Leather, Shoe and Bag Making Level 3

Who it is for. Makers who have completed Leather, Shoe and Bag Making Level 2 or can show the same skills, and who want to run a workshop, lead others or start a brand, including persons with disabilities. In Ghana's TVET framework, National Proficiency II leads to National Certificate I, which covers complex and varied work under minimum supervision. This module is written at an advanced level comparable to National Certificate I; it is not accredited.

Why advanced skills matter now

• Local makers face strong import competition: more than 70% of footwear sold in Ghana in 2024–2025 came from China, imports exceeded US$40 million while footwear exports stayed below US$1 million, and makers say they pay about 36.1% in combined taxes on imported raw materials.
• The Ghana Leather and Footwear Manufacturers Association is asking the state to direct the Armed Forces, Police and Ghana Education Service to buy footwear from certified local manufacturers; a similar 2025 directive was reportedly not well enforced. Workshops that can prove quality, keep records and deliver on time will be first in line if such orders come.
• Young people leave the trade because apprentice pay is low (about GH¢20 a day, said a Kumasi maker) and capital is short; starting a shoemaking business needs about GH¢20,000. Owners who plan, price and pay fairly keep their best people.

Bridge from Level 2: what you already know

How the module works

• Each unit has learning outcomes, performance criteria, a range and the evidence your assessor needs. You are judged Competent or Not Yet Competent.
• At this level you work with little supervision, solve non-routine problems and lead others. Safety gates from Levels 1 and 2 still apply: you now enforce them.
• The Hub's Money Skills Level 2 and Entrepreneurial Thinking Level 2 teach general bookkeeping and venture basics. Units 5 to 7 apply them to a leather workshop and go deeper.
• Numbers marked example are for practice. Replace them with your own.
• Every unit ends with a Check yourself. Answers are in the Teacher Copy.

Competency standard

Range. A practice order of at least 20 pairs or 20 bags in mixed sizes. Evidence. Production plan; graded patterns; quality report; fault trace record.

From order to plan

1. Read the order and confirm in writing: product, approved sample, sizes and quantities, leather and colour, hardware, delivery date, price, deposit (Level 2 order form).
2. Make a size run table: how many of each size.
3. Cutting plan: which pieces from which hides, largest first, straps along the back (Level 1). Cut all pieces of one size together and bundle and label them by size.
4. Materials list: leather area, soles, insoles, glue, thread, hardware, packaging, plus waste.
5. Schedule: cutting, preparation (skiving, edges), closing (stitching uppers or panels), lasting or assembly, finishing, quality check and packing. Put it on the production board day by day.
6. First sample: make one complete item, check it against the order, and get the customer to approve it before cutting the batch.

Grade a pattern across sizes

Grading means making a pattern in every size from one base pattern. For footwear, each European size is one Paris point, 2/3 cm, of last length, and EU size = 3/2 × last length in cm. So for each size up, the last is about 6.7 mm longer.

Simple grading for an open sandal (author's method for beginners; real factories also grade width and girth):

1. Draw the base sole pattern (for example EU 40) on card with a centre line from heel to toe.
2. For each size up, add about 6.7 mm of length: about one-third at the heel end and two-thirds at the toe end (author's teaching rule), keeping the heel curve the same.
3. Add a little width at the ball (the widest part): about 1–2 mm per size is a common starting point; check on real feet (author's guidance).
4. Move strap positions in proportion.
5. Make a test pair in the smallest and largest sizes and fit them on real feet before cutting the batch.

Control quality at every stage

Measure quality

• Right first time (RFT) % = pieces passing the final check with no rework ÷ pieces made × 100 (author's definition for this manual).
• Reject % = rejected pieces ÷ pieces made × 100.
• Keep a quality report for every batch and look at it monthly.

Trace and fix (non-routine problems)

1. Describe the fault exactly (where, how many, which sizes, which day).
2. Check records: job cards, glue tin date, leather batch, who did the step.
3. Ask the people who did the work, without blame.
4. Test your idea on two or three pieces.
5. Fix the cause, not only the pieces, and write the new rule into the job card.

Check yourself: Unit 1

1. Why must the customer approve a first sample before you cut the batch?
2. How much longer is each EU size?
3. What is the difference between RFT % and reject %?

Competency standard

Range. One structured bag; one pair of closed shoes or loafers; two written quotations. Evidence. Finished items; build records; quotations.

Structured bag, step by step (outline)

1. Design and pattern: panels, gusset or boxed corners, flap, lining, inside pocket, handles, reinforcements, stiffener pieces.
2. Stiffen: glue bag board or firm leather to the panels' flesh side, cut 3–5 mm inside the seam lines so seams stay thin (author's guidance).
3. Lining: sew the inside pocket onto the lining first; then join the lining pieces.
4. Outer: attach handles through reinforcement (Level 2); join panels and gusset, matching notches, with piping in the seam if wanted (a strip of leather folded round a cord, glued into the seam line).
5. Boxed corners (alternative to a gusset): stitch the side and bottom seams, then flatten each corner into a triangle and stitch across it at the depth you want.
6. Join lining to outer at the top edge, folded and stitched, or bound with a leather binding strip.
7. Hardware last (magnetic snap or turn-lock through reinforcement).
8. Load test with 5 kg (example) and a 2-minute swing test; check handles, corners and lining.

Closed shoe (cemented), step by step (outline)

The parts of a shoe and the last were introduced in Level 2: vamp, toe box, insole, midsole, outsole. Shoes built on a last have used many methods; glued (cemented) construction without stitching through the sole was developed from 1910.

1. Insole cut from the last bottom; a shank (a stiff strip) is fixed under the insole's waist for support (author's guidance).
2. Upper cut and closed (stitched) with lining; toe puff (stiffener) placed between upper and lining at the toe, and a counter (stiffener) at the heel, so the shoe keeps its shape (author's guidance; materials vary).
3. Lasting: pull the upper over the last, toe first, then heel, then sides, fixing the lasting allowance to the insole with cement and tacks (Level 2). Keep the centre line straight.
4. Rest on the last to set.
5. Rough the lasted bottom margin; fill the hollow with a filler; cement the outsole (outdoors, Unit 3 rules); press firmly.
6. Heel: build up heel lifts and fix.
7. De-last, trim, finish edges, sock lining, polish.
8. Wear test with the customer for 10 minutes and again after a week.

Quote a custom order

Quotation = materials + labour hours × your hourly rate + overheads + profit, written down with a validity date and a deposit rule.

Protect your designs and name products honestly

• Kumasi makers say foreign manufacturers photographed and copied their designs. Keep dated photos, sketches and patterns of every design in a design book.
• Ghana's Industrial Designs Act, 2003 (Act 660) protects the appearance of a product (lines, colours, shapes, materials) if it is new; the Registrar-General keeps the register, and registration lasts five years from filing with renewals. A Wikipedia summary says the registry has so far processed only textile design applications; sources also differ on how many renewals are allowed. Not verified: ask the Registrar-General's office whether a leather product design can be registered now. This is not legal advice.
• Honest names: "full-grain leather", "PU", "leather and fabric"; never "genuine leather" for bonded or PU.

Check yourself: Unit 2

1. Why is stiffener cut a few millimetres inside the seam line?
2. What do the toe puff and the counter do?
3. Name four parts of a quotation.

Competency standard

Range. The trainee's own or the training workshop. Evidence. Risk assessment; chemical register; safety rules; fire and first-aid plan; waste record.

Why the owner must act

• Glue: n-hexane, found in many shoe glues, is highly flammable and can cause nerve damage (numb hands and feet, weakness) with long exposure. Shoe workers in Japan and Italy were harmed this way; the best prevention is to control exposure and use less toxic products.
• Dust: IARC classes boot and shoe manufacture and repair as causing cancer in humans; nasal cancer was concentrated in preparation and finishing rooms where leather is cut, trimmed and sanded.
• Benzene: leukaemia among shoemakers exposed to benzene is well documented. Never buy unlabelled glue or thinners.

Risk assessment in five steps

1. Find the hazards: walk round the workshop: knives, skivers, punches, machines, glue, dyes, dust, fire, electricity, lifting rolls of leather, slips on offcuts.
2. Decide who could be harmed and how: workers, apprentices, customers, children nearby, a pregnant worker, a person with asthma.
3. Decide controls, best first: remove (a pre-cut part instead of grinding), substitute (water-based glue where strong enough; glue without n-hexane or benzene), engineer (outdoor glue bench, fan blowing fumes out, guards on machines), rules and training, then PPE (gloves, masks).
4. Write it down and tell everyone.
5. Review every six months, after any accident and when you buy a new glue or machine.

Solvent control

Dust and machines

Fire

The Ghana National Fire Service (GNFS) issues fire certificates for premises; its online charges list GH¢500 plus processing for non-residential premises, and GNFS has urged owners of facilities to obtain fire certificates. Keep a dry powder extinguisher by the glue store and the exit, a fire blanket, a clear exit path, and no glue rags left in heaps.

Waste

• Offcuts: sort usable pieces (key holders, patches) from waste. Small leather scraps can go to craft makers; do not burn leather or rubber (smoke from burning chrome leather and glue is harmful; author's advice).
• Glue and dye waste: let small amounts dry out in the tin outdoors, closed, away from flames; dispose as the Assembly advises. Never pour solvents into drains or the ground.
• Ghana's Environmental Protection Act, 2025 (Act 1124) replaced earlier law, including Act 917. Ask the EPA Western Regional office whether your workshop needs any permit; small hand workshops were not verified.

Check yourself: Unit 3

1. Give the order of controls from best to last.
2. Why should you refuse a glue that contains benzene?
3. Why is the glue bench outdoors and away from the stitching room?

Competency standard

Range. A team of at least two (classmates or apprentices) for one week of production. Evidence. Task matrix; training records; pay sheet; feedback notes.

Who may do what (task matrix)

The daily briefing (5 minutes)

1. Today's orders and targets (from the production board).
2. Who does what.
3. One safety point (for example "glue bench only; tins closed").
4. One quality point from yesterday's report.
5. Questions.

Train with a job breakdown

1. Break the task into steps and key points (for example saddle stitching a strap: mark, punch, measure thread, thread needles, clamp, stitch, back stitch, finish ends).
2. Show the task once at normal speed, then slowly with the key points.
3. Let the trainee do it while you watch and correct.
4. Let them do it alone, checking the first pieces.
5. Sign off in the training record when they meet the standard three times in a row (author's rule).

Apprentices

Ghana's 2026 budget gives GH¢170 million to the National Apprenticeship Programme. Ask the National Youth Employment or apprenticeship office in Takoradi whether your workshop can host funded apprentices. A Kumasi maker said young apprentices earn about GH¢20 a day, which drives them to other jobs. Whether an apprentice counts as an employee for minimum wage and SSNIT was not verified: ask the Labour Department.

Pay fairly: day rate or piece rate

• Day rate: a fixed pay per day. Simple; pays for learning time; risks slow work.
• Piece rate: pay per piece passed by quality check. Rewards speed; risks rushing and poor quality; must still give at least the minimum wage for a day's work.
• Ghana's minimum wage for 2026 is GH¢21.77 a day. Casual workers must be paid the full daily minimum for each day worked.

Give feedback that improves work

1. Say what you saw, not what the person is ("these stitches slope two ways", not "you are careless").
2. Show the standard.
3. Agree one change.
4. Check later and praise the improvement.
5. Never shout or punish in front of others; record serious issues privately.

Check yourself: Unit 4

1. Who should order glue and chemicals, and why?
2. What is the main risk of piece rate, and how do you control it?
3. What is the 2026 daily minimum wage?

Competency standard

Range. The trainee's own planned business in Sekondi-Takoradi or the Western Region. Evidence. Registration checklist; start-up budget; funding plan; one-page plan; two-minute pitch.

See the hub's Entrepreneurial Thinking Level 2 and Money Skills Level 2 for the basics. This unit applies them to a leather workshop.

Choose the legal form

Late annual returns cost GH¢1,000 (1 to 4 years) or GH¢2,000 (5 years or more). Most new leather workshops start as sole proprietors and become companies when they take big institutional contracts or bring in investors (author's advice). If you want to supply the security services or schools as a "certified local manufacturer", ask the Ghana Leather and Footwear Manufacturers Association what certification buyers expect; this was not verified.

Register step by step

FDA permits are for food, drugs and cosmetics; they do not normally apply to leather goods (author's understanding; confirm if you sell leather-care creams you make yourself).

Tax route

• Modified Taxation Scheme (MTS): for resident individuals with business income only and not VAT-registered. Turnover up to GH¢20,000 pays fixed instalments; GH¢20,001 to GH¢750,000 pays 3% of turnover (or the modified cash basis), by *880# or the MTS app; professionals, owners of several businesses or outlets, and partners are excluded. The 750,000 ceiling came in with the Income Tax (Amendment) Act 2026 (Act 1178); GRA's own MTS page still showed 500,000 in October 2026.
• Companies: 25% standard; 18.5% for manufacturers in regional capitals other than Accra and Tema (Takoradi qualifies); 12.5% outside regional capitals; quarterly provisional tax. Ask GRA whether your workshop counts as a manufacturer.
• VAT from 1 January 2026: 15% plus NHIL 2.5% and GETFund 2.5%, 20% in all; the threshold for goods is GH¢750,000. For taxable services there is no threshold: register within 30 days of starting. Selling sandals and bags you make is goods. Shoe and bag repairs are a service. Ask GRA in writing how your repair income is classed before you start repairs as a business, because a VAT-registered business cannot use the MTS.

Premises and location

Start-up budget (example)

A small workshop for the owner and two helpers. The machine price follows October 2026 listings; registration fees are from the steps above. Everything else is an example.

Funding options

• Savings and VSLA/susu groups first; borrow only for things that earn money.
• Loans: check the lender is licensed and ask for the APR in writing. The Bank of Ghana policy rate was 14.00% and inflation 5.2%.
• Ghana Enterprises Agency (GEA): SME GO, Business-in-a-Box (BizBox), SME High Growth and Kaizen; business advisory centres in Takoradi, Shama, Effia-Kwesimintsim, Mpohor and Ahanta West. Ask which rounds are open.
• 2026 Budget programmes: GH¢170 million for the National Apprenticeship Programme, GH¢160 million for Adwumawura, GH¢401 million for a Women's Development Bank and GH¢110 million for the 24-Hour Economy.
• Assemblies' disability fund: it rose from 3% to 5% in 2026 for skills, devices and start-up capital.
• Ghana EXIM Bank: SME and export facilities, with a Takoradi office. The footwear makers' association has called on Ghana EXIM Bank to act on the sector's problems.

Staff and apprentices

The Labour Act, 2003 (Act 651) requires a written contract for work of six months or more (section 12), a written statement of terms within two months (section 13), at least 15 working days of paid leave a year (section 20), 12 weeks of maternity leave (section 57), and full daily minimum pay for casual workers (section 74). SSNIT is 5.5% from the worker and 13% from the employer, 18.5% in all; the employer pays 13.5% to SSNIT within 14 days after month-end and 5% to a private Tier 2 trustee; late payment costs 3% a month. PAYE is due by the 15th of the next month. This is not legal advice.

Insurance

Get written quotes for fire and theft cover on machines and stock, and for public liability (a customer hurt at your counter), only from NIC-licensed insurers. Which covers are compulsory for a small workshop was not verified.

Market the business

• WhatsApp Business: a profile, a catalogue with prices and sizes, labels for customers and quick replies.
• Google Business Profile: a free listing with your address, hours, photos and reviews on Search and Maps. Repair customers search "shoe repair near me".
• Social media: small Ghanaian fashion firms market mainly through WhatsApp, Instagram and Facebook. Show process videos and before-and-after repairs.
• Sign, portfolio and referrals: a clear sign at the counter, a portfolio book with your design book photos, and a referral reward.
• Made in Ghana: say it proudly and show your workshop; buyers are being urged to choose Ghana-made footwear.

Accessibility

Ghana's Persons with Disability Act, 2006 (Act 715) protects the rights of persons with disabilities, including to work, and calls for accessible services. The Sekondi-Takoradi Assembly has supported persons with disabilities with tools from the disability fund, the GEA has run a programme for enterprises owned by persons with disabilities, and training centres in Ghana already teach leather work to persons with physical disabilities.

• Workable roles: design and patterns, cutting with jigs, hand and machine stitching (with adapted controls), edge finishing, repairs at a counter, quality grading, sales, social media and bookkeeping.
• Adjustments: step-free entrance and counter at seated height; clamps and jigs instead of hand-holding; hand-operated machine controls fitted by a qualified technician; tactile and large-print labels and gauges; picture job cards and written briefings for Deaf staff; visual fire alarm; a partner rule at the glue bench for anyone who cannot leave quickly.

The one-page business plan

Check yourself: Unit 5

1. What does a business name registration cost at the ORC, and what is the yearly renewal?
2. Why might your repair work need VAT registration sooner than your sandal sales?
3. Name two Labour Act duties when you hire.

Competency standard

Range. One month of sample records and one week of the trainee's own. Evidence. Cash book; stock sheet; debtors list; profit and loss; balance sheet; reconciliation; payroll.

The daily set of records

An income statement shows sales minus cost of sales (gross profit), then other costs (net profit). A balance sheet shows assets = liabilities + equity. Working capital is current assets minus current liabilities. A balance sheet that balances is a partial check only: two errors can cancel out.

Stock, finished goods and deposits

• Materials stock: leather, soles, glue, thread and hardware you own. Expected stock = opening + bought − used. Count monthly.
• Finished goods: items made but not sold, valued at their materials cost (a simple method for a small workshop; the author's choice).
• Cost of sales = opening finished goods + materials used in production − closing finished goods, plus materials used in repairs.
• Customer deposits are a liability until you deliver; then they become sales.

A month for Kofi's Leather Works (example numbers)

Kofi runs a leather workshop in Takoradi with two helpers. He makes sandals (materials GH¢60 a pair), belts (GH¢50 each) and bags (GH¢150 each), and does repairs. Everything is invented for practice.

At 1 May. Cash and MoMo 5,000. Materials stock 3,000. Finished goods: 10 pairs of sandals (600), 5 belts (250) and 2 bags (300): 1,150. Equipment cost 9,000 less depreciation so far 1,200 = 7,800. He owes a leather supplier 600 and holds a school deposit of 1,200 (half of a 2,400 order for 20 pairs). Owner's capital and profits kept: 15,150.

During May.

• Buys leather for 3,000: pays 2,400 and owes 600; pays the old 600.
• Buys soles, insoles, glue, thread and hardware for 1,200 (cash).
• Makes 60 pairs of sandals (3,600), 20 belts (1,000) and 6 bags (900): materials used in production 5,500. Uses 200 of materials in repairs.
• Sells retail (cash): 30 pairs at 150 = 4,500; 15 belts at 110 = 1,650; 5 bags at 380 = 1,900.
• Sells 15 pairs wholesale at 110 to a shop: 1,650; the shop pays 1,000 and owes 650.
• Delivers the school order (20 pairs at 120 = 2,400): the 1,200 deposit is used and the school pays the other 1,200.
• Repairs: 2,000 (cash).
• Takes a 1,500 deposit for a church order to be made in June.
• Pays two helpers 620 each gross; withholds 5.5% SSNIT (34.10 each) and pays them 585.90 each. PAYE is nil because their taxable pay (585.90) is below GH¢588.
• Pays rent 600, power 250, transport 400, data 100, masks and gloves 100, blades and needles 150, packaging 200; takes his own wage 1,500.

Closing count, 31 May. Materials 1,500. Finished goods: 5 pairs (300), 10 belts (500), 3 bags (450): 1,250.

Depreciation is straight line: (cost − scrap value) ÷ years of use. Employer SSNIT is 13%. The set-aside uses the STMA footwear producer fee of 400 and the ORC renewal of 70.

Check the finished goods: sold 65 pairs × 60 = 3,900, 15 belts × 50 = 750, 5 bags × 150 = 750: 5,400, plus repair materials 200 = 5,600. It matches the cost of sales.

Materials check: opening 3,000 + bought (3,000 + 1,200) 4,200 − used (5,500 + 200) 5,700 = 1,500, which matches the count.

SSNIT (employee 68.20 + employer 161.20 = 229.40) is paid in June, within 14 days, and the 39 set-aside is held, so 268.40 is owed at month-end.

The two sides match. If they did not, look for an entry made once, in the wrong place, or not at all.

Why did cash rise by 5,078.20 when profit kept was 3,609.80? Profit kept 3,609.80 + depreciation 150 (not a cash cost) + church deposit 1,500 − school deposit used 1,200 + SSNIT and fees still owed 268.40 − shop still owing 650 + materials run down 1,500 − finished goods built up 100 + supplier balance unchanged 0 = 5,078.20. Profit is not cash, and cash is not profit: 1,500 of Kofi's cash belongs to the church until he delivers.

Pay staff correctly: PAYE and SSNIT

Deduct employee SSNIT (5.5%) first. The 2026 monthly PAYE bands are: first GH¢588 at 0%; next 80 at 5%; next 100 at 10%; next 2,900 at 17.5%; next 16,000 at 25%; next 30,332 at 30%; above 50,000 at 35%. Act 1178 raised the tax-free band to GH¢588 a month from 1 September 2026.

Pricing, break-even and depreciation

• Margin = profit ÷ price; mark-up = profit ÷ cost (Level 2).
• Break-even sales = fixed costs ÷ gross margin. For Kofi, fixed costs (other costs 3,390.20 + owner's wage 1,500) are 4,890.20; gross margin is 60.3%; break-even ≈ 4,890.20 ÷ 0.6028 ≈ GH¢8,112 of sales a month, if the mix of products and repairs stays the same. May sales of 14,100 are well above it.
• Watch the mix: repairs use little material, so they lift the gross margin; wholesale sandals at 110 lift sales but at a lower margin (author's note on the example).

Month-end routine

Tax records and the filing calendar

Keep records in Ghana for at least six years from the end of the year of assessment or VAT period, and longer if under dispute. If Kofi's May is typical, his yearly turnover is about 14,100 × 12 = GH¢169,200, inside the MTS band of GH¢20,001 to 750,000, so MTS at 3% would be about GH¢5,076 a year. His goods sales are below the GH¢750,000 VAT threshold for goods, but his repair income may be a taxable service with no threshold: he must ask GRA. Withholding tax of 3% on goods and 7.5% on services may be deducted when larger buyers such as schools pay him; he should ask for a withholding certificate.

From 1 January 2027 the 2025 edition of IFRS for SMEs applies where that standard is used. A small workshop does not need it, but a company's books should be clear for a lender. Free tools: a spreadsheet, Zoho Books' free plan or Wave's free starter plan. A paper book you use beats software you do not.

Check yourself: Unit 6

1. Why is the church deposit a liability at 31 May?
2. How do you work out cost of sales for a leather workshop that also does repairs?
3. Kofi's cash rose more than his profit kept. Give two reasons.

Competency standard

Range. The trainee's own business plan. Evidence. Quality rules; growth plan; 12-month forecast; pitch to a panel.

A simple quality system

Customer care and pricing strategy

• Reply to messages the same day; give realistic delivery dates and keep them.
• Keep a size record for every customer (with permission): repeat orders become easy.
• Price by value, not only cost: made-to-measure, full-grain leather, hand stitching and a guarantee earn more than imports.
• Discounts cut margin fast: on a GH¢150 pair of sandals with GH¢60 of materials, gross profit is GH¢90; a 10% discount (GH¢15) cuts it to GH¢75, about one-sixth less (author's arithmetic, example figures).

Ways to grow

1. More of the same: a second machine, a third helper, more lasts.
2. New products: school bags, corporate gifts, belts for uniforms, leather trims on local-cloth bags.
3. New customers: schools, churches, hotels and offices by contract; tourists through shops on the coast.
4. Repairs network: supply cut straps and insoles to other repairers.
5. Partners and clusters: join or form a cooperative with other makers to buy leather and glue in bulk and share a machine; join the Ghana Leather and Footwear Manufacturers Association.
6. Exports, later: footwear exports are below US$1 million a year; start with one buyer and samples only after your quality system works.

Tenders and contracts

• Read the specification: material, sizes, quantities, sample, delivery, payment terms, any certification.
• Check you can finance the order: leather and soles are paid upfront; institutions may pay late.
• Price withholding tax into your cash plan if the buyer deducts it.
• If the state acts on the call to buy from certified local makers, buyers will ask for proof of registration, quality and capacity. Keep your papers ready.

Records for loans, succession and ethics

• Lenders want 6 to 12 months of cash books, MoMo or bank statements, registration papers and your plan.
• Succession: train a second person in every key job (cutting, lasting, quality sign-off, bookkeeping) and keep the pattern book, design book, size records and supplier list safe.
• Ethics: honest material names; fair pay at or above the minimum; no benzene glues and no glue near children; no solvents in drains; never copy another maker's design you have photographed.

Your 12-month cash-flow forecast (example)

Kofi plans his first full year in a new, bigger workshop. Assumptions (all examples): he starts with GH¢4,000 cash; customers pay in the month of sale; materials are 40% of sales (from May's cost of sales of about 40%); fixed cash costs are GH¢5,843.20 a month (May's other costs 3,390.20 less the 150 depreciation, which is not cash, plus his wage 1,500 and a loan instalment of 1,103). Busy months are April (Easter), September (school reopening) and December (Christmas).

The year's cash rises by 21,681.60 (153,000 − 131,318.40), from 4,000 to 25,681.60. Months 1, 2 and 7 are the weakest. The year's turnover of 153,000 is inside the MTS band; MTS at 3% would be about 4,590, which this forecast does not yet include. It also has no money set aside to replace the machine.

Capstone: present to a panel

Prepare and present, in 10 minutes, to a panel (for example a lender, a school bursar or buyer, and an experienced maker):

1. Your business: name, legal form, products, repairs, customers, location.
2. Proof you can make it: your portfolio, design book, a graded pattern set and a quality report (Units 1 and 2).
3. Safety and rules: registrations, risk assessment, chemical register, waste plan (Units 3 and 5).
4. Team: task matrix, training and pay (Unit 4).
5. Money: start-up budget and funding (Unit 5); one month's accounts (Unit 6); your 12-month cash-flow forecast (this unit).
6. Risks and answers: imports, leather and glue supply, late payers, slow months.
7. Ask: what you need (a loan, a contract, a partner) and why it will pay back.

The panel scores each part as Competent or Not Yet Competent and gives written feedback.

Check yourself: Unit 7

1. Why can a business with profit run out of cash?
2. Name three ways to grow a leather workshop.
3. What should a lender see before giving you a loan?

1. Why do you approve a first sample before cutting a batch?
2. A base last is 27 cm. What EU size is it, and how long is the next size up?
3. A batch of 80 bags has 68 right first time and 4 rejects. What are RFT % and reject %?
4. Name three parts that give a closed shoe its shape.
5. What is the best control for a dangerous glue, and what is the last?
6. Why is leather dust a serious hazard?
7. What must you pay a worker at least, per day, in 2026?
8. What does a sole proprietor pay to register a business name at the ORC?
9. Why might repair income need VAT registration even when sales are small?
10. Why is a customer deposit a liability?
11. Kofi's fixed costs are GH¢4,890 and his gross margin is 60%. What is his break-even sales a month?
12. Give two ways to protect cash in a slow month.

Best next reads: the hub's Money Skills Level 2, Entrepreneurial Thinking Level 2 and Workplace Safety Level 2 manuals; the IARC summary on boot and shoe manufacture; LEVEL3 business facts as updated by the hub.

What this module does not cover: legal advice; tanning; welted and factory shoe construction; full width and girth grading; export documentation in detail (see the hub's other manuals and the agencies named).

Every source used in this manual is listed, with links, in the Teacher Copy.