How to start a Diamond jewelry business
The history of diamonds dates back to the 17th century, however, it was not until the 19th century when diamonds became popular. This was right after South Africa proved to be a reliable source of diamond leading investors to rush and set up ...
The history of diamonds dates back to the 17th century, however, it was not until the 19th century when diamonds became popular. This was right after South Africa proved to be a reliable source of diamond leading investors to rush and set up mining companies in the country. Today, with improved cutting and polishing techniques, diamonds have risen in popularity especially in the fashion industry. Wearing diamond jewelry has become fashionable for everyone, not just the affluent in society.
Diamond jewelry business
Jewelry is a popular item that is often acquired for personal use or for giving away as a gift. This, therefore, makes the jewelry business a highly competitive but profitable business for any new or established business. With unique designs and proper marketing skills, you should be able to stand out from your competitors.
There are several ways in which you can choose to venture into this business. You can either choose to make your own designs, produce your designs through a manufacturer or you can choose to sell pre-made products. Either way, you need to set up your business for success by ensuring a couple of things such as;
Learning basic diamond knowledge
This involves four main aspects, that is, the cut (affects the appearance of the diamond), clarity (amount of natural imperfections), color (diamonds are not colorless), and carat (weight of the diamond). Commonly referred to as the 4C’s. The globally acceptable grading system established by the Gemological Institute of America (GIA). These four aspects help traders identify diamonds hence enabling them to determine the quality and price of each.
Find your niche
To stand out from the crowd, you should identify your niche and stick to it. learn everything there is to learn about your niche and be the best at it. This is a sure way of ensuring success. To figure out your niche, you need to identify what style of diamond jewelry you will be offering, a timeless or trendy style. What will be the average cost of the jewelry; this is largely determined by the target market, the rich or the average people on a modest budget.
Set up a business plan
An elaborate business plan is essential when planning to start a jewelry business. An important aspect to consider include;
Startup and ongoing cost
Starting up a jewelry shop can cost as little as $20,000 to as much as $100,000. This all depends on several factors such as;
- The location which influences the amount your pay for rent
- Overheads and purchasing raw materials
- Insurance: diamond is a highly valuable gem hence you will need to get insurance to provide you with cover in case of an eventuality such as theft.
- Basic tools such as loupes, magnifiers, and engraving tools. If you decide to make your designs, then it means you will need more tools.
Ongoing costs include; rent, overheads such as electricity bills, labor costs, and insurance.
Bring your brand to life
Your business brand is the most important feature. This is how you identify yourself to your clients. A remarkable business brand consists of a business name and a logo. Your name is the first thing your clients will hear about your business. It, therefore, has to be unique and memorable. Your business logo also needs to be memorable and accurate. When creating a logo, it is important to consider your target audience and your products.
A good example of a business name that has managed to etch itself in the mind of clients is Tiffany. Anyone who knows Tiffany knows that they are all about high-end jewelry. Tto avoid confusion, you should check with your local Patent and Trademark Office to confirm the availability of the name that you choose. Sharing a name with another business is likely to confuse clients.
Register your business
A business is only considered legal after it has been registered with the State Department of Revenue and with the Internal Revenue Service. Different states have different requirements therefore ensure to check the requirements of registering a diamond jewelry business in your area.
Registering also means that you obtain the necessary permits and licenses required to run a diamond jewelry business in your area.
Create your product
There are three ways to go about creating products for your business;
Make your own products: making diamond jewelry requires a lot of skill, precision, creativity, and patience. You need to make your designs stand out from those of your competitors. If you are knowledgeable about cutting and shaping diamonds, then this is a good way of creating your products. This method is however a bit expensive since you will need to buy the right tools which do not come cheap.
Produce through a manufacturer: this is an ideal option for entrepreneurs who have the designs but do not want to make the designs themselves. All you need to do is draw out the designs and share them with the manufacturer who will then make the jewelry on your behalf.
Sell pre-made jewelry: this is ideal for people who are only interested in selling diamond jewelry. With this method, you will only need to identify where to buy pre-made gold jewelry at an affordable price then you can resell the pieces for profit.
Marketing your business
Marketing is how you get people to know about your business and what you have to offer. Nowadays, everyone is on social media, therefore, making it a good place to market your products. Social media marketing can be done either by running ads or marketing through social media influencers. The goal here is to increase your visibility.
Another way to market your diamond jewelry business is by getting magazine features, running ads on YouTube and Television.
The diamond jewelry business has continued to experience exponential growth over the past years. This is a great business idea for entrepreneurs as well as designers and artists who are seeking to venture into the world of fashion and jewelry.
In as much as the business is profitable, it requires proper planning to make it successful. Trading diamonds is difficult to break into therefore it is not for the faint-hearted.