Becoming and Independent jeweler

[abbiejustleft]

I am currently doing research to help me make a transition from a bench jeweler at a large corporation to setting up my own repair business. I am looking for information, personal accounts and help with this process. I very much enjoy bench work and I am very good at it. I used to work with a lady who was an independent jeweler from a studio in her house. She had accounts set up with local retail jewelry stores such as Reeds and Helzberg. I am looking to do that exact same thing. I have no idea how to get an account with a local retail store and also no experience with the legal side of starting a business. I would appreciate any information!

 

[neatfreak]

Do you still have her contact information? If she is local to you she would probably be the best person to get information about the legalities in your state and how she started making contacts with local jewelers.

I would think you'd need to start out with a portfolio of your work to show potential clients like any business.

 

[strmrdr]

Your local SBA may be of help.
First step is a good business plan.

Then you need:
Form a company
licenses
secure premises with fire protection and a good safe <-- a lot of areas will not let you operate a torch in a residence as a business.
proper insurance: error and omissions, general liability, theft and premises. JM is a good start.
accounting procedure/software. ie: quickbooks
build a portfolio
blemish free credit
contacts
contacts
contacts
contacts

combined with:
Enough money to live on for a few years and/or a second job.

 

[denverappraiser]

It’s a piece of cake to open a tradeshop. Making a profit at it is the hard part.

Presumably you’ve already got your tools and equipment issues down but if not, that’s an area where you’re going to need to spend some money. You’ll need all of the obvious things like a bench, buffer, hand tools, etc.. but a laser welder has become pretty much essential in that business and they aren’t cheap. They do occasionally show up used but not all that often. Talk to your regular tool suppliers. If you’re credit is good they’ll even finance you. If your credit isn't good, you shouldn't even be considering this for a variety of reasons.

You’ll also need an insurable location. Usually this means setting up in a commercial location with a safe and alarm system in place but it will depend where you are. You mentioned that your former employer worked out of her house, which is unusual for a wholesale repair type business. Going without insurance can save you some money but it’s a huge financial risk and the good clients won’t touch you with their business. Call Jewelers Mutual and ask them for the agent in your city and they can tell you their requirements. You may be able to rent space in the back of an existing jewelry store that doesn’t have an in-house shop, which gives you an automatic customer as well as getting you inside their alarm perimeter without needing to buy your own.

As far as advertising goes, most tradeshops just do it by showing up at stores and talking to the manager with a price list in hand. They’re always looking for someone who is willing to work a little bit cheaper than the next guy (which is why it’s hard to make a profit). If you’re in a big city and you’re willing to work long hours for low pay, you’ll have no shortage of customers.

Be prepared for the delivery route. This is what kills off most people in this business. If you’ve got a half a dozen stores distributed about the city that all expect 3-5 day a week delivery service, you’ll find yourself spending a quarter to half of your time driving around town burning up gas instead of doing bench work and producing revenue.

Watch out for slow paying accounts. You are likely to quickly find that your biggest asset is the money owed to you by your clients and a lot of these companies are not what you would call financially stable. I'm not going to name names but there are large jewelry chains out there that I would seriously recommend against extending credit to, especially if your own finances are such that a big default would wipe you out. We've already seen some bankruptcy's in this sector and I expect more.

Some business and accounting type classes at the local free school or community college is almost always beneficial and often essential. There's a LOT more to running a successful business than just being a good craftsman. SBA and even IRS teach classes that are usually free and good. Your local library likely has some programs as well.

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

 

[abbiejustleft]

Thank you very much for all your responses, I was just wondering if any of you knew someone who had started their own repair business? Or had done it yourselves? I realize it''s not easy to start a business like this, I don''t by any means believe I will be making money over night or even over the next year- but here in Richmond Virginia there seems to be a market for independent jewelers- their are very few stores that have repair shops set up in them, there is a lot of out sourcing and almost no personality to it. You don''t get to speak to the jeweler, the jeweler is behind the scenes, or in a goldfish bowl. Not that I mind being behind the scenes when I should be and have to be- through my contacts I have to notion that this could work. I am curious to talk to an independent jeweler and what their advice would be, and certainly names should be named, some companies are notorious and it''s never fun to find that out the hard way

 

[denverappraiser]

I have done it. I was even pretty successful at it.
I have many former employees who have done it (some successfully, some not).
I have many friends and acquaintances who have done it (again, some successful, some not).
Lots of folks out there have dabbled in this business. Pretty much every benchie has either done it or plans to do it.

Find someone who is local to you who has a successful independent store and go talk to them. Most jewelers are actually pretty nice people. Buy 'em a beer and ask questions. They aren't going to be interested in having you set up a store across the street but most cities have a distinct need for skilled tradespeople. If you've got a local tool supply source, these are often a good place for networking.

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

 

[Modified Brilliant]

Hi Abbie,

You might consider attending a retail jeweler's organization meeting in your area.
In our area we have the New England Jewelers Association. Perhaps there is a state or multi-state wide group in your area. The networking opportinities are endless . Also, the GIA Alumni Association often has meetings with
interesting speakers and more networking opportunities. Even if you hook up with
a few bench jewelers, it would be worth your while to check these groups out.
Good luck!

www.metrojewelryappraisers.com