• The BladeForums.com 2024 Traditional Knife is ready to order! See this thread for details: https://www.bladeforums.com/threads/bladeforums-2024-traditional-knife.2003187/
    Price is $300 $250 ea (shipped within CONUS). If you live outside the US, I will contact you after your order for extra shipping charges.
    Order here: https://www.bladeforums.com/help/2024-traditional/ - Order as many as you like, we have plenty.

  • Today marks the 24th anniversary of 9/11. I pray that this nation does not forget the loss of lives from this horrible event. Yesterday conservative commentator Charlie Kirk was murdered, and I worry about what is to come. Please love one another and your family in these trying times - Spark

How NOT to start Full Time Knifemaking

I also wanted to add, even if you do everything right, you're still at significantly higher risk than you are being an employee somewhere.

Also, if you keep poor records, tie goes to tax man. You can say whatever you want on your tax filing, but if you don't have hardcopy or digital proof, you lose. You can end up paying tax on all kinds of things that you shouldn't be. You know that $1000 that grandma gave you to help start your business? If you don't have it accounted, grandma actually gave you $700.

Tax deductions can be your best friend if you manage them properly and legally.
 
HallHandmade said:
Tax deductions can be your best friend if you manage them properly and legally.
Click to expand...

And to add to this, do yourself a favor and don't get your taxes done by buffy the tax girl from taxes-R-us that just received her tax degree from an online tax course

Find an experienced tax person that specializes in small business, my first accountant almost broke me, fortunately a friend set me up with his taxman and saved me a bundle
 
Selling you product @ the highest price someone's willing to pay is not the easiest lesson to learn. When I applied to the KG in 79, George Herron was the closest to me so I called him and asked if I could bring the three knives in person, having had bad luck shipping. He agreed so I put my wife in the Toronado and drove to Aiken, S.C. for show and tell time. At some point George asked me what one knife would sell for and I told him. His reply was to double the price at least or i'd sell thousands of knives and starve to death.
The first knife I ever sold, went for $20.00. It was a $300.00 knife but what did I know.
 
@Hankins- Im barely in the hobby-maker category- certainly not a FT maker. But there is a lot of sage advice here. (that I am putting my ear to the rail as well with this thread)

In my own small biz venture I found the biggest thing is being honest with yourself, setting realistic goals (more specifically- since you are new: WHAT are realistic goals) and mentoring. If you are looking to really ask yourself some soul-searching questions- and are serious- then do a business plan... Go to SCORE.ORG and download the business plan template- as well as the first year financial spreadsheet- KNOW THEM INTIMATELY- any business owner/proprietor or self-employed person needs to "know the numbers" its the "pulse" of a business... and if you ever go to get a micro-loan, funding for a shop, or look into selling, incorporating or growing beyond your "self" business- people will want to see your spreadsheet and the business plan.

And I have watched several folks around me hold on to a dying business till it completely imploded, destroying personal relationships and homes and in one case- ripping a family apart. DO NOT GET EMOTIONALLY ATTACHED- if the business is dying- have an exit plan- and know what your boundaries are and what the priorities are in your own life- OUTSIDE the business.

There are several free online resources for business plan templates- but I have used SCORE as theirs is already written as a bank or potential investor (or auditor) would like to see it. And it made me THINK about things I had not anticipated.

Kerri
 
A lot if good Information and advice here. I am retired and have enough income to take care of the bills and at this point my knife and tool business is just a hobby. One thing I have found that I really like is using PayPal. I got a PayPal debt card and use it for knife related purchases only. I really like the fact that they send an email detailing each purchase.
I'll be talking to my bookkeeper soon I know the IRS will come into the picture at some time. I have heard of people trying to write of experience claiming its a business and the IRS turn it down saying no its a hobby.
Time will tell.
 
Absolutely wonderful thread and one of the reasons I love this place! I will be heading over to score.org tonight!

I have nothing to add advice wise, but I did hear something the other day that applies. You have to be an entrepreneur, not a want-trepreneur. If you are making and not selling them you just want. I actually and as excited for the business side as I am about the knife side. I will never go full time though, nor do I want to.
 
I'm sure this goes without stating, but expect one sale for every 20-50 referrals to you. Don't get your hopes up too high, most people are tire kickers or just have to plan long in the future when plans may change. Have a sales plan for every order you take, if you take them, for those cases where the buyer WILL not pay/disappear. Make sure that one knife won't hurt too much to hold on to- if you are one knife away from not buying supplies you might have issues. Have a materials slush fund- enough at least for a grinder should yours break in the middle of a new project. That way you will have a contingency in case you need an immediate belt/handle material order- put money back into the business. Make sure that you can afford to replace that $200 piece of mammoth that you just cracked- or make sure not to use such expensive materials until you are in a place to be able to replace when it breaks. Don't be afraid to say no!! It's good to understand when you are dealing with somebody who is more picky than you are, on top of those that are picky and insane (run from these people!!). It's not a bad idea in my experience, to let somebody know if their ideas are too advanced for you- they may rework the idea, but even if they cancel you have probably saved aggravations, lost sales and the hassle of returns. That said- don't forget to push your envelope, take some scheduled time for your experimental/mental break knives if you get overrun with orders/patterns. Take some time to enjoy your knives!! I tell every person who has one of my knives that I have used it first! Now I don't go out and baton or use them harshly, but I will put a preliminary edge on it and cut for a few minutes prior to handle assembly, and cut some wood and paper (at least) before the final sharpening. If you don't want to cut with it before boxing it up- why did you make it?

I'm not a good or speedy knife maker, but in the future I may want to make a sizeable portion of my income from this profession, especially if I my body cannot continue to perform massage. Being self employed in massage has given me a lot of insight into keeping the love when turning something into a career, which is why I can recognize that even if all other factors were in place, that I would not mentally be ready for a full time career in knifemaking. Inheriting there business wise, but it's still beyond my grasp. Maybe someday my skills will meet my business acumen, but I'm definitely not going to rush it (unless I have to). Now listen to the people who know what they are talking about and forget my rambling..... ;)
 
You must log in or register to reply here.
Back
Top