Want to learn how to start a jewelry business from home? In this guide, I’m going to show you exactly how to do just that even if you’ve never started a business before.
Fair warning, this will not be easy.
In fact, it may be the hardest thing you’ll ever do.
But if you love jewelry, it might be one of the most worthwhile things you ever do.
The best part? We’re going to skip all of that “nonsense” stuff that has nothing to do with actually making a profit. This means everything from setting up an LLC to finding funding. You can worry about that later once these things make a difference.
So let’s go…
How To Start A Jewelry Business From Home: The Behind-The-Scenes Truth
Jewelry is an interesting category.
It’s a category that’s existed forever because of how much people value it.
This gives it some really strong pro’s and con’s.
In many aspects, the jewelry business is actually one of the most “ecommerce compatible” categories to be in. Generally speaking, the margins are high, the products are expensive and the shipping is cheap. These are all critical if your main source of traffic is going to be paid ads.
At the same time, it’s all a fashion dependent business. In other words, it can change pretty often because of different fashion trends. This isn’t ideal because you want to minimize the number of SKUs whenever possible. So it’s going to cost more money to keep up with all of the changes.
Of course, no category is absolutely perfect.
So if you can manage the trendy downside to it, then it’s a good category to get into.
How Much Does It Cost To Start A Jewelry Business?
I have good news and bad news.
The good news is that the jewelry business is actually one of the most affordable business models you can start. Hence why you see so many Etsy sellers sell jewelry, as well as other categories like hair, tea, candles, and even subscription boxes.
The bad news is that the exact number can vary wildly because of all the potential variables, so it’s hard to say it’s going to cost exactly “this” much.
With that said, if you assume…
1/ You’re making everything yourself
2/ You’re sticking to 2-3 SKUs to start
Then it’s pretty safe to say it will cost around $3,000-$5,000 to start. Again, the actual cost might end up being much lower or higher once you take into account the specifics around materials and volume.
The Ultimate Jewelry Business Plan
Create a blue ocean category. Never, ever start a copycat jewelry business. In fact, you want to completely avoid competing against any big jewelry company. This means focusing on an attribute that no large company is worried about. For some, this means hilarious marketing. For others, this means jewelry made for a very specific group of people (aka not mainstream).
Validate the idea with advertising. Before going all in on an ecommerce idea, it’s best to validate. This means setting up a “fake” Shopify store with a fake brand name. Your goal here is to use ads to see if anyone buys as well as what the costs look like. The data will dictate if you should continue or not. If no one buys or it’s costing you $100 to make a $10 sale, you need to start from scratch. Otherwise, move on to the next step. Refund everyone who bought.
Build a “hot list” of subscribers. Once you’ve validated, it’s time to go all in. This means taking 6 months to build an organic audience. This can be through TikTok, Youtube, Instagram or something else. In all cases though, you want to drive people to a “hot list” where only people who are interested in being notified about your upcoming brand subscribe. Ideally, you should use Klaviyo for this. This is what’s called the content and commerce business model.
Brainstorm your hero product. As you’re building your hot list, you want to analyze your competitors to see what already sells. So check out their best sellers and take note of the 3-5 commonalities of your top 5-10 competitors. From that list of top 3-5 commonalities, you want to pick the 1 product most likely to succeed and that you can actually fulfill. Start making that 1 product to be ready for launch.
Launch with email marketing. At this point, you have a small audience and a product to sell. All you have to do is send emails to that audience to start making money. It’s really that simple. And because you only have a limited inventory, use that as your advantage. In fact, you can even take this to the next level by launching in 3 rounds. This will make it easier for you to keep up with order.
Market with earned media. Once it’s time to grow, the first outside source of traffic you want is from PR. At this stage, you need credibility and free traffic. So reach out to 100+ publications who have shown to promote new jewelry brands before. All it takes is 3-5 really good features to get the ball rolling and instantly boost your conversion rates.
Scale with paid media. Based on all the sales you’ve made up to now, here’s where you put that all together into a funnel that converts with paid Facebook ads. So take your hero product, set up a dedicated landing page with Shogun, and run FB/IG ads directly to the product. Just remember the goal of paid media is to acquire new customers. Don’t advertise to people who have already bought something from you.
Profit with owned media. Once you’ve figured out how to acquire new customers and build your email list, now is the time to optimize it because you own it and every sale is 100% profit. This means emailing your list 2-4 times per week and having well planned Klaviyo flows. Your goal should be to generate 30% of all your revenue from email marketing.
Analyze and grow. By this point, you’re now flooded with data everyday. This is good. Now you have to organize and analyze that data to help make future decisions. This includes margins, CAC, payback windows and more. The important thing to focus here is your costs. Whatever you can do to lower your variable costs will make your entire business much more profitable and much more likely to succeed.