How to start your jewelry manufacturing business?

Are you passionate about jewelry? Do you love making accessories for yourself and those around you? Do you want to make it your profession? The problem is you don't know where to start: what are the steps to take? Who should you contact? What do you need? etc. Don't panic, it's completely normal! At Camille Colette Studio, we went through the same stages and questions. Here is our complete guide to creating your jewelry brand.

1. Identify the type of jewelry you want to sell

The first step to creating your jewelry brand is to define the type of business you want to operate, and the category of accessories you wish to sell.

What business do you want to operate?

You can create a craft brand for which you will design jewelry yourself. This activity is not regulated; it is not mandatory to have a diploma. However, it is advisable to get training. You can obtain a CAP (Certificate of Professional Aptitude) in art and jewelry making techniques or a BMA (Brevet des Métiers d'Art) in jewelry with a jewelry-making option.

But you can also choose to do dropshipping. This involves buying products from a wholesaler and reselling them at a higher price. Finally, it is also possible to join a franchise network (Histoire d'or, Julien d'Orcel, etc.) to manage one of their stores.

What type of jewelry do you want to sell?

You will then need to select the type of pieces you want to offer. This could be costume jewelry, fine jewelry or luxury jewelry. You must also identify the materials you will work with (solid gold, gold-plated, gold-filled, sterling silver, natural stones, etc.). You can also choose a niche: engagement and wedding jewelry, birth jewelry, personalized accessories, a specific theme such as astrology, etc.

It is important to outline your project. This will allow you to know where you are going and can facilitate certain subsequent steps.

2. Build your brand image

What is a branding strategy?

Once your project is well defined, you can start branding your business. In marketing, this refers to a set of commercial actions aimed at building a company's brand image. You will create visual and verbal elements (logo, graphic charter, slogan, etc.) that will allow you to convey your values, but also to embed your products and services in the minds of consumers. The goal is to make your brand easily identifiable, even essential, for your target audience.

Why do branding?

It is very important to take care of your brand image. This will be visible on your website, your social networks, your physical store, or on your product packaging. If such a strategy is well executed, it will allow you to:

• stand out from the competition;
• increase your brand awareness;
• build a relationship of trust with consumers;
• retain your customers.

3. Write the business plan for your project

A business plan is a written document describing the financial and commercial strategy of your company. It is the tool that will allow you to convince banks and investors of the viability of your project. It is built in 5 steps.

Prepare a brief presentation speech

This speech must be condensed, concise, and convincing. The objective is to demonstrate your abilities to create and manage a company, to present your serious preparation and to prove your reliability as well as that of your project. During this presentation, you must explain to your interlocutors:

• who you are (yourself and potentially your partners);
• what your project is (nature of the activity, company name, legal status, etc.);
• who your target customers are;
• what environment you will operate in (competition, market conditions, etc.);
• what your short, medium, and long-term ambitions are.

Explain what you will sell

You will then need to describe what your company will offer to its customers (product or service). This part must be clear and concise. Do not use jargon; your interlocutor may not be familiar with your sector of activity.

Define your business model

A business model precisely, but concisely, describes how your company will make money. It defines what you will sell, to which customers, for what purpose, in what manner, and for what profit. Developing a business model also allows you to analyze the costs you will incur.

It must answer several questions:

• what will be your company's promotional strategy?
• What will your prices be?
• Who will be your suppliers?
• Where will your products or services be sold?
• What will be your customer relationship strategy?
• Where will your goods be stored?
• How do you plan to grow your business?

Write the conclusions of your market study

To write conclusions, you must first have conducted a market study. This step allows the entrepreneur to analyze, measure, and understand the functioning of the market in which they plan to establish themselves.

The market study consists of analyzing supply, demand, the environment (locations, trends, competition, legislation, etc.) as well as distribution channels and the commercial strategy.

To carry it out, you must conduct research, submit questionnaires to your target audience, and conduct field surveys. Finally, you must analyze the information collected and draw conclusions. You can do this study yourself or entrust it to a third party.

⏩To learn more: How to conduct a market study?

Presenting the summary of your financial forecast

The creation of a financial forecast is part of your market study. It is a tool for monitoring your financial situation. Its objective is to verify the viability, performance and profitability of your project using real and projected figures. It is composed of 4 parts and is presented in the form of 4 numbered tables:

• the income statement (over 3 years);
• the provisional balance sheet;
• the financing plan (over 3 years);
• the cash flow budget (over 1 year). 

⏩Learn more: how to create a business plan?

4. Choose the legal status of your company

In France, every company is subject to a legal framework. It is up to you to choose your legal status. This depends on the type of activity you defined in the first step.

You are creating your company alone

If you are creating your jewelry brand alone, you will have the choice between sole proprietorship and single-member limited liability company (EURL):

• The sole proprietorship (EI) has the advantage of offering simple creation procedures. The entrepreneur is protected, as their personal and professional assets are separate. However, this status also has disadvantages (no possible associates, limited borrowing capacity, investment limited to personal capital, high tax burdens).

• The micro-enterprise is a sole proprietorship. It offers a simplified social and tax regime. But the turnover is capped. Its choice must therefore be considered according to your project.

• The single-member limited liability company (EURL) is a limited liability company (SARL) that consists of only one associate. The creation procedures are more complex and costly. Nevertheless, this status allows you to separate your personal assets from those of the company.

You have an associate

If you wish to create your company with one or more people, you can consider two options:

• The Simplified Joint Stock Company (SAS) is characterized by its flexibility. Associates are free to determine the articles of association and the terms of its operation (decision-making, governing bodies, etc.) and to supervise the transfer of its securities (approval clause, inalienability clause, etc.). However, drafting the articles of association is complex and it is preferable to use a specialized lawyer for this.

• The limited liability company (SARL). This status does not require a minimum share capital at its creation. It allows for the limitation of liability of associates to the amount of their contributions. It requires the drafting of articles of association.

You can contact your local Chamber of Commerce and Industry for assistance in choosing your status and with your procedures.

⏩To go further: choose the legal form of your company.

5. Find funding for your project

Creating your company and making it sustainable inevitably requires financial investments. If you have scrupulously followed the different steps of our guide, you have written a solid business plan. Thanks to this tool, you are able to evaluate the costs associated with launching your brand and therefore, the budget you need.

To obtain this funding, you have several possibilities:

• personal funds;
• bank loans;
• investor searches;
• crowdfunding platforms (ulule, kisskissbankbank, les entreprêteurs, etc.);
• grant applications (France Travail, your region, etc.);
• incubator or accelerator programs.

6. Create your jewelry brand

After choosing your legal status and finding the necessary funding, you can officially create your company. You will then have to deal with a set of administrative procedures. If you are not comfortable with this, your local Chamber of Commerce and Industry can once again assist you:

• you must domicile your company, i.e., give it a specific administrative address;
• if you create a company, you will need to constitute and deposit your share capital;
• still in the case of a company, you must draft your articles of association (it is advisable to consult a lawyer for this);
• the creation of a company must then be officially published in a legal announcements journal;
• you can then register your company or your sole proprietorship on the website of the business formalities counter. It is after this step that you will receive your SIREN number as well as your intra-community VAT number.
• It is also mandatory to have a bank account attached to your company.

As a business owner, you will be subject to certain obligations such as keeping several registers (concerning accounting, company operations, employees, or personal data processed by the company), declaring your income, paying certain taxes (e.g., Corporate Property Tax), etc.

⏩ For more information: I create my company.

7. Take out insurance

Not all insurance policies are mandatory, but they are strongly recommended. You are not immune to hazards in your professional life; you will be more at ease facing them if you are protected:

• The professional liability insurance protects you against damages caused to your customers (e.g., an accident in your shop);
• The legal protection insurance provides you with legal assistance in case of disputes (with a client, a service provider, etc.);
• The multi-risk professional insurance covers your equipment, your stock, and your premises in case of theft, fire, water damage, etc.;
• The transport insurance protects you in case of loss or damage during the transport of your products;
• The operating loss insurance grants you compensation if your turnover is affected by an interruption of your activity;
• The health contingency plan allows you to receive daily allowances if your activity is interrupted due to illness, accident, or for women, pregnancy;
• The retirement contingency plan helps you build additional capital that you can benefit from at the end of your career.

8. Launching your activity

Once all these steps are completed, you can finally take the plunge! You are now a business owner with all the responsibilities that entails:

• product creation (if you have chosen craftsmanship);
• inventory management;
• order management;
• customer relations;
• communication (website, social networks, press, etc.);
• after-sales service;
• accounting;
• etc.

This may seem intimidating, but if your project is carefully considered, well structured, and you are motivated by what you do, you will be perfectly capable of successfully running your business. Mistakes are part of the process. It is important to surround yourself well and, if necessary, to know how to delegate.

To remember:

• you don't need a jewelry-goldsmithing degree to start your own jewelry business;
• carefully elaborate your project to convince banks and potential investors, but also to ensure the sustainability of your business;
• do not hesitate to seek support throughout your process;
• have confidence in yourself and your project.