Start a Business Selling Precious Gems and Stones

Saturday, August 30, 2014

Start a Business Selling Precious Gems and Stones

A Gemstone or Gem (also called a precious or semi-precious stone, a fine gem, or jewel) is a piece of mineral, which, in cut and polished form, is used to make jewelry or other adornments. However certain rocks (such as lapis lazuli), or organic materials that are not minerals (such as amber or jet), are also used for jewelry, and are therefore often considered to be gemstones as well. Most gemstones are hard, but some soft minerals are used in jewelry because of their luster or other physical properties that have aesthetic value. Rarity is another characteristic that lends value to a gemstone. Apart from jewelry, from earliest antiquity engraved gems and hardstone carvings such as cups were major luxury art forms. The carvings of Carl Fabergé are significant works in this tradition.

Selling precious gems and stones can be as simple as setting up a small stand at a craft fair or can become a much larger business that includes jewelry design. Whether you just want to sell the stones and gems themselves or you want to delve into jewelry and other gem stone uses, you can make a lucrative part- or full-time income doing either.

Step 1

Learn as much as you can about gemology. Although being a gemologist does not require a degree, it is important to become very knowledgeable in the different types of stones, instruments and laboratory services that are available. Contact the Gemological Institute of America or another gem trade organization, and take their online or on-campus classes.

Step 2

Write up a business plan that details how you intend to sell your gems and stones. Some retailers work strictly online and sell through online auction outlets and websites, while others have retail stores or go to craft fairs and festivals to make their sales.

Step 3

Arrange to purchase your gems and stones through a dealer. If you live in an area that is known for a specific stone, such as Amber, you can purchase your stones locally and then polish and set them as you like. If you want to deal in nonlocal stones, locate a dealer through the Gemological Institute of America, American Gem Trade Association, or a mineralogy club, and contact them about purchasing their stones and gems for resale.

Step 4

Rent or purchase your retail outlet, if you intend to have a store. Once you have your business address, you can apply for a business license from your city or county, if necessary, as well as a Tax Identification Number (TIN) from the Internal Revenue Service. If you intend to start your business from home, whether online or working at fairs and festivals, your business address is your home address.

Step 5

Purchase your packaging and shipping materials. Gems need to be well-protected, so purchasing small, padded boxes for each stone or set of stones is necessary. In addition, you will need to mail your stones in padded envelopes or small boxes if shipping to other places. Design labels to put on the boxes so your customers know how to contact you for another order if need be.

Step 6

Market your business by attending local events and setting up a website whether you intend to sell online or not. Brochures that detail what type of stones you deal in as well as other services you offer are helpful for handing out to potential customers. If you have a retail location, make sure to hold a grand opening event and offer different types of events throughout the year to encourage new business, such as gem cleaning or an informational seminar.

Tip

If you need a business loan to start your business, be prepared to present a professional-looking business plan to the loan officer.

References (4)

About the Author

Michelle Hogan is a writer and the author of 13 books including the 2005 bestselling memoir, "Without a Net: Middle Class and Homeless (With Kids) in America." Hogan studied English at American University and has been writing professionally since 1998. Her work has appeared in "The New York Times," "Redbook," "Family Circle" and many other publications.

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Precious Gems and StonesJanuary 30, 2014 at 5:33 PM
Gems and Stones Business, Precious Gems and Stones, Precious Gems and Stones Business, Start a Business Selling Precious Gems and Stones
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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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Saturday, August 30, 2014