Machine knife supplier with stock and regrinding

Local factories, packaging and converting firms, print and finishing shops, and food and plastics processors that cannot wait days for a blade.

Margin on blades sold from stock and special orders, plus a per-blade fee for regrinding and re-edging. Regular maintenance contracts with plants give steady monthly income.

• Machine knife and blade knowledge
• Grinding and measuring (or hiring someone who has them)
• Sales and account management

• General and product liability insurance, plus workers' compensation once you hire
• Zoning and permits for a grinding workshop: check with your city or county
• Workshop safety under OSHA rules, including guarding, eye and hearing protection and dust or coolant handling
• Check your state's rules on disposing of grinding swarf and coolant
• Stock ties up cash, so start with the fastest-moving blades
• Sales tax registration and resale certificate rules vary by state

Startup costs typically run around $25,000 to $100,000, depending on your stock levels, regrinding equipment and the unit you choose. Stock ties up cash, so it can help to start with the fastest-moving blades.

Monthly revenue is typically around $10,000 to $50,000, depending on how many local plants you serve and whether you offer regrinding. That figure is revenue before costs such as stock, rent and wages.

Check zoning and permits for a grinding workshop with your city or county, plus OSHA workshop safety rules and your state's rules on disposing of swarf and coolant. Also check general and product liability insurance, and sales tax and resale certificate rules.