How to Start a Costume Jewelry Business

by Melinda Gaines, Demand MediaFrom this online source: http://smallbusiness.chron.com/start-costume-jewelry-business-10254.html

Costume jewelry, also known as fashion jewelry, runs the gamut from simple silver pieces to large cocktail rings. Selling costume jewelry can be profitable, as it is not only bought and worn by female consumers of all ages, but also purchased by males to give as gifts. The costume jewelry business is flexible, as there are many ways you can start and grow your venture, and it can be operated on a full or part-time basis. 

Step 1

Target a niche, or specialization, for your jewelry business. Doing this will enable you to focus on buying only one type of costume jewelry and distinguish yourself from your competitors. For example, you could specialize in selling vintage costume jewelry or vintage replicas, trendy affordable costume jewelry for teens and young women, artisan and handmade costume jewelry or designer costume jewelry brands.

Step 2

Obtain the permits required in your state and city to operate a retail business. Depending on where you live, this may include a sales tax permit, resale license or assumed name certificate. Your local small business development center or Small Business Administration office can let you know what business documentation you need.

Step 3

Purchase wholesale costume jewelry to sell, if you will not be making your own. Before spending money on any jewelry, ensure you can make at least a 30 percent profit from it, after accounting for labor costs. There are several ways you can source your inventory, depending on your niche. If your specialty is vintage costume jewelry, shop at estate and garage sales, browse online auction sites, sell jewelry on consignment and place print and online classified ads. If you're selling new pieces, you will likely need to open wholesale accounts with manufacturers and distributors of costume jewelry, or buy liquidated -- meaning deeply discounted -- inventory from other retailers.

Step 4

Secure at least one venue from which to sell your costume jewelry. Options include leasing or buying a brick-and-mortar store, renting a mall cart or kiosk, becoming a flea or antique market dealer, throwing home jewelry parties, opening an online store or selling via Internet auction websites. If you plan to make your own costume jewelry, consider all of the aforementioned options, with the exception of antique markets. You could also try selling at your local farmers market, if they accept non-food vendors, or a marketplace for handmade items, such as Etsy.

Step 5

Find a storage area for your inventory of costume jewelry, if you will not be opening a physical retail location. A clean spare closet or airtight storage containers would be suitable, as long as they are placed in a dark, odor-free and pet-free area.

Step 6

Promote your costume jewelry business in a way that suits your chosen retail venues. You could launch a promotional blog, open social networking accounts, place targeted online banner and website ads, send press releases to local, regional and national media outlets and donate or lend pieces to be used in a local fashion show in exchange for publicity. You can also place coupons, brochures and fliers in complementary businesses, such as clothing boutiques, hair and beauty salons and shoe stores.

Visit www.MyAccessoryBusiness.com to purchase a costume jewelry starter kit and start selling jewelry today!