Despite a slight decline in the growth rate of the jewelry market, jewelry continues to be in demand and its sales volume is growing. Products made from silver, gold and platinum have always been considered a good gift and a sign of respectability.
Today, thanks to high purchasing power, most of the population can afford to purchase expensive rings, earrings, and bracelets. Jewelry made to order is of particular value. Therefore, opening a jewelry workshop can be considered a successful idea for a small business.
A high-quality business plan can only be drawn up if you have some experience
A business plan for a jewelry workshop, namely its preparation, requires certain experience. There are entrepreneurs who are interested in increasing their profits by selling jewelry products.
At the same time, they have a desire to learn how to collect all the necessary information on this activity. If an entrepreneur is new to the jewelry industry, then it is best to seek help from professionals who will help in such a difficult task as drawing up a business plan.
A standard business plan for a jewelry workshop involves drawing up a specific production project. The quantity of products that are planned to be manufactured must almost completely correspond to the quantity of those that are sold.
It should be understood that at the very beginning of your activity you should not produce too large quantities of precious products, since there is a high probability that there will simply be no demand for it. Naturally, after a certain time, you can increase production, since the customer base will be much larger.
There is demand, but there are no competitors: how to make money on metal jewelry
Svetlana Lanovskaya talks about her dream of becoming a PR specialist, the influence of the northern capital and “smart” jewelry in an interview with Kontur.Zhurnal.
First experience
I didn’t have any difficulties with choosing a profession in life - I always dreamed of doing PR, but I didn’t manage to get a budget place at a specialized faculty. But I received the specialty “organization manager” in 2010 at the State Aerospace University named after. M. Reshetneva helped me a lot in business. Moreover, I fell in love with this field and even decided to get a second degree in project management.
During my student years, I always took an active life position and participated in the activities of the Students in Free Enterprise organization. We came up with many interesting ideas and projects, but, unfortunately, they were never realized in life. The first serious experience of launching my own business happened in 2010. It was for the wholesale sale of giant soap bubbles and Chinese lanterns, which are traditionally launched at weddings. I came across the idea for this project in St. Petersburg, where I lived for some time, and decided to launch a similar business in my native Krasnoyarsk.
The company existed for two years: as soon as the business processes became established and the work routine began, I got bored and wanted something new. In addition, I always dreamed of seeing the results of my work and receiving feedback from clients. However, the format of the wholesale company did not imply a direct dialogue with the end user: we simply sold the goods and did not even know where our bubbles and lanterns ended up. In 2014, I got a job as a PR specialist at the ROSA chain of beauty pharmacies (15 points in Krasnoyarsk), where I work to this day.
Difficult bracelets and rings
My current project, a company for the production of custom metal jewelry Have a metal, appeared in September 2016. And I again found inspiration for it in the northern capital. In St. Petersburg, many people wear various bracelets with unusual inscriptions. I decided to bring this trend to Krasnoyarsk. In the modern world, more and more people are striving to express themselves: some get tattoos, others buy clothes with different inscriptions and quotes. Custom bracelets and rings fit perfectly into this trend. They are not harmful to health, durable, easy to produce and wear and, unlike, for example, a tattoo, can be quickly replaced with new ones.
Have a metal is a team of three people. We work together, my friend Yulia Gordeeva, a graduate of the Siberian Federal University with a degree in Art Processing of Materials Technology, who is responsible for the bracelet production process, and our mutual friend Dmitry, who is involved in accounting and delivery of goods around the city.
The main specialization of our company is the production of bracelets, rings, earrings and necklaces with a minimalist design from simple materials.
Our main raw material is food-grade aluminum, which is absolutely harmless to health and does not stain the skin, does not darken or cause allergies. Another advantage of aluminum is its low cost.
In addition, we make jewelry from brass, bronze and medical steel. We apply inscriptions in any language, as well as various symbols and signs, to a simple metal blank. The result is designer jewelry with meaning.
... and away we go
We spent 55,000 rubles to launch the project. own funds. This money was enough to buy all the tools we needed: a bender for rings and bracelets, stamps with the Russian and Latin alphabet, tools for embossing. We did not need to rent an office or a production workshop: everything that is required to create a bracelet fits on the space of a standard desk. The project reached self-sufficiency within three months.
The biggest challenge for us was finding raw materials. First of all, we turned to local manufacturers. But the Krasnoyarsk Aluminum Plant was ready to work only with large batches of several thousand pieces. Of course, we could not purchase such volumes from them.
As a result, we found the first 200 blanks from another contractor. Today, the cost of one of our products does not exceed 250 rubles. At retail we sell bracelets for 700 rubles, rings for 500 rubles. During the existence of the project, we have created and sold about 1000 products. The main audience is girls under 25 years old. Our jewelry went to various cities in Russia, as well as to 10 countries around the world - Israel, Turkey, Italy, Germany and others.
Today we sell our jewelry with meaning through the social networks VKontakte and Instagram. At the start, we talked about ourselves through opinion leaders - we simply gave free jewelry to famous people in Krasnoyarsk. They shared photos and reviews on their social networks and away they went. In general, word of mouth is our main advertising tool; we receive photo reviews from our clients every day. We don’t have large marketing budgets, so we additionally advertise on social networks and use targeting. Traditional PR also added to our fame: in less than a year, two magazines wrote about us and television crews visited us several times.
Since May 2022, we began working at large events in the format of a mobile workshop. In July, for example, they delighted visitors with bracelets and rings at the presentation of the new Mazda CX-5 at the Marshall MC and at the summer market of handmade goods “Kamenka Market”.
Opportunities for growth
Our plans are to scale production and launch our own workshop. We are now looking for additional funding in the amount of 1-2 million rubles. for the purchase of equipment, a laser for inscribing surgical steel, and rental of premises. Our own machines will allow us to become completely independent from contractors and increase production capacity. I wish the business would allow all three founders to leave our jobs and focus entirely on the company. Moreover, there are all the conditions for business growth - growing demand and lack of competitors (in Russia there are only two players selling similar products to ours, in Siberia we are the only ones).
Another important step in the development of Have a metal is the development and launch of our own online store in Russian and English.
The most important thing in business is to clearly understand where you are going, what you want, how much and when you expect to earn. Many people rely on their own money, have little awareness of their motives, do not set clear goals and, as a result, fail. It is important to always try to expand the range of your knowledge and skills, as well as make the most of the experience of the people around you. And, of course, do-do-do!
The jewelry business is not highly competitive
It should be noted that today a private jewelry workshop is not very competitive, no matter how it might seem at first glance. Most of the existing workshops are engaged in jewelry repair. And it’s impossible to say that this activity is not profitable. Jewelry repair is quite popular, since many stores are simply not capable of providing such services.
Starting a business on the territory of the Russian Federation is always necessary by registering as a legal entity. You will also need to purchase all necessary licenses for economic activities. The optimal organizational and legal form of a company for activities of this kind is a limited liability company.
Renting work space
In order to organize a workshop in a rented premises, it must meet certain requirements. Namely:
- Security.
Considering that you will be working with jewelry, it is imperative to secure your workshop from thieves and robbers. To avoid trouble, windows must have bars, and doors must be made of rolled steel with a thickness of at least 5 mm. In addition, it is necessary to install a complex type of lock, since with a simple Chinese device it will be just an “armored gate”.
In addition, a jewelry making workshop should be equipped with an alarm system, a storage safe, and a panic button.
- Technical requirements.
For normal operation of equipment and personnel, the premises must have:
- An exhaust hood for removing harmful vapors resulting from the melting of metals, as well as for working with reagents.
- Sufficient area to accommodate all necessary tools and equipment.
- It must also comply with fire safety standards applicable to objects of this type.
It is these requirements that the premises for conducting professional activities must meet.
Registering business activities
To open a jewelry workshop, you need a certificate of registration in a special assay office. In the modern pace of life, there is no need to collect all the necessary documents yourself. It will be much easier to contact a law firm that will quickly and professionally help a new entrepreneur.
The asking price is no more than 15 thousand rubles. After excellent completion of this process, you should develop a business plan for a jewelry workshop, which will provide for all the nuances associated with opening an enterprise.
During the registration process, you also need to think about finding the necessary premises. An ideal place would be to rent space in a larger jewelry corporation or purchase space in an entertainment center or large store.
It should also be understood. that it will not be possible to do without a high-quality security system, since precious metals and stones will be located on the territory of the store. In addition, a standard panic button will not be superfluous; when pressed, a signal about an emergency situation will be sent to the nearest police department.
The size of the room does not matter much. But it will need to be divided into 2 sections: a place for communication with potential clients and a workplace where the safe and desktop tools will be located.
Description of services
Products made from precious metals require periodic cleaning and polishing. For this, various compositions, pastes, and bleaches are used.
During wearing, jewelry may become damaged. Most often, locks and chain links are affected. It is not always possible to fix a damaged lock; more often you will have to make the missing part for it. When repairing chains, the customer can be given a choice between connecting existing elements and manufacturing missing ones.
Wedding rings and signet rings of people engaged in heavy physical labor often suffer. The rings take on the shape of an ellipse. For straightening you will need rollers and piercing tools. The same procedure awaits rings that have become large or small for the owner.
Stones on rings become loose or lost. Replacing a stone with a similar one requires cutting skills from the master, but to make it you need raw materials of a suitable color and size. It is much easier to secure loose stones. Since there are several options for fastening stones in jewelry, the craftsman should have all the necessary types of tools at hand.
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Earrings may be even more damaged. At the moment, we can name several of the most commonly used fasteners , the repair of which a master should know:
- English;
- French;
- Italian;
- stud (carnation);
- a loop;
- pin;
- bracket;
- ring;
- cuff;
- clamp;
- threading
Some of these locks can be repaired, others will have to be melted down to reassemble the product. Oddly enough, more complex locks (classic locks) can be repaired. A broken earpiece is a serious failure, but it's even worse when the screw-on fastening of the stud is lost. Each master solves the problem of sizing in his own way. It’s easier to take the dimensions of the thread, or better yet, from the clasp on the second earring using a 3-D printer.
Despite the wide range of wedding rings in stores, there are people who want to have them made to order. For some, width or design matters, for others there is material to be melted down. There can be many reasons for such an order, but the result is the same - the production of rings according to the customer’s dimensions using rollers and auxiliary tools for melting metal.
General organization of a jewelry workshop
A jewelry business cannot be made successful without hiring staff. This should be done based on the database where applicants’ resumes are located. The personal life of a future employee should not be overlooked. The most optimal method in hiring personnel is an interview, which will be attended not only by the entrepreneur himself, but also by the founders.
A good move would be to communicate and attract an experienced jeweler who can objectively assess the skills of applicants and provide the employer with a detailed opinion about everyone who wants to work in a jewelry store. At the initial stage, it is worth hiring two more specialists and 1-2 students. If you hire a lot of specialists, the business may simply not break even, and there is a risk of going bankrupt.
In addition to recruiting personnel, you will need to take care of a security agreement with security officers, as well as high-quality accounting. You will also need auxiliary workers who will clean the premises. The organization of hiring security guards can occur in different ways. In order to protect your business, it is better to sign an agreement with a large private security company. For a jewelry enterprise, the most suitable security guards are those who have the right to carry firearms.
Equipment and design
To seriously claim a certain part of the market, you should completely forget about savings. Durable cutters, various types of universal machines, precision scales - all this will cost an average of up to 500 thousand rubles.
Installation of all equipment should be trusted only to professionals. You can find them in government organizations or in those private companies that are large enough. In addition, when searching for equipment installation specialists, you will need to pay attention to their reputation. It should only be positive.
Any jewelry workshop should be equipped with a safe. The cost of a high-quality metal safe on average ranges from 60-80 thousand rubles, but there are more expensive options. Their number should be determined primarily by the size of the initial capital. But you shouldn’t forget about loading yourself with jewelry. In order to qualify for high profits, you will need to purchase all the necessary tools for a jewelry workshop.
Don't underestimate the appearance of the workshop. In this case, it is better to involve a good designer - the company should become impressive and catchy. And special attention needs to be paid to finding the logo that can create the right image of the future company. All this should be included in a well-drafted business plan for a jewelry workshop.
Technology for creating precious jewelry
Modern jewelry making involves several methods of creating jewelry. The main ones can be called:
- Casting.
Used to create designer items, as well as pendants, earrings and rings. This technology for making jewelry involves creating a special mold from plaster into which molten gold or silver is poured. After complete cooling, the mold is destroyed and the products are detached from the leg. Next, all that remains is to complete the final processing, add stones and the jewelry is ready for sale.
- Stamping.
Used to create products of standard shapes. Usually these are brooches, earrings, pendants, crosses, etc. The essence of the technology is that figurines are made from sheet gold or silver using a molding press. Then the products undergo finishing processing, such as soldering, decoration with other materials, polishing.
- Rolling and weaving.
Used to create chains and bracelets. The technology for making jewelry is that gold is rolled into wire and wound into coils. Next, bracelets and neck chains are woven from rolled metal. To increase productivity and reduce waste, the gold or silver is placed in a furnace to soften it, after which the spools are inserted into a chain knitting machine where the jewelry is created.
Thanks to modern techniques, jewelers can create pieces of any shape and size.
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How can you purchase jewelry: possible options
Another way to purchase precious items is to buy from private companies. The purchase cost in this case will be significantly lower. It will be about 30-50% of the nominal value. We can continue to work with such private organizations. In addition, you can always find a private enterprise that can provide remelting services.
Gems should be purchased from suppliers. In Russia there are many large enterprises that sell rubies, emeralds and many other gems. Their contacts can be found on the Internet. Such corporations willingly cooperate with large-scale firms, as well as with small organizations.
Basic calculations: costs, profitability
Setting up a jewelry workshop requires a really big investment. The minimum amount to open such an enterprise in Russia is 6 million rubles. It includes costs associated with registering a company, renting premises, paying wages to employees (annual supplies). In addition, we must not forget about tax deductions (up to 36% of revenue), the cost of equipment, furniture, advertising, purchases of precious metals and stones. You should always expect unexpected expenses.
Financial side of the issue
If you are going to start from the smallest, then you will not need to make a large investment. In addition, it is difficult to go into the red in this period, since gold and silver will sooner or later be sold as goods. So, for example, to start with the smallest, you will need to spend on:
- Rent of non-residential premises – from 25 thousand rubles.
- Equipment - from 100 thousand rubles.
- Registration of necessary documents – from 20 thousand rubles.
- Material - from 110 thousand rubles.
- Advertising - from 15 thousand rubles.
The amount was quite modest - only 310 thousand rubles.
With an average order amount of 2,000 rubles and the number of clients 100 people per month, the income is 200,000. From this amount we subtract the mandatory expenses of 130,000 and get 70,000 rubles of net profit. Accordingly, the business pays for itself in about 5 months.
Of course, jewelry making brings its owner pretty good money. For a business to start successfully, your assortment must consist of jewelry of various price segments. However, to constantly increase your own turnover, you should place your main bet on clients with limited budgetary capabilities.
What does income depend on?
The income that a private workshop can bring depends entirely on the number of clients. Thus, in the first months of opening a jewelry company, its activities need to be advertised in order to attract the largest number of interested parties and try to create a customer base.
On average, to achieve high profitability, equal to approximately 400-700 thousand rubles. per month, you should work hard for 2-3 years. 5-8 years - and the jewelry workshop will begin to generate enough profit at a stable level of income. And just at this moment you can begin to increase your entrepreneurial activity: to open a network of jewelry workshops.
Registration of a name
The name tag is the manufacturer's mark that is placed on the product. Its appearance is strictly regulated and cannot be changed at your request.
For all legal entities and individuals who are specially registered with the Don State Hygiene State Inspectorate, the shape of the outline is a curly arrow, inside which is a code consisting of certain letters, they change every year.
The Assay Office does not create the name plate itself, but only registers its imprint. The procedure is as follows:
- Get your personal code in the arrow from the inspection staff (this can only be done after registration).
- To order a stamp from a specialized organization (contacts are provided by the Assay Office), a year ago it cost about 4.5 thousand.
- Bring a stamp for registration.
The name is registered in the same assay office where they are registered.
The following documents are required for this:
- Application (you can download it here).
- Copies of the notice and special registration card (they must be certified with your signature, having previously written “Copy is correct”).
- Receipt for payment of duty . Initial registration costs 600 rubles, annual re-registration costs 400 rubles).
- Cipher imprints placed on 2-3 polished metal (brass) plates.
Is it possible to save money in this area of activity?
Beginning entrepreneurs are usually concerned about whether there is an opportunity to cut costs. Before starting a jewelry business, there are some basic aspects that will help you understand this issue.
- You can save by choosing a room. You don't have to opt for too much space. You can start your business from small points.
- You can formalize your entrepreneurial activity from the position of the “Urgent Workshop”. In such a situation, the entrepreneur will not be required to create a storage facility in which the jewelry will be located.
- Costs can be reduced through signage and overall design. For example, there is no need for expensive chairs and other expensive furniture.
- You can reduce costs by purchasing inexpensive equipment for the first time.
It is worth understanding that a private jewelry maker will gain high popularity and a good reputation only if all activities are organized at the proper level. But this does not mean that you should despair. You have to try, and then everything will work out. We hope that this review helped to understand the question of how to open a jewelry workshop.
How to attract clients to a master jeweler
- Any person will be interested in discounts and gifts . Therefore, first of all, you can lure people with lower prices than competitors, and also give customers, for example, jewelry cleaning liquid.
- A good move is to reduce production time . If competitors do repairs in three days, you can put up a notice that you will complete the job in two.
- Equally important provide as many services as possible and expand their list over time.
- The work schedule is of great importance . It is convenient for people to come to the workshop before and after work, as well as during their lunch break. It would be nice if the workshop began to work without a break, from 8 to 20 hours.
- A jewelry workshop, as a start-up business, can prove itself well when customers are warmly received and well served .
- You can also make coupons for preferential services and come up with many more tricks that will help you earn money.
