Leather bag making is a venture that requires both
creativity and business acumen. The startup cost depends on your business model
either assembly line or hand made.
Other things that impact on your leather wear are quality
of item, design concept and originality. The homestead format is not capital
intensive and need low startup funds.
It takes lots of technical knowledge and fashion flare to
create a design that trend. The business of bag making is tough and highly
competitive and there are many players.
To gain top dollar in this enterprise strive to make
durable, functional and beautiful bags for mass production. There are lots of
raw materials available in the domestic market making the venture very viable.
Even machinery used to manufacture the items is simple
basic and easily produced locally. These facts make bag business very
attractive to investors.
There are a few steps to take before launching your
creative enterprise.
Outline
the Company Structure
You need a business plan to successfully start a leather
bag manufacturing enterprise. The first step is to gain technical knowledge of
bag making.
Then find a good source for your raw material and cost
implications. Factor how to get startup capital, tax issues, company name and
niche market.
You need to decide on manufacturing, wholesale or the
retail end of the business. Other considerations are target customers, staff
strength, location and marketing.
Wholesalers might create their own designs and sell to
retailers. While retailers purchase the item and sell to individual customers.
Branding
You need to differentiate your product from others
obtained in the market. Create a brand name synonymous with high quality and
perfection.
The name is sewn into every product that comes out of
your assembly plant. Big designers proudly display their brand names on each
product.
Funding
There are a few ways to raise funds for your business. You
can get loans from banks, personal savings or friends. Other sources are
through crowd funding or cooperative loans.
You can sell shares in your company or find a core
investor. There is nothing wrong in getting a partnership agreement to get more
funds.
Type
of Leather Bag
There are different types of leather brands in the
market. You need to decide on what type to produce because there are so many
choices.
Some are laptop bags, handbags, purses, traveling bags
and even briefcases. The type of product dictates the design, scope of
operation and even leather.
Fashion is not static and certain items are trending
today and forgotten tomorrow. Before selecting the product do lots of research,
fact finding and product testing.
You don’t want to be caught with a product nobody wants. Make
small samples and seek honest opinions about the product before mass
production.
Other important aspect before choosing a product or
design is the price. More things to mole over are how to market the item successfully.
Gain
Technical Knowledge
You need lots of creativity and craftsmanship to design a
good product. There are many ways to develop your talent such as through books
or tutorials.
Other methods involve skill training or becoming an apprentice.
Learn to design functional, practical and beautiful products for the general
public. Another good idea to gain technical knowledge is working with a coach.
Get a
Permit
You might need a trade licenses and permits to make bags.
You also need to register your business either as an enterprise, one man
business or limited liability company.
You can find further information on setting up your
company from you local chamber of commerce and industry. A vendor’s license is
important because of tax, legal and account purposes.
Things to consider before starting a bag business
There are a few things to consider before starting your
bag empire
1
Create a desirable product for the market
2
Do lots of research
3
Get permits
4
Learn from books, be an apprentice or understudy
a coach
5
Do lots of product testing and take surveys
6
Find a niche market
7
Have a unique selling point to differentiate
your brand and stand out.
8
Make sure the bag is sturdy, durable elegant
and functional
9
Decide on source of funding either through
bank loans or savings
10
You need effective marketing strategies to
push your brand
Related
reading: High profitable leather goods business
How to
Make Leather Bags
The first step is to create a beautiful design. The design
works as a guide and template for cutting, stitching and sewing the leather.
You then select the type of leather that brings the
design to life. Other considerations are the manufacturer’s specification.
Add interesting bits like straps, rings, chains, buckles
to your finishing. The color, texture and shine add character to the final
product.
Try to use high grain leather for better results. Once you
have decided on the production process buy the necessary machinery, sampling or
outsource production.
The type of Packaging, branding and marketing should be
give careful consideration.
Wholesale,
Retail or Manufacture
If you are strictly into manufacturing you need to liaison
with wholesalers. Manufacturing is a challenge because you have two options. One
is finding a manufacturer that meets your expectations or doing it yourself.
Outsourcing your
product to established manufacturers is the less expensive option. You only
need a strong contract and effective quality control.
If you want to go into retailing then you can purchase
different products from manufacturers. It is easy to find manufacturers and
wholesalers eager to do business.
Simplify your operations by using only one trusted
manufacturer. Manufacturers work generally on unit per cost and might include
delivery service and shipment.
Major players in this regard are India and Chinese
leather goods manufacturers.
Lear more about Business Process Outsourcing
Price
of your Goods
To succeed your goods should have a competitive price. When
arriving at a price, factor in cost per unit, type of leather, labor and value
added tax.
An over priced item will be difficult to sell especially
a new brand name. Once properly established with a powerful reputation your
brand becomes a premium.
Create
a Website
A website as a marketing tool is not a bad idea. The website
should contain product detail, prices and beautiful photographs.
Get a merchant account to receive credit card payments or
activate PayPal on your website. If you don’t have the perquisite skills to
design a website hire a web designer.
You website can target wholesalers, retailers and individual’s
customers for your items. To save space and reduce warehousing costs, order
directly from your manufacturers.
Marketing
To gain lots of customers apply effective marketing
techniques. The bag world is highly competitive so you need to get your brand
noticed.
Invest in television advertisement, newspaper
advertisements and magazine adverts. Spend a little on amazing billboards in
strategic areas like highbrow malls and super stores.
Get your products in such store including more product
advertisement. If you can afford it use a famous celebrity to advertise your
bag.
Other methods are through Google Adwords, online
classified and press release. An interesting way to market your item is through
sales representatives and mobile stores.
Make a glossy catalog or brochure to introduce your
product. You can leverage on print media like complementary cards, handbills, posters
and banners.
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