Jewelry Business Plan Template
If you want to start a Jewelry business or expand your current Jewelry, you need a business plan.
Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of jewelry business plans.
The following jewelry business plan template and example gives you the key elements you must include in your plan.
I. Executive Summary
Business Overview
[Company Name] is a jewelry shop located in [insert location here]. The Company will focus on providing high-quality jewelry products to its customers. The Company sells a wide selection of jewelry, including bracelets, necklaces, earrings, and rings. All of the pieces will be designed and created by [Founder Name], the Company’s owner and founder. Jewelry is available in silver, gold, and platinum.
Products Served
The Company will provide the following products and services to its customers:
- Watches
- Earrings
- Bracelets
- Necklaces
- Rings
- Jewelry repair
- Jewelry cleaning and silver polishing
Customer Focus
[Company Name] will primarily offer its products and services to residents living within a 10-mile radius of the business location. The demographics of the customers are as given below:
- 87,827 residents
- 1,750 workers
- Average income of $74,700
- 38.9% married
- 49.6% in professional occupations
- Median age: 34 years
Management Team
[Company Name] is led by [Founder’s name], who has been in the Jewelry industry for [x] years. [Founder’s name] graduated from the University of ABC, where she majored in product design. During her apprenticeship in the Jewelry industry, she acquired in-depth skills in Jewelry designing. Additionally, she worked in a jewelry shop alongside a professional, learning how to manage and run a jewelry business before starting [Company name].
Success Factors
[Company Name] is qualified to succeed due to the following reasons:
- There is currently a high demand for unique, custom made jewelry within the community.
- The Company’s location is in a high-volume traffic area and will thus be highly convenient for a significant number of people visiting nearby.
- The management team has a track record of success in the jewelry business.
- The upscale jewelry business is a proven business and has succeeded in communities throughout the United States.
- Market trends such as high disposable income and spending power are propelling the demand for increasing jewelry consumption.
Financial Highlights
[Company Name] is currently seeking $170,000 to launch its jewelry shop. Specifically, these funds will be used as follows:
- Store design/build: $90,000
- Working capital: $80,000 to pay for marketing, salaries, supplies and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name], located in [insert location here], is a new, upscale jewelry shop focusing on providing customized designed jewelry to the local community in a welcoming environment.
The Company sells a wide selection of jewelry, including bracelets, necklaces, earrings, and rings. All of the pieces will be designed and created by [Founder Name], the Company’s owner and founder. Jewelry is available in silver, gold, and platinum.
The Company will also provide after-sale services like Jewelry repair and polishing services to its customers.
[Company Name]’s History
[Founder’s Name] is an entrepreneur with a passion for designing jewelry. She seeks to provide well-designed, unique jewelry to the community. [Company Name] will become a well-known Jewelry shop in [Location], offering a wide range of jewelry.
Upon surveying the local customer base and finding the potential retail location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].
[Founder’s Name] has selected an initial location and is currently undergoing due diligence on each property and the local market to assess the most desirable location for the jewelry shop.
Since incorporation, the company has achieved the following milestones:
[Company Name]’s Products/Services
The Company provides the following products and services:
- Watches
- Earrings
- Bracelets
- Necklaces
- Rings
- Jewelry repair
- Jewelry cleaning and silver polishing
III. Industry Analysis
[Company Name] competes against small, individually owned jewelry shops and major regional or national chains. The market size, measured by revenue, of the Jewelry Stores industry, is $33.9 billion. The market size of the Jewelry Stores industry in the US has grown 0.1% per year on average over the last five years. The market is expected to continue to grow annually by 3.3%.
There is a rising trend in the consumption of jewelry as more people are inclined to purchase luxury products due to favorable economic conditions. The average household income is expected to continue to climb over the next five years.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [company location] and its surrounding areas.
The area it will serve is populated mostly by moderate to affluent people; as a result, they have the means to pay for higher quality service.
The precise demographics of the town in which the retail location resides is as follows:
| Wilmette | Winnetka | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
The Company will primarily target the following three customer segments:
- Couples: This group is most likely to buy jewelry products for each other. For instance, engaged couples will need rings and other wedding jewelry. Married couples often buy jewelry products for their beloved on many occasions like Valentine’s Day, birthdays, anniversaries.
- High Income Adults: The company’s third group comprises adults who buy jewelry for their kids, family, friends, or themselves. They are usually settled in their lives and can afford expensive products.
V. Competitive Analysis
Direct & Indirect Competitors
Flora’s Jewel Shop
Flora’s Jewel Shop is one of the popular jewelry shops in town and has been in business for xx years. Flora’s Jewel Shop designs jewelry with a focus on a professional and sociable woman. The company offers a wide range of items including earrings, necklaces, bracelets and watches.
The Jewelry Nest
The Jewelry Nest provides its customers with a variety of traditional and contemporary jewelry designs. The Jewelry Nest provides an eclectic range of styles and price points. The shop is known for its unique pieces that cannot be found anywhere else.
Diamonds and Pearls
Diamonds and Pearls was established in [xx]. It has a solid reputation for providing its customer’s superior craftsmanship, exclusive designs and superios product quality. Diamonds and Pearls’s current location is in [location], which is in an area of mostly high-net-worth individuals. Diamonds and Pearls caters to a high-end clientele looking to buy jewelry designed by professional designers in a more serene setting than that of the normal bustling jewelry shop.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Management: The Company’s management team has xx years of business and marketing experience that allows them to market and serve customers in an improved and sophisticated manner than the competitors.
- Relationships: Having lived in the community for xx years, [Founder’s Name] knows all of the local leaders, newspapers, and other influencers. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
- Great service at an affordable price: The wide range of jewelry products and services offered by [Company Name] nearly equals the most premium positioned competitor, [Competitor Name]. However, [Company Name] will offer the jewelry at a much more affordable price.
- Location: [Company Name]’s location is near the center of town, giving the company access to couples, teens, and adults in the city.
VI. Marketing Plan
The [Company Name] Brand
[Company name] seeks to position itself as a respectable, upper-middle-market competitor in the jewelry industry. Customers can expect to receive professionally designed jewelry from skilled jewelry designers for a price somewhere between discount chains and luxury establishments.
The [Company Name] brand will focus on the company’s unique value proposition:
- Offering a wide collection of designed jewelry for men and women
- Convenient location
- Comfortable, customer-focused environment
- Moderate price point
- Providing excellent customer service
Promotions Strategy
[Company Name] expects its target market to be residents living within a 10-mile radius of the [location]. The Company’s promotions strategy to reach the audience includes:
Pre-Opening Events
Before opening the tattoo shop, [Company Name] will organize pre-opening events designed for prospective customers, local merchants, and press contacts. These events will create buzz, and awareness for [Company Name] in the area.
Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The Company will advertise its products in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.
Public Relations
[Company Name] will hire an experienced PR agency/professional(s) to formulate a compelling PR campaign to boost its brand visibility among the target audience. It will look to garner stories about the company and its offerings in various media outlets like newspapers, podcasts, television stations, radio shows, etc.
Social Media Marketing
Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The Company will use social media to develop engaging content in terms of different jewelry designs and post customer reviews that will increase audience awareness and loyalty. Engaging with prospective clients and business partners on social media platforms like Facebook, Instagram, Twitter, and LinkedIn will also help understand changing customer needs.
Word of Mouth Marketing
[Company name] will encourage word-of-mouth marketing from loyal and satisfied clients. The Company will use recommendations and word-of-mouth marketing to grow the customer base through the network of its existing customers. The Company will be incentivizing its existing customer base to encourage their friends to come and try their service for the first time.
Special Offers
Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. The Company will introduce special offers to attract new consumers and encourage repeat purchases, which will be quite advantageous in the long run.
Pricing Strategy
[Company Name]’s pricing will be moderate, so customers feel they receive great value when availing of the products they are paying for. The customer can expect to receive exceptional jewelry designed at a far more affordable price than what they pay at an ultra-premium jewelry shop.
VII. Operations Plan
Functional Roles
To execute on [Company Name]’s business model, the company needs to perform several functions, including the following:
Service Functions
- Salesperson
- Customer Service
- Sales Manager
Administrative Functions
- General & administrative functions including legal, marketing, bookkeeping, etc.
- Inventory management
- Hiring and training staff
Milestones
[Company Name] expects to achieve the following milestones in the following [] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name], who has been in the jewelry business for xx years. While [Founder] has never run a jewelry store herself, she has extensive experience providing jewelry ideas. [Founder] graduated from the University of ABC, where she majored in Jewelry Designing. [Founder] has acquired in-depth skills in Jewelry designing in her internship programs and is well aware of all environmental regulations related to jewelry making.
Additionally, she worked in a jewelry shop alongside a professional, learning how to manage and run a jewelry business before starting [Company name]. [Founder] has personal relationships with highly professional designers and skilled artisans across the community.
Hiring Plan
[Founder] will serve as the jewelry designer. In order to launch the jewelry shop, the company will need to hire the following personnel:
- Jewelry Designer [Number]
- Accountant [Number]
- Sales Executive [Number]
- Assistant for helping with day-to-day operations [Number]
- Customer Representative [Number]
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from the retail sale of customized jewelry and other related products to its customers. The major costs for the company will be salaries of the staff as jewelry designers & artisans are paid through a combination of salaries and commission. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market. Moreover, rent for the prime location is also one of the notable cost drivers for the [Company Name].
Capital Requirements and Use of Funds
[Company Name] is currently seeking $170,000 to launch its jewelry shop.
Specifically, these funds will be used as follows:
- Store design/build: $90,000
- Working capital: $80,000 to pay for marketing, salaries, supplies and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | |
|---|---|
| FY 1 | 75 |
| FY 2 | 100 |
| FY 3 | 125 |
| FY 4 | 150 |
| FY 5 | 175 |
| Annual Lease ( per location) | $50,000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
