Leather Works Minnesota Grows its Business by Staying Small

By Adia Morris

The scent of fresh leather and the creak of wooden floors greet visitors entering to the second floor of the Northern Warehouse Artist Co-Op in St. Paul, Minnesota, where Leather Works Minnesota creates handmade leather dry goods.

An inquisitive, curly-haired, peach-colored dog meets each person at the door, announcing their arrival with a few barks, while a black lab circles shyly a few feet away. The small staff of five works quietly at large wooden tables toward the back of the high-ceilinged room, cutting, sewing and finishing wallets, belts and more.

Out of this neat, unassuming, light-filled room comes leather accessories that land in stores across the world, from Arkansas to Australia.

High-profile media attention from Martha Stewart Living and Nate Berkus continues to bolster the success of this family-run business, but Kent and Lee Begnaud—husband and wife co-founders—are quick to claim no special skills or credit for their success—other than 40 years of work experience.

When the business launched out of their home, Lee Begnaud, who runs front-end operations for Leather Works, worked for free for 14 years.

“We starved for 12 years, then we became an overnight sensation,” Kent joked of the business’ rapid momentum over the past six years.

“We had a series of things that happened—we say it was the grace of God,” Kent said. “Martha Stewart’s people found us working in our garage at home, and they wanted to see one of our products to see if they could put it in their December gift guide in Martha Stewart Living… Then right after that was Northern Grade Men’s Market. There was a blogger there who took a picture of our money clip wallet. I didn’t even know what a blogger was… He gave us a thumbs up on that review… and that next week we started getting orders from all over the country.”

In a tour of the workspace, Kent pointed out a detail included on every wallet Leather Works produces. He took a recently-stitched piece that had a few threads jutting from the finished seam and held up a soldering iron.

“I’m so anal about everything,” Kent said, bending over the work table and demonstrating the process. “We actually burn the ends of all the threads so it melts the nylon thread and it doesn’t unravel.”

Kent lights up when telling the story of Leather Works, sharing anecdote after anecdote of the company’s trajectory, and his passion is infectious. His son, Nathan O’Malley, asked to work with Kent and Lee on a full-time basis six years ago and has remained the company’s social media voice ever since.

The focus on staying small, sustainable and family-run is intentional.

“We’ve sort of put a governor on our growth because I’m old, and I don’t want to work that hard,” Kent joked. “And I like that it’s manageable and the guys all get along. And everyone can make a living.”

Saying “no” to business opportunities that would expand the company beyond a self-defined sustainable scope hasn’t been easy. In fact, two years ago, Leather Works parted ways, amicably, with one of its biggest customers.

“It was hard to say goodbye because you don’t know if you’re going to get the next one,” Kent said.

As a young man, Kent found work with a friend’s company, also called Leather Works. By the time Kent had become plant manager, a large corporation bought out the 25-year-old company and operations moved to China.

Despite that blow, Kent maintained a high standard until the end of the original Leather Works.

“I was really proud of the whole company,” Kent said. “I told them this: ‘We’re going to continue to work hard until we’re done. Let’s make them sorry that they ever got rid of us.’ ”

The company went on to have its best months, despite the imminent closing, he said.

“I was so proud of them. There was nothing more in it for us except to leave with our heads up.”

“We’re the biggest cheerleaders for businesses,” Lee said.

“We want to help anybody in any way we can to make their business a success,” Kent said. “We wouldn’t be where we’re at without help along the way.”

Currently, Leather Works has a space at the RAAS: Local Market pop-up store at the Mall of America, along with 21 other local makers and artisans. They’ve also found their Super Bowl tie-in by participating in the North Local Market at City Center in Minneapolis, running now through Feb. 4. They’ll be selling many of their regular items, including leather versions of those triangular paper footballs you might remember from grade school.

During a recent snowstorm, high-profile interior designer and Minnesota native Nate Berkus visited Leather Works’ Mall of America pop-up. He and Kent chatted about Kent’s father, also an interior designer. Before the store closed down because of inclement weather, Berkus purchased two travel trays. In the days following, Leather Works received email inquiries about the same travel trays, as well as a phone call from Ralph Lauren.

The Begnauds said they appreciate the attention and momentum, but actively work to stay true to their roots.

“I’m just doing what we like,” Kent said. “That’s…our following: The people who identify with what we’re genuinely doing.”

This article is part of  “Living for the City,” a Rewire initiative made possible by The John S. and James L. Knight Foundation.

     This article originally appeared on Rewire

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