How to Start a Jewelry Store

Start a jewelry store by following these 10 steps:

1. Plan your Jewelry Store
2. Form your Jewelry Store into a Legal Entity
3. 注册你的Jewelry Store for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Jewelry Store
6. Get the Necessary Permits & Licenses for your Jewelry Store
7. 得到犹太人elry Store Insurance
8. Define your Jewelry Store Brand
9. Create your Jewelry Store Website
10. Set up your Business Phone System

We have put together this simple guide to starting your jewelry store. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out othersmall business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit ourHow to Name a Businessguide or get help brainstorming a name with ourJewelry Store Name Generator

If you operate asole proprietorship, you might want to operate under a business name other than your own name. Visit ourDBAguide to learn more.

Whenregistering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• 网络域名的可用性.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a jewelry store?

A small jewelry store can be started for as little as $20,000. However, depending on your location, it might cost up to $100,000 to get started.

A typical breakdown of expenses might look like this:

• Rent: $0 (if you start your business out of your home); $1,000 per month for a small storefront; up to $10,000 per month for a larger storefront, depending on location.
• Overhead and raw materials: $500 for basic raw materials to make low-end jewelry; $10,000+ for precious metals and gemstones.
• Insurance: $500 - $1,000 per year.
• Basic tools: $200 - $300

As your business grows, you will want to add more tools to your tool set, including grinders, a professional workbench, various gemological tools, hammers and mallets, laser welders, loupes and magnifiers, metal forming tools, gauges and scales, molds and casts, engraving tools, beading supplies and beaders, burs and drills, adhesives and various specialty compounds, polishers, and safety equipment.

Costs vary, of course, depending on the size and scope of your operation. However, a full tool set may add several thousand dollars to the overhead cost.

To reduce the overhead cost, consider bootstrapping your business.

For example, instead of taking on large loans, consider borrowing money from a retirement account, cash value life insurance policy, your own savings, or from a friend or family member. Grow the business slowly over time as finances allow.

What are the ongoing expenses for a jewelry store?

Ongoing expenses for a jeweler vary based on the size of the operation.

A jeweler may have to pay rent, supply costs, and labor for a small to medium-sized operation. Larger operations usually cost more to run.

A typical breakdown of costs may look something like this:

• Rent for building: $3,000 - $10,000, depending on location
• COGS: Precious metals spot price + spread + gemstone = $3,000 - $50,000+
• Labor cost: $25,000 - $50,000+ per employee
• Insurance: $1 - $2 per $100 of merchandise

Who is the target market?

Ideal customers are those shopping for an engagement or wedding ring. Alternatively, those who are interested in and can afford luxury jewelry or custom pieces are also ideal customers.

How does a jewelry store make money?

A jewelry business makes money by fabricating and selling jewelry. Customers typically pay a set price for the piece which is based on the cost of metal, gemstones, labor for fabrication, and jeweler’s markup.

How much can you charge customers?

Jewelers have their own language when it comes to pricing their product, called “keystone pricing.” This means wholesale pricing times 2. In other words, traditional jewelers will mark up pieces 100%. A piece purchased for $100 should be sold for $200, minimum. However, it’s not uncommon for rare items to be marked up 300% or more, which is called “triple keystone pricing.”

With smaller jewelers, cash or credit is the standard method of payment. For larger retailers, in-house special financing is often arranged for more expensive pieces.

How much profit can a jewelry store make?

According to the Bureau of Labor Statistics, a precious metals worker makes just under $40,000 per year. If a jeweler is an owner-operator, he may make this much net of costs. A successful owner-operator could earn more, however, depending on location and size of the operation.

How can you make your business more profitable?

Growing your business is the key to more money in the jewelry business. Prices for metals are determined by the commodities markets and gemstone pricing is determined by distributors. Therefore, jewelry store owners need to focus on business expansion.

Some ideas include:

• Selling over the Internet through popular online marketplaces (markets like etsy, ebay etc.)
• Selling through local markets, farmers markets, mall kiosk/pop-up shop, or other temporary locations

STEP 2: Form a legal entity

The most commonbusiness structuretypes are thesole proprietorship,partnership,118bet金博宝 , andcorporation.

Establishing a legal business entity such as an有限责任公司orcorporationprotects you from being held personally liable if your jewelry store is sued.

You can金宝搏188是什么公司yourself and pay only the minimal state有限责任公司costsor hire one of the118金宝app for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more aboutstate sales taxand franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to aspiercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting abusiness credit cardhelps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our有限责任公司Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a jewelry store. Learn more about licensing requirements in your state by visitingSBA’s reference to state licenses and permits.

Certificate of Occupancy

如果一个物理ret珠宝商业计划ail presence, aCertificate of Occupancy (CO)will be needed. A CO confirms that all building codes, zoning laws and government regulations have been met.

When leasing a store location:

• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a Jewelry business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening,it is recommendedto include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

When purchasing or building a store location:

• You will be responsible for obtaining a valid CO from a local government authority.
• 审查所有建筑规范和分区的要求for your business’ location to ensure your Jewelry business will be in compliance and able to obtain a CO.

As well, many retail establishments will play music in the store to offer an aesthetically pleasing environment, requiring a music license:

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully.Business Insuranceprotects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face,begin withGeneral Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need isWorkers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

This business is suitable for individuals who have a passion for metalworking and are experts in the trade.

The jewelry business is also influenced by the gemstone and precious metals industry, so business owners should also be metals enthusiasts and enjoy watching the metals and gemstone markets.

What happens during a typical day at a jewelry store?

Business owners typically work late hours and spend a lot of time creating jewelry, taking inventory, and managing supplies.

What are some skills and experiences that will help you build a successful jewelry store?

Being a jeweler is a trade, so most entrepreneurs who get into this business already have experience in the industry. However, that doesn’t mean an outsider cannot start a jewelry store. Experience in metalworking, sales, gemstone cutting and analysis, and accounting is strongly recommended.

What is the growth potential for a jewelry store?

Being a jeweler is a low overhead business. You can run it out of a home or garage or rent a small office or building. Small jewelers are usually owner-operated and focus on custom jewelry and pieces for the general public. Large retailers may or may not do many custom pieces and often focus on mass market appeal.