Business

[Johanna]

Our custom leather shop survived and paid the bills because Jon could do anything, he was a jack-of-all-trades in leatherwork. We would go to biker events, rendezvous, buckskinning events, pow wows, SCA and LARP events, concerts (all musicians need leather!) and anywhere we could hustle some work. The trick was to get it into their hands and let them feel and smell it. There was no Internet then- we could have used it! Even taking out an ad in the phone book seemed like too much money. But word spread, "Go see that leather guy!" and we got the rent paid.

Marketing has completely changed with the advent of the Internet. No one has geographical limitations- UPS ships anywhere.

Jon used to fret about being limited to what his two hands could produce at the bench. That's how I wound up in the business- if i were lacing, dyeing, taking the phone calls, it freed him up to work. His greatest strength was that he could doodle anything- your dog or your truck or your girlfriend, then carve it on leather. He got paid well for his carving, but the fabrication, which took longer and took more skill, was never appreciated by most of the customers. They were willing to pay a few extra dollars to not have a plastic item, but they didn't understand why his was so much better, or why his item would last longer/work better/ be a better value. A lot of time was spent educating people before they would produce their checkbook.

In a one-man shop you have to wear all the hats. Most artists are not salespeople and vice versa. Time away from the bench costs money, but if you don't make the sales, why bother being at the bench? The eternal leatherworkers' dilemma.

Good thread, rdb- can't wait to hear what others have to say.

Johanna

[CitizenKate]

I guess I should weigh in here...

I started my business in early 2003, when I decided to make and sell leather game boards. My customers loved the boards, but I sucked at running a business, so I ended up having to take a day job about a year later. I worked in a very successful business, and learned as much as I could about how successful businesses are run, while continuing to work my own business part-time. I also got myself out of debt, and saved up enough money to pay the bills for several months.

In late March, I was laid-off. I'm especially grateful that I have been nurturing my business along all this time. I now am very happily dividing my time between leather work and freelance web development, two of my most favorite things in the world to do! As Bruce mentioned, doing a lot of custom work really forced me to expand my capabilities, and also the need to convert a growing mountain of perfectly good smaller pieces of leather into income. I'm still working up to a full income, but there is a great abundance of opportunity out there!

Don't believe all that crock about a "bad economy". Things are certainly changing, and for people who don't want to change, I guess that's bad. But some things are changing very much for the better. I've made it my job to see the "better" and be in a position to take advantage of it. One thing I see that is getting better for those of us trying to make a living with leather work, and Ray alluded to this briefly, is the resurgence of the consumer market's interest in hand crafted work. There is sort of a backlash to the Walmart generation starting to happen, as evidenced by the huge success of sites like Etsy and other similar sites, and new events and businesses springing up everywhere that offer things handcrafted. And at the same time big business is crumbling all around us, small businesses are starting to have a greater role in carrying the economy. That's YOU GUYS.

Kate

I refuse to participate in the recession!

[Janice]

I got in here sorta backwards, much of that due to timing. I didnt know squat about leatherwork, other than looking after the horse tack I owned for the last 20 years. My mother was a seamstress, and a darn good one too, though I hated sewing clothing, I am sure I picked up some knowledge there.

I bought it all at once. A complete harness buisness, that was run out of a basement, by an elderly gentleman. I took a chance, an invested some of my equity into all these tools and supplies. I dont know exactly how good of a deal I got, but I think I paid about 25% of the replacement value, now that I have reasearched more of the equipment.

I have a day job, and hubby works as well, we always have. I am teaching myself. Started out doing some custom work for people, and repairs. Used to do alot of horse blankets, but have weeded them out now. Too much work for no money, but it brought people in, that would want other stuff.

Tried doing some retail with it as well, but very little happened with that, too many tack stores around here.

I made some nice chinks, pillows, strap goods and other items, but didnt know how to tool, and hadnt gotten around to teaching myself that yet, so they were kinda plain. I am now into tooling, have made 5 items so far. Need continue with the education and practice. Dying and finishes are my next area, then lacing.

I have alot of horse connections, and friends who are bikers. I intend to continue to learn, and teach my hubby, but it will all stay small scale, as I plan to keep the security of my job, and its pension, for the next 18 years.

That is the plan, but who knows?

I would like to again say thank you for this site, and all of the people here, who are generous enough to share your knowledge.

[bruce johnson]

A few other suggestions here and points of interest. When your leatherwork is a business you get to do more paperwork, which also takes time away from the shop. On the upside, you get to deduct a lot of the stuff that as a hobby or hidden business "for cash or beer" under the IRS radar can't. Your tools don't cost you anymore, they reduce your income on the business. Your trips to Sheridan - mostly free. My trip to the guild show this fall (seeing my folks who live by Indy) - mostly free. Mileage to the post office, hardware store, visit the relatives 150 miles away and stop by TLF and get some NF oil - deduction.

When I seriously needed to pay bills I did almost my salary from the other job working nights and weekends for myself for two years. Other than a sewing machine, I didn't buy much in the way of tools or equipment in that time. Since things have changed, we were renting and I could afford to let the leather income slide relatively in favor of getting better tools and more productive equipment while that primary income is there to support us. Splurge on a drawdown stand, cool splitter, or draw gauge once in a while and it just reduced the tax I paid elsewhere. We bought the place a year ago, and so the income from the leather business is more important than upgrading it again. Other than a few stamps, I am satisfied that the equipment and setup I have will carry me for quite a while now.

One of my small business advisors was retired from running a gas station that had 3 service bays. There are a lot of similarities between it and the leather business. Inventory management, equipment and tools, etc. His advice for growing a business was to "improve tools and equipment when you can, make money when you have to, and plan so you don't have to do both at the same time".

[CitizenKate]

His advice for growing a business was to "improve tools and equipment when you can, make money when you have to, and plan so you don't have to do both at the same time".

There's a gem of wisdom, for sure.

Kate

[UKRay]

There's a gem of wisdom, for sure.

Kate

No argument there, Bruce and Kate. As long as you have good tools you will always be in a position to take on the work when it comes along. before I started selling I spent a lot of time, effort and money gathering machines together that would cut down the amount of 'bench-time' it took me to complete a job and they are just starting to earn their keep. In fact, I could produce a list of small machines I wouldn't want to be without simply because they give me 'extra time' in a day.

To take Dave's point ("We have to be all things to all people...") a bit further, as small business folk we are all striving to make the best of our situation but sometimes we simply can't do everything ourselves. I don't begrudge my accountant a penny of his bill each year because I'm numericaly dyslexic - I can't do maths. I wouldn't let anyone else cut my leather but he is welcome to play with the numbers. It frees up more of my time and I'm happier because of it. A 'no brainer'.

Until now I have been using the day job to fund my leather tool habit but I'm looking to cut down my paid work by another day sometime soon to give me more time in the workroom. Financially it will make me a little poorer but I have bought my tools and machines now and won't have the need for as much expenditure. I'd much rather be in my workroom than dealing with corporate clowns and if that means earning a little less money for a while I'm delighted to do it. There seems little point in being unhappy doing what I do...

The web side of the business is certainly my main focus at present but as soon as that is under control and building I'm planning to switch my attention to the show circuit. There are so many medieval and country fairs in the UK that I can be busy every weekend in the summer. I have just purchased an 18ft x 12ft x 12ft high tent (see www.past-tents.demon.co.uk ) ready for next season. It has had a single owner from new (and doubtless has a low mileage LOL) and cost me half the price of a new one. I'm happy to invest as long as I'm spending sensibly on developments for the future.

I don't know how successful I'll be as a show trader but one thing is for sure, I'll enjoy the experience and will meet lots more nice folk. I might even sell a bit of leather!

Ray

Edited May 29, 2009 by UKRay

[CitizenKate]

In a one-man shop you have to wear all the hats. Most artists are not salespeople and vice versa. Time away from the bench costs money, but if you don't make the sales, why bother being at the bench? The eternal leatherworkers' dilemma.

One of the lessons I learned the first time around, is that one way or another, in order to grow, you have to get other people involved. Not only do you need people you can delegate tasks to, in order to better leverage your own time, but you also need others who have a vested interest in your success.

This doesn't just have to be employees, either. There are vendors you can partner with, resellers, other skilled artisans that you can outsource the parts of your work you'd rather not have to do....

Kate

[rdb]

Well, there seems to be a little hope out there, at least from most of the people who have chimed in. But so far, the there's not much here from people who are actively trying to support themselves with just the leather trade alone.

One thing everyone agrees on, try and "outsource" as many tasks as you can, not necessarily employee wise, but, for the other things. I.E. web work, accounting, partnerships with other vendors or craftsman.

I have one example of that... There's a biker shop near me, that sells all the vests, and jackets etc. But they don't do repairs or odd requests. I did her some favors, and she has repaid me tenfold, by sending me those odd requests. From zipper repair to larger.longer belts, and even some seat recovers. In essence, she has become a marketing rep for me. Gawd love her, she's a wonderful woman, who keeps getting screwed over by other people, but her and me, work good together.

C'mon people, there's got to be more than a handful of us in this profession, trying it full time.

How 'Bout You?

[kevinhopkins]

Dave, honestly, I'm seriously thinking about getting out of this business for a while while I re-group and develop some skills to go in another direction. The work is still coming in, but not the artistic stuff I'd like to be doing - mostly seat re-covering, repairs and such. With such a slim profit margin, just about anything can upset it. For instance, I just got two hides of barely usable leather (junk) in today. Because of a deadline I had to use some, so can't return it. So, there's three hundred bucks lost again - add it to the rack of sides that I'll probably never use again.

Besides, when I see some of the really beautiful work posted here, I think "what the heck am I doing? I should be focusing on learning and improving rather than filling up my time taking in quantities of low paying work.

Needless to say, I'm feeling a bit discouraged lately. I think I made the same mistake as you in going in a million directions rather than focusing on one thing, which is what I plan to do when I re-invent myself in this biz.

Hello Ian,

You need a different leather supplier if they let you get hung with leather, even if you were forced to use a little. Everyone will make a mistake now and again, and I've certainly had to replace leather on occasion. One customer completely stripped up a double shoulder before he realized that it didn't accept water thru a large swath of it. I paid to get the strips back, and shipped him another pc of leather right away, making sure it was a couple of feet bigger than he had paid for. That's just something that burns me..... Making a living with leather is hard enough without having to deal with that sort of service. Please forgive the rant!!!

Kevin

[kevinhopkins]

Hi... I guess it's already a given that you're not playing with a full deck.... I mean, trying to make a living in the leather world???? Just kidding, but I'm sure a lot of us can sympathize.

I think it's really hard to get something successful going without paying your fair share of dues. And it sounds like you're certainly doing your best to do that. You mention that you don't have a niche, but that you're having some success with word of mouth. My suggestion is to really be watchful for that niche, and don't stop talking. And I think that it's a good thing to give consideration to being balanced in your business approach. There's a book to be written about that, but there are 2 things that sort of come to my mind. One thing is that people will always pay for quality work. (so don't sell your self short) The other thing is this: More than likely, you're just as smart, (likely smarter) as a lot of the high powered corporate folks running big businesses today. So think things thru, and do your best to make good decisions. Business 101

Hope you make a zillion!

Kevin Hopkins