17 Apr How to start a jewelry business store?
If you are passionate about jewelry and want to invest in a new business, you probably wonder how to start a jewelry business. This guide will show you everything you need to know on the subject by analyzing costs, opening methods, bureaucratic requirements and advantages.
Even if you have no experience with precious stones but still have a considerable entrepreneurial spirit, it can be very useful to know how to open a jewelry store. Gold and silver are not devalued in times of crisis. On the contrary, they tend to increase their value. You can also dedicate yourself to a type of artisan or vintage jewelry to distinguish yourself from the competition and offer a “plus” to your customers.
How to start a jewelry business: the type to choose
The choice of the type of jewelry will affect costs and earnings and the target audience. If you aim at high jewelry, you target a niche audience willing to spend a lot of money to buy luxury goods.
If you produce your jewelry, you can dedicate yourself to the creation of handcrafted and personalized jewels that will have a cost and a greater value determined by the manual processing of the piece.
To offer an innovative service, you can open precious vintage jewelry, which will have value deriving from the materials and history behind them.
Finally, to embrace a broader target audience, you can open an inexpensive jewelry store where you can sell gold, silver, and costume jewelry products. In this case, you will have to focus on the quantity of the sale more than on quality.
The importance of the business plan and the location
Knowing how to draw up a business plan is essential to open any business, especially a jewelry store with high costs. It is a valid tool for planning expenses, analyzing competition, evaluating revenue, etc.
Another very important choice is that of the location, which must guarantee maximum visibility. Shopping centers, city centers, pedestrian areas, and general places that guarantee a continuous influx of people are perfect. The points of sale do not have to be very large, as long as there is sufficient exhibition space to enhance your goods in the right way.
How much does it cost to open a jewelry store?
Opening a jewelry store costs between 200,000 and 500,000 euros. It all depends on very variable factors. First of all, you must equip yourself with an effective security system to protect the precious and a valid lighting system to highlight the jewels.
You must then proceed with the shop’s furnishing, including the counter, display cases, furnishings, etc. and then other useful items such as envelopes, gift boxes, business cards, etc. Of course, the purchase of jewelry, watches, rings, necklaces, etc. Initially, I recommend that you buy a few pieces to not make an excessive investment and then increase the quantity when your business is launched.
As for a jewelry store’s management costs, you have to meet the following costs: rent of the premises; energy costs and utilities; insurance; salaries of employees and employees. Consider some incidental or unexpected expenses such as consulting an accountant, restyling the shop, replacing display cases and accessories in the shop, etc.
How to open a jewelry franchise?
To cut costs, you can open a jewelry franchise, thus taking advantage of the parent company’s name and know-how. Generally, the franchising company’s rental and personnel costs are borne, but this depends on the brand and contract type.
In addition to counting on an already established brand, you can get the exclusivity of the area and rely on the parent company for promotional materials, window dressing, furnishings, etc. You also have an exclusive channel for the supply of goods at your disposal, thus giving uniqueness and originality to your store.
How to open an online jewelry store?
Another great idea is to open an online jewelry store to cut costs related to the physical point of sale.
If you decide to open jewelry e-commerce, you can only sell new items, as the law prohibits the online sale of used jewelry.
First of all, you must possess a company with a VAT number and SCIA to be submitted electronically. Then you must register your business in the Business Register of the Chamber of Commerce and ask for an activity license at the police station.
Even if you don’t have a physical shop, you still need to have a place to keep your precious objects equipped with special security systems, gates, cameras, alarms and everything you need to keep them safe. As with physical jewelers, it is necessary to take insurance to protect your business and your valuables.