How to set up a jewellery business

If you are passionate about jewellery and skilled at crafts, why not consider starting your own jewellery-making business? Here we take you through what you need to know to get started.

Jewellery is a popular choice of start-up business, with some aspects being relatively unaffected by the recent Covid-19 pandemic and cost of living.

The global jewellery market is also forecasted to grow in the coming years to reach a value of $292bn by 2025, the online jewellery market is readily growing and set to reach $60bn worldwide by 2027.

A jewellery business allows designers and hobbyists with entrepreneurial flair to become their own boss.

It can also be the ideal venture to begin part-time as you can launch on a relatively low budget.

Thinking of starting a small jewellery business, find out if you’re eligible for a Start Up Loan.

Decide which jewellery business is right for you

Jewellery is often defined in the following product types:

• fine
• fashion
• second-hand/antique jewellery
• handmade jewellery
• costume.

If you are interested in creating and selling high-quality fine jewellery, you’ll have a higher outlay on materials than other types of jewellery.

However, you will be able to sell items for a higher price and establish a strong brand identity as there are few competitors in that niche.

If costume jewellery is more your area, you can produce designs at a lower price, but you will need to produce a large volume of sales to generate decent revenues.

Start by considering the type of material you want to use in your designs.

Popular choices include gold, silver, platinum, precious and semi-precious stones, wood, glass, or crystal.

Think about the following options:

• do you want to specialise in one type of jewellery or offer your customers a range of different products?
• what jewellery options would be the most profitable?
• what unique selling point (USP) will your business offer the market?
• what is your skill set – will you be selling and/or designing jewellery?
• what jewellery inspires you – your customers may be encouraged to buy from you if you’re passionate.

When setting up a jewellery business, you need to consider which area you wish to specialise in.

For example:

• create and sell your own designs
• sell jewellery made by others
• sell/rent vintage jewellery
• make jewellery repairs.

Research your competitors

With any start-up business, it’s essential to identify your competitors and be aware of their offerings in the market.

This can also help you identify any gaps in the market your business could take advantage of.

To help you create an effective business strategy, look at what potential competitors are doing, including:

• the products they sell
• their business marketing
• product pricing
• who their customers are
• what brings or prevents their success.

By taking the time to understand your competition, you can develop helpful strategies for your own business.

Identify your target audience

Knowing your target customers will help you determine the type of jewellery you want to sell and how to market your products.

The more you know about potential customers, the easier it can be to reach them through marketing and advertising.

Identify the following in your target audience:

• demographics, such as age, gender, income, relationship status, and location
• behaviours such as lifestyle choices, likes and dislikes, hobbies, and shopping choices such as in-store or online
• customer needs – what can your business offer that competitors can’t?

Create a business plan and budget

Your business plan should be a living document that outlines your business goals, strategies, and how you plan to achieve them.

Any start-up has a cost, so understanding all your upfront costs is important to ensuring you can support yourself and any staff before the business makes a profit.

If you need funding to start your business, find out if you’re eligible for a Start Up Loan.

The budget should detail the costs associated with setting up and running your business, such as tools and equipment you will need, stock, and marketing materials.

Your business plan should be reviewed and updated regularly as your business grows and changes.

Read our guide on how to write a business plan.

Create your brand and legalise your business

Every business needs a name, and once you have decided on a company name, you can register it with Companies House.

Read our guide on registering your company’s name.

You will also need to register your new business with HMRC to report and pay tax.

Self-employed sole traders don’t actually need to register their business name, although you’ll still need to register some form of name for self-assessment with HMRC within three months of formation.

If running an online jewellery business, you will need to set up a business website to sell online.

Find your suppliers and start creating your jewellery

You’ll need to buy stock or jewellery-making tools and materials to create your jewellery.

Understand how much stock and inventory you should hold to create orders versus made-to-order products which allows you to place an order for the stock you need once a customer orders.

Research jewellery wholesalers to find the best deals.

You can also ask other jewellery designers about trustworthy wholesale suppliers.

Promoting your jewellery brand

Once up and running, you will need to market your jewellery business to potential customers.

Social media channels are a popular way to get your brand and products seen by potential customers.

Instagram is a popular choice for jewellery brands – learn more about how to market your business on Instagram.

Working with influencers on social media, whether Instagram or the latest trend, TikTok, can help spread the word about your products; find out in our guide how to work with influencers on TikTok.

Two pieces of legislation to be aware of when selling jewellery are the Trade Descriptions Act 1968 (TDA) and the Sale of Goods Act 1979 (SoGA).

Both acts are in place to protect customers from being misled or sold counterfeit goods.

Knowing what this means for you as a seller will help you to avoid legal issues and protect you if something goes wrong with a sale.