| families need a second income or some extra cash | | | | and give yourself 6 months to find the right vendors, |
| and starting a small home-based jewelry business is a | | | | get your inventory and develop a relationship. It seems |
| good option for some folks. Like anything else, it takes | | | | simple, but trust me, the cultural differences alone will |
| work. But this author has helped hundreds of people in | | | | add 3 months to the process! Unless you need 20+ |
| the beginning stages of their ventures and can tell you | | | | designs of each design you order, or actually want to |
| without hesitation that it is possible. This brief article | | | | get a mixed batch of random leftovers that you will |
| outlines some of the considerations you should think | | | | not see in advance, this is not a great option for most |
| through prior to making a significant investment of time | | | | small businesses. |
| and/ or money. | | | | 4. Is an online business right for you? |
| First, it is important to have a good plan. A formal | | | | I make a living through my website. My business is |
| business plan isn't necessary unless you aim to get a | | | | successful because I: |
| loan or investors, but the plan should be thorough, | | | | •Have an efficient system to manage business |
| especially in the financial section. The bottom line for | | | | operations |
| most of us is: can I make a profit doing this? How long | | | | •Provide excellent service |
| will it take to turn a profit? And, is this worth my time? | | | | •Have several great, inexpensive sources for |
| Below I have outlined a few key factors to think about | | | | products - suppliers that I know well and trust 100% |
| while devising your plan. I want to be clear that this is | | | | •Purchase a high volume of jewelry each |
| just a guideline, not a "how to" since everyone's | | | | month (enabling lower margin on each item) |
| circumstances is different - what may work for one | | | | •Spent time researching/ testing products and |
| person may not work for another. | | | | marketing strategies and learning about ecommerce |
| 1. Why do you want to do this? | | | | As I said, everyone's situation may be different, but this |
| Is this something that you want to do for strictly for the | | | | is what works for me. I started about 6+ years ago |
| money? For the thrill of starting something from | | | | part time, and within about 6 months had a full time |
| scratch? Because you need to make extra money to | | | | internet business. I never expected it to work out this |
| pay your bills? Etc. The answer to this question will | | | | way, but it's still going strong. Now it is much easier to |
| create the context you need to think through your plan. | | | | get started from the technical side -- the major auction |
| For example, if you want to start a jewelry business | | | | sites offer good services for beginners and there are |
| because you absolutely have to have extra money to | | | | products out there to manage your business. You can |
| survive - that consideration will limit your choices | | | | even start a fully-functional ecommerce website |
| greatly because you will need to make decisions that | | | | without knowing any html! It is the "systems" that are |
| lead you to a quick profit. | | | | the key factor for me. I have a system for inventory, a |
| 2. Market & Products | | | | system to communicate with customers and a system |
| What do you plan on selling and why? Think about | | | | to manage the fulfillment and customer service |
| whether the jewelry or other products you intend to | | | | process. Most of my systems are computerized but I |
| sell are right for your intended market. Diamond | | | | always take the time to get to know my customers in |
| jewelry is probably not the right product for a flea | | | | person when I have the opportunity. |
| market! Some good 'off-line' venues that I have used | | | | 5.... Is an offline business right for you? |
| include: | | | | Many folks are intimated at first by the whole |
| Craft fairs and outdoor festivals -- generally in the | | | | ecommerce thing. The truth is an off-line business can |
| summer time. You can usually get a table at these | | | | be just as successful. Unless you have a lot of capital |
| events for $20-$50 for the day. You will want to have | | | | you want to start off (and continue!) with low |
| a good selection of inventory; if you do you can usually | | | | overhead. So, you don't need to go out and buy a |
| gross anywhere between $150-$400 (based on my | | | | store front! You can start by buying a small amount of |
| experience). Your sales will be directly related to your | | | | inventory and testing the waters. |
| quantity of inventory. | | | | Try selling to friends and co-workers |
| Winter bazaars, church sales, holiday festivals -- | | | | Host a jewelry party (or better - have a friend host it) |
| Oct-December. Check the local paper. Many churches | | | | and invite a lot of people. I once made $1500 in an hour |
| have these annual events and tables are pretty | | | | an a half! Typically, I would make about $400 or so in a |
| inexpensive. These events are nice because people | | | | couple hours. |
| come to spend $ on gifts. | | | | Rent a table at a craft show (summer fair or church |
| Home-based jewelry parties. You can host an event | | | | bazaar around holiday time). Tables are usually only |
| yourself, or have a friend host it and give her some | | | | $20-$40 for the day. |
| free stuff as compensation. I like to have a good friend | | | | Get a spot a flea market |
| or relative host - that way I am pretty sure they will | | | | Put stuff out at your or your friends garage sales. It |
| follow through. Ask your friend to invite her friends, | | | | really works! |
| relatives, etc. for the party. You provide some light | | | | My advice is until you really know your market and |
| snacks and bring all your stuff. Again, people come to | | | | have a handle on your revenue stream, start small. |
| buy and you have no competition! If you get people to | | | | This way you are not going to lose much, if any, |
| one of these you will make out pretty well, and you | | | | money. |
| don't need to have as large a selection. I have made | | | | 6. Business licenses, TaxID numbers, merchant |
| up to $1500 in an hour and half! Typically, I'd gross | | | | accounts, etc. |
| $300-$500 in a pretty short time. | | | | Check with your state to see what is required to do |
| Flea markets-- usually in summer and holiday season. | | | | business. My experience is that it is very simple. You |
| These can be boom or bust. It depends on whether, | | | | can get a TaxID, which takes about 1 hour and you |
| traffic, etc. Generally people at these want to spend | | | | can do it by phone, and this enables you to buy |
| very little, so the low-end stuff sells best. Good place | | | | inventory without paying sales tax. But keep in mind |
| to experiment since the tables are usually only $20 or | | | | that most vendors will be out of your state and will |
| so. I know people that go to the same flea markets | | | | probably not charge sales tax anyway. In this case |
| every week and do very well with lots of repeat | | | | most vendors may not even need a TaxID. In terms |
| customers. | | | | of taxes, you can file under your TaxID or your social |
| Store/ mall-cart. This is a much bigger leap since the | | | | security number. If using your social security number |
| overhead is so high compared to the above venues. I | | | | and keeping the business under your own name, I do |
| have done neither so cannot offer any good advice in | | | | not THINK you need a TaxID, as long as you claim all |
| except to plan really well and consider all the costs | | | | your income appropriately. If you plan to have a |
| involved. | | | | business checking account you will need a TaxID |
| 3. Where will you get your inventory? | | | | number. |
| This is the place you will need the best research. | | | | As far as I know you do not need any special license |
| Unless you are selling in large volume, you will probably | | | | to sell retail. But you should contact your state tax |
| want to get a markup of about 3 times (what you paid | | | | office to get all the paperwork you will need to remit |
| for inventory). The lower the price you pay for your | | | | sales tax to the state. You are required to collect |
| goods, the lower the price you can offer your | | | | sales tax on retail purchases (most internet companies |
| customers/ the more profit you will make. You will | | | | only charge sales tax to customers that live in the |
| always save more when you buy in bulk, so look for a | | | | same state as the business). And at the end of the |
| supplier you can form a long-term relationship with who | | | | year, you have to pay this tax to the state. |
| can give you good deals, service and selection. Buying | | | | As your business grows, it’s a good idea to |
| a large quantity now may seem like a big expense | | | | take credit cards, especially for online businesses. |
| now, but the result is you make more profit on every | | | | Nowadays this is pretty easy. I get about 20 offers a |
| single item you sell. | | | | day via email to setup merchant accounts and accept |
| The more you spend the more you save. Find a few | | | | credit cards online. Do a search on and you will find |
| good suppliers and see what sells well and who is | | | | hundreds of places to do this for you! The cost is |
| willing to work with you. Find suppliers who provide | | | | about $25/ month + $200-$300 setup fee. Another |
| good service and are committed to your success. | | | | option is to use only a PayPal account. The account is |
| Buy off ebay- many people buy stuff at good prices | | | | free to setup. Get a paypal account regardless of |
| then just re-sell | | | | what you do because it’s essential!! I'd say 50% |
| Search the web for other silver jewelry wholesalers. | | | | or more of online shoppers now, and 80% of ebay |
| Search the web for manufacturers. Most are in Asia. | | | | customers have paypal accounts. |
| And you will get the best deals this way - but you are | | | | * I am NOT an accountant! This information is just |
| going to have to spend $3000+ to get the best prices | | | | based on my experience and may not be accurate. |