Knife sharpening is a lucrative business idea. To start a knife sharpening business, you will need to invest a minimum amount.
The amount can be anywhere between $8k-$10k. This cost will cover all your start-up requirements. You can pay everything from equipment marketing with this amount.
If you already know how to sharpen knives, you simply don’t need to invest time and money in knife sharpening courses.
Courses are for those who are passionate about sharpening knives but don’t necessarily have the skills.
If you are one of those people, then you have nothing to worry about. There are plenty of free videos on YouTube that will help you learn the skill of knife sharpening. You can also purchase paid courses by experts.
A combination of paid and free videos will help you gain the expertise you need.
Knife Sharpening Business Profitability
Knife sharpening is quite a profitable business idea. Several people have lost their jobs due to the pandemic. Some people have also experienced a salary cut.
At a time like this, a side hustle can come in handy. Having a supporting income can help you pay your bills. You can also do it full-time.
If you invest more hours in the knife sharpening business, you will earn more money.
One of the best parts about owning your own business is that you can expand your income at your convenience.
With the help of cost-effective marketing tools, scaling your business will be easy.
Word of mouth is another way to get more paying customers. You could start with your friends and family.
Sharpen their knives for free, and they will refer you to other people. Referrals don’t cost money.
Plus, people rely on referrals more than they rely on ads. Once you build a solid foundation of paying customers, you could have a recurring income.
People are never going to stop using knives. And if people use knives, their knives are going to become dull.
That is why it is an excellent source of recurring income. After sharpening knives for a while, you will understand how long it takes people’s knives to become dull.
Based on that, you can estimate the amount of income you will earn every month. Knives are just one aspect of the business.
You could also sharpen gardening tools for your customers. It will help you scale your business. Increasing your customer base will help you increase your income.
Now that we have understood the theoretical part of the knife sharpening business, let’s get into the legal aspect.
Knife Sharpening Business Required Permits, Licenses
To start any business, you will require a permit or a license. The same applies to a knife sharpening business.
The first step is to create a business entity. You will have to register your business under the following titles – LLC, Sole Proprietorship, Corporation, or Partnership.
If you plan to do the business by yourself, then the Sole Proprietorship option will be great. You could also go for LLC.
If you plan to start your business service with a partner, you should register your business under Corporation or Partnership.
Make sure you go through all the options thoroughly. After analyzing all the options, you should register your company.
Once the company is registered, you will need to get a business license. Any person or company providing services requires a business license.
Whether you have a mobile business or an online business, the government requires you to have a business license.
The next essential registration will have to be done for the name of your business. Every business owner has to register the name of their business officially.
You will have to go through several names before you pick one. Ensure that the name you choose isn’t already taken by some other business.
Once you select a name, you can go ahead and get it registered.
When you are done registering your company, you will have to get a federal tax ID number.
The federal tax ID number helps the IRS keep track of your income. Your tax details are fed into the system based on your ID number.
Every business owner has to have a federal tax ID number.
If you register yourself under sole proprietor, then you don’t have to have a tax ID number.
But if you are a sole proprietor who wants to hire employees, you will need the federal tax ID number.
If you plan to work as an independent contractor, you will need the ID number. In short, it is better to get a federal tax ID number.
This way, if you wish to expand the business, you will have everything you need.
Suppose your business starts doing very well and wants to hire an employee, then the federal tax ID number will come in handy. It is always better to think ahead than figure things as you go.
If you are certain about expanding your business, then you will need a State Employer Tax Number
To begin with your business, you should get the federal tax ID number. Once you start scaling it, you can get the employer tax number.
The federal tax ID number will allow you to work as an independent contractor. As per IRS, an independent contractor earns $600 per year from any one of his clients.
If you start your knife sharpening business, you will make $600 from one client. Getting a federal tax ID number is a must.
So to sum it up, you will need the following permits and registrations: company registration, name registration, and federal tax ID number.
If you wish to hire employees, then you will also need state registration. Starting a business requires you to be legally sound.
You don’t want to get into any trouble with the IRS. Tax issues are something you want to avoid at all costs.
The IRS regulates your income both from a job and a business. It is better to be transparent with them.
If you have trouble understanding permits and regulations, then hire a lawyer to understand the details.
When your business begins to grow, you should also consider hiring an accountant.
The registrations and permits don’t cost a lot.
It is a significant business investment you will have to make. It is not ideal to start a business without the required permits.
No matter how small your business might seem. It would help if you went through all the necessary legalities before starting a business.
It will ensure that you have a clean tax record with the IRS.
Starting a business requires you to handle all parts. Of course, you need your knife sharpening skills. But apart from that you also need some additional business skills.
Knife Sharpening Business Required Equipment
To start a knife sharpening business, you will need the right equipment. You will find many different types of knife sharpeners in the market.
You could go for a manual knife sharpener or an electric knife sharpener. Ideally, it would help if you went for both.
But if you only wish to purchase one, then go for the electric knife sharpener.
Your customers will bring your knives that are quite tarnished and damaged. People with high-end knife sharpening skills can go for the manual sharpener.
But if you are a beginner, then the electric sharpener will be good for you. You cannot sharpen all types of knives with the manual knife sharpener.
It is always better to go for the electric one.
The electric knife sharpener will help you sharpen more knives in less time. It saves you the time and effort you might need to put with a manual knife sharpener.
Electric knife sharpeners cost more than manual ones. So, it is essential to include it in your business budget.
You cannot run a knife sharpening business without a good knife sharpener. The simple sharpening tools will not be enough to scale your business.
If you want happy customers, you will need an electric knife sharpener. There are several brands available in the market.
Sharpening rods, pull-through sharpener, electric-pull through sharpener, and sharpening stones are also essential tools you will need.
You will also need to use an electric sharpener with multiple abrasive belts. Here are a few knife sharpeners you can go for.
Cubikook 3 – Stage Knife Sharpener, Chef’s choice XV Professional electric sharpener, Work Sharp WSKTS-W, Sharp pebble premium – this is a basic knife sharpener, and Knife Sharpener Electric 3-in-1.
You will need a combination of electric and manual sharpeners, honing rods, and so on.
Make sure you have all the tools you need to start your business. You could also start with one electric knife sharpener and some essential tools.
Once you understand your customers’ requirements, you could keep adding to your knife sharpening tool kit.
It is vital to keep a reasonable budget for your knife sharpening tools. You can only make money if you have high-end knife sharpening tools.
Don’t try to cut costs when it comes to your tools. It is the central part of your business. You can recover all the money you invested in your tools.
The better the tools, the better will be your business. People want good service. Once you provide it to them, they will become loyal customers.
And the end goal of any business is to build a community of loyal customers. It will ensure that your income is consistent.
Knife Sharpening Service Cost
Knife sharpening can be a very profitable business. You could charge your customer a flat fee for each knife or charge per inch.
Some knife sharpening businesses charge $5 per knife. If you sharpen 20 knives per day, you could make $500 in a week.
If you continue this for an entire month, you could make $2000.
Of course, this is is just an estimate. You could go higher or lower, depending on the amount of time you invest in your business.
Some knife sharpening business owners charge $30-$40 per hour. You could have multiple payment options. It is ideal for keeping a simple payment option.
It will make it easier for you and your customers to understand the payment plans.
The best part about a knife sharpening business is that you will always have work. People are never going to stop using knives, which means you will never run out of business.
Once you’ve learned everything about knife sharpening, you can start building your business plan. Most people have started knife sharpening as a side hustle.
It gives them that extra income. You could invest this money in your passion projects or add it to your savings.
Either way, knife sharpening is a great way to add some extra cash to your bank account.
However, just learning how to sharpen knives is not enough. It would be best if you also learned how to market your services.
Paying customers are an essential part of a successful business. You can get paying customers by using online marketing tools.
Google My Business is one of the best ways to get customers. You could also have your social media pages on Facebook and Instagram, but they do very little for your business.
People who want knife sharpening services use Google. They often Google Knife Sharpening Services near me.
Google also provides a variety of tools and excellent customer service for small business owners.
Now that you’ve learned how to sharpen knives and get paying customers, you need to know how much to charge.
Facebook and Instagram are great for showcasing your work, but if you want customers, then Google is the way to go.
Make sure to invest 10-20% of your income in PPC ads. People search for services on Google. No one searches for it on social media.
Google gives you excellent visibility. They have multiple advertising options that you can choose from. Make sure to run an effective ad campaign.
You could also visit your local hairdressers, butchers, and chefs that require knife sharpening services.
Once you venture out, you will realize a lot of professionals need your assistance. Offer them a good deal and make them your loyal customers.
Knife Sharpening is a great business idea. You can start a business with a small investment. If you are someone who loves using their hands, then this business is perfect for you.
You don’t necessarily have to know how to sharpen a knife. There are plenty of resources that will help you gain the knowledge and the skills.
If you have the passion and drive, you can most definitely start a successful knife sharpening business.