Start by creating cutting lines around the pockets. Use your measuring tape and pen. I used a one-inch seam allowance around the sides and bottom and 3/4 inch above the top. In retrospect 3/4 inch all the way around would have been enough. Once your cutting lines are traced, cut out the pockets.
Use your seam ripper to remove the zipper (picture two). Cut through one stitch at a time, ripping about every third stitch. After you've ripped a few stitches this way you may be able to start pulling the zipper away from the fabric to make the going easier. This will be by far the hardest part of this project. Keep the faith.
Optional: if you want this caddy to have a little strap or handle, use scissors to cut up both sides of one of the double sewn seams to make a "cord" (picture three). Cut a piece of this cord 10-12 inches long, or however long you want to make the strap your preferred size.