How to start a neighborhood jewelry store

Local shoppers buying gifts, couples choosing engagement rings and wedding bands, and people who need a repair done.

Retail markup on jewelry and gifts, plus fees for repairs, resizing, engraving and custom work. Repairs and services often bring steady repeat customers between big purchases.

• Friendly, trustworthy selling
• Basic product knowledge of metals and stones
• Inventory and cash management

• Business license, sales tax registration and any zoning rules, check with your city, county and state
• Insurance for stock and theft (often called jewelers block cover) on top of general liability, plus a proper safe and alarm
• Buying used gold or jewelry from the public is regulated in many states and cities, check what permits and record-keeping apply
• Accurate descriptions of metal purity, diamonds and gemstones, check the FTC Jewelry Guides and your state's rules
• Large inventory ties up cash, so start with a small range

Startup costs are typically around $30,000 to $120,000, depending on your location, fit-out, security and how much stock you buy. Large inventory ties up cash, so starting with a small range can help.

Monthly revenue is typically around $8,000 to $40,000, depending on your location, product range, prices and how much repair and custom work you take on. That is revenue, not profit. Expect at least about 35 hours a week.

Check your city, county and state for a business license, sales tax registration and zoning rules. Also check rules on buying used gold from the public, the FTC Jewelry Guides for describing metals and stones, and jewelers block insurance.