The leather industry is among the oldest manufacturing industries in history. It’s no surprise that leather and its products are one of the globally most traded products.
Leather business is a lucrative business for entrepreneurs seeking new opportunities in the business world. Just as we know, creativity is the benchmark of any business.
There are numerous options available in the leather market. One reason behind the lucrativeness of the leather business is the diversity of usage. People use leather in various ways, such as shoes, clothes, purses, accessories, and bags.
This article will provide you with 7+ profitable leather business ideas to guide your business venture.
- What Is A Leather Business?
- How Do You Start A Leather Business?
- 7+ Profitable Leather Business Ideas
What Is A Leather Business?
When we talk about the leather business, we talk about the leather industry. The leather industry manufactures a broad range of products such as leather bags, leather footwear, leather outfits, leather accessories, etc. The leather industry is one industry in the world economy that has been thriving for centuries. If you look at our present world today, hardly can you see anyone without a leather product as part of their dressing. If it is not a belt, it would be the shoe or the bag.
Hence, the leather business means trading in anything leather. You can be the manufacturer, the retailer, or the distributor. As a manufacturer, you will be the one to design the product to suit whatever purpose you have in mind. The raw materials used to create leather are explicitly derived from the waste product of meat processing. This meat waste product is converted into functional and attractive leather products.
The global leather industry yearly produces leather of an estimated value of about $40 billion. Globally, leather products are one of the most traded. The leather industry grows with the increase in population and urbanization. The leather business is lucrative because the consumption of its products by humans is daily. The scope of the industry is rapidly expanding at a high rate due to its use in different sectors.
If you are an entrepreneur looking for a long-term business that involves your creativity, you should consider the leather business.
How Do You Start A Lucrative Leather Business?
After you’ve learned all you need to know about the leather industry, the next thing on your mind is how to go about starting one. The truth is that anyone can start a leather industry. Depending on what you have in mind, you can begin on a meager or very high budget. It is a fact that there will always be consumers for anything you produce in the leather market. No matter the quality of your product, there will be people with such a budget.
However, if you want to be grounded in the industry, you should start with quality products to gain lasting relevance. First of all, you must have a standard brand. Have what you stand for. Having a brand doesn’t mean you have to stick with just one leather product, but there must be a trend in your business that stands you out. There are various options in the leather business that can serve as a startup option.
Now, you have three (3) significant options when it comes to venturing into a leather business. You can manufacture, retail or export. What you will need to start as a manufacturer is different from what you will need as an exporter of leather products. Manufacturing has to do with making products. In manufacturing, you will need to have all the required materials at hand before starting manufacturing.
On the other hand, exporting business entails selling the finished goods to store owners who will, in turn, sell them to customers. The retail business option will require you to sell the finished products directly to interested consumers.
Steps By Step Guide To Starting A Profitable Leather Business
You should consider the following simple steps in starting your leather business:
- Get Your Business Plan
- Form A Legal Entity
- Open A Business Bank Account and Credit Card
- Set Up Business Accounting
- Obtain Necessary Permits And Licenses
- Get Business Insurance
- Define Your Brand
- Create Your Business Website
7+ Profitable Leather Business Ideas
Listed below are over seven profitable leather business ideas, options, and opportunities that can help you as entrepreneurs venturing into the leather business.
Leather Garment Making
Leather clothes have been and are still trendy in the world of fashion. They are in vogue and timeless irrespective of age group. People love anything leather as it gives this classy and sophisticated look.
As a fashion designer who seeks new opportunities in the fashion world, choosing leather garment making can prove to be your best business idea ever. Under this business idea, you will have to manufacture different kinds of leather garment products, including trousers, jackets, tops, and skirts.
Leather Furniture Making
One of the most popular uses of leather nowadays is in leather furniture making. People are using leather as part of their furniture. This usage is because leather has become trendy, and people are thinking of different ways to put it to good use. A leather settee is always appreciated anytime. It can be seen as cushion covers, sofa covers, the arm of chairs, and other furniture items.
Leather usage is not limited to furniture making alone. Its usage is now prominent when it comes to interior decoration. The truth is that it is all about creativity. There is another aspect where leather can be used as car interiors. You will see automobiles with leather seats looking classy as ever.
If you are going with this option, you might be in a lifetime business with no limitations.
Leather or not, exportation has always been a lucrative business for the wise. If you are in a country where leather tanning and processing are done extensively, then the exportation of leather is a profitable business idea for you.
The leather export business is the transportation of leather to neighboring countries. You will need to get the required information about the export business in your country. If you are going with this option, you will need licenses and permissions from your government.
Leather Crafts Item Making
Leather is also great in craft item making, which makes this a pretty profitable business idea. Starting on this option requires a little investment. What you need is majorly the necessary craft equipment. And this equipment is readily available around you.
The only raw material you would need is leather, which you can get from leather retailers. Leather craft-making features different items like book covers, wall hangings, belts, buckles, etc.
Leather craft-making could be done with little or no professional skills. Just get a little training on the basics of the craft business and make some items at home for practice.
Leather Bag Making
The most common material used in bag making is leather. Leather bags are the types of bags in vogue in this age and time. They are the trendiest of all bag-making materials like bead, fabric, or silver. This business requires a minimal investment, and you do not need any qualifications or professionalism to start the business. However, basic knowledge and understanding of the industry are important.
If you have a great fashion sense, you can venture into the leather bag business. In leather bag making, you can either be the manufacturer or the retailer. The manufacturers produce the bags with available raw materials while the retailer sells the finished products.
Leather Accessories Manufacturing or Retail
Leather Accessories are also another lucrative business idea in the leather industry. Just like every other leather business, you can either be a manufacturer or a retailer. The manufacturing idea requires that you design the accessories and produce them.
The retail aspect of it has to do with you owning a store that features accessories made from leather. You will need to connect with manufacturers before you can start a retail store. Accessories like watches, wallets, buckles, coin purses, gloves, e.t.c. are the things you can have in the retail store.
Hardly can you see a lady without leather footwear. Leather is the primary material for footwear manufacturing. You can start this business on a small scale since the investment for this business is low. Everything you need for a startup is processed leather as your raw material, necessary equipment, molds, and basic manufacturing process training.
Leather Processing/ Tanning Factory
As the word factory suggests, the leather processing business is majorly large scale. The processing of leather is popularly known as a tannery.
Leather Jewelry Making
Jewelry making is another business idea for you in the leather industry. It involves necklaces, bracelets, bangles, earrings, friendship bands, wrapping bracelets, and bangles production. It also requires a small investment to start one.
The leather industry plays an essential role in the economy of most developed and developing countries. The leather industry has grown with customer’s demand for new designs, exceptional and fashionable leather products. As a result of the potential for growth, employment, and exports, the need for the leather industry is snowballing.
The leather industry spreads across numerous segments like tanning and finishing, leather garments, footwear components, leather goods, including harnesses. You can develop these leather business ideas as a lucrative business venture on a small or medium scale basis.
To make a mark and create a space for yourself in this rapidly growing industry, you need a creative business mind. You don’t have to start with a high budget. However, the leather business is one you must approach with an exceptional business strategy.