How to Start a Knife Sharpening Business in 13 Steps

How to Start a Knife Sharpening Business

Here are the most important aspects to consider when starting your knife sharpening business:

1. Tools and equipment — Invest in high-quality sharpening equipment, such as whetstones, sharpening rods, electric sharpeners, and honing machines. Ensure you have tools for different types of blades, including kitchen knives, scissors, and outdoor tools.
2. Location — Set up a dedicated workshop space for your sharpening business. Ensure it is well-ventilated, well-lit, and has adequate space for equipment and customer interactions.
3. Mobile services — Consider offering mobile sharpening services to reach a broader customer base. This could include visiting homes, restaurants, farmers’ markets, and other local businesses. If you plan to offer mobile services, equip your vehicle with the necessary tools and equipment to perform sharpening on-site.
4. Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
5. Legal business aspects — Register for taxes, open a business bank account, and get an EIN.
6. Local advertising — Use local advertising methods, such as flyers, newspaper ads, and community events, to increase visibility. Offer promotions and discounts to attract new customers.

You May Also Wonder:

Is a knife sharpening business profitable?

Yes, a knife sharpening business can be profitable. Ongoing expenses are very low, so you’ll keep most of what you make. You just need to do good work and serve your customers well and you can be successful.

Is it better to sharpen a knife wet or dry?

It is generally better to sharpen a knife while it is dry. Wet sharpening methods, such as using water or oil, are typically reserved for specific sharpening systems or when recommended by the manufacturer. Dry sharpening allows for better control and precision during the sharpening process.

How can I differentiate my knife sharpening business from competitors in the market?

To differentiate your knife sharpening business, focus on quality, offer specialized services, provide exceptional customer service, and showcase your expertise.

At what angle is a knife sharpened?

The angle at which a knife is sharpened depends on factors such as its use and type, but generally, kitchen knives are sharpened to a bevel angle of 15-20 degrees per side.

How can I source and select high-quality sharpening tools and supplies?

Source high-quality sharpening tools and supplies by researching reputable brands, seeking professional recommendations, reading customer reviews, and considering professional-grade options.

Step 1: Decide if the Business Is Right for You

Pros and cons

Starting a knife sharpening business has pros and cons to consider before deciding if it’s right for you. 

Knife sharpening industry trends

Industry size and growth

• Industry size and past growth – The US knife sharpening market was worth $70.9 million in 2020.((https://www.grandviewresearch.com/industry-analysis/us-knife-sharpening-service-market)) 
• Growth forecast – The US knife sharpening market is projected to expand 65% by 2028 to reach $117.1 million.((https://www.grandviewresearch.com/press-release/us-knife-sharpening-service-market-analysis))

Trends and challenges

Trends in the knife sharpening industry include:

• Popular cooking shows are increasing the number of people cooking at home, which is one of the factors driving the growth of the knife sharpening industry.
• An increasing number of businesses that use knives and other blades represent another market opportunity for knife sharpening companies.

Challenges in the knife sharpening industry include:

• The low barriers to entry for a knife sharpening business make it a very competitive industry.
• Millennials and GenZ are very interested in DIY, which means they are less likely to hire a service and will do their knife sharpening on their own.

How much does it cost to start a knife sharpening business?

Startup costs for a knife sharpening business range from $1,800 to $4,500. The largest expense is for a business website. You also need a knife sharpening kit, such as an Edge Pro Apex kit, which only costs $250. You don’t need anything else, other than your knife sharpening equipment. 

If you want to hone your knife sharpening skills, you can take a 3.5 hour course online for $30 from TSPROF. 

Start-up Costs	Ballpark Range	Average
Setting up a business name and corporation	$150 - $200	$175
Business licenses and permits	$100 - $300	$200
Insurance	$100-$300	$200
Business cards and brochures	$200 - $300	$250
Website setup	$1,000 - $3,000	$2,000
Knife sharpening kit	$250 - $350	$300
Total	$1,800 - $4,450	$3,125

How much can you earn from a knife sharpening business?

The price to sharpen knives is $1 to $2 per inch of blade. It’s unlikely that someone will have you sharpen just one knife, so these calculations will assume an average sale per customer of $20. Your profit margin will be high, around 90%.

In your first year or two, you could have 40 customers per week, bringing in more than $41,000 in annual revenue. This would mean nearly $38,000 in profit, assuming that 90% margin. As you get referrals and repeat customers, you might have 70 customers per week. With annual revenue of $73,000, you’d make a healthy profit of $65,000.

What barriers to entry are there?

There are really no barriers to entry for a knife sharpening business except facing competition from knife sharpening businesses that are already established.

Step 2: Hone Your Idea

Now that you know what’s involved in starting a knife sharpening business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research knife sharpening businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a mobile knife sharpening business, or a professional knife sharpening business for chefs.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

Read our interview with Albert Edmonds to uncover the secrets of turning a passion for knife sharpening into a thriving business.

What? Determine your services

You should be able to sharpen any of the following items:

• Serrated knife
• Streak knife
• Scissors
• Paring knife
• Pocket knife
• Any other kitchen knife
• Hunting knife

With the right tools, you could also sharpen lawnmower blades or other tool blades.

You can also offer mail-in knife sharpening service, if your customers can’t make it to your store.

How much should you charge for knife sharpening?

Prices for knife sharpening range from $1 to $2 per inch of blade. Check your local market prices to make sure you’re competitive. Your profit margin should be very high since you’ll have few ongoing expenses. You should aim for 90%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be broad, so you should spread out your marketing to include sites like TikTok, Instagram, and Facebook. You can also connect with the owners of businesses that use knives, such as restaurants, on LinkedIn. You can also find them on Google or Yelp and call them directly. 

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a shop space. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “knife sharpening” or “blade sharpening”, boosts SEO
• Name should allow for expansion, for ex: “Sharp Solutions” over “Axe and Hatchet Sharpener”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Business Plan

Here are the key components of a business plan:

• Executive Summary: A concise summary of the entire business plan, highlighting key points and objectives.
• Business Overview: An introduction to your knife sharpening business, including its mission, vision, and a brief history.
• Product and Services: Details about the knife sharpening services and any related products you offer.
• Market Analysis: Information about the knife sharpening industry, target market, and customer demographics.
• Competitive Analysis: An assessment of your competitors, their strengths and weaknesses.
• Sales and Marketing: Strategies for promoting your knife sharpening services and reaching potential customers.
• Management Team: Brief profiles of the key individuals responsible for running the business.
• Operations Plan: How the knife sharpening business will operate, including location, equipment, and suppliers.
• Financial Plan: Financial projections, including startup costs, revenue forecasts, and profit margins.
• Appendix: Supporting documents, such as resumes, legal agreements, and additional data relevant to the business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to knife sharpening business. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your knife sharpening business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a knife sharpening business.  

Step 8: Apply for Licenses/Permits

Starting a knife sharpening business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your knife sharpening business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as Fixably or R.O. Writer, to manage your scheduling, jobs, and invoicing. 

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Marketing

Here are some powerful marketing strategies for your future business:

• Professional Branding — Develop a sharp, clean logo and maintain a professional appearance with high-quality equipment and setup to convey expertise.
• Website & SEO — Create a detailed website that outlines your services and pricing, optimized for local searches related to knife sharpening and cutlery care.
• Direct Outreach — Connect with local restaurants, butchers, and culinary schools, offering free initial sharpening services or demonstrations to build relationships.
• Social Media Engagement — Utilize Instagram to showcase before-and-after sharpening results and Facebook to share customer testimonials and knife care tips.
• Content Marketing — Maintain an educational blog with posts on knife maintenance, the importance of sharp knives, and the science behind your sharpening techniques.
• Email Newsletters — Send regular updates about knife care tips, special offers, and new services to keep your client base engaged.
• Video Demonstrations — Produce videos demonstrating your sharpening process and providing practical tips for maintaining sharp knives.
• Experiential Marketing — Host live sharpening demonstrations and workshops at local markets, fairs, or culinary events to directly engage potential customers.
• Community Partnerships — Collaborate with stores selling knives and related tools for cross-promotions or to provide in-store sharpening services.
• Loyalty and Referral Programs — Implement loyalty discounts and a referral program to encourage repeat business and new customer acquisition.
• Targeted Local Advertising — Employ advertising in local culinary magazines, community bulletin boards, and online platforms tailored to reach your target audience.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your knife sharpening business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your knife sharpening business could be:

• Knives getting dull? We’ll come to you and sharpen in a snap! 
• Don’t buy new, revive your old knives with professional sharpening
• Top-notch knife sharpening for top-level chefs

Networking

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a knife sharpening business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in knife sharpening for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in knife sharpening. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a knife sharpening business include:

• Knife Sharpeners – assist with handling customer orders
• General Manager – scheduling, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Start Making Money!

If you’re looking for a simple business to start in a growing industry, knife sharpening could be just the ticket. As people buy more expensive knives, the demand for knife sharpening is growing. You just need some basic equipment, a good marketing plan, and a willingness to work hard and provide great customer service, and you could be sharpening your way to serious success! 

This guide has sharpened your business knowledge, so now it’s time to start your entrepreneurial journey — and your knife sharpening business.