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So, you’ve been making your own jewelry now for a while. You’ve probably been commissioned to make some of them for your friends and family too, right? So why not entertain the thought of making a business out of it. Starting your own jewelry-making business can be a profitable and rewarding business. But, much like most businesses, there are pros and cons to starting your own, and before you jump into it there are things you should consider.
Deciding to sell your jewelry is a big deal, and you need to be aware of all the different aspects of going into the business. A plan is fundamental in your business. Even if it’s a relatively small goal, you need to know what you are getting into. Before you set up shop, consider these points.
If you are going into business, the ultimate goal is normally to make a profit. But, depending on your motive, the IRS can classify you differently. Hobbies are considered different than businesses, in the eyes of the tax collector. Before you start selling your jewelry, talk with a tax professional to better understand what it takes to be considered a business by the IRS.
Something that most people don’t consider is that, unlike your friends and family who have seen your work, others haven’t. A stranger, most likely, isn’t going to commission to you make a certain piece. Therefore, you are going to need a large variety of pieces to have a display of your talent. That can easy cost you $1,000. On top of that, you need to get a website going or rent an booth or office, and you’ll need a marketing campaign. It could be months before you see a profit. Can you afford to go that long without seeing some money back from your investment? Can you afford to lose the money if it doesn’t work?
Obviously you can handle making the jewelry. But that’s the easy part. Running a business is hard work. First, you need to make sure you have all the licenses you need to start a business. You need to check with local, state, and federal laws to make sure you are getting the right licenses. There is normally some type of business license and a license to collect sales tax. Secondly, you might want consider contacting a lawyer to go over incorporating and trademarks. Also, you need to have some type of accounting system in place to keep up with the business. This usually involves accounting software and tax help.
Starting a business and selling to customers isn’t the same as making a necklace for a cousin as a Christmas gift. Once they give you their money, they expect a certain level of customer service. If something breaks, or if they can’t figure something out, they expect you to be readily available to help them.