Need To Make A Decision

JK Knives

JK Knives

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I`ve got a hard decision to make in the next several months. As some of you know, in August I will start taking my Social Security. I currently have a night job, which I don`t really like, but it pays the bills. I also really enjoy making knives. I need to decide whether to go part time on the job (so I don`t make too much, and lose Social Security benefits), or quit the job, and continue making knives, if the demand is there. Currently orders are not coming in at a steady pace, and I`m not sure if I can make it on monthly sales only. I know I can`t do both, so I have to consider my options.
 
Assuming that your knife business is separate from the equation; can you balance the night job at lesser hours to begin to take SS and get some of the benefits while still getting a steady supplemental paycheck?
 
The knife business is a legal corporation, so income from it must also be declared. It's going to be a hard choice.
 
There's no law that says your business has to make money. Many corporations operate at a loss for years at a time (although there may be a limit to years of consecutive loss. I would have to confer with my accounting buddy).

Since you could control your income from the JK side I don't understand why you couldn't do both.
 
If I'm not mistaken, a corporation can be run at a loss for five years.
 
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I'll probably wait a few months, see how bookings and sales go, then make my decision.
 
If you love making knives, you will do what you have to do to continue to make them. I assume this started out as a hobby at one point and grew into something great. That may end up working out in reverse down the road, but I guess your most important decision will be what is best for you and the wife so that you can continue to live in a certain way.

Work is just that, work. Even though your knife business is a business, I am sure that it is more than that to you.
 
Very hard decision. Not sure how much you make off the job but there's probably not as much overhead. Having to meet a quota for the knives can make a pleasure an unpalatable chore quickly. I would be tempted to make knives you want to make, as you can afford to make them, and sell them in the maker's forum. You can post here if you keep the forum or have an email list, FB list, etc to further advertise something is ready. Maybe even take the occasional order if it works in with what you are doing. Be firm in your prices though. Don't sacrifice your profit for unreasonable material purchases. If someone wants something that requires a significant purchase of a certain material they cover that cost and you get to use the leftovers later for your own personal whatever. If I want something that requires 9" of material and it's only available in 16" lengths. I buy the whole piece and you get to use the leftovers as a bonus.
 
glennbad said:
If you love making knives, you will do what you have to do to continue to make them. I assume this started out as a hobby at one point and grew into something great. That may end up working out in reverse down the road, but I guess your most important decision will be what is best for you and the wife so that you can continue to live in a certain way.

Work is just that, work. Even though your knife business is a business, I am sure that it is more than that to you.
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WA Martin said:
Very hard decision. Not sure how much you make off the job but there's probably not as much overhead. Having to meet a quota for the knives can make a pleasure an unpalatable chore quickly. I would be tempted to make knives you want to make, as you can afford to make them, and sell them in the maker's forum. You can post here if you keep the forum or have an email list, FB list, etc to further advertise something is ready. Maybe even take the occasional order if it works in with what you are doing. Be firm in your prices though. Don't sacrifice your profit for unreasonable material purchases. If someone wants something that requires a significant purchase of a certain material they cover that cost and you get to use the leftovers later for your own personal whatever. If I want something that requires 9" of material and it's only available in 16" lengths. I buy the whole piece and you get to use the leftovers as a bonus.
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+1 - I'm in an agreeable mood today :D . More to the point these comments are, I believe, accurate and well stated. You might also consider dissolving the corporation and restructure your knife making operation as more of a hobby. You don't have employees and your risk exposure is low. I am not at all the guy to be giving tax advice but I certainly would ask a few questions about how to grow old as a happy knifemaker as it relates to your tax responsibilities.
 
I know I will be buying some knives from you in the future - I'm weird and buy at least 3, or a multiple of, (with lime green liners if possible) from each maker. Not enough to quit the job, but guaranteed work in the future.

These are the types of questions I have no clue about, but I trust you will make the right decision.
 
On break now. I appreciate all the ideas and advice you guys are posting. I'm pretty sure I know what I want to do, just hoping I can make it work.
 
RayseM is on the track I would explore if it was me.... There are many ways to be profitable but not fall into categories that chew into the actual profit...

The paypal thing is another. Perhaps on customers that you share mutual trust with, have them send money orders.
 
while there is a limit on your earnings from 62 to full retirement age, that restriction goes away as soon as you hit that benchmark.
 
Johnny1111 said:
RayseM is on the track I would explore if it was me.... There are many ways to be profitable but not fall into categories that chew into the actual profit...

The paypal thing is another. Perhaps on customers that you share mutual trust with, have them send money orders.
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I always prefer money orders, but customers started wanting to use PayPal so I had to start using it.
 
I hope you can work out the details. It sucks to keep working the night job if you really don't like it. Look at my dad as an example; he worked pretty hard for lots of years but he didn't really get to enjoy a long retirement. He had a few years to fish and enjoy his grandchildren but when his health started to fail it declined rapidly. Obviously we live in a world where money is a big issue. But it can't be the sole reason for living. It would be cool if you could draw SS and keep the knifemaking as a "hobby" that could make a few bucks for "mad money".

As you say, you probably know your heart better than anyone. I would only suggest you follow your gut and do what will give you the most happiness moving forward.

-Rob
 
Rob Babcock said:
I hope you can work out the details. It sucks to keep working the night job if you really don't like it. Look at my dad as an example; he worked pretty hard for lots of years but he didn't really get to enjoy a long retirement. He had a few years to fish and enjoy his grandchildren but when his health started to fail it declined rapidly. Obviously we live in a world where money is a big issue. But it can't be the sole reason for living. It would be cool if you could draw SS and keep the knifemaking as a "hobby" that could make a few bucks for "mad money".

As you say, you probably know your heart better than anyone. I would only suggest you follow your gut and do what will give you the most happiness moving forward.

-Rob
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As most have probably realized, my hope is to continue making knives, that is what will make me happy. The problem is that incoming orders do not show that to be an option, but I keep hoping that will change with nicer weather on the way. I've noticed less and less people, (including the "regulars") posting here, that does not give me a good feeling about the future.
 
Keep making knives if it makes you happy.
If the concern is the potential loss of income you might see by making knifemaking your sole source of income, you could consider keeping your night job on a part time basis (if that's possible). If you're thinking that your knife income might push you over limit, remember - you don't have to break your ass turning out knives, nor do you have to sell them as fast as you can make them.

You're the one that knows your current financial status, and how these decisions will impact you from that perspective - all we can do is offer support.
 
JK Knives said:
As most have probably realized, my hope is to continue making knives, that is what will make me happy. The problem is that incoming orders do not show that to be an option, but I keep hoping that will change with nicer weather on the way. I've noticed less and less people, (including the "regulars") posting here, that does not give me a good feeling about the future.
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Forum activity is way down across the 'net. I check in only about once per week at KF and often there isn't a single new post when I do. Are you on Facebook, John? It seems like Facebook is taking most of the forum traffic away. Personally I don't like or use it but nearly everyone I know is there constantly. A good buddy of mine that sells sharpening gear and compounds does most of his business that way. It's free/cheap to get started and does seem to be worthwhile.

Social media constantly evolves. Forums were cutting edge ten years ago but they're not how people communicate now, at least not as much.

As for me, I have been a little scarce mostly due to being close to finishing my Bachelor's degree while still working FT.

I do think people will start knife shopping a bit more as it gets nicer out.
 
I'm going to go out on a limb and guess the quality of your work is amazing (or else I wouldn't have ordered from you). I am a member of an organization that does a lot of survival stuff, and I plan on taking my knife out with me in June (fingers crossed it makes it in time) to a week long survival event with about 50 other members. I will be passing the knife around and showing it off and hopefully be able to get a few more people coming your way.
 
Cadillac86 said:
I'm going to go out on a limb and guess the quality of your work is amazing (or else I wouldn't have ordered from you). I am a member of an organization that does a lot of survival stuff, and I plan on taking my knife out with me in June (fingers crossed it makes it in time) to a week long survival event with about 50 other members. I will be passing the knife around and showing it off and hopefully be able to get a few more people coming your way.
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Which pattern did you order?

Jeff
 
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