There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your bead store. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Exploring your options? Check out other small business ideas.
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
Luckily we have done a lot of this research for you.
While it is possible to start out running your bead shop out of your home, this limits the number and type of customers you are able to market to. Entrepreneurs who have realized more rapid success recommend a budget of $100,000 to $248,000, depending upon the specifics of how the business is structured. Smaller shop owners report a budget as low as $50,000, citing location as being the biggest driver of their success.
Factor in the following when determining your start-up budget:
Building - The size of building you decide to purchase or lease should match your business goals. Make sure it caters to the needs of your target audience and that the area is not already saturated with your product.
Business/Inventory management system - Many new business owners are tempted to forego this investment, deterred by the price tag. Consider opting for a web-based solution, where customers are charged an affordable monthly fee.
Inventory - Your initial inventory investment should include a wide selection of beads. Having your shelves stocked with both popular and unique beads will afford you the opportunity to get to know your clientele. Armed with this knowledge, you can then start to add more to your shop’s collection.
Website - Hosting an eCommerce site will open your business up to a whole new network of potential customers.
Business tools - Office supplies, furniture for your shop, displays, and organizing bins.
There are a number of franchising opportunities in this industry. The average franchise fee is $25,000, but many have found that the education and guidance they received was invaluable. If given the opportunity, purchasing an already established business is also a great strategy.
Your primary expenses will be payroll, rent/mortgage payment, and restocking of inventory. If a website is part of your portfolio, there will be site hosting and management costs associated with that, which are typically paid either monthly or annually.
To ensure you remain on top of the latest trends, it is also recommended that you attend conferences and join associations, such as the Association for Creative Industries. This will provide powerful networking and marketing opportunities that might otherwise be out of your reach.
Bead shops generally rely on the local population to support their business. With the right online marketing plan, you could reach crafters and bead enthusiasts across the country. Artists who make and sell jewelry, clothing, and costumes should also be included in your marketing strategy.
Bead shops generate revenue through the sale of their beading inventory. Items can be sold online, out of their home, or in a shop. Many entrepreneurs serve both retail and wholesalers’ needs, while others choose to focus on just one type of customer.
Bead prices vary, depending upon the type, size, quality, and material. Shop owners recommend going 25-40% higher than an item’s cost. Some report as much as 100% over inventory cost. The key is to remain competitive without undercutting the competition, which only stands to damage the entire industry.
With the right vision, marketing strategy, and hard work, a bead shop has the potential to generate significant profits for new business owners. Your profits are directly tied to the size and type of operation you envision, ranging anywhere from $38,000 to $75,000 or more.
Shop owners reporting the highest profits do not rely solely on the sale of beads. Some are drawn to the artistic side, making and selling their own beads. Additionally, hosting jewelry parties is a very effective strategy. The key is to host a variety of classes/parties that target specific skill levels and projects. Children’s birthday parties is another great revenue generator. Many store owners have also found success selling project kits for novice crafters.
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Bead Store Name Generator
If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.
When registering a business name, we recommend researching your business name by checking:
It's very important to secure your domain name before someone else does.
The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your bead store is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Have a Professional Service Form your LLC for You
Two such reliable services:
($49 + State Fees)
($79 + State Fees)
You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Learn how to get an EIN in our What is an EIN guide or find your existing EIN using our EIN lookup guide.
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Besides being a requirement when applying for business loans, opening a business bank account:
Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.
Net 30 accounts are used to establish and build business credit as well as increase business cash flow. With a net 30 account, businesses buy goods and repay the full balance within a 30-day term.
NetMany net 30 credit vendors report to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our best net 30 vendors, guide and start building business credit.
Getting a business credit card helps you:
Recommended: Apply for an easy approval business credit card from Divvy and build your business credit quickly.
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
Make LLC accounting easy with our LLC Expenses Cheat Sheet.
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
Certain state permits and licenses may be needed to operate a bead store business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For information about local licenses and permits:
Check with your town, city or county clerk’s office
Get assistance from one of the local associations listed in
US Small Business Associations directory of local business resources
A bead store business is generally run out of a storefront. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
It is generally the landlord’s responsibility to obtain a CO.
Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a bead store business.
After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening,
it is recommended
to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
You will be responsible for obtaining a valid CO from a local government authority.
Review all building codes and zoning requirements for your business’ location to ensure your bead store business will be in compliance and able to obtain a CO.
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Learn more about General Liability Insurance.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
Recommended: Learn what business insurance for your Bead Store will cost.
Business Insurance for
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
Recommended: Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker.
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
Industry leaders have found the most success with a diverse marketing plan. This should include advertisements in magazines that cater to your target audience and event/team sponsorships. Before taking on a sponsorship, make sure you are investing in something that will offer you exposure to potential bead shop patrons. Booths at arts and crafts fairs is also an effective way to boost interest, particularly because these events often have a mix of local and out-of-town guests.
Technology is another great resource for marketing. Social media platforms help reach a broader audience and keep current customers informed regarding new shipments and specials. Ask customers for their email addresses and periodically send out exclusive coupons.
Delivering superior customer service each time someone walks through your doors or places an order online is critical to your business’ success. Many consumers will pay a little higher price to know they are working with someone who cares enough to go the extra mile. Discount cards are also an effective way to bring new customers in and ensure your current ones keep coming back.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
Recommended: Get started today using our recommended website builder or check out our review of the Best Website Builders.
Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2022 to find the best phone service for your small business.
Recommended Business Phone Service: Phone.com
Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
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