Question: I live in Canyon Country and have horses. I have been doing some leather work as a hobby and might want to do it as a job or maybe even start my own business. I give my saddles and belts away to family members for holiday gifts. Everyone who sees my work says it is real quality.

Can you give me some resources on leather workers/saddle makers?
—Jeff

Response: As you know, leatherwork and saddle making may involve preparing animal skins, using chemicals and various techniques to clean, soften, tan, curry, and dry them. Or a leather worker may work solely on the finished leather to create products for sale, such as saddles, furniture, luggage, clothing, shoes, handbags, belts, and other leather products.

Leather workers may be self-employed or work for an outside company. They may also sell their own products by exhibiting them in shops, at craft fairs, in galleries or in art shows. They may also do the bookkeeping and clerical work needed for their small business.

Employment Outlook and Salary Range:
Above average growth is projected for Leather Workers in California. In California employment outlook and pay varies depending on the talent and marketing of each handcrafter. Starting wages for salaried hand crafters and leather workers may be as low as minimum wage, or range from $7 to $10 per hour or approximately $13,000 to $19,000 per year. Experienced and successful workers may earn from $20,000 to $30,000 per year.

If you decide to pursue owning your own small business, creating a detailed financial analysis is recommended. It includes cost estimation of factors such as rent, electricity, inventory, insurance, and employees' salaries and benefits. Many businesses fail because of lack of funding; costs are often grossly underestimated and capital is used up just before the business starts to make a profit.

Preparing a marketing plan is also a good idea since marketing is one of the most under-emphasized aspects of running a business. It includes determining the customer demand for the service or product, arranging for advertising and knowing how to set prices so that you, the business owner, will be able to make a living after expenses are paid.

A business owner must also determine the most effective techniques for selling products or services. Personnel issues can be another time-consuming aspect of owning a business. Besides hiring, firing and training employees, a business owner must provide employees' salaries, benefits and working conditions that comply with government regulations.

The Small Business Administration estimates that 33% of small businesses fail within the first year, 50% fail within the second year and 60% to 70% will fail within their first five years of operation.

Capital Investment:
The amount of capital investment needed to start a business varies greatly depending on the type of business, location, equipment needed, and many other factors. The U.S. Small Business Administration advises the new store owner to have cash reserve for at least three months' operating costs, preferably one year, after start-up costs have been met. It is rare for a new business to make a profit the first year.

In Los Angeles City, small home based businesses are regulated by the Los Angeles City Council and are subject to a $25 regulatory payment plus annual business-licensing fees.

A saddlemaker can start his own business with a capital investment of $12,500 to $16,000, the latter being the optimum amount to spend for top-of-the-line equipment and materials. Specific costs include $6,000 for a heavy-duty sewing machine, $2,000 for a medium-weight sewing machine, $3,000 for tools, $5,000 for leather and other materials. This does not include rent, insurance, and utilities.

Some businesses build saddletrees, or the frame for the saddle and do saddle repairs as well as making new saddles. Repairs can cost from $1 to over $1,000. Custom-made, new saddles sell for $2,500 and can take 60 or more hours to make. One key to making money as a saddlemaker is in production, being able to purchase large amounts of material at one time, and having the machinery to perform the required manufacturing steps. The saddle making industry is a large one and saddlemakers and repairers may earn more than leather workers.

Job Availability:
There are 20 businesses dealing with saddlery within 25 miles of Canyon Country that you could contact directly regarding employment or referrals. There are also 22 businesses listed that specialize in the general manufacturing of leather products that could be contacted.

Professional Associations and Resources:
Proleptic, Inc.
Saddle, Harness and Allied Trades Association
1101 Broad Street
Oriental, NC 28571
(252) 249-3409
Fax (252) 249-3415
www.proleptic.net
Don Preston, president x3414
This internationally recognized trade association acts a clearinghouse and networking resource for leather manufacturers and retailers. The membership benefits include providing members with information regarding improving their business including how to locate sources for material, tools, equipment, and services, and assists members in establishing advertising programs and conducting basic market research by providing members with low-cost design and production of flyers, logos, catalogs, and advertising.

Additional benefits include networking opportunities at annual trade events, access to the newsletter, Shop Talk, with industry updates and an annual national buyers resource guide, in which individuals and companies may place inexpensive ads. Annual membership dues for individual shops are $38.

Links to many sites of leather/equestrian industry interest:
Tack n' Togs
12400 Whitewater Drive, Suite 160
Minnetonka, MN 55343
(952) 930-4390
www.tacntogs.com/tnt
This is a monthly international trade publication for marketers of products for the horse and rider, which includes owners of retail, manufacturing and wholesale companies/firms. This publication includes information on management techniques and explores current market trends and articles on industry updates.

The publication also provides advertisement opportunities for business, which can be a lucrative way of selling ones' products/services. In addition, the publication web site provides an online classified page for business opportunities and employment opportunities and also a calendar listing of upcoming trade shows.

Leather.TradeWorlds.com
This online site provides directory catered to leather with a variety of links including information on distribution, jobs, manufacturers (saddles and other leather products), publications, services, trade fairs, and professional organizations.

www.LeatherDirectory.com
This online site allows is a directory of resources for information on leather including links to professional associations, educational programs, and a variety of leather product manufactures of saddles, luggage, wallets, and furniture.

Signmakershop.com
This web site of arts, crafts, hobbies, and handmade item directories offers many links to companies and individuals that manufacture leather goods.
Equine Information Network
www.horsecd.com
The network offers listings of equine-related educational and commercial links, including trade associations.

Small Business Resources:
Information and counseling services are available to small business owners through:
Small Business Administration
Los Angeles District Office
330 N. Brand Blvd.
Glendale, CA 91203
(818) 552-3210
www.sba.gov/ca
This office serves the Los Angeles, Santa Barbara and Venture County areas and provides finance programs/SBA loans, training, a procurement program, and export assistance. The administration provides an online tutorial on what to consider when starting a business with information including marketing, financial management, and other relevant guidelines.

A local organization that provides free counseling and training for prospective business owners is the Service Corps of Retired Executives (SCORE). There are various SCORE chapters throughout California. The following are in the Canyon Country area:
Antelope Valley SCORE
1212 East Avenue S
Palmdale, CA 93550
(661) 947-7679
Golden Empire SCORE
1706 Chester Avenue, #200
Bakersfield, CA 93301
(661) 861-9249
To research potential DBAs or fictitious name statements contact:
Department Headquarters, County Clerk of Los Angeles
Registered Record
12400 Imperial Highway
Norwalk, CA 90650
(800) 8152666
www.lavote.net
Training Options and Costs:
USC, Business Expansion Network (BEN)
Civic and Community Relations
2801 S. Hoover Street
Los Angeles, CA 90089
(213) 743-5480
Fax (213) 743-4511
Contact: Nitin Bhatt, Project Director
www.usc.edu/ccr
BEN is a program offered through the USC Civic and Community Relations department for assisting with small business development. The process involves entrepreneurial training, consulting and small business seminars and workshops throughout the year geared towards helping business owners develop business plans, market strategies, and access financing and procurement opportunities.

One program, Fast Trac I (for startup entrepreneurs), is a 36-hour, nine-week program. Another is Fast Trac II for existing business owners who want to expand and grow their business and is a 45-hour 12-week program.

Coursework includes instruction and hands-on training in strategic planning, marketing, personnel and cash flow management. The added benefit of the program is that certified graduates are frequently referred to local loan programs for access to capital. As of 2001, the Fast Trac I fee was $125 and for Fast Trac II was $250.

— • —  
Susan W. Miller, M.A., is a National Certified Career Counselor, a Certified Vocational Evaluation Specialist and holds diplomate status on the American Board of Vocational Experts. She heads California Career Services, a private practice career counseling firm in Los Angeles.

You may e-mail questions to swmcareer@aol.com.