Getting into the diamond business?

[BigToque]

I''m very interested in opening my own jewelry shop (that has a focus on diamonds). I''m just curious to know where you guys that are already in the industry started out. Everyone I''ve spoken to so far seems to have ended up starting in a family owned business and they are just continuing on the tradition.

I''d like to work at a store for a little bit to get a better feel for how things are run.

Where do you guys think is the best place to start with something like this?

 

[strmrdr]

Get educated, start out in a shop getting experience while working on the GIA Diploma

http://www.gia.edu/education/24265/graduate_diamonds.cfm

Then

http://www.gia.edu/education/24264/graduate_gemologist.cfm

And it helps to have rich relatives and a little luck.

The industry is mostly about who you know and who trusts you.

 

[Modified Brilliant]

To be successful today in any retail environment you need a strong foundation in business finance, product knowledge, marketing, advertising, buying, public relations and more. You could learn many of these fundamentals from a family owned business or independent jeweler who might be willing to groom you for a future ownership or management position. It will be difficult to just jump in and expect to succeed in this industry without a strong foundation. Networking is huge as well as earning trust and having strong business ethics. The industry is highly competitive...you will need lots of financial backing and a marketing plan that will work. Product knowledge is essential and taking courses from GIA is a great place to start.

www.metrojewelryappraisers.com

 

[denverappraiser]

I would start out by getting a job in the industry. There are WAY more ways to make a living in the jewelry business than most people consider and the easiest way to get exposure to your choices is by working for a jewelry store or supplier. You’ll learn a lot and you get someone to pay you to do it. Do your job to the absolute best of your ability, make your employer rich and I GUARANTEE that others will notice and opportunities will appear that you never even knew were possible. Start at the bottom, not the top, and pay attention as you move along.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[He Scores]

Lee Iococca said "never get yourself into a capital intensive business". He had a good point. If you have lots of capital to work with so you don''t have to borrow money, there are plenty of resources to be benefit from such as guru''s on running your business, to learning the product like strm said. There''s a great jewelers only websight called Polygon that you can have any business question answered you may want,,establish sources, clients etc.

I would recommend not doing it on a shoe string or as a hobby.

While it may sound like an interesting vocation, and it is to some, there are some drawbacks. Hours, security concerns, and expensive inventory that sometimes difficult to move are just some of them.

On the other hand, the one good thing is that you are dealing with a clientle usually at a good time of their life, rather than dealing with a problem time such as attornies or doctors. That and an interesting product and the ability to do it late in your life are some of the positivity of this business.

Bill Bray
Diamond Cutter

 

[JohnQuixote]

I'm with Strm, Jeff & Neil. Seek a job where you're working alongside someone with long legs in the industry, and start your education with GIA.

 

[Upgradable]

I may have a chance to gradually take over ownership of a local shop. I''d love some suggestions regarding publications that be helpful. Thanks!

 

[Karl_K]

Date: 11/5/2009 9:08:39 PM
Author: Upgradable
I may have a chance to gradually take over ownership of a local shop. I''d love some suggestions regarding publications that be helpful. Thanks!

There are getting to be more and more legal issues you need to stay on top of.
From what I can find JVC looks like a good resource.
http://www.jvclegal.org/

 

[Karl_K]

Jm is a good resource for security and safety information, some free some paid unless you have a merchant policy with them.
http://www.jewelersmutual.com/

https://services.jewelersmutual.com/jmuniversity/

 

[Karl_K]

Jewelers of America looks like another good resource.

http://www.jewelers.org/

 

[stanley]

i would have to mention one caveat to this suggestion - while the quoted may be VERY true for a bricks and mortar store, there is increasingly more and more opportunity to get into business online where the concerns for a bricks and mortar store just arent there, or at least do not exist to the same degree.

i run an ebay business that is not related to the 9-5 ''day job'' business i run. the ebay thing is something that grew on the side and i had to learn as i went along. yet some years ebay has actually netted me more than my ''real'' business - while investing much less time and effort! (in case you are wondering why i just dont the ebay thing full time, i do - now at least.)

otherwise i agree with the other sound advice mentioned before

 

[denverappraiser]

Date: 11/5/2009 9:08:39 PM
Author: Upgradable
I may have a chance to gradually take over ownership of a local shop. I'd love some suggestions regarding publications that be helpful. Thanks!

Jewelry is a deceptively easy business industry to get into. If you’ve got decent connections and decent credit, vendors are happy to consign you merchandise, there’s not much required in terms of licenses and such, display cases and materials are readily available and it’s just a matter of doing the work. That’s the rub. Being a good merchant is a lot like work. It’s actually highly competitive and often you’re going toe to toe with companies that have been working hard at it for generations. The value of buying into an existing business is that they’ve got established procedures and an ongoing customer base so you’re starting out running and to be sure, that’s a feature, but what it’s worth will depend on the details of that customer base and things like the staff in place and the ‘goodwill’ that you enjoy in the community and existing things like signage, display, advertising etc. It’s also worth doing an assessment of your own temperament for these things. When, I talk to jewelers, there’s a lot who get burned out over the day-to-day type drudgery of the operation or who have a hard time with the wild swings between a good month and a bad one. In most places it's a VERY seasonal business. There’s definitely a living to be made but it’s not for everyone.

InStore magazine is great for store owners. Jewelers Circular Keystone is another. National Jeweler is popular. Start attending trade shows in your area and consider some of the national ones, you'll learn a lot.

Is this a store where you're working on a regular basis?

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[Upgradable]

Thanks so much Storm! One of the things that the he needs to have developed is an online presence. I''m going to be working on his website and email listings for mailings.

The poor place just needs a facelift too! Right now I''m obsessed with lighting. How do we get that cool "jewelry store" lighting going on where everything sparkles???

 

[denverappraiser]

Date: 11/6/2009 7:30:11 AM
Author: Upgradable
The poor place just needs a facelift too! Right now I'm obsessed with lighting. How do we get that cool 'jewelry store' lighting going on where everything sparkles???

Visit other jewelry stores and look at the lights. Talk to the people who are selling lighting. There’s a whole industry about this. Mostly it’s done with bright overhead spotlights against a dark colored ceiling and by keeping everything clean. In-case lighting can be halogen (which is hot and can damage certain things) and LED (which can be expensive and not as bright).

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[Upgradable]

Neil, I really appreciate your input! Lots of things to consider here, for my husband and I. I''m especially grateful for your cautions as well as the resources you''ve offered.

I''ve worked "with" this jeweler for several years on projects and pieces on commission. We''re just going to start out me working part time over the holiday season, then we''ll work toward transitioning the business over the next 2-3 years. That way I can learn from him, develop connections, and he feels like there will be someone to take over once he retires.

I do feel like I''m looking down into a big, dark pool of water waiting to jump in.... not know what may be lurking under the surface!!