How to Start a Jewellery Shop and Secure Financing for It

Starting a jewellery store can be profitable if you offer unique designs and choose a good location. The high value in design and craftsmanship makes the jewellery industry a smart business idea. Also, this business can be evergreen if you keep up with the trending designs. 

However, the jewellery business requires careful financial planning. You need finance to cover the costs of raw materials, artists, store opening, marketing, tools, etc. You can manage these costs by taking a business loan for a jewellery shop and meet your working capital requirements.

The jewellery industry thrives on craftsmanship, creativity, and customer satisfaction. So, planning accordingly will give you the most success in the long run. Here’s a step-by-step guide to how to open a jewellery shop: 

1. Research Market Trends

Thorough market research will help you to create a strong business plan and attract more customers. This can help you understand what customers demand and your competitors’ offerings. Here is what you can do:

• Read fashion magazines or blogs

• Check out what influencers are promoting on their channel

• You can also search different keywords on ‘Google Trends’

• List out the top jewellery and check what they are promoting

• Open Pinterest to get inspiration as well

Select your niche according to the market research and make sure what you are selling fits with the market trend.  

2. Decide on the Niche

The jewellery industry comprises various sub-sectors, including high-end luxury jewellery, fashion jewellery, and custom-made jewellery. Choose the niche that you think you can offer something unique while staying on track with the trends. Some of the evergreen niches you can choose from are:

• Personalised Jewellery: You can offer custom-made jewellery which can symbolise a significant moment, cherished memory, or personal identity.

• Vintage: You can specialise in vintage or antique jewellery by buying and selling original pieces. You can also create modern versions of classic designs.

• Eco-Friendly Jewellery: Incorporate sustainable materials and eco-friendly production methods to reduce environmental impact.

• Handmade Jewellery: Collaborate with local artists and showcase their unique craftsmanship.

• Fine Jewellery: It is made from precious metals and stones and is often crafted for special occasions. You can wear this kind of jewellery every day, and it will last for generations.

• Fashion Jewellery: This jewellery is made from less expensive materials than fine jewellery. People often use it to accessorise outfits and keep up with trends.

3. Create a Business Plan

A well-thought-of plan is key to making your jewellery business successful. Your plan should cover:

• The niche of your jewellery shop

• Expenses according to the niche

• How much money do you expect to earn, and your profits

• Your marketing approach

• A look at your competitors locally and online

• The plan when your business gains good profits

• Online marketing for your brand identity and what makes you unique

4. Choose a Location

Stores in high-traffic locations, like malls, near universities, and tourist spots, are ideal to open a jewellery store. These locations may cost more than those in low-traffic areas. But you can consider it an investment that can greatly profit your business over time. 

5. Hire Staffs

The success of your store greatly depends on the team of artists working with you. When their craftsmanship fulfils the customer’s demands, it will gain more customers. The staff that works on marketing your business is also important. 

6. Get Legal Permits

To legally operate your jewellery shop, you need to get some licences and registrations. Some of these are:

• Business Registration

• Tax Registrations

• Import-Export Code 

• Bureau of Indian Standards (BIS) Certificate

7. Advertise Your Business

Now that your shop is open, you need to let people know about it. For this, you need to advertise your business. You can take professional pictures of your jewellery and make billboards to promote your store. Offer something to attract people’s attention. You can also use the pictures and make digital banners and promote them online through different social media. 

8. Open a Website for More Reach

A digital platform will give more exposure to your business. Open a website and promote your business on social media. Interested customers will visit your website and buy your product.

To run a jewellery shop legally in India, you will need to get a few licenses and registrations. Here are the essential ones: 

• Business Registration

To start a Jewellery shop business, register it with the appropriate authority. Jewellery businesses often have the potential to earn over ₹1 Crore each year. So, registering as a private limited company is a wise decision to ensure smooth operations. 

It will offer limited liability and easy ownership transfer. Making raising funds through loans or investors will be easier.

• Goods and Services Tax (GST) Registration

You must register your jewellery business for GST with the local tax department. This enables you to collect GST from customers and avoid penalties, as selling gems and jewellery is taxable under GST.

• Import Export Code (IEC)

You need an Import Export Code (IEC) to import goods into India. Before importing gold, make sure you fully understand and comply with the rules and procedures in place.

• Bureau of Indian Standards (BIS) Licence for Hallmark Jewellery

You must obtain a BIS licence if you intend to sell hallmark jewellery. This licence guarantees the purity of precious metals, safeguards customers from substandard products, and ensures that manufacturers uphold purity standards.

• Micro, Small and Medium Enterprises (MSME) Registration

If your jewellery business qualifies as a micro, small, or medium enterprise, you may need MSME registration. While not mandatory, this registration can offer valuable benefits such as access to loans, government incentives, and tax advantages.

Jewellery is always in trend, making it an excellent business venture. To sustain the business and stay up the ladder, you need funds initially. Getting a loan for a jewellery shop at competitive terms can be an excellent solution.

Uses of a Business Loan for a Jewellery Shop 

To successfully launch and operate a jewellery shop, you will typically need funds for the following:

• Buying or Renting a Workshop and Showroom: You will need funds to buy or rent both a workshop to create the pieces and a showroom to display them. Additionally, you need funds to invest in the store's decor. Focus on lighting and the right display options to create an inviting atmosphere that highlights your jewellery.

• Tools: Even though the concept of a jewellery store business seems easy, there are different kinds of equipment involved. This equipment includes:

• Loupes

• Pliers

• Cutters

• Ring sizers

• Screwdrivers

• Polishing materials

• Electricity: The role of lighting in the jewellery showroom is vital. The lighting will attract customers. They often involve small details in the design, so bright light is necessary while creating them. Electricity is also important to run machines and make jewellery.

• Marketing: New businesses need promotion both online and offline. You need funds for the following:

• Models to shoot professional pictures of your product

• Influencers to promote them online

• Website

• Run advertisements on social media

• Creating banners for local promotions

• Other Costs: You also need funds for the registration and licensing of your business. The cost of these may be small, but you should keep them in your consideration. Some other costs can be packaging and display props. Jewellery shop businesses have various loan options available to help cover these necessary costs.

Benefits of a Business Loan

Business loans can provide multiple advantages for entrepreneurs and business owners. Here are some benefits of obtaining a business loan through Bajaj Markets:

• Ample Loan Amount: Lenders on this platform offer substantial amounts of up to ₹50 Lakhs. This allows you to manage various operation costs with ease.

• Instant Access to Funds: You can access the funds within minutes if it fulfils the lender's eligibility requirements. Get the funds you need to start, grow, or expand your business without using your personal savings. 

• Easy Repayment Options: Lenders available on Bajaj Markets offer repayment tenures of up to 96 months. Choose repayment schedules that align with your financial situation to make it more convenient. 

• Positive Potential Impact on Credit Score: Upon successfully repaying a business loan, you can improve your credit score. A good credit score will make it easier to secure future financing. You can get the loan on better and more affordable terms.

You can now apply for a business loan with minimal documentation and secure a high-value loan via Bajaj Markets. Here is the list of lenders you can compare and choose the one that fits you most: 

Even though every lender has their own requirements, these are the basic criteria to apply for a loan to open a jewellery shop via Bajaj Markets:

• You must be an Indian resident

• You must have a high CIBIL score

• Your age must be between 21 and 60 years

• You can either be a self-employed professional or non-professional 

• Your business must be operational for at least 1 year

• Your business must be registered as a partnership, limited liability partnership, or private limited company

• Your business must have a minimum annual turnover of ₹1.5 Lakhs as per ITR

Once you meet the eligibility requirements, make sure you have the necessary documents ready to apply for a business loan. These documents include:

• Identity Proof: PAN card, Aadhaar card, passport, driving licence, Voter’s ID

• Address Proof: Aadhaar card, passport, utility bills, rent agreement

• Income Proof: Provide a 6-month bank statement, ITR, certified income documents, and a 2-year P&L statement with a balance sheet

• Business Proof: Sole Proprietorship Declaration, an authenticated copy of the Partnership Deed, or a certified copy of the Memorandum and Articles of Association.

Get the government scheme benefits for your jewellery business’s growth. Government offers a number of schemes for micro, small, and medium enterprises (MSMEs), including:

• Prime Minister Employment Generation Programme (PMEGP)

The PMEGP supports small businesses and MSMEs in India by offering financial assistance. The maximum project cost is ₹25 Lakhs for the manufacturing sector and ₹10 Lakhs for the service or business sector. The scheme can be helpful to fund your jewellery business setup, like buying tools and covering the electricity bills. 

• Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE)

The Ministry of MSME and SIDBI established CGTMSE to provide collateral-free loans to micro and small enterprises. Businesses can access loans of up to ₹5 Crores without needing any collateral.

How to Start a Travel Agency	How to Start a Construction Business
How to Open a Juice Shop	How to Open a Gym
How to Start a Coffee Shop	How to Start a Coaching Centre
How to Start a Catering Business	How to Start a Plant Nursery Business
How to Start a Bakery Business	How to Start a Car Dealership
How to Start a Photography Business	How to Start a Salon Business
How to Start a Furniture Business	How to Start a Food Truck Business
How to Start a Trucking Business	How to Start a Yoga Studio
How to Start a Dance Studio	Garage Business Ideas