Despite the prevalence of smartphones that easily display the time, watches continue to be popular. In particular, there remains a steady demand for high-end, luxury watches. Online watch and jewelry sales in the United States alone totaled $8 billion during 2017 , and the segment has seen sustained annual growth of 12.3 percent over the past five years. Even smartphone makers (most notably Apple ) can’t ignore the demand for watches and are producing smart versions of luxury watches.
A watch business sells watches to consumers who are interested in wearable timepieces. Thanks to sustained demand and a large market, this is an industry that’s ripe with opportunity.
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We have put together this simple guide to starting your watch business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
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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:
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 Watch Business 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.
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Because watches are small, businesses don’t need much room for storing inventory. An entire business can be run from a home office.
Business owners who have limited capital can minimize these expenses by opening with a limited inventory, setting up their website themselves and focusing on organic advertising methods.
The ongoing expenses for a watch business are manageable. They include website hosting expenses, the cost of purchasing inventory and paying for any warranty claim repairs.
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The target market for watches tends to be adults who have discretionary income and appreciate style. These customers will use watches to make fashion statements, and they have money to spend on watches.
A watch business makes money by selling watches. Watches are normally sold individually, but collections can be curated to encourage customers toward buying multiple watches.
Watches can sell for anywhere from a few dollars to tens of thousands. Most new watch businesses begin with watches priced around $50. This price point isn’t prohibitively expensive yet provides a reasonable profit margin. As a business establishes a customer base, lower- and higher-priced watches can be offered for diversity.
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A watch business can make a substantial profit even in its first year. Within one year of opening, Watch Outfitters was bringing in $13, 500 in sales each month. That’s an annual gross revenue of $162, 000, and a lot of that is profit.
A watch business can increase its profits by designing and building its own watches. This involves more work but gives a business truly unique watches to sell. Additionally, the profit margin on watches is more when the watches are assembled from individual parts rather than purchased as manufactured units.
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your watch business is sued.
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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 can acquire your EIN through the IRS website. If you would like to learn more about EINs, read our article, What is an EIN?
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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.
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.
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.
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Certain state permits and licenses may be needed to operate a watch 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.
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.
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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.
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.
FInd out what types of insurance your Watch Business needs and how much it will cost you by reading our guide Business Insurance for Watch Business.
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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.
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.
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Almost any online advertising method can be used to market an ecommerce watch business. One of the most effective advertising methods, however, is email marketing. Jonah , owner of WatchOutfitters, generates $500 in sales each week with a single “Watch of the Week” email.
Businesses must keep this in mind and create content with style in mind. One anonymous but thorough guide to creating a watch business detailed how to:
It’s no accident this list focuses on marketing and leaves out actually selecting a watch. The guide actually refers to the physical watch as “the less important.” While quality can’t be ignored completely, marketing is what drives sales.
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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.
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 2023 to find the best phone service for your small business.
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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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Anyone who has a passion for chronometers may be well-suited for running a watch store. Successfully running a store requires understanding why people want watches. People who themselves love and want watches already have this knowledge, which is knowledge that can’t easily be learned.
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Some business owners may also perform repairs related to warranty claims, but business owners who don’t have technical repair skills can outsource this work.
Starting a watch business requires a knowledge of both watches and of how to run a business. Business owners must at least have a cursory knowledge of watches so that they can make wise inventory decisions and properly converse with customers. Basic business knowledge is essential to making sure a business is profitable.
Business owners who aren’t familiar with watches can take a watchmaking course, such as those offered by TimeZone Watch School and Learn Watchmaking . Even if business owners don’t plan on building watches by hand, the skills taught in these courses will help when selecting inventory. With the knowledge in these courses, business owners can identify which watches are well-made and which
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