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How to Start a Bag Company: Your Guide to Success

business plan for bag company

Are you passionate about bags and ready to embark on a journey of entrepreneurship? Starting a bag company can be a fulfilling endeavor, and this guide will walk you through the essential steps to kickstart your business and make a mark in the industry.

Research and Planning .

Before diving into the bag-making business, it’s crucial to conduct thorough research and create a solid plan. Consider the following:

  • Identify Your Niche: Explore different types of bags and determine your specialization. Are you focusing on luxury leather goods, eco-friendly backpacks, or trendy fashion accessories?
  • Market Analysis: Study your target market, including demographics, preferences, and buying behaviors. Research competitors and identify what sets your bag company apart.

business plan for bag company

Design and Branding .

Crafting a unique brand identity and designing standout bags are pivotal for success.

  • Create a Compelling Brand: Choose a brand name that resonates with your style and values. Develop a captivating logo and establish a consistent visual identity.
  • Innovative Designs: Collaborate with designers to develop bags that balance aesthetics and functionality. Your designs should stand out and cater to your target audience’s needs.

Sourcing Materials and Production .

Selecting quality materials and establishing efficient production processes are vital steps.

  • Material Sourcing: Partner with reputable suppliers to source top-quality materials that match your brand’s ethos. Whether it’s leather, sustainable fabrics, or unique embellishments, ensure your materials reflect your brand’s vision.
  • Production Strategy: Decide whether you’ll manufacture in-house or collaborate with external manufacturers. Efficiency and craftsmanship are key factors here. nobrand custom offers a full service from sourcing, technical advice, prototyping and production.

business plan for bag company

  Building Your Online Presence.

In today’s digital age, a strong online presence is essential for success.

  • Professional Website: Create a user-friendly website showcasing your bag collection, brand story, and purchasing options. Optimize it for mobile devices and ensure fast loading speeds. If you are in the testing phase or the budget is limited you can try DIY website builders like Shopify or Wix.
  • Social Media Engagement: Leverage social media platforms like Instagram, Pinterest, and Facebook to showcase your bags, engage with your audience, and build a community.

Effective Marketing and Sales Strategies.

Promoting your handbag company and driving sales require a strategic approach.

  • Content Marketing: Develop a blog or content hub that offers valuable information related to bags, fashion trends, and care tips. This positions your brand as an industry authority.
  • Influencer Collaborations : Partner with fashion influencers and bloggers to showcase your bags to a wider audience. Their endorsement can boost brand visibility.

Providing Outstanding Customer Experience.

Delivering exceptional customer service is crucial for long-term success.

Personalized Service: Offer excellent customer support and personalized shopping experiences. Consider customization options for your bags, allowing customers to create unique pieces.

business plan for bag company

Scaling and Growth.

As your bag company gains traction, focus on scaling your operations and expanding your offerings.

Diversification: Introduce new bag styles like totes, clutch bags, baguette bags. Expand the range of colors and sizes based on customer feedback and market trends. Stay adaptable and open to evolving your product line.

In summary.

Starting a bag company requires careful planning, creativity, and dedication. By following this comprehensive guide, inspired by industry leaders and successful bag companies, you’ll be well-equipped to navigate the challenges and embark on a journey towards building a thriving and renowned bag company. Your passion for bags, combined with strategic implementation, will help you achieve your entrepreneurial dreams. Get ready to create a brand that not only produces exceptional bags but also leaves a lasting impact in the fashion world.

nobrand custom can help.

If you’re looking for a quality European handbag and accessory manufacturer to partner your project please get in touch. We can help you with:

  • Design and Technical packs – guide
  • Prototyping and production – guide
  • Sustainable materials sourcing – guide
  • Low MOQs starting at 100 units
  • Producing quality, ethically made items you’ll be proud of

If you need help with bringing your handbag design to life and think that   nobrand custom   could be a good fit for your project, please get in touch. We’re always happy to hear from people who, like us, want to add something good to the world.

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How to Start a Handbag Business in 2022: The Ultimate Guide

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Do you have creative bag designs that you want to share and sell? Do you see that the women's bags and small bags niche is underserved in your target market? Do you have someone in your network who is great at bag design and wants to partner with you?

Whatever the reason is that you want to start your own small business, make sure that you should be able to outline it in a business plan from the beginning itself.

According to Statista, the global handbags market has approximately 56 billion USD opportunity. With an expected growth of over 7% annually, it is estimated that it will be a 75 billion USD market in the next couple of years. Thus if you do have an idea about handbags and believe that you can fill a gap in the market, it is a great business opportunity that you can cash in.

Additionally, the United States being one of the top revenue generating countries, now is a perfect time to start your own bag business.

But what exactly do you need to do to get your handbag business idea off the ground?

To help you prepare, we've created this six step guide on how to start a handbag business. Read on to learn everything you need to know.

How To Start a Handbag Business in 6 Steps

  • Identify a market opportunity for your handbag business idea
  • Define your handbags variety and USP
  • Make your business legal
  • Determine your overhead
  • Market your business
  • Don't overextend yourself financially to fund your growth

Step 1: Identify a Market Opportunity for Your Handbag Business Idea

Before you put wheels in motion for your business, the first thing that you need to decide on is the type of business model you want to pursue. This step is important because it will define the budget, target customer persona and marketing strategy. Let's look at the some of the options available to you:

Your own handbag line:

This option is valid if you are a designer yourself or have a business partner who can design stylish handbags. In this option, you will have to do all the heavy lifting yourself. 

The entire product cycle will be in your hands. You will have to design, craft, distribute the handbags on your own. 

Wholesaling other handbag brand products:

If you have an expertise in business to business sales & marketing, this option is an amazing business opportunity. You can partner with major brands and then sell the products to the retailers while pocketing a decent profit.

Retailing bags from other companies:

If a physical store or an online store is something that you have a passion for, then being a bag retailer is a great option for your business idea. You can get the bags from distributors and then sell them in your store at a decent margin.

Dropshipping:

One of the most popular options today is to start your own dropshipping store. In this type of store, you will be responsible for marketing the bags and every other aspect will be taken care of by the drop shipping supplier.

The biggest drawback from this option is that you won't have any exclusivity in the bag range and the same bags will be available from other stores as well. You will need to be an expert in marketing ( Especially social media marketing ) to generate enough sales to make your bag business worth the effort.

That said, it is also the lowest cost business model wherein you can start in less than 100 dollars.

Private label:

Getting your own private label is also an option that you can consider. In this business model, you will need to find a manufacturer who will be ready to brand the bags in your brand name. 

To the consumer, the manufacturer name won't be available and it will be a product that is in your brand name.

Given that you won't have to have an infrastructure setup for manufacturing your bags, this is a great option as you can get your own designs crafted in the workshop or choose from the available options from the manufacturer.

Once you have identified your option, you will have a much better idea of how you want to sell your bags. 

Tip: Start small and choose a business model that will help you test your business idea fast. You can always diversify your options later. But if you cannot find a product market fit, there won't be an opportunity for you to make a business out of it.

Step 2: Define Your Handbags Variety and USP

It may look simple, but this step is the hardest one to tackle. Majority of businesses don't get this step right and end up with a failed business.

To get an idea of the step involved, just think about one scenario. You work hard on setting up your business with a proper marketing plan, funding and all required compliances. With this setup you are getting visitors in your store, but they don't become customers by making a purchase. 

Will you be happy with such a scenario for your handbag business?

We are sure that nobody would like to be in the above situation. A business without customers is no business at all.

That said, along with everything else the one thing that you must get spot-on is your handbag product offerings. You can pretty much change everything in your business, like tweaking marketing strategies and getting more funding or hiring help. But if your product foundation is shaky, it will be extremely difficult to make your handbag company a success.

You can consider the following product options for your handbag business:

  • Designer bags
  • Bowler bags
  • Duffle bags
  • Crossbody handbags

Depending on your decision of business model in step 1, you have a few things to consider. Let's look at some them below:

Your own handbag line

If you have decided to have your own handbags, remember one rule of thumb. Just because you like a design, doesn’t mean your potential customer will do too. There will be a lot of trial and error before you nail down a perfect product market fit for your handbag niche.

To avoid wasting your time and money, it will certainly help to do a proper research of the bags market in your target area. Start by answering at least the following questions:

  • Who is your target customer?
  • Where do they live?
  • How do they shop? Online or in store?
  • What price points are a sweet spot?
  • How will your bag design be different from the others in the market?
  • What is one major feature gap you can fill in your bags?
  • What material sells the best? Canvas, Vegan, Leather ?
  • Why will a customer buy a bag from you and not from the other stores?
  • What's your story?
  • Why will the customers tell their friends about your bags?

Once you have answered all these questions, you will be in a much better position to make decisions about many things you will encounter in your business. For example, as a part of your research, you may find out that your target customers prefer buying vegan leather bags and not the animal leather ones. Based on this finding, you can decide on the manufacturing as crafting a handbag using animal leather is completely different from crafting it using the vegan leather material. The vendors that you will need to partner with will also be different based on just this one decision itself.

To give you one more example, you may find out that $19 is a price point that you need to target for a certain design. With this number in mind, you will be able to make decisions on the raw material and accessories you need to select. At such a low price point, it may not make sense to use a YKK zipper and you can try a different zipper brand.

Tip: The more you research, the better the chances of success will be. Take this research as an insurance for your handbag business career.

Selling other brands product via wholesaling or retailing

When deciding to sell other company products, you need to perform research in many different aspects. As the design is not in your control, you will have to select products as per market performance.

You can gauge the success of a design from a particular brand by looking at online reviews, checking the inventory in online stores ( do they all show selling fast, sold out?). You can also visit the local stores and check with the salespeople about their opinion on that particular product.

Basically, you don’t want to get stuck with an inventory that is difficult to sell or isn’t doing that good in the market. Even if the wholesaler has a favorable return policy and is ready to take unsold inventory back, you do end up losing on the revenue that you could have made, if you had chosen another brand and product.

One more thing that you need to consider is that the product shouldn’t be available everywhere. Because if it is, the only way to get a paying customer is by offering the lowest price. Trust us, race to the bottom isn’t something that you want to compete in. You should stay away from it as much as you can. You will need to choose exclusive brands, if possible. 

You can also plan to keep accessories such as handbag straps, handbag charms, handbag organization and protection solutions for an increase in revenues.

Step 3: Make Your Business Legal

Depending on where you are located and the business model you decide, you may be legally required to obtain certain permits and licenses before you can start your own handbag business. This is an important step and you would want to make sure that all the things are covered and there won't be any problem in the future.

To begin with, you can get the information from the local chamber of commerce. Just a quick visit should get you on the right track.

Two things that you will need to consider are listed below:

Registering a business name

Once you have identified a name for your business and checked its availability, you will need to register it with the local secretary of state. If you are thinking of going really big with your business and see it going national in the future, you will need to get a trademark as soon as possible.

Tip: Hire a brand consultant to help you get creative and set you up for an outstanding business name.

Decide on a business entity

As an entrepreneur, you need to follow a certain organizational structure to be compliant with the regulations set by the government authorities. This structure affects tax, compliance and other legal requirements, it is an important step to tick when starting a business.

You need to plan ahead and choose from the following options:

  • A sole proprietorship
  • Limited liability company (LLC)
  • General partnership
  • Corporation

Generally, in the beginning a sole proprietorship is an obvious choice and a popular legal entity structure. It is the simplest and easiest way to get started. You can transition to another entity structure as your business grows.

Consider business insurance

It is a good idea to get insurance from the beginning itself. This way, you and your business will be protected from any legal claims arising from the functioning of your handbag business. Some of the insurances you can consider are following:

  • Product liability insurance
  • General liability insurance
  • Workers compensation
  • Unemployment and disability insurance

Tip: Consider consulting an attorney or a qualified professional for this step, as their experience will be extremely valuable. They will be able to help you with everything that you need to have to be compliant with everything.

Step 4: Determine Your Overhead

You know already that launching and scaling your handbag business will involve spending a lot of money. To keep your business in good financial standing, understanding the type of costs is an essential part, when planning for your business.

You will need to understand what you will have to pay right away, what can wait and what will be a recurring expense. Once you know these costs, you will have a much better idea of your road to profitability and thus be able to secure loans and attract investment as required.

The different types of costs that you will need to consider are as following:

  • Fixed costs: These costs remain the same, no matter how much you sell. They will remain constant and are easiest to account for.
  • Variable costs: These costs go up or down depending on your sales volume and other business activity. If you wish you can adjust these costs as the need arises.
  • Marginal costs: These are incremental costs that will be incurred when creating an additional unit of your handbags products.
  • Sunk costs: These are the costs that have been incurred and can’t be recovered. Such as the cost of equipment or raw materials that can’t be returned back.

Step 5: Market Your Business

Once you have got the product ready and have your shop ( online, physical or both) all set to serve customers, the next step is to get the word out. The success of your business will now depend on how well you can do marketing for your business. 

Before you can start writing your marketing plan, you need to get some marketing fundamentals sorted out first. These are also called as the four Ps of marketing:

  • Product: Along with the bags, you will need to see the packaging and branding aspects. These components are value addons that the customer is not buying directly. But are very much responsible for the value perception and loyalty.
  • Price: This will depend on the perceived value of your product in the eyes of the customer. If the perceived value is less than the selling price, you will have a lot of difficulty in selling your bags.
  • Promotion: Consider where you will be promoting your handbags. Will it be just digital marketing? Will you also use out of home marketing channels?
  • Place: You need to find out where the customers expect to find the bags that you have to sell. Do they expect to find them in stores and not purchase them online? Are they okay in buying them online? 

Once you identify the place that they expect to find such bags, how will you make sure that your business is put in their consideration set.

After you have a clear understanding of the above fundamentals of marketing, you can start marketing your bag business. Here are some marketing channels to consider. Just remember to apply the 4Ps of marketing relevant to the specific channel, before you even start your marketing campaigns 

  • Email marketing
  • PPC marketing such as Google Ads, Facebook Ads
  • Instagram marketing
  • Tiktok marketing
  • Local guides
  • Online review platforms

All the hard work you put into the marketing, along with the meticulous planning you have done in setting up your business, will do wonders and you will surely be a proud owner of a thriving handbag business.

Step 6: Don't Overextend Yourself Financially to Fund Your Growth

As you can see, starting a handbag business doesn’t need a huge investment and if you plan it well, it can be started with minimum setup costs. However, as in the case of any business, it is very easy to get lost in a trap and waste money. 

Be vigilant and keep looking for any financial mistakes in your expenses. Don't get carried away by what the competitor is doing and follow them blindly. What Louis Vuitton offers as a value add on their $2000 bag isn’t something you can offer on a $29 bag in your store.

The real customers understand the difference and have their expectations calibrated as well. You just need to offer them the best product and service at that price point.

That said, there will always be a few investments that you will need to make for future success. These will not give returns right away and thus are possible only if you have money to spare. For example, when setting up a handbag store, you may need to invest in interior and other setup. These costs run in thousands of dollars and will take some time for you to recover.

Additionally, you will need to spend money on licensing, registration, professional fees, store rent and many other expenses. Your own business will start giving you revenues, once the business is set up and the customers are coming in. But until that happens, you will have to cushion these expenses on your own.

If you think that you will need help with the funds, you can consider the following options for your funding:

  • Friends and family 
  • Business loans
  • Business lines of credit
  • Business credit cards
  • Bootstrapping
  • Debt financing
  • Crowdfunding
  • Angel investment

The Bottom Line : Starting Your Own Handbag Business

Starting a business may feel overwhelming to begin with. But, If you plan it well and complete each step carefully, it will become easier as you move to the next step.

Just make sure you never stop being on the learning curve. There will be a lot to learn from the customers, investors and your own trust network.

Make time to attend exhibitions, meetups and networking opportunities. It will help you in getting to know a lot of other entrepreneurs that you can reach out to. 

We hope that the steps above will help you in your entrepreneurship journey. We wish you the best of luck and can’t wait to hear the stories of what you’ll build.

Explore related topics

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    The fashion business is notoriously difficult, but if you start your own business with accessories such as purses and bags, you may be able to get your foot in the fashion door. Good planning goes a long way when you open a purse and bag business startup. Give a lot of thought to each aspect of your business plan before you launch to avoid missteps.

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    You can set up a website or use online sales portals to create an online-only store or to complement your physical retail location. If you don’t know how to make your own website, look into using e-commerce platforms such as Shopify or Quick2Host. You can also create accounts with websites like Amazon, eBay and Etsy and become a third-party seller. These websites provide you with a well-established global customer base, ease of use and a supportive seller community.

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    Properly store your bag and purse inventory as these products are your source of revenue. This means storing them in a cool, dry and smoke-free environment. Consider getting warehouse or inventory insurance to protect your investment.

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    Use online marketing strategies to advertise your business. Pay-per-click ads can be effective as you only have to pay for the advertisement when someone clicks on the ad. Also, social media platforms such as Facebook and Instagram provide easy, free ways to advertise your business. Provide interesting and informative content with lots of images of the bags you sell.

    For example, you can show pictures of a businesswoman holding a purse while walking to work, children carrying their backpacks on their way to school, or a family carrying a bag while walking on the beach. Social media platforms allow you to talk directly with your customers and listen to their comments and suggestions.

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    Are you crafty and entrepreneurial? Starting a tote bag business could be the perfect side hustle for you. Tote bags are a popular, practical item that many people use every day, so there is a built-in market for stylish, well-made options. If you have a knack for design and some basic sewing skills, you have the foundation to launch your own tote bag business. In this blog post, we'll walk you through the key steps to get started: •Developing your unique tote bag designs and styles •Sourcing high-quality, affordable materials •Creating professional samples and prototypes •Building your business and marketing your products •Selling on your own website, at local craft fairs, or wholesale to retailers

    The Tote Bag Market

    The tote bag market is broad, spanning mass market and luxury customers. Nearly everyone uses tote bags for activities like shopping, going to the beach or gym, or carrying items to work or school. Your target audience will depend on the specific styles and price points you want to offer. If you aim for the mass market, your totes can be more basic but still stylish, using affordable materials and simple designs. You can sell at lower price points, around $10-$30, and market to a wide range of customers. For a luxury or boutique market, use high-quality, unique materials and more intricate designs. Price points would be $30-$100 or more. Market to customers looking for an premium, fashionable product. You can also choose to focus on a local market, selling at craft fairs, local boutiques, and through your own website. This allows you to really tailor your products to your city or region. Or you may want to sell wholesale to national retailers to reach the widest range of customers. The options are endless, so think about what styles, materials, and business model match your skills and interests.

    Developing Your Product

    Your tote bags will be the heart of your business, so putting in the work to design unique, high-quality products is key. Some things to consider: •Focus on stylish but practical designs that appeal to your target audience. Simple prints, patterns, and textures are popular. Or create more intricate designs for a boutique look. •Use high-quality, durable materials that withstand daily use but are still affordable, like canvas, cotton, or faux leather. For a luxury product, consider leather, wool, or natural fibers. •Add custom details that make your totes stand out, like leather handles or straps, internal pockets, reinforced bottoms, or waterproof coatings. •Develop a collection of complementary styles in different sizes. Totes, shoulder bags, and crossbody bags are all popular. A range of options will give customers more to choose from. •Create professional samples and prototypes to photograph for your website and marketing materials. Get feedback from potential customers to refine the designs. •Source all materials and supplies from reputable vendors to ensure good quality at the best prices. Buy in bulk when possible to keep costs down. •Determine how you will distribute your products - selling online, at local retailers, at craft fairs, or a combination. Then you can set your price points accordingly. With stylish, well-made products, competitive prices, and a solid business plan, your tote bag business will be off to a great start. Focus on your unique designs and high quality, and your customers will keep coming back for more!

    Business Economics and Finances

    To run a successful tote bag business, you need to have a firm grasp on your costs, pricing, and profit margins. Some key things to consider: •Cost of goods sold (COGS): This includes the cost of materials, supplies, and labor for each bag. Aim for a COGS of no more than 50% of your retail price. So if a bag costs $20 in materials and labor to produce, sell it for at least $40. •Pricing strategy: For mass market, keep prices relatively low, around $10-$30 per bag. Boutique styles can go up to $50-$100 or more. Offer discounts for bulk or wholesale orders. You need to price high enough to account for all your costs while still being competitive. •Profit margins: With a 50% COGS, aim for a 30-50% profit margin. So if a bag costs $20 to make, selling for $40 would be a 50% margin. $30 would be a 30% margin. Higher margins mean more profit, but you have to balance that with competitive pricing. •Additional costs: Factor in overhead costs like rent, utilities, marketing, and transportation. You'll also need to account for one-time startup costs to get the business off the ground. Make sure to include all costs in your financial projections. •Financial forecast: Create a 3-year financial forecast including income statements, cash flow, balance sheets, and key metrics and ratios. This will help determine if the business can be viable and profitable. It's also important for funding, loans, and investment. •Funding: Consider using your own savings, taking out a loan, getting a line of credit, crowdfunding, or investor financing to fund your startup costs. Most businesses are not profitable for at least the first year, so adequate funding is critical.

    Marketing Your Tote Bag Business

    To reach your target customers and build brand awareness, you need an effective marketing strategy for your tote bag business. Some of the top options include: •Search engine optimization (SEO): Optimize your website content for search engines like Google. Use keywords related to your product, location, and target audience. Strong SEO will drive organic traffic to your site from people searching for tote bags and related terms. •Social media marketing: Create business profiles on platforms like Instagram, Facebook, and Pinterest. Post photos of your products, share blog posts, run contests and giveaways, and engage with your followers. Collaborate with influencers in your niche to reach new audiences. •Email marketing: Build an email list from your website and social media followers. Send regular newsletters highlighting new products, sales, and promotions. Offer subscriber-only discounts and flash sales. Email is a direct way to reach your customers. •Local event marketing: Apply to sell your tote bags at craft fairs, festivals, and other local events in your area. This allows you to meet customers face to face, get direct feedback, and make sales in person. Offer event-exclusive discounts and promotions to drive traffic to your booth. •Wholesale partnerships: Pitch your tote bags to local boutiques, gift shops, and larger retailers in your area or nationwide. Wholesale allows you to sell higher volumes, though at lower profit margins. Make sure to have a solid pitch deck highlighting your products, brand, and target market. •Grassroots marketing: Don't overlook simple marketing tactics like word-of-mouth referrals, reviews on sites like Yelp and Google My Business, and networking. Tell friends, family, and acquaintances about your new business and give out discount codes for them to share with their networks. With the right mix of digital marketing, local event participation, wholesale, and grassroots strategies, you can build brand visibility and drive sales for your tote bag business. Be consistent and persistent, and keep optimizing and improving your campaigns over time.

    Sales Strategies and Fulfillment

    To make sales and fulfill orders for your tote bag business, you need to have effective strategies and systems in place. Some key things to consider: •Your own ecommerce website: Build a user-friendly website to sell your products directly to customers. Include high-quality photos, product descriptions, and an easy checkout process. Offer promotions and discounts to drive traffic and sales. •Wholesale partnerships: Pitch local boutiques, gift shops, and larger retailers to carry your tote bags wholesale. Provide samples, marketing materials, and resources to help them sell your products in their stores. Offer wholesale discounts and promotions they can pass onto their customers. •Local events: Apply to sell at craft fairs, festivals, and other events in your area. This allows customers to see, touch, and try on your tote bags in person. Process sales with a mobile card reader, cash, or checks on the spot. Offer show specials to drive interest. •Third-party platforms: Sell your tote bags on sites like Etsy, Amazon Handmade, and Shopify to reach new audiences. These platforms have built-in traffic and handle the ecommerce infrastructure for you, though they do charge fees and commissions on sales. •Order fulfillment: Have a streamlined process to fulfill orders from all your channels. Keep enough inventory on hand to fill orders promptly. Package items carefully and include a handwritten thank you note. Ship orders within 1-2 business days via USPS, UPS, or FedEx. •Customer service: Provide friendly, helpful customer service to support your sales. Respond to questions, issues, and feedback promptly. Offer exchanges or refunds if a customer is not fully satisfied. Strong customer service will build brand loyalty and word-of-mouth promotion. With a multi-channel sales strategy and efficient order fulfillment and customer service, you can build a steady stream of revenue for your tote bag business. Continue optimizing and improving your processes to scale as your business and sales volumes grow over time.

    Operations and Execution

    To successfully execute your tote bag business operations, you need to establish efficient systems and processes. Some key things to focus on: •Source high-quality materials and supplies from reputable vendors at the best prices. Buy in bulk when possible to keep costs low. Always order more than enough to meet demand and account for delays or backorders. •Streamline your production process to efficiently cut, sew, embroider, print, and assemble your tote bags. Create a standardized process for each style to ensure consistency and quality. Track costs and labor for each step to determine optimal pricing. •Implement tight inventory control procedures. Keep enough materials and finished goods in stock to meet demand, but not too much excess that it ties up capital or storage space. Track inventory levels closely and reorder as needed. Conduct regular inventory counts to ensure accuracy. •Refine and optimize your order fulfillment process, including receiving orders, packaging items, generating shipping labels, and drop-off with carriers. Aim for same-day or next-day fulfillment and shipment when possible. Provide tracking information to customers. •Continuously improve your customer service procedures to promptly and helpfully respond to questions, feedback, issues, and complaints. Offer fair and reasonable return, exchange, or refund policies. Learn from interactions to improve products and the customer experience. •Review key business metrics and financials regularly to monitor the health and growth of your company. Make data-driven decisions to optimize sales, control costs, increase profits, and gain market share. Adjust strategies and operations as needed to achieve your business goals. •Consider business expansion when your company is stable and profitable. You can introduce new products, expand into new markets, open a physical retail space, increase online advertising, or other growth strategies. Expand at a pace that you can manage while maintaining quality and service.

    Legal Considerations

    Before launching your tote bag business, be sure to research all legal requirements and regulations. Some things to consider: •Business licenses and permits: Requirements vary by location, so check with your city clerk's office. You will typically need a business license or permit to operate. Some areas require additional permits for manufacturing or selling products. •Sales tax collection: If selling in your state, you need to register for a sales tax permit to collect and remit sales tax. Requirements vary in each state, so review the rules for your specific location. •Income taxes: You will need to pay income taxes on the profits from your business. Keep good records of all income and expenses to properly file your business taxes each year. You may need to make quarterly estimated tax payments. •Insurance: Consider business insurance policies like general liability, product liability, and commercial property insurance. These can help protect you from financial loss in the event of a lawsuit, property damage, or other issues. •Trademarks and copyrights: If using a unique business name, logo, or product designs, consider trademarking and copyrighting them to prevent others from copying or using them without permission. •Employees: If hiring staff, be aware of regulations like workers compensation, payroll taxes, minimum wage, overtime pay, and other requirements. Make sure to comply with all laws related to having employees. •Importing goods: If sourcing any materials or products from outside the U.S., review regulations from the Consumer Product Safety Commission and U.S. Customs and Border Protection. There are specific rules for importing commercial goods.

    With stylish, high-quality products, a solid business plan, and strong operations and marketing, you have the foundation to build a successful tote bag business. Find your unique niche in the market and stay focused on your target customers. Sell through a multi-channel strategy, including your own website, local events, wholesale, and third-party platforms. Keep improving your systems and processes to efficiently scale your business over time. If you provide great products and service, keep costs low, and continue optimizing to increase profits, your tote bag business can be a rewarding endeavor.

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    Things To Consider For Starting A Handbag Business

    Handbags and purses are the main products sold in a purse shop. High-end designer bags, well-known name brands, specialized or custom bags, and even vintage or antique handbags and purses, may all be sold in a specialist store. A lot of the time, customers looking to shop at these establishments want distinctive, one-of-a-kind things.

    There is no better moment than the present to realize your ambition of beginning your own handbag company. Find out how to start a purse busines s and whether it is the perfect career for you.

    • Establishing A Handbag Manufacturing Company

    Handbag Business

    You must design the items you want to make to manufacture handbags. Then, you must get the items made. You can create the design yourself if you are knowledgeable about fashion design, either through a college degree or short course or by employment in a fashion house. Alternatively, you may hire a person who does.

    Once you have the design, you can sew the product yourself (perhaps if you plan to produce handmade ones), have a large manufacturing staff do it (mass manufacturing), or contract the labor out to a bag manufacturer. The next step will be to advertise and supply your range of goods to shops and boutiques.

    • Launching A Handbag Retailing Company

    Handbag Business

    Finding a wholesaler from which you can get materials at prices you can sell for a profit is your most difficult assignment if all you want to do is open a store selling handbags. Then you must consider how to start a handbag business . According to the kind of business you want to run. Your store would need to be tailored to the type of customers you wish to attract. If you plan to sell expensive goods, you should open a boutique-style store in an upscale neighborhood.

    • Online Handbag Store

    Handbag Business

    In either case, give the notion of creating an online presence some thought. Hire a web developer to complete the assignment on your behalf. If you are a fashion designer who is also a photographer, you can take images of the handbags, label them, and upload them on your website. Otherwise, inquire or hire someone. The easiest method to reach a larger market both locally and internationally is to spread the word about your business online.

    The following information can help you start a handbag line: 

    Selecting A Product

    The initial step is to identify the ideal market segment for handbag products. Find out which products are selling the most by researching well-known online marketplaces like Amazon and eBay. In general, your options are either casual or luxury-style purses business . Select the market that best appeals to you.

    Market Research

    It may seem straightforward, but it’s not. Your product concept should be appealing enough to your target market’s wants while also satisfying their needs.

    There are numerous handbag designs on the market, including satchels, clutches, totes, saddle bags, crossbody bags, and backpacks.

    Handbag Business

    Considering the product’s desirability, usability, and functionality can help you come up with a new idea. How will it improve the quality of life for your ideal customers? What distinguishes your offering from the competition?

    Conduct extensive market, primary rival, and target audience research. You can improve your understanding of the kind of product you should make by conducting thorough research.

    Establish A Business Plan

    A thorough business plan is necessary for success on how to start a handbag business online . Your business plan should include a description of your operational, financial, and marketing strategy. To develop your company plan, you might use plan generators.

    Build Your Designs

    This is the exciting part about how to design your own purse line ! Regardless of your degree of design expertise, you can create the ideal bag. Use a tool like Illustrator to plan out your designs if you’re a skilled designer.

    Working with a manufacturer to create a whole design that incorporates size, style, fabric, color, and unique improvements is another choice for those who are less familiar with design.

    Handbag Business

    Product Sourcing

    You can skip this step if you manufacture your handbag products. However, sourcing handbags becomes crucial if you plan to offer goods made by other businesses. You can either purchase goods from nearby wholesalers or browse online markets like Alibaba to buy goods in large quantities at discount pricing. You can get in touch with online vendors who will supply things that are widely available online.

    Any online firm must consider pricing carefully. You must inquire with companies selling them about the range of costs for comparable goods. You can use value-based pricing if your products are special in some way. However, you must choose competitive pricing for your goods if identical products are offered on the market.

    Make The Handbag Manufacturing Legal

    To be legally compliant, your firm must be registered. If you want to distinguish between your personal and commercial assets, you can register as a proprietorship firm or an LLC. Consult with the appropriate local authorities and secure the necessary licenses and permits to operate the business.

    starting a Handbag Business line

    Business Name

    To establish a brand for your handbag start-up, you need a memorable and pertinent business name. To learn how to start a handbag business brand name that resonates with clients, consult this tutorial.

    Establish A Website

    WordPress is suggested for building websites if you wish to sell your things online. A nice alternative is Shopify if you intend to sell goods made by other businesses. The Oblerlo app, which allows you to source goods from online wholesalers who would drop ship those goods, is included with Shopify, thus not only are all the technical needs met by it but it is also encouraged. When building your website, you may also compare it against other drag-and-drop editors.

    Promote Your Brand On Social Media

    The next stage is to begin developing your marketing strategy to draw in your audience after identifying your target audience. Startups typically have small resources, so it is recommended to use social media as the cost of promotion is minimal.

    The two most visually appealing social media sites are Instagram and Pinterest, which are excellent for showcasing wallets and purses.

    Want Your Handbags Flying Off The Shelves?

    Let us manufacture it for you, is a bag business profitable.

    The purse and handbag market has demonstrated its profitability year after year, with a market that is still expanding. Instead of creating your handbags, consider selling wholesale handbags if you want to sell purses but would like to test the market first.

    It’s doable to run a prosperous bag-producing company! If you’re looking for big business ideas, you can enter the production or retail industries. With strong daily, weekly, and monthly returns if you know what you’re doing, beginning a bag-making business may be quite successful.

    How Much Does It Cost To Make A Handbag?

    start a Handbag Business

    The cost of developing a purse business is determined by several factors. This may include your target market, your sector, and the general business strategy you’ve chosen.

    Without detailed information about how big they anticipate their line to be and through which channels they intend to sell their products, that is a difficult issue to answer. Every brand of accessories is unique, using various materials, methods, and objectives.

    The type of bag, the materials utilized, and the quantity being produced are only a few of the variables that affect how much it costs to make a bag. However, let’s look at this tiny case for this article:

    The following table may show how much it costs to make the bag:

    Materials : At $50 per square foot on average, leather is likely to be the most expensive material used to make the bag. The total amount of leather required will be about 120 square feet, costing a total of $6,000, assuming the bag is 15 inches wide, 12 inches tall, and 6 inches deep. An additional $2 to $3 per unit can be needed for materials like the strap and zipper.

    starting a Handbag Business

    Labor : The cost of labor will vary according to the number of employees and the time required to make each bag. For instance, the labor expense will be about $0.83 per bag if one person can create 10 bags per day and the production time is 5 days.

    Overhead : Making a bag entails a variety of additional expenses, including rent, utilities, and insurance. Depending on the location and scale of the plant, these expenses can vary substantially, but for this example, we’ll estimate that the total overhead expenditures are $500 each day.

    Total cost : Considering the aforementioned elements, the leather tote bag would cost $9,750, or $19.50 per unit, to produce 500 of them.

    This is only one instance, and the actual cost to make a bag will differ depending on the particular elements described above. To accurately estimate the cost to make a bag, it is crucial for businesses to thoroughly analyze each of these aspects.

    Final Words

    Understanding the demands of customers is crucial if you want to sell handbags online successfully. You must be constantly vigilant and eager about learning about the newest trends and consumer preferences. The hand bag business is an enterprise that will undoubtedly provide you with big profits if you appreciate giving people what they desire.

    Related Posts

    • What Type Of Fabric Is Leather?
    • How Clothing Manufacturing Cost Sheet And Pricing Is Done
    • How to find Clothing Manufacturers for Your Business.

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    Money: Manifestation warning as people swear it's bagged them '£2,000 in bank account'

    We delve into the world of manifestation - but will a one-day course help our reporter land some extra cash and an engagement ring? Enjoy our weekend reads, and leave a comment, below, and we'll be back with all the latest personal finance and consumer news on Monday.

    Saturday 27 April 2024 13:45, UK

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    By Jess Sharp , Money team

    My journey into the world of manifestation (the belief that you can attract success in your life through positive affirmations and visualisation) has taken me places I never thought I'd go.

    Like woods in Edenbridge, where I stood meditating under a tree in the pouring rain. I don't yet know where my journey will end (I've been hoping for an engagement ring but my boyfriend hasn't yet seen my visualisations), but it started with a conversation with Jamie Greenlaw-Meek, one of many people who say manifestation has transformed their lives.

    "About a year ago, there was something happening and I thought we just need two grand to cover the expense," Jamie, a former dancer from London, told me. "The following day £2,000 landed in my account."

    It sounded like a coincidence to me, too.

    But Jamie was adamant. His husband calls him "the master manifester" because of his "ability to bring in money".

    "It's happened on so many occasions, like four, five times," he said. "I've become very clear on what I want and the amount of money I need and literally it can be within 24 hours that I get a phone call for a job and it's almost identical to what I asked for money-wise."

    When I asked the now-psychic where the £2,000 actually came from, he said it was payment for a modelling job he had been offered.

    "With manifesting you don't get caught up in the how, and often it comes in ways that you don't expect," he added, explaining it could come as the result of a claim after being in a car crash.

    "It's not always coming in the way that you think but money is out there for us to take in the world. It's just having the confidence to receive it and we are worthy of it."

    "Even if it is a placebo effect, does it matter?" he said.

    The 43-year-old also believes he manifested his husband Fiongal after being diagnosed with cancer. While going through treatment and dating "a lot" of people, he decided to take matters into his own hands, or rather his own head, and started visualising his perfect partner.

    "I decided to spend a good couple of weeks getting really, really, super clear in my mind what this person looked like. Then I started creating lists asking about personality traits, and all the things that I wanted that person to be," the former dancer said.

    "The day I got the all clear from cancer I randomly met my husband and when I look at the list of the things I asked for, he pretty much ticks every single box. I really, really believe that is because I got super clear on what I wanted and I put that out to the universe to bring to me."

    Jim Carrey and manifestation

    If you think this is a new practice, it isn't. Jim Carrey was doing it back in the 90s. He famously wrote himself a $10m cheque for "acting services rendered" and dated it years in advance. Then in 1995, he was told he was going to make the exact amount for filming Dumb and Dumber.

    The idea shot up in popularity again in 2006 after Rhonda Byrne published her self-help book The Secret.

    Since then, it has hit every inch of the internet and has resurfaced on TikTok with videos posted under #manifesting accumulating a huge 13 billion views.

    I tried to learn manifesting - I felt like an idiot

    After hearing Jamie's story and seeing the idea was popular with so many people, I thought it best to try to learn manifestation myself. I mean, who wouldn't want money landing in their account and a work promotion from the universe?

    As I stood in the woods, in the pouring rain, being told to imagine roots growing from the soles of my feet, I felt like an idiot.

    I was soaking wet (of course I had forgotten a coat with a hood) and while my mind kept wandering through thoughts about being cold, if I'd hit traffic on the way home and how dirty my white trainers were getting, a gentle, soothing voice kept bringing me back to what I was supposed to be thinking about.

    "How we are all connected, how the trees and plants produce oxygen that we breathe, and we breathe out carbon dioxide which they need to survive"

    While some people focus their manifestation practices on being grateful to the universe, Tansy Jane Dowman believes we need to get "out of our heads, into our bodies", connect with nature and find our true selves before we can practice it successfully.

    My meditation in the woods was just one part of a six-hour workshop run by Tansy, which aimed to send me off with a clearer vision of what I truly desired.

    Tansy charges anywhere from £25 to £580 for her courses, which range from one-on-one sessions and an online six-week programme, to forest bathing workshops and weekend-long nature retreats.

    But some courses have popped up online which cost more than £1,000.

    Tansy started practising manifestation in 2018 after going through a difficult period in her life. She eventually quit her job in events management and started teaching others how to do it successfully.

    "The way I manifest is not to focus on material wealth or gain. I would ask my clients what an abundant life means to them in terms of feelings, experiences, connections, people and places," she explained.

    "The more authentic you are, the more of a beacon you become for those things to find you."

    After spending time walking in the rain and meditating under a tree, Tansy and I sat in her dining room and explored some of the happiest moments in my life and the feelings I experienced. It became clear I like feeling accomplished, needed and excited.

    We also spoke about challenging times, but the conversation focused on the positives, like how I had overcome them and what I had learned.

    "It's so important to bring in your values with manifestation because sometimes we can get really confused with what we want, with social media especially," she told me.

    Throughout her house, Tansy has a number of "abundance boards" proudly on display - some she has made with her children, others are from her annual January tradition of setting out her desires for the year.

    "I've had some really wonderful goosebump things happen to me. I did a board at the beginning of 2020... I put a picture of a microphone on it. I just thought I really like that image and I didn't immediately place any meaning onto it," she said.

    "Then as the world was shutting down for lockdown, I did a press event and I met a lady who worked for Wellbeing Radio and she wondered if I would be interested in trying out as a presenter."

    She explained that some people will be very specific with their desires, like selecting a photo of the exact car they want, or the perfect house, but that isn't how manifestation works. There needs to be an element of trust in the universe giving them what they attract.

    As we created my abundance board, which Tansy describes as being like a "personal algorithm", she told me to select images and words from heaps of magazines that called to me intuitively.

    As you can see from the picture below, mine calls for being "financially fabulous", travelling, getting engaged (coughs loudly in earshot of boyfriend) and living stress-free.

    And while I'd love a big cash injection, Tansy explained to me that money is "only a stepping stone to a feeling" and, ultimately, I'm aiming to create an emotion with it.

    Manifesters more likely to go bankrupt

    While all the manifestation believers I spoke to said there was no downside to the practice, a researcher has been looking into whether it really does pay off.

    Based in Australia, Dr Lucas Dixon (who specialises in consumer psychology) created a scale from one to seven to rank a person's strength of belief and found those who practice it are more likely to have been victims of fraud and declared bankruptcy.

    He said there was a "danger" that manifesting could become harmful if taken to an extreme level.

    He found those who believe in manifesting tend to think more positively and have a confident attitude when it comes to success, and while that can be helpful in business, it can also cause them to take unnecessary risks.

    "They weren't more objectively successful in terms of having higher income or higher education attainment," he said.

    "We also found that they are more likely to believe in get-rich-quick schemes, more likely to take higher risks... to have risky financial investments and more likely to have investments in cryptocurrency rather than traditional stock."

    Using the scale he created, Dr Dixon found those who have "very strong beliefs", ranking at a seven, were 40% more likely to have gone bankrupt.

    "The danger comes in a couple of different forms," he said, explaining that a "worst case scenario" could see people getting into financial difficulty by being encouraged to "just look at the positives".

    "Someone might say it's not harmful because it is really just thinking positively but I think even that can be harmful because of what you might call an opportunity cost," he said.

    "You're spending time, energy and money doing something that doesn't have a lot of evidence behind it. We found it does make you feel good but you don't need to pay thousands to do it."

    Okay, so back to me...

    I did my manifestation course about two months ago, and I have done as I was instructed - my abundance board is up in sight inside the flat, and I often have a cup of coffee in front of it.

    But, so far I'm still using a credit card, the most travelling I've done has been to work and back and there is still no rock on my finger. I have been given an annual pay rise, though, and would say I am less stressed.

    Perhaps believing that I'm just doing my best and there's a chance that I'll be rewarded for that one day, eventually, in the future, maybe, is making me feel better... who knows?

    Each week, Money blog readers share their thoughts on the subjects we've been covering, and over the last seven days your correspondence has been dominated by these topics...

    • Iceland's new slogan
    • Rising mortgage rates
    • Giving kids cash for grades

    Iceland's new catchphrase

    We learnt on Monday that Iceland had dropped its tagline "That's why mums go to Iceland", replacing it with "That's why we go to Iceland".

    The move was made to reflect the store is for everybody, said brand ambassador Josie Gibson. Readers were split - with some feeling so strongly that they're prepared, they suggest, to sacrifice those frozen Greggs steak bakes forever...

    I previously contacted Iceland about their slogan because I didn't think it did single dads justice, as dads can go to Iceland too. Their response was that people understood that it's not just mums that go to Iceland. It's about time they changed the message. Dave T  
    Neither I, my wife or my children will shop in Iceland again due to this stupidness and woke attitude. To hell with you [Iceland boss] Richard Walker. John  

    Banks hike mortgage rates

    This week we reported that high street lenders such as Halifax, TSB, NatWest, Barclays, Leeds Building Society, HSBC and Coventry had all hiked mortgage rates. 

    You said...

    With house prices at already extortionate levels, now mortgage rates rising again, is there any hope for first-time buyers? Honestly, the situation is so bleak, people may need to consider other countries. GenZ 
    Why would this happen? So many young couples struggling to get on the property ladder. I live in Dorset - a one-bedroom flat costs from £230,000. In Scotland, one can get a beautiful two-bed house for that price. Feel sorry for all couples living down in the South. Need huge deposits. Barbs
    Why are they called high-street banks? Most banks in my town have closed. Martin J

    Parents offering cash for good grades

    A lot of views came in after our feature exploring the positives and negatives of parents incentivising good school grades with cash...

    We had scores of comments on this - with a fairly even split...

    We did it for our son at GCSE time. We think it made a difference of about a grade on most subjects. Got a two-grade lift on maths. Cost us £350. Thought it was good value as it has taught him how things work in the world. Andy
    The whole world is built on a reward system which symbolises access to money commensurate with effort and excellence. The Nobel prize goes with a cash reward! Tom Deggs
    Employees are offered incentives for achieving targets, so why not offer kids incentives for better grades? Claire228 

    But others had concerns...

    I think it puts too much pressure on kids who are under enough pressure at exam time. Parents should encourage their kids to do the best they can, not add to their stress levels. Emma
    Children should value their education without it being monetised. My parents expected my brother and I to have the motivation, maturity and self-discipline to work hard for our GCSEs. We both achieved all As and A*s. Eliza 
    When I was at school, from 1964-83, my parents never gave me money for good exam results, because "I should want to do well for myself". No matter what my grades were, they said that they would be proud of me if I had tried my best. Cash kills self-motivation. Nicola B 

    National insurance was cut this month, for the second time this year, from 10% to 8% on employee earnings between £12,570 and £50,270.

    The change, announced by the chancellor in his March budget, impacts around 27 million payroll employees across the UK - starting this pay day.

    The cut is worth almost £250 to someone earning £25,000 a year and almost £750 for those earning £50,000

    Use our tool below for a rough guide to what tax changes can be expected for most people, as there are other variables not included which might affect how much tax you pay including being in receipt of the blind person's allowance or the marriage allowance. It also assumes you are not self-employed and are under pension age...

    There are also national insurance cuts for the self-employed. This includes the scrapping of Class 2 contributions, as well as a reduction of the rate of Class 4 contributions from 9% to 6% for the £12,570 to £50,270 earnings bracket.

    These will impact nearly two million self-employed people, according to the Treasury.

    While many campaigners welcomed the national insurance announcement last month, they pointed out that the tax burden remains at record high levels for Britons - thanks in part to the threshold at which people start paying income tax being frozen, rather than rising with inflation.

    The money story of the week has been mortgage rates - with a host of major lenders announcing hikes amid fears the Bank of England may delay interest rate cuts.

    Swap rates - which dictate how much it costs to lend money - have risen on the back of higher than expected US inflation data, and concerns this could delay interest rate cuts there. 

    US trends often materialise elsewhere - though many economists are still expecting a base rate cut from 5.25% to 5% in the UK in June.

    The reliable Bloomberg reported this week: "Still, while some economists have since scaled back their predictions for BOE cuts, most haven't changed expectations for a summer move.

    "Analysts at Morgan Stanley, Goldman Sachs Group, Capital Economics and Bloomberg Economics are all among those still anticipating a shift toward easing in June."

    The publication also quoted Sanjay Raja, chief UK economist at Deutsche Bank, as saying: "Markets have superimposed the US cycle on the UK, but the US and UK are on very different tracks.

    "The UK is coming out of technical recession. Inflation is falling more convincingly. Pay settlements are following inflation expectations. And crucially, real policy rates in the UK will be higher than in the US."

    None of this reassurance changes the fact that financial markets, which dictate swap rates, are pricing in delays.

    This week's hikes came from Halifax, BM Solutions, TSB, NatWest, Virgin, Barclays, Accord, Leeds Building Society, HSBC and Coventry.

    This is what average mortgage rates looked like as of Thursday...

    The next Bank of England decision on rates comes on 9 May - and pretty much no one is expecting a cut from the 16-year high of 5.25% at that stage.

    The Money blog is your place for consumer news, economic analysis and everything you need to know about the cost of living - bookmark news.sky.com/money.

    It runs with live updates every weekday - while on Saturdays we scale back and offer you a selection of weekend reads.

    Check them out this morning and we'll be back on Monday with rolling news and features.

    The Money team is Emily Mee, Bhvishya Patel, Jess Sharp, Katie Williams, Brad Young and Ollie Cooper, with sub-editing by Isobel Souster. The blog is edited by Jimmy Rice.

    The family home where Captain Sir Tom Moore walked 100 laps to raise nearly £40m for the NHS during the first COVID lockdown is up for sale for £2.25m.

    The Grade II-listed Old Rectory is described as a "magnificent seven-bedroom property" by estate agents Fine & Country.

    In a video tour of the house, a sculpture of Captain Tom with his walking frame can be seen in the hallway, while a photo of the fundraising hero being knighted by the Queen is on a wall in the separate coach house building.

    Introducing the property, an estate agent says in the tour video: "I'm sure you'll recognise this iconic and very famous driveway behind me as it was home to the late Captain Sir Tom Moore who walked 100 laps of his garden, raising over £37m for NHS charities."

    It comes less than three months after the demolition of an unauthorised spa pool block in the grounds of the property in Marston Moretaine, Bedfordshire.

    Speaking at an appeal hearing over that spa, Scott Stemp, representing Captain Tom's daughter Hannah Ingram-Moore and her husband, said the foundation named after the fundraising hero "is to be closed down" following a Charity Commission probe launched amid concerns about its management.

    For the full story, click here ...

    "Status symbol" pets are being given up by owners who get scared as they grow up, an animal charity has said, with the cost of living possibly paying a part in a rise in separations.

    The Exotic Pet Refuge, which homes parrots, monkeys, snakes and alligators among others, says it receives referrals across the country, including from zoos and the RSPCA.

    "They're a status symbol. People will say, 'OK, I'll have an alligator or a 10ft boa constrictor'," co-owner Pam Mansfield told the BBC.

    "But when the animal gets big, they will get too frightened to handle them, and then the pet has to go."

    She added people who want to get rid of the pets sometimes call zoos for help, which then call on her charity.

    In some cases, owners don't have licences to own dangerous animals, she says, blaming a "lack of understanding" for what she says is a rise in the number of exotic animals needing to be rehomed.

    She says people "just don't have the space" for some snakes, for example, with some growing to as much as 12ft and needing their own room.

    The cost of living crisis has also forced owners to give their pets away, she says.

    Her charity has also been affected by those increased costs, with the electricity bill rising to £10,000 a month at their highest, to fund things like heated pools for alligators.

    Private car parks are accused of "confusing drivers" after introducing a new code of conduct - despite "doing all they can" to prevent an official government version.

    The code of practice launched by two industry bodies - British Parking Association and the International Parking Community - includes a ten-minute grace period for motorists to leave a car park after the parking period they paid for ends.

    It also features requirements for consistent signage, a single set of rules for operators on private land and an "appeals charter".

    Private parking businesses have been accused of using misleading and confusing signs, aggressive debt collection and unreasonable fees.

    That comes after a government-backed code of conduct was withdrawn in June 2022, after a legal challenges by parking companies.

    RAC head of policy Simon Williams said: "We're flabbergasted that the BPA and the IPC have suddenly announced plans to introduce their own private parking code after doing all they can over the last five years to prevent the official government code created by an act of Parliament coming into force.

    "While there are clearly some positive elements to what the private parking industry is proposing, it conveniently avoids some of the biggest issues around caps on penalty charges and debt recovery fees which badly need to be addressed to prevent drivers being taken advantage of."

    BPA chief executive Andrew Pester said: "This is a crucial milestone as we work closely with government, consumer bodies and others to deliver fairer and more consistent parking standards for motorists."

    IPC chief executive Will Hurley said: "The single code will benefit all compliant motorists and will present clear consequences for those who decide to break the rules."

    Sky News has learnt the owner of Superdry's flagship store is weighing up a legal challenge to a rescue plan launched by the struggling fashion retailer.

    M&G, the London-listed asset manager, has engaged lawyers from Hogan Lovells to scrutinise the restructuring plan.

    The move by M&G, which owns the fashion retailer's 32,000 square foot Oxford Street store, will not necessarily result in a formal legal challenge - but sources say it's possible.

    Read City editor Mark Kleinman 's story here...

    NatWest says its mortgage lending nearly halved at the start of the year as it retreated from parts of the market when competition among lenders stepped up.

    New mortgage lending totalled £5.2bn in the first three months of 2024, the banking group has revealed, down from £9.9bn the previous year.

    The group, which includes Royal Bank of Scotland and Coutts, also reported an operating pre-tax profit of £1.3bn for the first quarter, down 27% from £1.8bn the previous year.

    An unexplained flow of British luxury cars into states neighbouring Russia continued into February, new data shows.

    About £26m worth of British cars were exported to Azerbaijan, making the former Soviet country the 17th biggest destination for UK cars - bigger than long-established export markets such as Ireland, Portugal and Qatar.

    Azerbaijan's ascent has coincided almost to the month with the imposition of sanctions on the export of cars to Russia.

    Read the rest of economics and data editor Ed Conway 's analysis here...

    Rishi Sunak has hailed the arrival of pay day with a reminder his government's additional National Insurance tax cut kicks in this month for the first time.

    At last month's budget, the chancellor announced NI will be cut by a further 2p - so some workers will pay 8% of their earnings instead of the 12% if was before autumn.

    The prime minister has repeated his claim this will be worth £900 for someone on the average UK salary.

    While this additional cut - on top of the previous 2p cut in January - does equate to £900 for those on average full-time earnings of £35,000, there are two key issues with Mr Sunak's claim:

    • Once the effect of all income tax changes since 2021 are taken into account, the Institute for Fiscal Studies reports an average earner will benefit from a tax cut of £340 - far less than £900;
    • Moreover, anyone earning less than £26,000 or between £55,000-£131,000 will ultimately be worse off.

    In short, this is because NI cuts are more than offset by other tax rises.

    We explain below how this is the case...

    Tax thresholds

    This is partly down to tax thresholds - the amount you are allowed to earn before you start paying tax (and national insurance) and before you start paying the higher rate of tax - will remain frozen. 

    This means people end up paying more tax than they otherwise would, when their pay rises with inflation but the thresholds don't keep up. 

    This phenomenon is known as "fiscal drag" and it's often called a stealth tax because it's not as noticeable immediately in your pay packet.

    That low threshold of £12,570 has been in place since April 2021. 

    The Office for Budget Responsibility says if it had increased with inflation it would be set at £15,220 for 2024/25.

    If that were the case, workers could earn an extra £2,650 tax-free each year.

    Less give, more take

    Sky News analysis shows someone on £16,000 a year will pay £607 more in total - equivalent to more than three months of average household spending on food. 

    Their income level means national insurance savings are limited but they are paying 20% in income tax on an additional £2,650 of earnings.

    In its analysis , the IFS states: "In aggregate the NICs cuts just serve to give back a portion of the money that is being taken away through other income tax and NICs changes - in particular, multi-year freezes to tax thresholds at a time of high inflation."

    Overall, according to the institute, for every £1 given back to workers by the National Insurance cuts, £1.30 will have been taken away due to threshold changes between 2021 and 2024.

    This rises to £1.90 in 2027.

    Be the first to get Breaking News

    Install the Sky News app for free

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