Essentials Of A Jewellery Business Plan
Jewellery has the power to be that one little thing that makes you feel unique, said the famous actress Elizabeth Taylor. Jewellery is an accessory loved and desired by women of all ages, thus making jewellery a great business to venture into. The jewellery business is a highly profitable business that will always remain popular. Even when other business industries might be facing a downturn, the jewellery business enjoys being in demand. The business is especially lucrative in a country like India where a lot of festivals and traditions are celebrated with much fanfare and none of these celebrations, including weddings and festivities, are complete without fine jewellery.
Jewellery is every girl’s best friend, be it in the form of earrings, necklaces, rings, pendants, or several other types of jewellery that adorn a woman from head to toe. And, interestingly, men too sport jewellery willingly including heavy chains and rings and bracelets, thus establishing it’s universal appeal across all genders.
The reason for jewellery being such a popular accessory is because they are attractive pieces of adornment that can enhance the look and make a simple outfit appear different and unique. For instance, have you noticed how the African women stand out for their different tribal jewellery or even women in India who wear jewellery that is unique to their region or community and are identified and remembered because of their unique jewellery, like the white bangles worn by Rajasthani women seen during folk performances or the tushi and nath worn by Maharashtrian women during special festivals. Jewellery even has a certain reverential significance in our country such as the mangalsutra worn by married women as well as toe rings, both of which are considered special ornaments. Also, another reason for the popularity of jewellery is the wide variety available (different materials, different designs, different types, different price ranges), which makes it accessible for individuals from all walks of life and those belonging to different economic strata. This in turn makes jewellery affordable and popular among the rich and the poor, the young and the old, the traditionalist and the modernist, thus creating a demand among people everywhere.
Owing to its immense popularity, especially in India, a jewellery business is a good idea to venture into. Apart from being able to offer a wide variety of jewellery suitable for any and every budget, the other advantages of the jewellery business include-
- Operate From Anywhere- a jewellery business can be started from anywhere, in the initial start-up phase and is not restricted to any particular location. In fact jewellery such as bead jewellery or silk thread jewellery or costume jewellery can even be handmade from the comforts of one’s home. Additionally when considering operating as an online jewellery store, the entire business can be conducted from home.
- Opportunity To Display One’s Creativity – if an individual is highly creative and has several innovative designs and patterns in mind, the jewellery business helps them put their creative streak to work. The business relies on different designs of jewellery or the combination of different materials and patterns to create one-of-a-kind pieces of ornaments and thus express one’s creativity.
- Allow Specialisation- the jewellery business is so diverse and huge that it allows business owners to specialise in a particular type of jewellery and thus cater to target audiences with their niche products. For instance, the business can only deal in gold jewellery or diamond jewellery or silver ornaments or handmade jewellery such as quilling jewellery or only costume jewellery or terracotta jewellery, etc. Additionally, the business can allow the entrepreneur to deal in specific jewellery such as only earrings or rings only or necklaces and pendants only or only bangles of various materials and several such specialisations which can help develop a niche product catering to the desired crowd.
Thus jewellery business helps a creative person channel their creativity in the form of jewellery designs and combination of materials used.
However, starting a fashion business just based on one’s creativity and artistic skill is not enough. Business skills are equally important. Every business, including the jewellery business, needs thorough planning while starting it to ensure a great start and a successful run. And thorough planning means a jewellery business plan to be made before physically establishing the business. The business plan requires thorough groundwork to be done as the business plan helps put into words the exact business idea conceptualized by the entrepreneur and lists the objectives of the business too. Additionally, the business plan is the document that helps procure a loan for the starting and expansion of the business. It is therefore advised to draft the plan meticulously and thus, business plan services can also be sought for the same, in order to prepare an all inclusive jewellery business plan.
Jewellery Business Plan
Stating The Business Goals
The foremost thing to be included in a Jewellery business plan is the business idea and the business goals that are to be achieved or fulfilled. The jewellery business plan must have information regarding –
- Type of jewellery to be sold by the business, whether real gold or silver jewellery or jewellery that has precious stones or handmade jewellery that is affordable.
- Exact nature of business whether it is going to be a sole proprietorship or a partnership or a limited liability company, etc. This can even include information such as if the business is going to be a retail business or one that makes the jewellery and sells it via other retailers and shop owners.
- Selling online or offline as this too is an important information. A physical store helps connect with the customers and allows to conduct business safely. However online stores are fast catching up too and are equally beneficial to the business.
Business Name And Identity
Once the business goal and exact nature of the business and how it will be conducted is specified, the proposed name of the business and the identity such as a logo or emblem or design can also be included in the Jewellery business plan. This name can create an individual identity for the business and add brand value to the business.
Legalising The Business
The jewelry business plan includes business entity details and also information regarding the documents and paperwork required to make the business legal. This could include the Shop Act Registration details if operating from a commercial space along with GST registration details and other legal proceedings and registrations required for the business to operate without any hurdles.
Another immensely important information to be mentioned in the jewelry business plan is the estimated capital requirement for the business, including for setting up the business space, the investment for the raw materials, designing and manufacturing costs, labour costs, day to day expenses, etc. All the possible capital investment areas need to be mentioned along with the way in which the cash flow is expected to run once the business starts operating. Also, ways in which the capital required is to be procured must be mentioned, such as via a bank loan or through a loan from non banking financial institutions or via loans from friends and family or through self funding (from savings).
Market Research And Competition Study
A jewellery business is quite popular and thus an entrepreneur needs to conduct thorough market research before starting the business to understand what products the market already offers, which jewellery types are in more demand, what is lacking in the market and what are the customer requirements and demands. Studying the competition is important to decide the pricing and to understand what ideas and strategies work and what needs improvement in the business. This study also helps streamline the proposed business idea and aids in narrowing down the products and target audience of the business.
Once the exact business idea is finalized and how the funding will be procured and how the business will be conducted is specified, the next essential within a jewelry business plan is to include details regarding the marketing strategy. The plan of advertising the business, drawing the customers attention and ways of selling the jewellery is to be mentioned in the business plan.
At the end of the business details, a summary of the jewelry business plan and the proposed business activities,etc. must be mentioned within the business plan.
These factors thus conclude the essentials of a business plan for the jewellery business but these factors are just an overview. For detailed information and planning of the business, contact deAsra for assistance and guidance.