How to Start a Jewelry Store

Who doesn’t love fine jewelry?  That’s why it’s a huge industry worth $70 billion in the U.S. alone. You can get into the jewelry game by producing pieces yourself or sourcing goods from a supplier, then choose to sell online or be bold and open your own brick-and-mortar shop. 

But before you jump in, you’ll need to do some homework to learn how to launch and run a business. Fortunately, this step-by-step guide has all the information you need to make your jewelry store sparkle with success.

Step 1: Decide if the Business Is Right for You

Pros and cons

Jewelry industry trends

Industry size and growth

• Industry size and past growth – The U.S. jewelry store industry is worth $32.3 billion in 2023 after a modest decline the last five years. ((https://www.ibisworld.com/industry-statistics/market-size/jewelry-stores-united-states/))
• Growth forecast – The U.S. jewelry store industry is projected to grow 0.3% in 2023. ((https://www.ibisworld.com/industry-statistics/market-size/jewelry-stores-united-states/))
• Number of businesses – In 2022, 52,347 jewelry stores were operating in the U.S. ((https://www.ibisworld.com/united-states/market-research-reports/jewelry-stores-industry/))
• Number of people employed – In 2022, the U.S, jewelry store industry employed 137,866 people. ((https://www.ibisworld.com/united-states/market-research-reports/jewelry-stores-industry/))

Trends and challenges

Trends

• Jewelry made by new designers is disrupting the market, popular with GenZ
• Genderless jewelry that can be worn by anybody is seeing increased demand

Challenges

• Online jewelry sales are biting into brick-and-mortar sales
• The prices of precious metals like gold and silver have spiked, driving up costs for jewelry makers.

Consumer spending

• Average consumer spend – The average annual consumer spend on jewelry is $136.33. ((https://www.statista.com/statistics/255477/us-consumer-expenditure-on-jewelry-and-valuables-by-category/))
• Potential customer base – 56% of women say they’ve purchased jewelry in their lifetime, compared to 44% of men. ((https://classywomencollection.com/blogs/fashion-guide/jewelry-market))

Demand hotspots

• Most popular states – The most popular states for jewelers are Minnesota, Oregon, and Rhode Island. ((https://www.zippia.com/jeweler-jobs/best-states/?survey_step=step12))
• Least popular states – The least popular states for jewelers are Mississippi, South Carolina, and Missouri. 

What kind of people work in jewelry?

• Gender –  50% of jewelers are female, and 50% are male. ((https://www.zippia.com/jeweler-jobs/demographics/))
• Average level of education – The average jeweler has a bachelor’s degree.
• Average age – The average jeweler in the US is 46.2 years old.

How much does it cost to start a jewelry store business?

Startup costs for a jewelry store range from $5,000 for an online shop to $120,000 or more for a brick-and-mortar store. The highest cost is for your initial inventory. 

Start-up Costs	Ballpark Range	Average
Setting up a business name and corporation	$100 - $500	$300
Business licenses and permits	$100 - $300	$200
Insurance	$100-$500	$300
Initial Marketing Budget	$200 - $500	$350
Space rental and preparation	$0 - $20,000	$10,000
Inventory	$5,000 - $100,000	$52,500
Total	$5,500 - $121,800	$63,650

You’ll need a handful of items to successfully launch your jewelry store business, including: 

• Glass display cases
• Sizing tools and other jewelry repair/fabricating tools
• POS system

How much can you earn from a jewelry store business?

How much you earn from a jewelry store depends on what you sell. Fine jewelry, for example, is priced higher and has markups of 200% to 300%. Costume jewelry costs much less, with a markup of just 40% to 45%.

These calculations assume you’ll sell fine jewelry for an average price of $500 and have a brick-and-mortar shop with a profit margin of 20%. In your first year or two, you might sell 1,500 pieces per year, bringing in $750,000 in revenue. 

This would mean $150,000 in profit, assuming that 20% margin. As you gain traction, sales could climb to 3,000 items a year. With annual revenue of $1,500,000, you’d make a tidy profit of $300,000.

What barriers to entry are there?

There are a few barriers to entry for a jewelry store. Your biggest challenges will be:

• Funding the high costs of opening a brick-and-mortar store
• Competing with other jewellers online and off 

Step 2: Hone Your Idea

Now that you know what’s involved in starting a jewelry store, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research could give you the upper hand even if you’ve got the perfect product. Conducting robust market research is crucial, as it will help you better understand your customers, your competitors, and the broader business landscape

Analyze your competitors 

Research jewelry stores in your area to examine their products, price points, and customer reviews.

• Make a list of jewelry stores that offer similar products. 
• Review your competitors’ jewelry products – their features, pricing, and quality – and marketing strategies.
• Check out their online reviews and ratings on Google, Yelp, and Facebook to get an idea of what their customers like and dislike.
• Identify your competitors’ strengths and weaknesses. 

This should identify areas where you can improve your business and gain a competitive edge and help you make better business decisions.

Why? Identify an opportunity

You’re looking for a market gap to fill. For instance, maybe the local market is missing a handmade jewelry store, or a store that specializes in fine silver jewelry.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

Whether you’re selling from an online store or a physical location, you have several options. You could sell:

• Handmade jewelry
• Fine jewelry
• Costume jewelry, aka fashion jewelry
• Vintage jewelry

You could even become a jewelry designer and have your designs manufactured under your own brand name. Here’s a list of lucrative jewelry business ideas.

How much should you charge for jewelry?

Prices for jewelry pieces obviously vary. Your prices should be based on competitor prices, and on your costs to acquire or make the jewelry.

Once you know your costs, use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will depend on the type of jewelry you sell. If you offer trendy jewelry, your market may be younger and might reach out on TikTok and Instagram. 

If you go with fine jewelry, your market would be established professionals, so you might turn to Facebook and LinkedIn. 

Where? Choose a jewelry store location

If you start an online jewelry store, you’ll likely work from home. But if you opt for a brick-and-mortar store, you’ll need to find a suitable store space to rent. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Jewelry Store Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “fashion jewelry” or “fine jewelry”, boosts SEO
• Name should allow for expansion, for ex: “Adorn Universal” over “Diamond Grotto”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead and reserve your business name with your state, start the trademark registration process, and complete your domain registration and social media account creation. 

Your business name is one of the key differentiators that sets your business apart. Once you pick a name, reserve it and start with the branding, it’s hard to switch to a new name. So be sure to carefully consider your choice before moving forward. 

Step 4: Create a Jewelry Store Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: Summarize the key points of your jewelry store business plan, including your vision, mission, and unique selling proposition.
• Business Overview: Provide an overview of your jewelry store, including its location, target market, and the types of jewelry you plan to offer (e.g., fine jewelry, custom designs).
• Product and Services: Detail the specific jewelry products and services your store will provide, such as engagement rings, repairs, or appraisals.
• Market Analysis: Analyze the jewelry market, including trends in consumer preferences, pricing, and the potential demand for your products.
• Competitive Analysis: Identify competitors in the jewelry industry, both local and online, and explain how your store will differentiate itself, perhaps through quality, unique designs, or exceptional customer service.
• Sales and Marketing: Outline your sales and marketing strategies, including how you will attract customers, set prices, and promote your jewelry store through various channels.
• Management Team: Introduce the key members of your management team, emphasizing their experience in the jewelry industry, retail, or relevant fields.
• Operations Plan: Explain how your jewelry store will operate, including inventory management, store layout, staffing, and customer service.
• Financial Plan: Present your financial projections, including startup costs, revenue forecasts, expenses, and profitability expectations for your jewelry store.
• Appendix: Include any additional information, such as photos of your jewelry inventory, vendor contracts, or market research data to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to jewelry stores. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your jewelry store will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts. Here’s how to form an LLC.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation. Read how to start a corporation here.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have. 

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Angel investors: Reach out to your entire network in search of people interested in investing in early-stage startups in exchange for a stake. Established angel investors are always looking for good opportunities. 
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a jewelry store business. You might also try crowdfunding if you have an innovative concept. If you’re designing your own line of jewelry to sell under your own brand, there’s even a chance that you might find an angel investor to back you.

Step 8: Apply for Retail Store Business Licenses and Permits

Starting a jewelry store business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your jewelry store business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked, yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to use industry-specific software, such as Jewel360, WJewel, or Sortly, to manage your inventory, appraisals, purchases, and sales.  

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Create a website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. You can create your own website using services like WordPress, Wix, or Squarespace. 

This route is very affordable, but figuring out how to build a website can be time consuming. If you lack tech-savvy, you might hire a web designer or developer to create a custom website for your business.

Your customers are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. 

Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Buy Now” or “Order”. This can sharply increase purchases. These are steps that help pages rank higher in the results of top search engines like Google. 

Marketing

Here are some powerful marketing strategies for your future business:

1. Host Exclusive Events: Organize private events or trunk shows to showcase your jewelry collection, offering attendees a firsthand experience and the opportunity to make exclusive purchases.
2. Collaborate with Influencers: Partner with social media influencers or local celebrities to showcase your jewelry, reaching a broader audience and leveraging their followers’ trust.
3. Loyalty Programs: Implement a customer loyalty program, rewarding repeat buyers with discounts, special promotions, or exclusive access to new collections.
4. Strategic Partnerships: Form alliances with other local businesses, such as fashion boutiques or wedding planners, to cross-promote each other and expand your customer base.
5. Personalized Packaging: Enhance the unboxing experience by using high-quality, personalized packaging that reinforces your brand and encourages social media sharing.
6. Engage in Local Sponsorships: Sponsor local events, charities, or sports teams to boost brand visibility and community engagement, creating a positive association with your jewelry store.
7. Seasonal Promotions: Introduce limited-time promotions and discounts during key seasons, holidays, or events to drive sales and create a sense of urgency among potential customers.
8. Storytelling on Social Media: Share compelling stories about the craftsmanship, inspiration, and behind-the-scenes processes of your jewelry pieces on social media platforms to connect with customers emotionally.
9. Educational Workshops: Host workshops or online tutorials on jewelry care, styling tips, or gemstone education, positioning your store as an authority in the industry and building customer trust.
10. Referral Program: Encourage word-of-mouth marketing by implementing a referral program that rewards existing customers who refer new clients to your jewelry store.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your jewelry store meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your jewelry store business could be: 

• Fine jewelry to fit your luxury life 
• Designer jewelry without designer prices
• Stylish handmade jewelry

Networking

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a jewelry store business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in jewelry stores for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in jewelry. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

You’ll likely need to fill various roles for your jewelry store. Potential positions for a jewelry shop include:

• Salespeople – Assist customers, make jewelry sales
• Repair Technicians – Size jewelry, make repairs
• General Manager – Scheduling, accounting, inventory management
• Marketing Lead – Implement digital and traditional marketing strategies

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Start Making Money!

Jewelry trends change, but jewelry never goes out of style. It’s a global industry with countless fans. So whether you make your own goods, sell designer jewelry, or do something in between, a jewelry store could set you up for serious success. 

Now that you’ve done your business homework, you’re ready to get to work and make your jewelry dreams come true!