Can it be profitable?

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Crim

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I know this question has probably been asked and answered a million times, but I've got a wicked flu right now and reading the tiny tiny words really burns my eyes, I apologise for not taking the time to read through all the pages.

So here's my situation. I've got almost no money, what little I have is going directly to bills as soon as it hits my checking account.

I've got $6,000 worth of unused credit card, however this credit card is a department card...so it's got a 25.99% interest rate.

I've been running into wall after wall while trying to find a second job. There just doesn't seem to be anything out there right now.

Okay, if I were to start making knies to sell, initially I'd need someone else to make my sheaths and I'd have to ship my knives out to get them treated. I would be starting from absolute scratch as far as machinery goes, and I'd also need to rent out a garage or small shop.

I'm not expecting to become fabulously wealthy, but if I could come out maybe $500 a month ahead of my expenses, I would at least get a little breathing room.

Using my 26% interest card to get things moving, do you think it would be realistic to come up around $500 a month ahead of my expenses? I just need some way to suppliment my income...

EDIT- I also need to add that I've never made a knife from scratch before. So there will be a bit of a learning going on.
 
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Crim said:
Can it be profitable?

Using my 26% interest card to get things moving, do you think it would be realistic to come up around $500 a month ahead of my expenses? I just need some way to supplement my income...

EDIT- I also need to add that I've never made a knife from scratch before. So there will be a bit of a learning going on.
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Under those conditions ?

No

It's easier to cut expenses than it is to increase income.

It's easier to start a business with zero debt.

It's easier to transition from hobby to business if you already have the hands on skills.
 
Not sure what kind of skill you have as a knifemaker but being a new knifemaker myself Id say no. I didnt charge anything to buy my grinder or startup supplies I just sold my knife collection off.
 
It is not somethign you pick up and make $ off of that easily. The machinery is also not cheap. Most makers have been doing it for years before they try to make a business out of it.
 
I hate to be the one to dump on you, but if you've never made a knife, there is a steep learning curve. I'd say it would probably take you at least 6 months before you could turn out a knife worthy of selling. I found out the hard way, making knives is not as easy as it looks!

As for equipment, serviceable and high quality knives can be made with nothing more than a hacksaw, sandpaper in various grits and some good files.

I know how difficult it can be when you're back is against the wall. You start looking for anything to give you some relief. I know that using that Dept. store card sounds good right now, but I'd tear it up and toss it. 25% interest rate is ridiculous and no one should pay that, no matter how bad you need the money.
 
I would also say that it will be pretty tough to make any profit considering the costs and time involved to even build up the skill to get to a point where knives will sell. The other thing to look at is potential sales. It can be very tough to sell knives as an unknown maker who has not been around long enough for reviews or word of mouth to spread, no matter how good your work. I dont want to be harsh, and i dont mean to discourage you, but i also dont want to see anyone get neck deep into it and not be able to profit. And lastly at 26% interest, it would be hard enough to pay off the investment in gear and materials let alone turn a profit. You have to look at what will happen on the months where you may not sell a knife, how long the knives may sit unsold, and the fact that having to send out for services like heat treat will be a constant recurring cost, which may be a problem if you happen to be strapped at a time when a batch is ready.
 
I'll try and be gentle.
No
No
No

Using credit at crazy rates is the number one way to get in bankruptcy.
Short of trying to pimp out your wife/girl friend, this is the worst business plan I have seen in a long time. Disaster is the only result that can be envisioned.
Trim your expenses, get a job flipping burgers or bagging groceries, rake leaves and mow lawns for your friends....but in no way should you spend money you don't have to try and make money in a field you have no experience in.
 
Going about making money buy purchasing a bunch of tools and hoping you have the knack to make knives is just a bad idea. But you can still make knives with very very little in the way of tools.
A real craftsman can make a knife with nothing more than a hacksaw, files, sandpaper and a harbour freight 4.5inch heavy duty angle grinder and a drill press.
Learn the basics, make some knives see how you do.
By the way most dont get into knifemaking for the money.
CW
 
There is absolutely NO way you can start from scratch as far as tooling and supplies with $6K, rent a shop, pay back all that interest, and have money left over to live on even if you had many years of experience. And with no experience you'll spend $6K just figuring out what NOT to do. I know its not what you wanna hear but its the truth. Sorry.
 
I'm with everyone else. Don't go into big time credit card debt to make knives. Get a copy of the $50 knife shop or do a bit of searching on the forum. You can make good knives for very little money if you are motivated. If you can turn out some good knives then sell them and re-invest.
 
Crim, starting a business with a high interest rate credit card is not a good business plan. If you want to start a business to supplement income you can contact your local chapter of Score through your local Chamber of Commerce. They are retired CEOs who volunteer their time to helping small businesses. I know they will tell you what you've been hearing in this thread. It sounds like you have a good work ethic. I'm sure there is something out there. If I can give you any advice it would be get out of debt. But don't try to do it by going into more debt. That's what Obama is doing. It's only a time bomb.
 
I'm usually the guy who tries to encourage new knifemakers. However in your situation I would have to advise you not to use that credit card to get started in knifemaking. Unless you're a prodigy it's going to be a big mistake.
 
$5 steel, $5 handle material, $5 incidentals, $15 sheath, $8 heat treat, $???? overhead, $???? paydown on credit card, ?? hours of work. You've just made a knife whose low priced mass produced competitors are $30 Buck/Mora/etc. No, it won't be profitable (to the tune of $500/month). I've seen makers selling their knives at near cost just so they can justify staying in the game.
 
There's kind of an inside joke among knifemakers.

How do you make a million dollars making knives? Start with 2 million!

Knifemaking is an expensive hobby. Even among the hobbyists, if you sell enough knives to break even on supplies and wear and tear on equipment, you are doing good. Very few makers make a part time income, or even full time income, and even then it's most often the guys that have worked years at it to refine their skills and build a reputation.

On top of all that, knifemakers that sell rely on people with disposable income. If a person wants a knife, they can spend $30 at WalMart. If a person wants a handmade knife, they can spend whatever they want. But, in this economy there are a lot less people around with that extra cash.
 
I'm guessing he get's the point by now (which I second and third). To make money in knives: specialize and be great at it (specializing is #1 for actual knife makers), sell materials to knife makers (how they made money in the gold mining business), or be a phenomenal marketer. Sadly, a mediocre knife maker who is a great marketer will make many times more than a gifted knife maker.

That's my spiel on knife making. My personal advise to you is burn that card. Listen to/read Dave Ramsey. I wish you all the luck in the world.

PM me if want your first couple heat treated for free, or if you want some cut out blanks to file on.

Good luck.
Mike
 
Crim said:
I've got $6,000 worth of unused credit card, however this credit card is a department card...so it's got a 25.99% interest rate.


EDIT- I also need to add that I've never made a knife from scratch before. So there will be a bit of a learning going on.
Click to expand...
First, cut the credit card up into small pieces. I have Never thought of a card by how much unused credit is left on it???

Making knives for the money is not the place to start.
 
I think people now days don't understand that a credit card is a UNSECURED LOAN WITH SUPER HIGH INTEREST. That's why they get them selves in trouble using them. The only time I use mine is either a large purchase online (which I pay off cause I have the cash already) or a big emergency like a transmission goes out etc.
 
Consolidate your dept into a bank loan with a lower interest rate, and don't ever carry a balance on any credit card should be your first priority. As for knifemaking, its best described as an expensive hobby with small pay back together with a large investment of tools that often take years to aquire, knifemaking skills take even more time much like a fine wine ages. Becoming a knifemaker doesn't happen overnight.

Sit down with a pen and paper and add up all your monthly expenses and compare it with your income. Then look at areas that you can cut back on, there are many ways to save, drive less, use the wood stove more, eat less fast food and do cooking from scratch etc.. You would be surprised how much money can be saved.

Look around for some supplemental work, cleaning offices, working at a restaurant, service station etc.. As others have said you could pick up some files and sandpaper and work in your spare time honing your knifemaking skills and when finances permit gradually start aquiring knifemaking tools and supplies. The key here is to be patient and live within your financial means.
 
Credit card... mans greatest evil !! loose it, burn it, bury it, cut it.. etc...
I've been honing my knife making skills for about a year, far, far, from producing a "quality" sellable item (remember, thats your name on that product)
I have done far better financially at sharpening, almost $600 last year, my best year yet. initial investment can be substantially less however the skill is where your profits are earned and I consider myself a moderately respectable free hand sharpener, I have also invested some $$ in shear (scissor) equipment to expand my (after work) buisness which "eventually" I would like to be a full time enterprize. I have a LOOONG way to go. Best of luck.
 
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