The jewelry business in Russia, despite the crisis, does not lose its relevance. Every year, gold production and sales of precious items are only increasing. Therefore, this type of income can safely be called the most promising small business, and this area of activity is in demand today.
In the previous publication we discussed how to open a bookstore from scratch, in this article I want to talk about how to start a jewelry business.
Before starting your own business in this attractive and profitable area in all respects, you need to decide on the direction.
Choosing a direction in jewelry
- A pawnshop is a place where you can pledge any valuable item, in our case, gold jewelry. This business is relevant in times of crisis; you can rise well, quickly recoup all costs and soon receive a net profit from this business;
- Design development of gold products. This type of employment is quite promising, although troublesome. Such work requires a certain skill and knowledge in the jewelry field, so it is best to start with people who master this skill. Prices in jewelry stores for exclusive jewelry are always much higher, so you are guaranteed good earnings;
- Supply of precious metals. The supply of precious metals is a promising and very profitable business. But in Russia this process is controlled at the state level, therefore, there is nothing for a beginner in this matter to do. Here you need solid start-up capital and not small initial investments;
- Workshop for repairing gold items. Very often such workshops open next to jewelry stores. As a rule, people turn to the nearest jeweler for repair services, so it is very important to open a workshop next to or in the same premises as the jewelry store;
- A jewelry store is a fairly profitable business, but it requires a large initial investment, so it is not very suitable for beginners.
In this article, I want to discuss more specifically the issue of how to open a jewelry store.
Range of services, search for clients
Any company dealing with jewelry is considered to belong to the elite of small or medium-sized businesses. However, unlike a jewelry store, you can set up your own workshop with minimal costs - you just need to have certain knowledge and qualifications, as well as have a minimum start-up capital that will allow you to open a small enterprise.
On video: Jewelry business: laws, taxes, features
The business founder himself must determine what specifics his workshop will have - will it specialize mainly in jewelry repair or will its main focus be on the production of exclusive jewelry. The second type of activity requires specialists of higher qualifications and work experience. As practice shows, a workshop that provides the widest possible range of offers will be in demand.
Therefore, you need to include the following services:
- repair of jewelry of varying complexity;
- adjustment of jewelry to size, their modification;
- cleaning jewelry using ultrasound or a steam generator;
- production of jewelry from raw materials provided by the client, including scrap;
- making silverware;
- creating copies of jewelry.
On video: Jewelry business in Russia
When opening an establishment such as a jewelry workshop for the manufacture and repair of jewelry, you need to pay attention to attracting customers and getting them interested. A good way to attract customers is to place samples of jewelry in the window. You can also consider providing engraving services on jewelry - this will appeal to newlyweds and those who want to give their loved ones an original gift. Another good idea would be to restore an old piece or make a new piece of jewelry from several old pieces. One of the main success factors is attention to each client and pleasant communication. It is important to find out from buyers their wishes and requirements for work, as well as give them advice and consultation. In general, it is necessary to make sure that the buyer comes again and gives recommendations about the workshop to his friends. This will be the best advertising for any enterprise.
To initially attract clients, you can set the cost of services below the prices of competitors, this will give the client excellent motivation to contact a specific workshop. But in order to make clients permanent, and not just attract them, it is imperative to provide quality guarantees regarding the work done.
On video: Profession – jeweler
You can advertise in the media and use online free bulletin boards; this will not cost much, but will be effective for promoting your enterprise. Advertising works well if placed on the street near the workshop itself or in places where jewelry is sold. Additionally, you can attract customers by offering profitable promotions and minimum deadlines for completing work.
Despite the fact that the main focus of the workshop will be jewelry repair, to increase the client base it is worth expanding the list of services. For example, you can offer advice on caring for and cleaning jewelry at home. Regular customers can be interested in discounts on services, small gifts, etc. The jewelry workshop should be open at least six days a week to make it more convenient for customers to visit. It is also better to choose working hours that are more convenient for clients, which must be taken into account when recruiting staff.
Once the concept is defined, you need to make financial calculations and determine how much money is needed to start the business.
Order of the Ministry of Finance of the Russian Federation dated 01.02.2016 N 5N On approval of document forms required for special
Where can I get money to open a jewelry store?
There are several ways, but you must be clearly aware of the possible risks. In business, there is no 100% guarantee of success.
It will not be possible to open a jewelry store from scratch; this area of business requires considerable financial investments, so first you need solid start-up capital.
Start-up capital
You can get money to open your business from the bank. Apply for a loan and receive start-up capital. If you try, you can find the most favorable lending conditions.
Help from the state. Each person is entitled to one-time assistance from the state for the development of their own business, do not miss this opportunity.
Companionship. The jewelry business requires considerable investment, so you can look for partners, people who will be ready to work with you for the benefit of the common cause. It is desirable that investments in the business be approximately equal. Video on the topic
Workshop opening sequence
The entire process of opening a jewelry workshop can be divided into:
- financial planning of a business - calculation of necessary investments and determination of approximate profits;
- renting premises, repairing them and equipping them with everything necessary;
- hiring staff if the founder does not plan to solely engage in the chosen activity;
- advertising and business promotion.
The territorial component and the material base on which the workshop will operate are very important for business development. When entering such an establishment, clients who entrust their jewelry to a master must be confident in his professionalism and honesty. The design and equipment of the workshop can convince him of this, if everything is chosen correctly.
The design of the room may be simple, but it should speak about reliability. Too sophisticated repairs for a jewelry workshop will be unnecessary - it is better to spend more money on purchasing precision equipment for working with precious metals and stones, as well as safes and other means of protection against theft. The room itself, provided that 1 or 2 craftsmen work there, can be only 30 - 50 sq.m. The size of the workshop is not important; you can even start working in a room measuring 15 square meters. meters. It is important that it be possible to divide it into 2 main zones - the room where the craftsmen will do their direct work, and the area for receiving clients. It is desirable that the entrance to the workshop be separate and clients can enter directly from the street. This will make it easier for new visitors to find a workshop. It is imperative to place a noticeable sign at the entrance - it will make the enterprise more visible and attractive and at the same time will serve as outdoor advertising.
On video: Jewelry work: how to draw sketches and make jewelry. Business plan
From technical equipment, first of all, you need to purchase high-quality and durable machines and metal cutters, a microscope, precision jewelry scales, and other professional tools. To ensure security, be sure to install an alarm and purchase a safe.
The size of the staff will depend on the expected scale of activity and calculations that must be made in advance before opening a business. It’s good if the workshop owner himself is competent in this type of activity - in this case, you can save on personnel. At the very beginning of work, it is worth hiring only 2 specialists; you can also take 1 or 2 students. A larger number of employees may not pay off at first. Additionally, an accountant, administrator and security guard may be needed. But at first you can get by with a minimum of employees. To protect the premises, it is recommended to hire outsourcing specialists - specialized security agencies provide competent employees.
In addition to equipment and tools, to open a jewelry workshop you need to purchase a minimum of precious metals necessary for further work. A more reliable way would be to contact a bank, but buying scrap metal from small private companies will be cheaper.
Premises for a jewelry store
Let's start by choosing a store location. It should be crowded and passable; the best option is large shopping centers. Don’t worry if there are competitors nearby; as a rule, clients are creative when choosing jewelry; they walk around, choose, and visit several points before making a purchase. Therefore, the location of the store next to competitors is more of a plus than a minus.
Renting premises
Prices vary quite a bit depending on the location of the outlet. But it’s important not to make a mistake here, because jewelry is not an essential commodity, so opening a store in a residential area of the city is pointless. You will have to shell out a considerable amount of money for monthly rent in a good, crowded place, but this makes sense, because you are more likely to get targeted clients.
Marketing plan
If the workshop is attached to a store, then advertising costs are not required. Your target audience is the customers of this store and passers-by. It is enough if the sign indicates the presence of a jewelry workshop.
Word of mouth works best in this type of business. Typically, people do not need the services of a jeweler too often, no more than once a year, sometimes once every few years. Therefore, there is no point in conducting an aggressive advertising campaign, distributing leaflets, etc. It is enough if the store is located in a good location, has a sign that can be seen from afar, the craftsmen working there are professionals in their field, and the prices are market prices.
Equipment
First of all, you will need to purchase display cases. They must have an attractive appearance. There must be an alarm.
Also, every jewelry store should have a security guard, make sure that he has a presentable appearance.
Scales. It is mandatory to have scales for weighing jewelry. Sometimes clients need this service, but they will be needed at work.
Equipment options for jewelry stores:
- Classic counters are glazed showcases, horizontal or inclined towards the client, with a height of one meter.
- Glass cabinets look very presentable and allow the client to examine the jewelry in more detail. As a rule, such display cases are used in exclusive jewelry stores.
- Vertical stands are easy to use and allow you to display a large assortment of products.
The jewelry business is not highly competitive
It should be noted that today a private jewelry workshop is not very competitive, no matter how it might seem at first glance. Most of the existing workshops are engaged in jewelry repair. And it’s impossible to say that this activity is not profitable. Jewelry repair is quite popular, since many stores are simply not capable of providing such services.
Starting a business on the territory of the Russian Federation is always necessary by registering as a legal entity. You will also need to purchase all necessary licenses for economic activities. The optimal organizational and legal form of a company for activities of this kind is a limited liability company.
Purchase of goods
Most of your capital will go towards purchasing gold items for resale. It is very important to find good suppliers with whom it will be profitable to work.
It is best to choose a specific direction: exclusive handmade goods, vintage jewelry or standard inexpensive products.
You shouldn't buy too many products at the initial stage. It is more profitable to sell goods under a commission or commission agreement. In this case, you pay for the goods after its direct sale.
Many jewelry stores also work on order, that is, you choose the jewelry you like in the catalog and after a while you receive your product. It’s much more profitable to work this way and almost all exclusive salons have switched to this type of activity.
Approximate profit calculation
Let’s say that about 60 people came to the workshop in a month and ordered the following services - soldering a gold ring - 1,500 rubles, 3 people - polishing - 600, 6 people - lock repair - 2,400, 8 people - fixing a stone - 5,600, 10 people - increasing the size of a ring without a stone - 8,000, 15 people - decreasing the size of a ring without a stone - 9,000, 20 people - increasing the size of a ring with a stone - 24,000, 3 people - engraving - 450 rubles.
The total monthly income in this case will be 51,550 rubles.
Recruitment
It is very important to choose the right employees for your jewelry store. There are some requirements for sales consultants that are worth considering. The consultant must be competent, pleasant-looking, sociable, understand the intricacies of the jewelry business, be able to attract clients and competently advise them.
Remember that the profit and success of the entire business directly depends on the professionalism of your employees.
Security guard. In addition to salespeople, you must hire a person for the position of security guard. Treat this candidate responsibly, carefully check all the information about this person before hiring.
conclusions
The business plan for a jewelry workshop with calculations is approximate. To create an accurate business plan, you need to conduct a detailed market analysis in your region. It is also important to decide what services the workshop will provide, since the amount of expenses directly depends on this. To perform small tasks, the cost of expensive equipment may not be worth it, so it is worth gradually purchasing equipment and expanding your business as far as possible.
We invite you to watch a video about the secrets of the jewelry business:
Also read:
- Handmade jewelry as a business
- The best franchises for women
- Flower shop business plan with calculations
Advertising plays a big role in business promotion. This is especially true for new jewelry stores that have just opened.
To attract customers you need to let people know about the new jewelry salon that has opened in their city. To do this, you can distribute leaflets with the store address in crowded places in the city.
Promotions and discounts. A competent pricing policy will help you attract customers and beat your competitors, so this issue should be given close attention. The presence of discounts and promotions has a positive effect on people and, on a subconscious level, forces them to participate in a profitable offer. Consider this fact, and you will always be one step ahead of your competitors.
What is the name of a jewelry store?
Oddly enough, a lot also depends on the name, so approach this issue creatively. The sign in the store should be bright, eye-catching, the name should be laconic and memorable.
Success in the jewelry business directly depends on proper organization, wise advertising concept and pricing policy, and also, to some extent, on the professionalism of store employees.
Read about other profitable business ideas in the field of trade on our website, in the section dedicated to this topic.
How to open a jewelry workshop: where to start
The history of jewelry goes back to ancient times.
Ancient Greece is considered to be the birthplace of jewelry making in our usual understanding. It was the Greeks who began to mine and process precious metals and use precious stones in jewelry. In Russia, industrial mining of semi-precious stones and precious metals began in the middle of the 17th century. They were used to make not only jewelry, but also a variety of household items, works of art, and church utensils.
To create a successful business, a novice businessman must be prepared for very long and serious work on his project.
Jewelry has always been a very profitable type of business.
Today, if the business is properly organized, a jewelry workshop can also bring quite serious dividends to its owner. However, this activity is fraught with commercial risks, as it requires large investments.
