Step # 2 ... start the Lace Cutter in the hole. 

Step # 3 ... pull on the lace.  Sorry that I can't extract the lace and take
a picture at the same time). 

The leather scrap will 'spin' around the cutter.  

The process is quite similar to how an MBA or Management Consultant
would change a light bulb ...

[first step] holds the upraised light bulb

[second step] ... while the world turns around him. 

--
Martin