#184 The Truth About Why Most Jewelry Businesses are Broke (and What to Do About It)
Do you ever feel stressed about money in your business? đź’ł
No matter how hard you try to make sales and keep the cash flow coming in, you can’t seem to keep the money in your account or even pay yourself?
Trust me, I hear ya! There was a time when I had a measly -$2.02 in my bank account. (Yes negative). And payroll was due the next day.
Talk about being stressed…my hair started falling out and I was losing tons of weight.
I’m ashamed to admit this, but I even started smoking cigs like a chimney. Gross!
Until I realized there was a better way to run the business…
The truth is most start-up jewelry businesses are broke for a few simple reasons (at least the ones that don’t “get it” yet).
First and foremost, they treat their jewelry business like a hobby instead of like a real business.
- A business is a for-profit entity that pays its owner a salary.
- A hobby is not something that’s typically profitable or paying its owner anything.
Let me highlight the difference….
- A business owner invests in the people and programs that actually grow their business (themselves, team, consultants, coaches, etc.)
They get excited about reading a business book and putting 10% of their profit into a savings account.
- A hobbyist spends all of their money on supplies, gems, and widgets that consume cash flow making them broke.
They get excited about the next gem or bead show and want to cry when they leave the Tucson with exactly $5 left in their bank account.
Who will you be: profitable business owner or expensive hobbyist!?!
Allow me to help you shift your business paradigm and build a more profitable business.
There’s no shame if you aren’t there yet. Awareness is the first step!
In fact, I’m hosting a brand new masterclass to help you stand out in a saturated jewelry market (so you can kiss 💋 “being broke,” goodbye).
Let’s dive into today’s episode #184: The Truth About Why Most Jewelry Businesses are Broke (and What to Do About It)
Mindset
Profitability starts with the right mindset, confidence and a commitment to your success. All business problems start with YOU. If something is going wrong, you must take a look inside your situation and be honest with yourself.
Are you really showing up for your business and yourself or sabotaging your chances of success? What are you doing to change?
Commoditizing Your Business
If you are competing on product and price, you’re winning a losing battle. You will never be able to compete with Amazon, Walmart, Target or Costco, so why even try.
Instead of focusing on a Unique Selling Proposition, shift your thinking to creating a desire for your brand with the Desired Sharing Proposition. I share more in the episode and definitely cover the groundwork in the Timeless Brand Masterclass.
Closing the Sale
The art of closing jewelry sales is one of the most important things you can learn and train yourself to do.
Remember, you are always going to be your best salesperson. When you create a compelling story and master the art of turning compliments into sales, half the work is done for you.
Money
The money! Nobody’s favorite topic but everyone’s must “deal with” issue if you want to have a profitable business. Handling your finances will become FUN if you make it a game! I used to hate it and now I love it and I promise you will too!
In the episode, I dive deep into profit margins, keeping your expenses down and pricing confidence so you can actually ask what you’re worth (and save that precious profit).
Points of Differentiation
What makes you different? How are you standing out? Why are your designs so important to your growth and success in the industry?
Innovation is one of the most important things that will give you a competitive edge in business. Keep on differentiating your brand to stand out in a saturated market and make profits.
For more expanded tips, listen to the full episode here.
Build your 1000 True Fans Base and never be broke again…
**Read the full post by Kevin Kelly here.
Looking forward to supporting you in your profitable business ventures…let’s do this.
xo, Tracy
Sponsor Spotlight!
Links:
How to “Standout” in the Saturated Market with a Timeless Jewelry Brand Masterclass
Laying the Foundation
Jewelry Brand Brilliance Factor Quiz
Jewelry Brand Makeover Bootcamp
