How To Start An Embroidery Business at home

If you are artistic and love to embroider, you may have wondered how to start an embroidery business.

Designs created with embroidery have become increasingly intricate and more complex with the advent of cutting edge embroidery machines.

The market for embroidered items continues to grow as schools, teams, clubs, and other organizations purchase customized designs. Embroidered items are also popular gifts.
As you think about how to start an embroidery business, first decide whether to work at home or from a retail shop. An embroidery business is an excellent choice for people who want to work from home, but embroidery can also be a viable retail enterprise. Much depends on how much money you have to work with and whether you can work at the business full-time or only on a part-time basis.

How To Start An Embroidery Business – Where To Start

Whether you run your business from home or lease a retail location, it is essential that you purchase the most dependable, feature-rich, and upgradeable embroidery machine you can afford. Your embroidery device is your livelihood, so the machine should come with a full warranty. Make sure you have an adequate backup plan in case your machine breaks down.
If you choose to run your embroidery business in a retail outlet, make sure there are no competitors nearby, but that plenty of shoppers already exist in the location you choose. Retail and home businesses both require business licenses and may require additional permits, so contact your local business licensing agencies.

Keys To A Successful Embroidery Business

The initial challenge for most small businesses is getting the word out. The same is true as you learn how to start an embroidery business. A strong marketing campaign using traditional and unique methods will be essential. An embroidery business’s ability to create highly customizable designs will be a key draw for customers. Make sure your marketing efforts emphasize this point.

Building a reputation as a talented artist who fills orders accurately and on time will be fundamental to your success. If you are consistently late with orders or make numerous errors, your reputation will suffer and so will your business.

Finding Customers And Growing Your Business

Advertise in local media outlets, distribute fliers, and take advantage of free advertising venues. Create a portfolio filled with examples of your work to show potential customers. If you have a retail store, display all types of embroidery work and designs where customers can see them.

Contact schools, bowling alleys, local sports teams, political organizations, and local clubs to let them know about your embroidery business. Offer first time customers a percentage off or something free. Organizations that work with you once will likely order from you again, so work on building long-term relationships.

Much of your business will initially come from groups, but another market to move into is the gift segment. Personalized baby items, family reunion t-shirts, and custom embroidered items for birthday, anniversary, and wedding parties are all possibilities. In addition to marketing to groups and consumers, approach local businesses about customized embroidery for company uniforms.


Factors to take into account:


The Embroidery Machine





  • Any embroidery business requires that you have a quality embroidery machine. But buying an embroidery machine is more complicated than it looks. Today's embroidery machines come with a host of different options for software. Software ranges from packages that help you create basic embroidery to those that are capable of full color complex designs. It is important to choose an embroidery machine that can grow with your business. Look for a machine that has the room and ability to upgrade its software as your business grows and technology changes.










  • Licensing





  • Depending on where you plan to operate your business from, you may need to apply for a business license. You will also need to apply for either an LLC, or another form of business format, to help with taxes and banking. If your business stays small, you may be able operate under self-employment, but as your business grows you will need to take the proper steps to stay legally open.










  • Location





  • Once your equipment and structure is in place you can start to decide on a location. If you plan on staying small, and the zoning requirements allow it, you may be able to sell your embroidery directly from your home. However, if you plan to have an actual storefront or studio, you may want to look at commercial rentals in your area, or commercial real estate options. Be sure to compare areas and prices before you sign a contract.







  • Steps to success:




    Step One: Identify Your Niche
    Wikipedia, the online encyclopedia, states, “By definition, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers.”  Don’t bypass this basic step in favor of a “shotgun approach.” Take aim and be successful.

    Step Two: Make a Business Plan
    Your business will need a plan and a budget. Your business plan may change many times during the life of your business, but starting with a plan is the foundation of any successful business.

    Step Three: Name Your Business
    What’s in a name? This early step is sometimes a mis-step that lives on throughout the life of the business. 

    Step Four: The Business of Having a Business: Assumed Name Certificate, Resale Certificate and/or Business License, Merchant Accounts and other details.
    Preformatted order forms and other sales materials give you a head start.

    Step Five: Design a Logo and have it digitized
    A logo is a vital part of your business identity. Make sure that your logo will look good in print and in electronic media with Deborah’s tips.

    Step Six: Select your Core Products
    Control the sale and delivery time by offering reliable basics in a variety of price points. 

    Step Seven: Make a Basic Price Guide
    Some people will tell you that embroidery has too many variables to have any kind of price guide. Your company’s price guide will help you make more sales and move through the sales process faster.

    Step Eight: Create Sales Samples and Fine-tune Pricing
    Your samples are the key to impressing your customer with your workmanship. Learn how to make and display samples that will get the sale.

    Step Nine: Acquire Marketing Materials and Target Lists
    When the prospective customer says, “Could you send me some literature?” how will you respond? 

    Step Ten: Learn to Qualify, Close and Collect
    Even with all the other pieces in place, you must still close the sale. Learn how to identify good prospects, close the sale and get the money. Learn how to ask for the sale, handle deposits, get payment in advance or on delivery and more important sales and business skills.






    Expanding may also include moving a home-based business to a kiosk or retail outlet. A retail outlet might expand by purchasing additional embroidery machines to increase production.
    Learning how to start an embroidery business can open the door for you to turn something you love into a successful business. Get started today!