Leather Bag Making Business: How to Start a Bag and Purse Making Business


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.
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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.
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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
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.
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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