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The Business of Knife Making A forum dedicated to all aspects of running, managing and legal operational issues relating to the custom knife making and custom knife selling industry.

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  #1  
Old 01-21-2003, 07:09 PM
JimmySeymour JimmySeymour is offline
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business plan

I'm in the process of writing the business plan, but all the books I have, have nothing in common with the type of business I want to run. Where could I get a good template, or similar business plans of other knife shops.
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Old 01-21-2003, 07:23 PM
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Tim Adlam Tim Adlam is offline
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Jim,

Two books that I have may be of interest to you. They address business issues that are similar in nature to what we deal with.

1.) How To Open And Operate A Home-Based Craft Business by Ken Oberrecht, published by The Globe Pequot Press.

2.) Promoting And Marketing Your Crafts by Edwin and Selma Field, published by Macmillan.

Both books cover the writing of business plans plus loads of other good info.

Tim
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Old 01-21-2003, 07:39 PM
JimmySeymour JimmySeymour is offline
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Thanks Tim, just checked the books out on amazon and ordered some.
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Old 01-21-2003, 07:57 PM
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J.Arthur Loose J.Arthur Loose is offline
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Hey Jimmy,

Good to see you here!

I'd be happy to help if you have any questions. I wrote up a business plan for a Small Business Administration Loan. The funny part is that I didn't wan't to get the SBA loan because the State of Vermont has it's own version which is a little better... but you have to be rejected by the SBA in order to qualify. The guy at the economic development office who helped me start the process of applying to the state program was quite surprised when my bank and the SBA decided to actually go for it!

Despite my diatribe in one of the other threads you should definitely check out your local / state economic development corporations as well as the SBA. There is also a Vermont Arts Council and a Vermont Crafts Association that helped me out with some info. I'm sure there's something similar in your area.


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Old 01-21-2003, 08:01 PM
JimmySeymour JimmySeymour is offline
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I really don't know how much to ask for. I can build a really nice shop for very little money. If i work part time. and then if things take off work full time. I know it would definitly be easier to just get a signature loan from my bank and go from there, but would definitly miss out on tax advantages.
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Old 01-24-2003, 11:13 AM
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Les Robertson Les Robertson is offline
 
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Business Plans

Hi Jimmy,

Business plans were developed as a tool to help guide a business to meet it's goals. One of these goals is ultimately to make a profit.

No profit....No Business.

As John points out the SBA is a good source for information. The reason they have specific guidelines for business plans (and why the modified John's) is to help insure success of a business.

Their statistics show that 75% of all new business's fail in the first 3 years. That over 80% fail after 5 years.

One of the biggest culprits for failure is lack of positive cash flow. The SBA recommends that you plan on not drawing a salary for at least 3 years.

The reality of custom knives is that there are very few custom knife makers and dealers. Who the business of custom knives is their sole source of income.

If you feel you can set up a shop without a loan, then don't get one. The majority of successful business apply what's know as "boot strapping" as in, you pull yourself up by your own boot straps.

These business look internally for monetary support. This forces you to analyze any purchse (large or small). To be realistic in your budget and your forecasting.

The main advantage to not getting a loan is that if your business does not make it. You still don't owe thousands of dollars on it.

I wrote my first formal business plan while I was in graduate school getting my MBA. It took me a couple months to write and re-write and re-write it. It was very indepth and included a marketing plan as well.

For myself and my business I have found that it was worth the over 100 hours of research I put into it.

I am one of those few who's sole support (for the last 8 years) has come from the sale of custom knives. I owe my success in large part to a very detailed business and marketing plan.

But understand a business plan is only a starting point. I relook my business plan every 3 months and re-write it every 6 months.

My main goal with my plans is to identify upcoming trends and styles. Helping me position myself to take advantage of the new trends.

While not a maker, I have none the less created and developed Markets, Style's and Trends.

I used to hear how "lucky" I was. I always smiled when I heard that. When I was in the 101st Airborne, a General was speaking to several of us new 2LT's. The quote I always remember from that talk was "Gentlemen, luck is what happens when hard work and preparation meets opportunity.

Anyone who has owned their own business knows how true that statment is.

Detailed Business and Marketing Plans
can fill an essential role in the successful development of your business.


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Old 01-24-2003, 07:53 PM
JimmySeymour JimmySeymour is offline
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I have found out that a business plan is always a good idea. A few years back of knife factory in tyler texas was for sale. After visiting the factory and the workers I was skeptical that anyone could turn that factory around. After starting a business plan it wasn't long before I realized that there was almost no way for me to save the plant and do what I wanted to do with it. I'm not even sure if that factory is still up and running. I just bought a program from JIAN that is helping me write my business plan. As far as you comments about if I can make a shop without loan, that is looking very possible, and I just might go that route, but I will finish my business plan before I make any decisions. I would like to thank everyone on this board for there comments and advice.
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