How do I tell if a shoe repair shop’s leather goods and bag repairs are growing?

The first problem is that many small shops record all repairs together. Ask the seller to separate bags, belts, jackets and other leather work from shoe jobs. If the shop does not track that, go through the job tickets or the sales receipts for a sample and sort them yourself.

Look at trends across seasons rather than single months. A busy month before a holiday proves little. A steady rise in bag and leather work, together with customers coming back for second items, suggests real demand. Also check the materials and supplies purchased, since growing work uses growing stock.

Then ask what drives the growth. Is it a recent advertising effort, a partner store sending work, or simply word of mouth? Check whether the owner has the skill to continue doing the harder leather repairs, and whether that skill transfers to you. Your accountant can help you read the margins on each type of work. Remember that growth in one line of work can hide decline in another. If shoe repairs are shrinking while bags rise, the overall picture may be flat. Look at the whole shop, and ask what the seller expects the mix to be in the future.

Key takeaways

• Separate bag and leather jobs from shoe jobs in the records.
• Compare seasons, not single months, and look for repeat customers.
• Ask what drives the growth and whether the skill behind it transfers.