Plan!

First, it is important to have a good plan. A formal business plan isn’t necessary unless you aim to get a loan or investors, but the plan should be thorough, especially in the financial section. The bottom line for most of us is: can I make a profit doing this? How long will it take to turn a profit? And, is this worth my time? Below I have outlined a few key factors to think about while devising your plan. I want to be clear that this is just a guideline, not a “how to” since everyone’s circumstances is different – what may work for one person may not work for another.

1. Why do you want to do this?

Is this something that you want to do for strictly for the money? For the thrill of starting something from scratch? Because you need to make extra money to pay your bills? Etc. The answer to this question will create the context you need to think through your plan. For example, if you want to start a jewelry business because you absolutely have to have extra money to survive – that consideration will limit your choices greatly because you will need to make decisions that lead you to a quick profit.

2. Market & Products

What do you plan on selling and why? Think about whether the jewelry or other products you intend to sell are right for your intended market. Diamond jewelry is probably not the right product for a flea market! Some good ‘off-line’ venues that I have used include:

Craft fairs and outdoor festivals – generally in the summer time. You can usually get a table at these events for $20 $50 for the day. You will want to have a good selection of inventory; if you do you can usually gross anywhere between $150-$400 (based on my experience). Your sales will be directly related to your quantity of inventory.

Winter bazaars, church sales, holiday festivals—Oct-December. Check the local paper. Many churches have these annual events and tables are pretty inexpensive. These events are nice because people come to spend $ on gifts.

Home-based jewelry parties. You can host an event yourself, or have a friend host it and give her some free stuff as compensation. I like to have a good friend or relative host – that way I am pretty sure they will follow through. Ask your friend to invite her friends, relatives, etc. for the party. You provide some light snacks and bring all your stuff. Again, people come to buy and you have no competition! If you get people to one of these you will make out pretty well, and you don’t need to have as large a selection. I have made up to $1500 in an hour and half! Typically, I’d gross $300-$500 in a pretty short time.

Flea markets—usually in summer and holiday season. These can be boom or bust. It depends on whether, traffic, etc. Generally people at these want to spend very little, so the low-end stuff sells best. Good place to experiment since the tables are usually only $20 or so. I know people that go to the same flea markets every week and do very well with lots of repeat customers.

Store/ mall-cart. This is a much bigger leap since the overhead is so high compared to the above venues. I have done neither so cannot offer any good advice in except to plan really well and consider all the costs involved.

3. Where will you get your inventory?

This is the place you will need the best research. Unless you are selling in large volume, you will probably want to get a markup of about 3 times (what you paid for inventory). The lower the price you pay for your goods, the lower the price you can offer your customers/ the more profit you will make. You will always save more when you buy in bulk, so look for a supplier you can form a long-term relationship with who can give you good deals, service and selection. Buying a large quantity now may seem like a big expense now, but the result is you make more profit on every single item you sell.

The more you spend the more you save. Find a few good suppliers and see what sells well and who is willing to work with you. Find suppliers who provide good service and are committed to your success.

Buy off ebay- many people buy stuff at good prices then just re-sell

Search the web for other silver jewelry wholesalers.

Search the web for manufacturers. Most are in Asia. And you will get the best deals this way – but you are going to have to spend $3000+ to get the best prices and give yourself 6 months to find the right vendors, get your inventory and develop a relationship. It seems simple, but trust me, the cultural differences alone will add 3 months to the process! Unless you need 20+ designs of each design you order, or actually want to get a mixed batch of random leftovers that you will not see in advance, this is not a great option for most small businesses.

4. Is an online business right for you?

I make a living through my website. My business is successful because I:

• Have an efficient system to manage business operations

• Provide excellent service

• Have several great, inexpensive sources for products – suppliers that I know well and trust 100%

• Purchase a high volume of jewelry each month (enabling lower margin on each item)

• Spent time researching/ testing products and marketing strategies and learning about ecommerce

As I said, everyone’s situation may be different, but this is what works for me. I started about 6+ years ago part time, and within about 6 months had a full time internet business. I never expected it to work out this way, but it’s still going strong. Now it is much easier to get started from the technical side—the major auction sites offer good services for beginners and there are products out there to manage your business. You can even start a fully-functional ecommerce website without knowing any html! It is the “systems” that are the key factor for me. I have a system for inventory, a system to communicate with customers and a system to manage the fulfillment and customer service process. Most of my systems are computerized but I always take the time to get to know my customers in person when I have the opportunity.

5. … Is an offline business right for you?

Many folks are intimated at first by the whole ecommerce thing. The truth is an off-line business can be just as successful. Unless you have a lot of capital you want to start off (and continue!) with low overhead. So, you don’t need to go out and buy a store front! You can start by buying a small amount of inventory and testing the waters.

Try selling to friends and co-workers

Host a jewelry party (or better – have a friend host it) and invite a lot of people. I once made $1500 in an hour an a half! Typically, I would make about $400 or so in a couple hours.

Rent a table at a craft show (summer fair or church bazaar around holiday time). Tables are usually only $20-$40 for the day.

Get a spot a flea market

Put stuff out at your or your friends garage sales. It really works!

My advice is until you really know your market and have a handle on your revenue stream, start small. This way you are not going to lose much, if any, money.

6. Business licenses, TaxID numbers, merchant accounts, etc.

Check with your state to see what is required to do business. My experience is that it is very simple. You can get a TaxID, which takes about 1 hour and you can do it by phone, and this enables you to buy inventory without paying sales tax. But keep in mind that most vendors will be out of your state and will probably not charge sales tax anyway. In this case most vendors may not even need a TaxID. In terms of taxes, you can file under your TaxID or your social security number. If using your social security number and keeping the business under your own name, I do not THINK you need a TaxID, as long as you claim all your income appropriately. If you plan to have a business checking account you will need a TaxID number.

As far as I know you do not need any special license to sell retail. But you should contact your state tax office to get all the paperwork you will need to remit sales tax to the state. You are required to collect sales tax on retail purchases (most internet companies only charge sales tax to customers that live in the same state as the business). And at the end of the year, you have to pay this tax to the state.

As your business grows, it’s a good idea to take credit cards, especially for online businesses. Nowadays this is pretty easy. I get about 20 offers a day via email to setup merchant accounts and accept credit cards online. Do a search on google.com and you will find hundreds of places to do this for you! The cost is about $25/ month + $200-$300 setup fee. Another option is to use only a PayPal account. The account is free to setup. Get a paypal account regardless of what you do because it’s essential!! I’d say 50% or more of online shoppers now, and 80% of ebay customers have paypal accounts.

• I am NOT an accountant! This information is just based on my experience and may not be accurate.

Christina shopped for jewelry as though there was no tomorrow. On her 30th birthday, she received a gift that changed her life completely – a jewelry making tool box. She was thrilled by the thought of making jewelry herself. Lots of catalogs and jewelry making supplies found place on her shelves as Christina began turning out dozens of pairs of handcrafted jewelry.

This is what she had to say on how she set up a home based jewelry business.

“I made far more jewelry than I could ever wear myself, so I gave them to everyone I knew and kept making more. Finally, when my jewelry supply reached critical mass, my husband said, “I think you had better stop making jewelry or start selling it”. And so my jewelry business was born.

The following are some tips that Christina would like to share for the benefit of entrepreneurs who want to start a home based jewelry business:

Start small: Small orders from local art & craft shows gave Christina’s business the initial momentum. She also took up work for gift shops and galleries. This helped her learn the tricks of the trade quickly, without risking too much investment.

Customize & diversify: Soon Christina learnt her first marketing lesson, which was that she had to make what people wanted to buy, if she had any hope of increasing sales. That was a turning point for her home based jewelry business, which until now, had taken no note of market requirements. Christina also realized that there was profit to be made by offering a diversified range of jewelry, including accessories such as watch straps, belts and pins.

Package elegantly: A professional display sells ten times more jewelry than a careless scattering on a table cloth. Gradually, Christina’s home based jewelry business took on a smart new look. She preferred to design the packing cases and jewelry tags herself, so they not only looked aesthetic, but could also be matched to the different collections. She took care to ensure that the displays looked professional and were lightweight and compact for easy storage & transportation. What’s more, Christina provided a selection of elegant pouches, boxes and bags as a complimentary gift wrap. This simple gesture never failed to delight her customers.

Don’t forget after sales service: Christina also has some words of “common sense” advice. “I discovered that keeping jewelry dazzlingly clean and shiny increases their perceived value. So investing in an ionic jewelry cleaner and tarnish-prevention strips are a must.” She began to offer free jewelry cleaning as an added service, and needless to say, this presented further opportunities to sell to old customers who came in to get their pieces cleaned!

Offer many payment options: A crucial selling point, says Christina. “People will buy more if they can do so on credit instead of having to shell out cash right then and there.” That’s why even her simple home based jewelry business accepts credit cards, charge cards and checks.

Go online: Not one to stay behind times, Christina signed up on eBay at Now, several jewelry collections from Christina’s are on auction. She also made sure that she featured close up photographs of her favorite pieces to attract customers.

Encouraged by the prospect of online sales, she revamped her old website and added an online store. She encouraged people to give feedback about design and color preferences, and often incorporated customers’ suggestions while designing a new collection. Needless to say, they bought willingly!

Create events: By now, Christina was marketing savvy, and she hit upon a novel way to promote her products. She threw “open-house” parties where anyone who was interested in jewelry and light snacks was welcome! To her delight, she found that these jewelry parties drew in hordes of people and resulted in brisk sales. Her home based jewelry business really began to flourish.

We are sure you’ll benefit from Christina’s guidance when you set up your own home based jewelry business. All you need to do is follow your artistic heart and use your business brain to make it big. If you still need some pick up ‘Jewelry making tips & tricks of the trade’

As an active jewelry designer who attends meetings and workshops all the time, I hear a lot of jewelry business owners complaining that their online stores are not a success at all. I used my web design experience and a lot of research in the domain to gather a few hands-on tips for you to use and turn your online jewelry store into a business success.

1. Photos that sell the product – The most important thing you have to remember when you have an online jewelry store is that your customer will not be able to feel your jewelry or try it on to see what it looks like. Therefore, clear photos that show as much detail as possible are very important because, afterall, the photo sells the product. Multiple photos for each item are very helpful to show your potential customer all the details. If you have a necklace, try to have at least one photo on a stand, so they can see what it will look like around their neck. If your necklace has a pendant, take an up-close photo of that alone, so you can show all the details of the stones used. When taking photos of jewelry it is crucial that you do that in daytime, without flash. This approach will show the true colors of the stones used without unnecessary reflections.
2. Search-friendly sites – If you have the possibility to add a search function on your site, please do so. People don’t always know the names of the stones they are looking for and a search functionality will give them the possibility to look for pieces that have a certain color for instance. The idea here is to create the easiest way for your clients to find what they want. When somebody looks for a pearl bracelet, it will be much easier to type that in the search box and hit “Go”, than look through your entire bracelets category to find what they want. Having a search function on your website will be very helpful to your customers but it will certainly add a little more work for you. When you add a product to your store you will have to always remember to tag it with terms that other people might be searching for.
3. Detailed information – Product descriptions are very important as well when it comes to online jewelry stores. After your client sees the photos, they will want to know what was used to make that piece of jewelry. Try to give as many details as possible about the materials and techniques used as well as sizes. The overall size of the necklace is important, but also include the size of the pendant if you have one, as photos don’t always show the true ratio of the pendant. If you are a custom jewelry designer, I found that people are always interested to find out what your inspiration was. Share that with your visitors and raise their interest in your products.
4. One size doesn’t always fit all – Since you are selling items that people wear, remember that “One size fits all” doesn’t always apply. Create your jewelry at standard sizes, but always offer people the opportunity to order a smaller or larger item. This way you will increase your clientele.
5. The price is right – Last but not least, price your jewelry pieces right. As there is a significantly large number of online jewelry stores, you have to be competitive, but at the same time respectful of your work and the materials you use. The art of pricing is probably one of the most difficult, and there is no exact formula or how-to. Using your best judgement and a lot of research in the market area that you are trying to reach, you can find the formula for your prices.

The business of jewelry is one of the most fun, exciting and profitable businesses that exist. The demand for jewelry by consumers is unrelenting and consistently growing. Like any other business worth pursuing by a new- comer; the jewelry business requires research, ongoing education, focus and persistence. Fear not, the rewards for this effort can be well-worth the investment of time and energy making jewelry one of the best home-based business opportunities available.

Finding your Niche

The world of jewelry is vast and can be overwhelming. It is imperative that the prospective jewelry entrepreneur narrow down to a specific area in which to concentrate there marketing efforts. In other words, you must avoid the temptation to spread-out in several directions. Rather, you should become an expert, a specialist. The ideal is to find a niche within a niche. Stake your claim and mine that pocket deep and hard. For example, sterling silver cat jewelry, 14 KT. gold Celtic jewelry, wire-wrapped birthstone jewelry etc.

Selecting your Approach

After the budding jewelry entrepreneur has settled on their niche, they must decide which business model makes the most sense to them. The following represent five basic strategies that one might follow:

1. Buy wholesale-sell retail- Remember, you make your profit by buying well. Any Search Engine will reveal countless wholesale sources, move steadily forward. Do your research. Not all wholesalers are equal. In fact, many so-called wholesalers are not really wholesalers at all and prey on the unsophisticated. Applied knowledge is key here.

2. Import directly from manufacturer and sell wholesale. This strategy is not the best for beginners, but if you have ties and are comfortable with a country like India, Thailand, Mexico and others. This can be a lucrative approach. Start small and learn the ropes before you grow.

3. Become an affiliate for an existing web-based jewelry company. This strategy is excellent for beginners, as it requires no inventory and you use the company’s web-site. Also, they handle the product fulfillment and shipping. This is a great, low-risk way to get started.

4. Join a jewelry MLM- There are some advantages here and some individuals enjoy this type of marketing, again, do your due-diligence before you jump-in.

5. Make and sell your own jewelry- If you have the talent and the time, this path can be very rewarding. One tip, unless you want to be a starving artist; find out what type of handcrafted jewelry consumers will actually buy and produce jewelry for that market.

Marketing and Selling Jewelry

Once you have identified your niche and selected your approach, you need to explore marketing and selling for profit. Here are some suggestions for how and where to sell jewelry.

1. Special Events- Craft shows, wine festivals, Celtic festivals, street fairs etc. In the beginning, concentrate on low-cost booth fees i.e. under $100 until you gain experience.

2. Home parties- Low overhead. These can be a goldmine if you work them well. Referrals are the key to success.

3. Ebay- an easy, low-cost way to sell jewelry on the internet.

4. Your own website.

A. Ebay or yahoo store- both are excellent because of there built-in shopping audience and credibility.

B. Buy and fix-up a previously owned website-Many websites are For Sale by Owner on ebay.
The jewelry business can be a wonderful full or part-time home-based business. Use this article as a basis for your education. Learn everything you can about your chosen niche, study marketing and develop your selling skills. Keep a positive attitude and success will certainly follow.

People often ask us what is the secret formula to establishing a successful online presence in the diamond jewelry field. The truth is, there is on easy answer and definitely no “single secret formula” but rather a combination of factors that determine an online store’s continued success.

Times are evolving and major search engines such as Google, Yahoo, MSN, AltaVista and many others will keep on changing their search algorithms just when you think you have it all figured out.

More and more people are trying to jump on the bandwagon to make money online these days, and just as many are getting frustrated with their results. As the competition becomes more fierce, some categories more so than others, it becomes seemingly more important to stand out from the crowd and establish some type of brand awareness of your web site. Here are 10 useful tips that have helped us establish a successful online jewelry store:

1. Make your web site UNIQUE. Do not fall into the trap of copying your competitors. Establish your own online identity and stand out from the crowd. Take your time to plan and design your site either by yourself or with the help of a reliable web developer. Remember, the more time you spend on planning your web site, the less money and time you will have to spend later on making changes and corrections.

2. Load your diamond jewelry web site with as much useful content as you possibly can. Content is KING with search engines. Do not overload your site with flash and slow loading graphics. Keep it simple and to the point. Your web site should not look cluttered. Give it a clean look but with a lot of helpful information and resources. The number one thing that people look for online is information.

3. Have your contact information listed on every single page of your site. List your toll-free number on all pages of your web site if you have one. Make every page of your site look consistent. You want your site to be easy to understand and navigate.

4. Never underestimate the power of good service. Make yourself available to your clients. Help answer questions and help your visitors navigate your web site when needed. Answer all email inquiries in a timely and courteous manner.

5. Make it very easy for people to order your products. The easier the order process, the more orders you will get. Make sure your payment pages are secured. If you accept payment online, it is advisable to get the HackerSafe seal on all your web site pages. Almost all major reputable online jewelry stores today will have the HackerSafe seal somewhere on their site.

6. Have a Privacy Policy, an About Us and a Legal Notices page. Having a Site Map is also favored by major search engines.

7. Have a good selection of diamond jewelry available online before marketing your site. Remember, first impressions count.

8. Never underestimate the power of linking. The more sites that link to your web site, the better your page rankings. Remember, the sites that link to yours should be quality sites. Do not link to web sites that have a lower page rank than yours or you are wasting your time. Link building is time consuming, frustrating, sometimes confusing, yet unavoidable. Because ultimately, it is still the trump card for higher rankings today and in the foreseeable future.

9. Submit your site to DMOZ and other directories that allow free submissions.

10. Keep on adding fresh content to your site on a regular basis.

Using these principles, Nirvana Treasures, a fine diamond jewelry company, has launched their online division with great success. Response has been overwhelming with a lot of web site visitor hits daily, not to mention a steady flow of online orders.

We know how to achieve success in the handcrafted jewelry business and believe that you can achieve your goals as well. Success in a home based business is a dream that many people share, but it’s not all fun and games.

Do you want to do what you want, when you want? Then, you need a big inheritance from a rich relative! No rich relatives? You are going to have to work but on the lighter side, the handmade jewelry business is actually enjoyable with very little start up costs.

Making a business a success takes a lot of hard work and determination above all else. You will be doing all that you can, as much as you can. Success is everything you ever wanted, but it can be frustrating. You must be determined and push yourself above and beyond all your competitors.

The handmade jewelry business is very competitive but also very rewarding. To succeed you must be more creative to make the most unique handcrafted jewelry than your competition. You must offer better customer service than the others. Having a good relationship with customers will help your business succeed. Word of mouth is one of the most powerful advertisements for your business.

Working from home has many benefits especially if you have small children. You can be with them and build your business gradually. You will not have the extra expenses that are involved in a renting a separate work location. Best of all you will be working in the comfort of your own home when it is more convenient for you.

Home based businesses are the easiest and often the most profitable. Handmade jewelry can be ones of the most creative crafts. With a little imagination and some hard but enjoyable work you will be able to succeed in the handmade jewelry business.

If you’re starting an Internet business by looking for an under-served niche market, you’re on the fast-track to success.

A niche market is simply a group of people with similar interests looking for a solution to the same problem.

Why do people with similar interests make the best target market?

Let’s say you’re interested in selling to people who are interested in making seashell jewelry, for example. If that’s the case, you have a target market that is easy to find. There are forums, e-zines, and blogs all about making your own seashell jewelry.

Sure, it’s a small market, but it’s one that’s extremely easy to target. Here’s why:

• You can easily and precisely define this market
• You can find out exactly which websites seashell jewelry makers visit to find tips, advice, and products
• You can find forums, blogs, and social networks where they meet online to trade information and tips
• You can find out what keywords they are using to describe problems they’re having or things they’d like to accomplish

… and that means you can actually make a profit by selling something to them!

By taking our advice about selling to a similar market, one of our clients made $3,000 within two days of starting an Internet business! He identified a very small market of people who wanted to make a specialized type of jewelry at home; he developed a product to sell to this small niche market; and he implemented the techniques we taught him. He’s living proof that online success is all about finding an easily targetable market.

The best places to look for people in your niche market — and find a wealth of online business ideas — are the different types of websites where they hang out and talk to each other about their common interests, such as blogs, forums, and groups.

You know the old saying, “When in Rome, do as the Romans do,” right? So when you’re trying to find out about your market, do what they do. If you’re exploring the comic book industry, find out where buyers go to share with, learn from, talk to, and hang out with fellow comic collectors. (That’s just an example — the same goes for back-country skiers, hot-rod builders, dressmakers, iguana breeders, etc.)

When you visit any of these types of interactive sites, sit back and listen to what people are saying. Find out what they like, what they don’t like, and what they’re looking for. People regularly visit these areas seeking advice and exchanging information. By monitoring these discussions, you will begin to notice that certain questions appear again and again.

This is a great way to locate online business ideas such as potential products or services. If you see the same questions or concerns repeated in a blog, forum, or social media site, there are hundreds, possibly thousands, of other people out there with the exact same questions.

Of course, if you have a big, easily targetable market, you’ll make a lot of money; and if you have a small, easily targetable market, you’ll make a smaller amount of money. But either way, starting an Internet business based on an easily targetable market, you’ll make money!