Churning a yearly revenue of more than $1B, the global jewelry industry shows great promise. A love of the craft makes pursuing jewelry design as a career and exciting prospect. But for many emerging jewelry designers, startup capital presents a challenge.
If you want to launch and grow your business using your own funds, bootstrapping your startup jewelry company is the way to go!
Bootstrapping refers to the process of launching a self-sustaining business, promoting and growing it using limited funds and resources. It is a common practice among emerging entrepreneurs who don’t want to use external capital — and a wonderful option for jewelry designers easing into the business.
A longitudinal study shows that the chances of experiencing subsequent growth for companies that use bank loans are lower than entrepreneurs who use their own resources and get the customers to pay more quickly.
Capitalizing on the benefits of bootstrapping can help you:
- Enjoy 100% business ownership
- Generate a sizable income at the end of the year
- Gain more control over your finances
As an aspiring jewelry designer, you must develop a business mindset focused on investing (time, money, creative energy) wisely and spending cost-effectively. This is the key to infiltrate the saturated and competitive market without losing heart or finances in the long run.
Here are our top tips for emerging jewelry designers who wish to succeed on their own terms:
1. Start Small and Sell More of What Sells
Would you rather have 100 pieces in your inventory that hardly sell, or a few in-demand statement pieces?
When you compare the probability of daily sales and monthly revenues, you’d probably stick to a small collection.
Even if you have a portfolio filled with jewelry design ideas, self-control during production goes a long way. Try conducting sample sales, operating an online business, and engaging with customers through art markets or pop-up stores. Most importantly, use customer feedback to tailor your designs.
By starting small, you can test your market and assess your value to create the pieces most likely to generate revenue and allow you to keep doing the work you love.
Plus, as you start discarding non-essential practices/products from your business operations, you’ll hone your skills in lean management not just with jewelry production, but throughout your business.
2. Foster Long-term Relationships with Your Customers
When it comes to bootstrapping your startup, customers are your lifeline. Ensure your customer service is on point. A little extra effort in building and maintaining healthy relationships with your customers will go a long way.
So spend the time, patience, and commitment — Happy customers are what keep you in business at the end of the day.
Reinvest to Generate More Capital
Saving is good. Reinvesting in your business is great.
When you’re bootstrapping, the ongoing business capital requirements will be met from company cash flows. You must get your company to a cash flow positive before state before you run out of the initial funds you’ve invested.
When your business starts booming, leave some revenue aside for reinvestment. Use these funds to produce more pieces, purchase new supplies and advanced equipment. Increase your marketing budget to improve customer engagement and retention. These efforts can help you build deeper relationships with your clientele and expand your business.
Ready to leverage the power of bootstrapping to put your business growth on the fast track?
Enroll in business classes for jewelry designers to gain more insights into running a successful jewelry business.