What is a jewellery business?
A jewellery business is a business set up by jewellery makers to sell their designs and creations both in person and online.
For many jewellery makers, turning their passion into a company has turned into a viable business opportunity. Many jewellery makers have created small businesses from gold jewellery, artificial jewellery and imitation jewellery too.
Is jewellery making profitable?
Yes, jewellery making can be very profitable. Regardless if you make costume jewellery, trendy pieces or fine jewellery, there will always be a market for a variety of different types of accessories.
Jewellery making is a great way for artists and designers to pursue entrepreneurial interests whilst also continuing with their creativity. Not to mention, this sort of business model allows makers to work on the side rather than outright quitting their current job.
What types of jewellery can be handmade?
There are so many different types of jewellery that can be handmade and sold. Just a selection of these include:
- Necklaces, Lockets and Chokers
- Earrings and Ear Cuffs
- Nose Rings
- Hair Accessories, such as Headbands and Hair Clips
How much does it cost to start a jewellery business?
Businesses can be started on a relatively low startup cost. The equipment you need will depend on the type of jewellery you make and the quantity of jewellery you wish to make.
If you are hand making your jewellery, you may need to think about the costs of materials and equipment.
However, if you plan on outsourcing overseas as well as selling internationally, this can affect costs.
Do you need a licence to sell jewellery?
However and wherever you sell your jewellery, you should look into getting a licence to make sure you align with the law. You can apply for a licence through your local council, who will guide you on individual requirements.
A licence acts as a way for the government to keep track of enterprises and businesses within local areas, as well as keeping track of tax revenues, which is why we always advise getting a licence for your business.
You can learn more about how to sell crafts legally in our dedicated blog.
Do you need insurance to make and sell jewellery from home?
Yes, you need insurance for your jewellery business, even if you sell your products from home. Having insurance will ensure your business and products are protected should you receive a claim against you.
If you wish to sell your products in person at craft fairs, many crafting bodies overseeing craft fairs and craft shows will insist that you have insurance in place before you can trade.
There are two main types of insurance we can provide in our comprehensive jewellery making business policies. These are:
Public Liability Insurance
Public Liability Insurance covers your business from any legal compensation costs that may occur due to public injury as a direct result of your products or business operations.
The main risks that are covered by this type of insurance include: death and disablement of the public, and loss of or damage to third party property.
Product Liability Insurance
Product Liability Insurance covers your products through production, supply and sale. You will again be protected from unwanted and extensive costs should an issue occur as a result of your goods, processes and/or packaging.
How to start a jewellery business
There are a few steps you should take when you’re starting up your jewellery business. Whether you are wondering how to start a jewellery business at home, online or on Instagram, the following tips will provide you with your first steps in the right direction.
Find your niche
Before you jump into making jewellery, you should consider finding your niche and deciding what kind of jewellery you actually want to make. Be sure to research into current trends, what part of the market is oversaturated and what people are searching for.
Once you have established which route you wish to go down, you can start looking at your customer base and the type of people you want to attract.
Research your competitors
Again, before moving onto any production, you should look at what your competitors are or aren’t doing. You can do this by looking over their product lists, social media and reviews.
You can also look at things such as their estimated shipping and overall product costs.
Develop a business plan
Here you should be considering where you will be selling your products, and estimating how much your products will cost to make.
This will help you to determine your expected profit for the year, and make you look much more legitimate if you are hoping to receive a startup loan.
Create a brand
Next, you should consider building your brand. You should be thinking of things such as a brand name, colour scheme and producing mission statements to be shared with your customers.
Be sure to check for trademarks to ensure your brand name is available.
Again, before you even start selling, you should insure your business.
At CraftCover, we can provide your business with a fully comprehensive insurance policy that will cover you from production, to shipping, to selling in person.
Create a product line
You should consider what initial products you wish to release first, ensuring they can stand on their own within a heavily saturated market.
Don’t create too many initial pieces, yet don’t produce too little. Ideally, you want to provide enough variety for customers but not too much that you overwhelm yourself with demand.
Decide where to sell your products
Finding potential customers for your business can be difficult, so it’s worth considering the different places you could sell your products.
Many jewellery brands have success on social media platforms, such as Instagram and Tiktok, as the products can easily be shown off. You could also sell them in person at craft fairs, depending on the type of customers you wish to attract.
Jewellery business FAQs
What are the basic tools needed for jewellery making?
If you are making handmade jewellery, there are a few tools we recommend using. These include:
- Side cutters for cutting soft metal
- Flush cutters for precise cutting on smaller details
- Round nose pliers
- Flat nose pliers
- Chain pliers
- Crimping pliers
Depending on what kind of jewellery you make, you will need additional pieces of equipment, such as sanders and smoothers.
What are the rules and regulations for setting up a jewellery business?
There are a number of laws you should be aware of when selling your jewellery. These include legislation in the Consumer Rights Act 2015, stating rules regarding selling through your website, online and distance-selling regulations.
Additionally, you will need to make sure your branding, including your business name, does not breach any trademark or intellectual property laws.
There are also EU laws that are specific to the jewellery making sector. EU legislation prevents the use of hazardous materials, such as nickel and lead. If your jewellery includes gold, silver or other precious metals, you should familiarise yourself with UK hallmarking requirements.