How to Start a Pearl Party Business | SkillsAndTech

A pearl party is a 21st-century twist on the old-school Tupperware party, with mainly women getting together online, rather than in person, to open oysters, rather than food containers, in the hopes of finding gorgeous pearls. Thanks to a pandemic-driven boost, pearl parties are all the rage among certain groups, which means this is a legit business opportunity. 

Of course, starting a pearl party business will be hard work, and you’ll need to know what you’re doing. Lucky for you, this step-by-step guide has all the information you need to party your way to entrepreneurial success.

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Decide if the Business is Right for You

When starting a pearl business, passion alone isn’t enough. So, take stock of the basics first. Ask yourself, what are the ins and outs of this industry? Do I have the skills required? Why do I want to start this business?

Some important things to know at this stage include the below. 

Pros

• Work from home and choose your working hours
• Low startup costs and few barriers to entry
• Few regulatory and compliance requirements

Cons

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• Difficult to assess a pearl’s value
• Stocking enough oysters can be challenging

Pearl party industry trends 

The future of the pearl business looks promising, and smaller startups have the opportunity to capture a share of the market as more customers opt to buy their jewelry online. 

Industry size and growth 

• Industry size and past growth – Market analyst Statista values the broader jewelry market in the US at just under $60 billion and the global jewelry market at nearly $230 billion.
• Growth forecast – The global pearl jewelry market will be worth a whopping $20 billion by 2025, following five years of impressive 13% growth.
• Number of businesses – Market analyst IBISWorld says there are more than 50,000 jewelry stores in the US.
• Number of people employed – US jewelry stores employ more than 120,000 people

Trends and challenges

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Trends shaping the pearl party industry include:

• Increased online demand for fine jewelry
• Growing consumer demand for sustainable jewelry
• Influence of celebrities wearing pearl jewelry

Challenges in the pearl party industry include:

• Declining output and quality
• Environmental challenges

Consumer spending

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• Average consumer spend – In 2020, a consumer unit in the US spent $62 on jewelry.
• Potential customer base – There’s strong interest in pearl jewelry among the millennials. There are more than 72 million millennials in the US.
• Average prices – A strand can cost $100 for freshwater pearls to over $10,000 for Akoya and South Sea pearls.

How much does it cost to start a pearl party business?

Starting a pearl party business will cost anywhere from $7,000 on the lower end to $20,000 on the higher end. Your biggest costs will be procuring oysters and marketing. 

Start-up Costs	Min	Max	Average
Licenses and permits	$300	$1,000	$650
Insurance	$200	$500	$350
Marketing and advertising	$1,500	$5,000	$3,250
Website	$1000	$3,000	$2,000
Software	$200	$500	$350
Equipment	$1,200	$2,500	$1,850
Raw Material	$2,000	$7,000	$4,500
Miscellaneous	$600	$500	$550
Total	$7,000	$20,000	$13,500

How much can you earn from a pearl party business?

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The amount of money you can generate from hosting an online pearl party depends on how many parties you’re able to host in a month, the number of attendees, and your overhead. Average revenue from a pearl party is about $1,500, and you should be able to achieve a profit margin of about 70%. 

In your first year or two, you might host 5 parties each month, giving you annual revenue of $90,000 and a profit of $63,000. After you establish a reputation, you might host 12 parties each month and bring in $2,000 in revenue from each. This would give you annual revenue of $288,000, and a tidy profit of around $200,000. 

There really is no limit to the income potential. Before the pandemic, established company Vantel Pearls made around $500 per party. Now their live-streamed parties often bring in $6,000 to $7,000, and have reached as high as $17,000.

What barriers are there?

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There are relatively few barriers to entry for the pearl party business. Some of the potential hiccups you’re likely to encounter as a new entrant include:

• Low participation, as pearl parties are still somewhat unknown. It might take several weeks or months to create awareness about your business and bring in a good crowd. 
• Customers may be hesitant to buy pearls from a new company. Keep in mind, pearls can be expensive, so it may be a while before customers trust you with their money.

Hone Your Idea

You now have a general overview of what operating a pearl party business involves. It’s time to develop and validate your idea further. You’ll want to address the following aspects:

Why? Identify an opportunity 

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The pearl party market is still in its infant stage. Like any emerging industry, the ability to pinpoint opportunities can be the secret sauce to raking in mega-profits. The first step is to build a social media following, particularly on Facebook.

Research pearl party businesses on Facebook and Instagram to examine their products and services, price points, and customer reviews.

You’re looking for a market gap to fill, or a niche market, such as specializing in brightly colored pearls.

This could jumpstart your word-of-mouth marketing and attract clients right away.

You can target market segments your competitors are ignoring by expanding your reach, and even possibly going global, since this is mainly an online business. You could also choose to start by hosting parties online and expand to in-person pearl parties as your business grows.

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What? Determine your products or services 

When you know precisely how a pearl party business operates, you can seize opportunities that can help you stand out and, most importantly, attract the right audience. At a pearl party, people gather in person or tune into live streams where hosts open oysters to reveal colorful pearls inside. 

Here’s how a pearl party works: 

1. The host presents the oyster stock, with participants buying pearls they find appealing 
2. After an oyster is purchased, the host opens it and reveals the pearl inside
3. The host appraises the pearl, usually around $30-40
4. The buyer then agrees to sell the pearl to a jeweler or have it embedded in jewelry
5. The attendees can also request the host to ship the pearls

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While in-person gatherings consist of a handful of attendees, online streams are accessible to a wider audience, which means they often make more money. In-person gatherings, however, tend to build stronger bonds and repeat business. 

The dynamics of operating a pearl party business are complex. Some of the things you need to figure out before hosting a party include:

How to get a supply of oysters

You’ll need a steady, reliable supply of oysters to keep your business up and running. Most pearl parties use imported oysters. To import oysters, you must comply with the following regulations:

• Apply for an import/export license from the Fish & Wildlife Service, which costs $100 and is valid for a year 
• You can only ship your oysters through specific ports 
• You must declare the oysters you’ve imported for your party to the FWS
• You’ll pay a $93 user fee with every importation of oysters

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You can source your oysters from France, Ireland, Canada, or the Netherlands, with France being the largest exporter of oysters.

While importing oysters can be expensive, you can partner with a multi-level marketing company to help you get affordable oysters for your business. The partnership allows you to buy pearls from the company and, at the same time, become a distributor. Some popular pearl companies include Gifts From Under the Sea, Aww Shucks, Pearls Gone Wild, Vantel Pearls, and It’s Pearl Time.

Be sure to do a background check before buying pearls from an MLM pearl company. You want to make sure you’re dealing with a credible and transparent company. 

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How to appraise the value of revealed pearls 

One of the advantages of getting your pearls from an MLM company is that they can appraise the pearls for you. But if you’ve imported your pearls, you may need to work with a jeweler to help you evaluate and appraise the unveiled pearls. Or, you can learn how to appraise the pearls by enrolling in an online course. 

Here are some appraisal course options:

• International Society of Appraisers 
• National Association of Jewelry Appraisers 
• American Society of Appraisers
• Cultured Pearl Association of America 
• National Association of Jewelry Appraisers
• Association of Independent Jewelry Valuers 
• American Gem Society

How to convert or embed pearls into jewelry 

Many pearl party attendees will want to embed the unveiled pearl in a piece of jewelry. Therefore, you must provide this service – which you can do by working with a reputable jeweler. 

In most cases, the jeweler can convert the pearls into jewelry or embed the pearls in another item bought by the participant. 

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How much should you charge for pearls? 

The primary source of income for a pearl party business is selling pearl-bearing oysters. Wild or saltwater pearls fetch more money than freshwater or cultured pearls because they’re rare. A strand of cultured pearls sells for $50 to $2,000, whereas wild pearls can fetch between $300 and $25,000. 

The average cost of an oyster is $20. Embedding the pearl in items ranges from $29 to $200. Depending on the number of people who show up at your party, you can rake in as much as $3,000, even in the early months. 

Who? Identify your target market 

The target market for a pearl party business is women aged 18 to 45, and you can find them on Facebook, Instagram, and LinkedIn. 

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Where? Choose your business premises 

At the early stages of a pearl party business, you can broadcast live parties online from home. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. Find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Brainstorm a Business Name

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Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “screen printing” or “custom T-shirts”, boosts SEO
• Name should allow for expansion, for ex: “Jim’s Bakery” over “Jim’s Cookies”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Create a Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

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• Executive Summary: Brief overview of the entire business plan; should be written after the plan is complete.
• Business Overview: Overview of the company, vision, mission, ownership, and corporate goals.
• Product and Services: Describe your offerings in detail.
• Market Analysis: Assess market trends such as variations in demand and prospects for growth, and do a SWOT analysis.
• Competitive Analysis: Analyze main competitors, assessing their strengths and weaknesses, and create a list of the advantages of your services.
• Sales and Marketing: Examine your companies’ unique selling propositions (USPs) and develop sales, marketing, and promotional strategies.
• Management Team: Overview of management team, detailing their roles and professional background, along with a corporate hierarchy.
• Operations Plan: Your company’s operational plan includes procurement, office location, key assets and equipment, and other logistical details.
• Financial Plan: Three years of financial planning, including startup costs, break-even analysis, profit and loss estimates, cash flow, and balance sheet.
• Appendix: Include any additional financial or business-related documents.

If you’ve never created a business plan before, it can be an intimidating task. You might consider finding and hiring a business plan specialist at Fiverr to create a top-notch business plan for you.

Register Your Business

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Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to screen printing.

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

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Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your screen printing business will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• Corporation – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

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We recommend that most new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using ZenBusiness’s online LLC formation service. They will check that your business name is available before filing, submit your Articles of Organization and be on hand to answer any questions you might have.

Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

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Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist, and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

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• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital: Venture capital investors take an ownership stake in exchange for funds, so keep in mind that you’d be sacrificing some control over your business. This is generally only available for businesses with high growth potential.
• Angel investors: Reach out to your entire network in search of people interested in investing in early-stage startups in exchange for a stake. Established angel investors are always looking for good opportunities.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

For a screen printing business, your best bet is probably going the personal route or reaching out to friends and family. Although, if you have a great concept, you could give crowdfunding a shot as well.

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Apply for Licenses/Permits

Starting a screen printing business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.

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You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Open a Business Bank Account

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Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your screen printing business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Get Business Insurance

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Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

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Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You may want to use graphic design tools such as Affinity Designer, Adobe Illustrator, and CorelDRAW for photo editing, typography, and more.

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero.
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Marketing

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Some of your business will come from the casual passerby or online visitors, but still, you should invest in digital marketing! Getting the word out is especially important for new businesses, as it’ll boost customer and brand awareness.

Once your website is up and running, link it to your social media accounts and vice versa. Social media is a great tool for promoting your business because you can create engaging posts that advertise your products:

• Facebook: Great platform for paid advertising, allows you to target specific demographics, like men under age 50 in the Cleveland area.
• Instagram: Same benefits as Facebook but with different target audiences.
• Website: SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Buy Now”. This can sharply increase purchases.
• Google and Yelp: For businesses that rely on local clientele, getting listed on Yelp and Google My Business can be crucial to generating awareness and customers.

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Kickstart Marketing

Take advantage of your website, social media presence and real-life activities to increase awareness of your offerings and build your brand. Some suggestions include:

• Signage – Put up eye-catching signage at your store and website.
• Flyering – Distribute flyers in your neighborhood and at industry events.
• Sponsor events – You can pay to be a sponsor at events that are relevant to your target market
• Post a video – Post a video about your product. Try using humor and maybe it will go viral!
• Limited edition – Offer a limited edition of your bestselling T-shirt or mug.
• Seek out referrals – Offer incentives to generate customer referrals to new clients.
• Paid ads on social media – Choose sites that will reach your target market and do targeted ads.
• Create infographics – Post infographics and include them in your content.

Develop your website

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Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google.

You can create your own website using services like WordPress, Wix, or Squarespace. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition.

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Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your screen printing business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your printing business could be:

• The hottest, coolest T-shirts in town
• Mugs, tablets, desks, posters — your whole business branded
• Custom screen printing at great rates!

Networking

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a screen printing business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in screen printing for years and can offer invaluable insight and industry connections.

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The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in printing. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Build your team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a screen printing business would include:

• Screen Printers
• Designers
• Marketing Lead
• General Manager

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At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Start Making Money!

Now that you’ve put a strong foundation in place, it’s time to get out there and grab your slice of the $8 billion US screen printing industry!

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To ensure your business starts off on the right foot, here are some key tips to keep in mind:

1. Meet your deadlines: Whether it’s the deadline for a printing project or your bills, make sure you meet your time commitments—your stakeholders will appreciate it!
2. Provide more value than you take: Ensure your clients and stakeholders get more value from you than you take from them, and they’ll stick with you for life.
3. Always implement quality control: A simple quality assurance check will reduce product returns and customer dissatisfaction.
4. Engage the local community: You know the local community and have a direct connection with them, so it’s better to serve their needs before you market your products on a state or national level.
5. Address complaints with humility: Always listen to your clients, especially their negative remarks as these are areas where you can improve. And even if a complaint is illogical or unfair, address it calmly and professionally.
6. Keep improving your production capacity: You don’t know when a big client will come out of the wood work. Make sure you’re able to seize the opportunity when the time comes.
7. Attend events: Ensure your participation in industry events and trade shows. Bring your best designs as samples and prove yourself as a creative and capable printer.