Startup cost
$15k–$50k
TRUiC Business Ideas
How to Start a Watch Business
Decision Snapshot
Watch
Idea Score
57
Profit margin
8%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Rising
5-yr failure rate
—
Capital intensity
High
Time commitment
Flexible
Part 1 - How to start a Watch business - Background
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.
Our guide is in 3 parts:
- Part 1 - How to start a Watch business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a watch business?
The startup expenses involved in opening a watch business are manageable. They include:
-
Purchasing inventory to sell
-
Setting up and hosting a website
-
Running advertising campaigns
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.
What are the ongoing expenses for a watch business?
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.
Who is the target market?
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.
How does a watch business make money?
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.
How much can you charge customers?
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.
How much profit can a watch business make?
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.
How can you make your business more profitable?
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.
Day-to-Day and Growth
What happens during a typical day at a watch business?
A typical day at a watch business consists of:
-
Fulfilling orders
-
Ordering more inventory
-
Responding to customer inquiries
-
Running advertising campaigns
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.
What are some skills and experiences that will help you build a successful watch business?
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 aren’t.
There are also a number of business classes available online. Some popular ones include those offered by Coursera and listed on Open Culture. Business owners without previous experience should focus on classes that teach the fundamentals of running a business rather than courses on complex and obscure topics.
What is the growth potential for a watch business?
A watch business can be a small one-person operation that serves a relatively small number of customers, or it can grow to have lots of sales and fulfill large orders for many watches. One company that started small but then grew is Modify Watches. Modify Watches’ first few sales were only to family and friends. The company eventually has since then fulfilled corporate orders for Google and Sega, both of which gave the watches to employees.
What are some insider tips for jump starting a watch business?
Most watch businesses today are online. While it may be tempting to set up a stand in a high-traffic area, even a small physical retail space invites more risk and offers limited potential.
Businesses with physical locations must pay rent and carry more inventory, and they can only reach customers who pass by. Moreover, customers who are interested in watches likely won’t make an impulse purchase. They’ll instead want to compare options and prices online.
Ecommerce watch businesses come with limited risk, are flexible and have more potential. Therefore, efforts are better invested in an online watch business than a brick-and-mortar one.
How and when to build a team
Most watch businesses are small operations. Jonah, for instance, started his business himself. Business owners typically hire employees once the work becomes too much for them to handle and sales support the cost of bringing on staff.
Part 2 - Is a Watch business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Watch business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Watch Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Watch business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
-
Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
-
Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
-
Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
-
Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
-
Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
-
Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
-
Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
-
Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
-
Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.