If you have a knack for creative design and beauty, turning precious metals, wires, gemstones, crystals and beads into beautiful wearable artwork, you may have what it takes to start a jewelry business. Business savvy will always be helpful in any business operation.
It doesn’t matter whether you are a certified gemologist, silversmith, or a weekend crafter with a side business in beaded creations. If you can accurately gauge the market for what your customers want to buy, create unique stand out pieces that satisfy a niche market, and deliver a high quality product you might have a future as a jeweler.
[photo credit: Seth Lemmons]
How Big Is The Jewelry Industry?
McKinsey & Company reported in 2014 that global revenue from the jewelry industry exceeds $211 billion every year and is growing by 5 to 6 percent per year. They expect consumer demand to push the industry to more than $356 billion by 2020.
Why Starting A Jewelry Business Now Is A Good Idea
McKinsey’s predictions of a growing jewelry market makes it a good time to get into the industry – if you can find your niche and deliver a quality product.
Although demand for jewelry waxes and wanes with the economy, it is now in a growth phase that will drive profits for several years to come.
Fine jewelry works on a slower timeline for product development. However, the growing demand for fast fashion has pushed the fashion jewelry industry to keep up with the ever changing trends.
If you can develop an alert and responsive business model that delivers what the customer wants today on a fast and flexible timeline, the results of your efforts could be quite lucrative.
Jewelry Business Facts
Here are some facts and figures about the jewelry business you should consider:
Jewelry business startup costs
Much depends on the type of business. A home jewelry business that manufactures all its own inventory can start up for as little as $30 a week in material costs. A brick-and-mortar store will cost more to rent and maintain the overhead costs during the startup phase. BPlans estimates approximately $17K.
How much do jewelers make?
$36,870 annually or $17.73 per hour, according to the Bureau of Labor Statistics. Payscale.com reports a range of $15.28 to $34.36 per hour or $21,805 to $55,411 per year.
How much do jewelry stores charge?
The Jewelry Making Journal recommends a base price formula: (4 x cost of materials and packaging) + labor costs. Then add 10% of the total to cover your overhead. Typical labor charges are $20-$30 per hour. You can adjust the labor charges for time consuming pieces to avoid pricing the piece out of the range of your customer’s pocketbooks.
How do jewelry stores find customers?
Craft fairs, farmer’s markets, word of mouth, home parties, consignment shops, direct sales to merchants; print, radio and TV ads, online stores such as Etsy or eBay, social media and a professional website.
What skills are required?
The ability to establish a brand for your jewelry quickly and effectively; flexibility and the ability to recognize and adapt to constantly changing market trends; supply chain collaboration.
What do I 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 and/or repairing jewelry, active social media accounts and a professional website.
Jewelry Business Ideas
Do you make Homemade and Custom pieces?
[photo credit: Amy the Nurse]
[photo credit: Florence Ivy]
[photo credit: Kirsten Skiles]
Or do you focus on more ornate and pricier items?
[photo credit: epSos.de]
[photo credit: Sudarshan V]
[photo credit: epSos.de]
Struggling with what to name your jewelry business, here are a few ideas:
|SunKissed Jewelry||The Treasure Chest|
|Dazzling Discoveries||Jelly’s Jewels|
|A Strand Above||Millie’s Masterpieces|
|Bead it Up||Gold ‘N Glow|
|Sparkles and Spirits||Make a Memory|
|Touch Her Heart||Infinite Illuminations|
|Silverstone Designs||Galleria of Shine|
|Phoenix Jewels||Magic Oasis|