Jewelry Business Bank Account
An online jewelry store can start for as little as $200, but depending on the geographical area, it may cost up to several thousand to start a store of your own. A basic breakdown of expenses may look something like this: Rent: $0; Cost of Display: $500; electricity and heating: $1000; and finally, miscellaneous: $2021. To break it down further, there’s also the cost of software and ongoing support as well as advertising and marketing. These can add up quickly. If you want to start an online jewelry store, you need to factor in these costs before you set up your store.
In order to accept credit cards and to increase sales, you’ll need a merchant account. It’s always best to open a business bank account when you have the funds to do so. The most important aspect of the legal structure of a jewelry store is the location. In general, a storefront must be within 15 minutes of a metropolitan center, and internet access should always be available. As part of the startup costs of opening a jewelry store, you’ll need to prepare your lender for the fact that your store will likely be a high traffic location where most customers will congregate.
To establish a valid co-borrower relationship with your local jeweler, the traditional lending institutions require a deposit, title loan or business credit agreement. The deposit is usually a percentage of the value of the jewelry store. Most bankers will require a co-borrower to stand a valid claim to the property.
When it comes to procuring contracts with jewelry manufacturers and other suppliers, a wholesale jewelry business that provides its suppliers with a credit card terminal and a processing service is very valuable. Credit card processing is essential to most jewelers who wish to offer other payment options to their customers such as PayPal. Without a processing service, jewelry store owners are restricted to making cash sales only – which can severely limit the amount of profit that can be generated by a jewelry store.
The other type of credit card processing service commonly provided by jewelry stores is known as swiping. This service does not require a customer to have a current account with the bank. Instead, a customer uses his or her debit card as a pre-paid debit for the purchase of items. Most major retailers and manufacturers will provide these examples of credit card processing services, and examples include Visa and Mastercard.
For the success of a jewelry business, the owner must be aware of current fashion trends and styles. If the jewelry store is located in an area where there are many young people, then it is important that the jewelers offer fashionable jewelry. This will attract teenagers, and in turn, they will bring friends. A jewelry store that is offering fashion jewelry is also likely to attract a younger customer base than one that sells traditional jewelry. Keeping up with the latest fashion is one way to ensure longevity for a jewelry store, but it must be done at the discretion of the individual jeweler.
