recent times, no jewelry business opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening party if you are operating on a low budget or you can go for a grand opening party.
The bottom line is that with a proper launching of the jewelry line business, you will officially inform people in your city that your jewelry line is open for business.
a. What Makes a Jewelry line business Successful?
- Choose a good location and showroom to launch the business
- Make sure your jewelry is unique and the finishing is topnotch
- Throw an open house party before officially opening the jewelry line business
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your jewelry line business
- Leverage all available online and offline platforms to promote your jewelry line business
b. What Happens During a Typical Day at a Jewelry Line Business?
- The production factory is open for the day’s work
- The facility is cleaned and well-arranged
- Factory swing into action (production of jewelry)
- Deliveries of orders are made
- Stocks are taken and reports are written and submitted to superior officers
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Jewelry Line Business?
- Good jewelry designing sense
- Excellent creativity skills
- Excellent customer services skills
- Interpersonal skill
- Accounting and bookkeeping skills
- Business management skills
- Bargaining and bidding skills
- Work experience in a jewelry line business environment
- Experience in managing people
- Experience in business administration.