How to Start Your Watch Business: The Beginner’s Guide
If you have a deep passion for owning a watch business, then you are in for a treat.
In this article, we will give you a comprehensive guide on how to start your watch business. We will tackle the nitty-gritty details of setting up a business as well as the factors that you need to consider and think about, whether you are already ready for starting your watch business or not.
With that said, let’s get started.
Watch Business Overview
Starting a business is no easy feat. There are a lot of factors that you need to consider as well as bureaucracies of owning a company that you need to follow. But despite all these pressing negativities looming in your head, a company, when started and handled correctly; can reap a lot of benefits for you and your future.
These factors can be applied to most businesses, including a watch business. If you are still in limbo about setting up your watch business, you might be pleased to know about some facts.
In the United States, the watch industry has a total sales of $10 billion in 2018 alone, and this might go the same for this year. Smartphone manufacturers, including Samsung and Apple, have seen this high demand in watches, which prompted them to release their line of smartwatches. With a steady demand for premium and luxury watches, starting a watch business is a worthwhile investment.
Who is this business right for?
The watch business is suitable for anyone who has a sheer passion for timepieces. It goes without saying that for anyone to decide to open up a business, he or she must be knowledgeable and passionate about what they are trying to sell. With this, you need to know the market’s demand for watches. Moreover, you must also love watches and have some basic knowledge about them.
A watch business entails different operations. This includes fulfilling orders, checking inventory, restocking supplies, responding to customer queries as well as boosting your business through advertising through various platforms.
In some cases, a few companies offer watch repair about claims of warranty. Nevertheless, you can always partner with a repair store if your shop does not have the technical skill in achieving these.
What is the target market?
For watches, the target market is usually the working adults who also appreciate style. These consumers typically buy a watch as a form of fashion statement or only as a useful accessory for their day to day activities.
How do watch businesses make money?
Watch businesses make money through selling watches. Watches can be sold individually or by batch depending on who’s buying. Moreover, watch enterprises can curate unique watch designs and outsource the manufacturing work to a watch factory, then you can get wholesale price if you reaches their MOQ.
As mentioned above, before jumping in and investing your money in a watch business, there are a lot of things you need to know about. This entails knowing some information about watches as well as how to run a business.
If you want to learn more about watches, you can take a watchmaking course. These courses are offered by shops such as the TimeZone Watch School. There you can acquire the necessary knowledge that will help build your inventory. Also, through these courses, you will be able to discern well-made watches from those who exist to grab your hard-earned cash.
In terms of business knowledge, you can also take short business courses online. We highly recommend courses offered by Coursera and Open Culture. This is a useful step, especially for those who are still dipping their toes on the market or do not have any experience in opening a business.
What are the costs?
Every business, when it is still starting; always has manageable expenses.
First of all, you need the capital to purchase stocks you are about to sell. If you want to have an online store for your business, you also need to set the website and invest in hosting service providers.
Aside from this, you also need to set aside a portion of your initial expenses for advertising campaigns. Since watches are small in size, you do not need ample space for placing your inventory and stocks. If you have an online shop, you can always put your shares inside your house.
If you want to make the best out of small capital, or if you have minimal funds from your initial set up; you can initially invest a little money. Despite having a low inventory, you are still able to gain profit from the small investment.
The Steps of Starting a Watch Business
Once you have already finished looking into the factors and decided to push through with opening your watch business, you need to follow the following steps. With these steps, you can proceed legally.
Plan your Business
As expected, you need to have a clear plan as to how you will go about setting your watch business. You need to take note of the questions we have mentioned above, such as the initial costs, target market, and more.
Second, the name of your watch business is also significant. If you are still confused as to what to name your business, you can opt for name generators on the internet. If you have an online shop, you need to check for available domains and make sure to secure them as early as possible.
Form a Legal Entity
You also need to invest in legal entities in case of any liabilities in regards to the consumers and the products you are selling. You might want to consider spending a registered agent service to help fortify your company’s privacy.
Register Your Taxes
Aside from seeking assistance with a registered agent service, you also need to register your taxes depending on the state you want to open your business.
Open a bank account for your business
The next step is to open a bank account for your new watch business. This is an essential step since you want to keep track of your expenses as well as the influx of your profit. This will also give you a bird’s eye view of the financial performance of the watch business. With this, you need to keep every transaction receipt.
Obtain the needed permits and licenses
When opening any business for that matter, you must obtain all the necessary permits as well as licenses. Without doing so, your business might be slapped with a lot of fines and can even result in your business to shut down.
Aside from opening a bank account and securing all the necessary permits and licenses, insurance for your business is also highly recommended. The insurance company will help you plow through any financial trouble or challenges along the way. Some states require compensation insurance for employees.
Define your watch brand
Buidling your own watch brand helps define what your watch business stands for. It is also an important aspect that is used to give a reputation to your target market. With that being said, a strong brand allows your business to stand above the rest.
Establish your Web Presence
Also, you need to establish and fortify your web presence. Having a well monitored and structured website can help your target audience learn more about your watch business and all the products and services you provide. And you can also make use of social media marketing to appeal to new customers.
How to Grow Your Watch Business
Once you have already gone through the nitty gritty steps of setting up your own watch business, it is now time to grow and promote your business.
There are several means of promoting your business; one of the most effective is by using online advertising methods.
Also, you can make use of email marketing. You can employ email subscriptions or weekly newsletters to your subscribers notifying them of any new promos for your business.
How to keep customers coming back
To ensure that customers keep coming back to your shop, you must have an established brand name first. Also, you should have a brand story or history placed on the “About us” portion of your website.
Moreover, you should also reveal on your site how your company values customer service. Aside from this, you should also accompany your products with well-photographed shots as well as luxurious sounding yet accurate descriptions.
How and when to build a team
Usually, watch businesses start up small. However, it is expected that it will flourish or become more prominent in a few months. Especially with the steady demand for premium and high-class watches, this is to be expected.
With this, you must be ready to hire more employers. You should be able to cater to the growing demand for your products as well as the needed workforce to do handle sales and customer support.
When opening a business, you should be prepared to register and process needed state permits and licenses. For more information about legal requirements for every state, you can visit SBA’s reference.
With that being said, most business, regardless of what type it is requires the collection of sales tax on goods and services. As mentioned above, every state might need a different kind of tax requirement; with this, you should ask for assistance from your city or state office.
Maintain Personal Asset Protection
Aside from registering your business in state permits and taxes, you also need to maintain personal asset protection.
Often, when you own a business, your assets, as well as those coming from your company, might get in the mix. These include cars, homes, gadgets, and many more. This scenario is referenced as piercing the corporate veil in the field of business law.
To avoid this, you need to have a separate bank account for your business and personal statement. This is required to protect your assets in case of any problems that might occur within your watch business. Also, it eases the steps you need to make when filing for tax yearly.
Get a business credit card
Aside from managing your personal and watch business assets, you might also need to get a business credit card. Most of us own a particular credit card; holding a separate one for your watch business can be very useful.
Doing this will also help set up your watch businesses’ credit history. This credit history can be used to raise money as well as raise investment assets in the long run.
We have reached the end of our guide on how to start your watch business. With that said, we end on a high note as we tackle the possible earning potential for each watch business. You will surely get excited about starting your watch business, given the huge returns in profit.
How much can you charge customers?
The range of cost for watches is extensive. With this being said, you can sell any clock for a few dollars up to thousands of dollars. In most cases, watch businesses first sell watches that range at $50.
While this is not a huge price, you get to make up for it by selling more units despite the smaller amount. Also, it is essential to have a wide variety of watches with different price ranges for every type of consumer.
What are the ongoing expenses for a watch business?
When talking about any businesses, you should only focus on the profit, but you should also take note of the recurring expenses you might need to spend. Some of these include hosting service providers as well as warranty claims.
Watch Business Profit
As an estimate, watch businesses can earn up to 5000 dollars. For larger watch businesses such as Watch Outfitters, they make a profit of $13,500 every month, with annual revenue of $162,000. You cant expect to earn a benefit to this degree, but over time and with a lot of marketing and excellent management, you might be able to get somewhere close to it.
So there you have it, that is our guide on how to start your watch business. Make sure to follow the steps we mentioned above, and you might be on your way to earning thousands of dollars.
Now I’d like to hear about your ideas.
Have you get clear about how to start your watch business?
Will you start to get started by planning your business today?
Will you grow your business with building your team.
Either way, please let me know below through the comment.