You’ve got to have something special to succeed and stay vital in the jewelry business. Think about it: The industry is clearly highly saturated, and yet more and more independent entrepreneurs are entering the scene. This is partially because they’ve learned from the mistakes of their predecessors and are determined not to repeat them. Some of these mistakes include sticking to a conventional business model and neglecting the need for additional business funding. Successful jewelers tend to have unique spending strategies that produce multiple revenue streams.
You can expect even more independent jewelry entrepreneurs to pop up since it is now much easier for smaller stores to obtain small business loans. And thanks to companies like United Capital Source, business loans for jewelry stores can usually be designed to finance the various, innovative business models capable of putting smaller businesses on the map.
Have Your Finances Fully Recovered From Your Launch?
Before delving into different strategies, it’s important to note that, compared to other retail-oriented businesses, it takes a tremendous amount of money to start a jewelry store. As if the initial expenses weren’t challenging enough, most jewelry store owners are women, who usually start their businesses with less working capital than men. Much more time than expected can go by before a jewelry store stabilizes its financial health.
So, if a jewelry store wants to ensure the success of its initial efforts, it might be a better idea to look into small business loans for women rather than doing what you can with the limited funds you have left. At United Capital Source, you don’t have to be in business for as long as you would for a bank loan in order to be approved. And cash flow doesn’t have to be in perfect shape to access certain business funding programs.
Separate Revenue Streams
For a great deal of successful jewelers, the winning formula was creating different divisions of their businesses. They might have wholesale accounts with department stores and sell different, more expensive pieces online and at their brick-and-mortar stores. Both divisions, however, come with a cost. You need to hire people to help you build, run and market an ecommerce site. Department stores may prefer to purchase more expensive pieces on consignment, meaning you wouldn’t get paid until the items are sold. If they don’t want to take that risk, they might only purchase large batches of less expensive pieces.
Since big businesses are traditionally hard to work with, United Capital Source offers numerous business loans capable of off-setting the financial gaps that result from such partnerships. The store might pay late or request an order when you don’t have the capital to fulfill it. With accounts receivable factoring, you could get paid nearly in full just days after an invoice is processed. Working capital loans or business loans against credit card sales could help you order inventory on a cyclical basis, regardless of external factors like seasonality or rent increases.
Niche Products Are The Only Products
Arguably the most logical way for a small jewelry store to attract more customers is through niche products. Just when you think there are no more markets left to tap, someone comes up with an idea that countless people have wanted for years. A signature style is often the result of a jeweler envisioning something he or she wants that does not exist. If only you had the means to develop a new product line and pay for it with the increase sales that occurs over the coming months. This just happens to be one of the many functions of business loans against credit card sales, or merchant cash advance.
Business loans against credit card sales are particularly advantageous for jewelry stores because the majority of their customers pay with debit and credit cards. The payment system is ideal for long-term investments that must carry on amid fluctuations in revenue. New product lines, for example, must be marketed ahead of the busiest buying period for that target audience. The chances of attracting attention from media outlets are also higher if the pieces are on the expensive side but temporarily available for discounts.
With a business loan against credit card sales, you could develop your new line and then use the next few months to market it, even if that means devoting less time to making sales.
Maintaining A Rocky Business Model
A big reason we work with so many industries is because a successful business model doesn’t necessarily mean a company will have cash on hand at all times. Some business models generate solid revenue but it doesn’t come in at a steady pace. A jewelry store that caters to notoriously broke millennials might let them finance jewelry since they can’t afford to pay upfront. This would leave a lot of cash tied up in receivables, making it difficult to be approved for a bank loan. But at United Capital Source, we would likely develop terms that help you manage your receivables while covering regular expenses.
There are simply so many reasons why a jewelry store could use a small business loan, and we are open to nearly every single one of them. After all, a great deal of successful jewelers wouldn’t be where they are today had they not had the means to move forward with their most important efforts. It’s okay if all of the funds for your best efforts don’t come from you. What’s not okay, however, is believing you won’t ever be approved for a convenient funding program.