A well-organized embroidery is critical to a commercial shop’s longterm sucess
Think through what you want out of your custom embroidery business ensure success
Price your custom machine embroidery according to your business’s unique costs
Starting an embroidery business or adding embroidery to an existing business can be a profitable adventure. Although a plan, along with calculated decisions, must be developed for success, the process doesn’t have to be as overwhelming or complicated as it might seem.
I love exploring in the mountains on ATV trails and tenting under the canopy of the trees and stars. However, I would never head out to the mountains without a well-developed plan, proper clothing, gear and equipment. Starting an embroidery business should be approached in much the same way, by taking the time to develop a plan and determine exactly what you’ll need for success.
Sourcing the Right Commercial Embroidery Machine
When considering the type of embroidery machine to go with, I encourage you to consider what niche your business is likely to serve and choose a machine that can handle the products that go along with it. Just as I won’t take a low-profile ATV to trails covered in boulders, I won’t ask a hobbyist embroidery machine to sew caps on puff embroidery like a pro. Choose a machine that fits the space you have available to work and has features that will allow you to achieve your goals and say, yes, to the projects you hope to work on.
As you are doing so, don’t forget to leave room for growth. I once went on an ATV trip in Wyoming, and despite checking the weather and considering the time of year, I didn’t have the proper gear for the rain and sleet we encountered. Long story short, I had to spend a couple of hours purchasing a warm enough coat to allow me to enjoy the rest of the trip—a simple enough solution. Having the wrong ATV, though, would have been a much bigger, far more expensive problem that would likely have meant having less fun.
When investing in an embroidery machine, be sure it can grow with your business. In this case a large embroidery area is critical to the success of this design. Photo by Katie Wubben
Avoid trapping yourself with the wrong machine by not limiting the capabilities of the machine you choose to your exact goals. When I started off offering embroidery, I planned on serving businesses and creating various kinds of school spirit wear. I expected my average order would be 25-plus pieces and consist of mostly left chest logos and caps, with the occasional personalized item. It didn’t take long, though, after running my first 100-piece two-color, left chest logo job to discover I don’t actually enjoy this type of work.
I soon found my niche, focusing on more personalized garments that allowed me to both build my business and make my soul happy. As I did so, I was glad to already have a much larger sewing field and more needles than I’d initially thought I’d need.
If you already have a business you want to add embroidery to, consider who your customers are. What types of products are they ordering? If you are starting from ground zero, consider who you know, what hobbies or passions you have, and where and how you are going to sell your product. Someone planning to create personalized items for kids may not require the same capabilities as someone who is hoping to decorate sports apparel and caps.
Getting the Business of Your Commercial Embroidery Business Right
Next, put some thought into how your inventory will be managed and stored once it arrives, how estimates and orders will be taken, and how you’re going to organize the bookkeeping side of the business. You’re also going to need to develop a marketing plan and price your products based on your cost of operations.
In terms of the work you choose to target with your business, don’t be afraid to pursue your passions. If fun seasonal designs are what bring you joy, go for it! Photo by Katie Wubben
One of the most common questions I am asked during every training session I do is, “What should I charge?” My best advice with regards to pricing your products and embroidery services is to make a plan that is based on your actual expenses and business goals as opposed to just following the herd. The biggest mistake new startups make is not pricing correctly for their particular business. Instead, they simply try and match the pricing they already see out there. If this is your pricing structure, you really have no idea whether you’re actually making any money or not based on your own expenses. Electricity, rent, equipment costs and other expenses can vary greatly.
There are a number of tools out there to help automate the pricing process. One of my favorites, especially for smaller businesses and startups, is StarQuoter. The reason I like it is it does its pricing based on a company’s actual expenses, which in turn makes it possible to create professional estimates in seconds and price every job in such a way as to ensure you make the desired profit.
Available for a low monthly fee, StarQuoter, also includes links to a range of vendors in order for you to both price according to today’s inventory and prices, and make sure you aren’t selling merchandise that is actually out of stock. In the event of any kind of price adjustment, it uses the latest price without someone having to adjust things manually.
Having the Right Commercial Embroidery Workspace
In addition to having the right equipment, it’s important to be sure and assemble a well-organized production space. The primary areas required will be a spot for your embroidery machine(s), a hooping area, supply and inventory storage, a designated area to trim, inspect and stack items as you process them, and a place to keep finished orders until they are picked up or shipped out. Some machines require space behind them to change out the threads and perform maintenance procedures. Others can be maintained and serviced from in front. Many are on casters as well, making maintenance and access that much easier.
Design a layout that allows for efficient production with everything you need close at hand. Keep snips, bobbins, machine oil, replacement needles and a small screwdriver near every embroidery head. In your hooping area, you’ll want to have all the backing options, hoops, topping, temporary spray adhesives and marking stickers or pens you’re going to need within reach. If you’re using a hooping station, you’ll want to keep items this space sufficiently equipped as well. A counter with drawers or shelves underneath and/or pegs or shelves on the wall work great for building out these areas.
Keeping threads away from direct sunlight and air vents will help preserve their quality. It is best to prevent them from becoming dusty as well. And don’t forget once your items have been embroidered, you’ll need a space in which to clean them up. A sharp pair of fabric shears, liquid stitch, a seam ripper, snips, a can of Magic Sizing or a spray bottle of water should all be where you can easily reach them.
If you plan to ship your orders, dedicate a workspace specifically for packaging materials and get a label printer and scale. You’ll want to open an account (or accounts) in order to better manage your shipping to save time and money. I love using Shippo because of the way it lets me compare shipping options with multiple carriers in one place. That said, there are plenty of other options out there as well. Do a search to see what fits your business best. I primarily ship through UPS and the USPS, because they’re close by, which makes dropping packages off fast and easy. You can, of course, schedule pickups as well.
Honing Your Embroidery Skills, Finding Thread, Needle, Blank Apparel Suppliers
Once your equipment has arrived and you’re ready to go, start out by creating a few samples, both to become familiar with your equipment and master the basics of the work you plan on doing. This will allow you to recognize how much time goes into the various types of projects you have in mind in order to more accurately price your work as well. Using the same logos and artwork you plan to offer your potential customers will also allow you to establish relationships with one or more digitizers and get hands-on with the various products you’ll be offering.
Practice by grabbing items made from a range of fabrics at a local thrift store. Look for garments with similar weights, stretch, textures and patterns to those you expect to decorate. Once you’ve mastered the step-by-step process of handling orders and created the necessary processes to manage your inventory and take orders, you can begin offering your services to your potential customers.
Be sure and post fun projects like this one online to let the rest of the world know what you’re capable of. Photo by Katie Wubben
To get the word out, post photos of some of the samples you made online along with some short behind-the-scenes videos showing how you created them. Tell the story of your business to build interest and excitement. Add tags to your samples that include minimum quantities, color options and any other features you plan on offering, as well as the price for the item. Make it easy for customers to place an order by using a QR code that takes them to a link to purchase or your website to place an order at their convenience. Leave no questions unanswered!
To encourage customers to place an order sooner rather than later, add a discount or coupon if they order within 30 days. This could include something as simple as an offer of “Free Digitizing.” (Which, of course, you’ve already paid for anyway to create the samples they are seeing on display!)
Source garments and items that fit your niche by looking for wholesale suppliers online and attending a trade show or two. I love getting hands-on with garments at shows or open houses, as it gives me a true feel for the quality, sizing and options available better than a catalog or website ever can. Grab a catalog along with a Sharpie and write notes in it or circle those items you like best. Once you are feeling ready, order some samples from the vendors you intend to work with. Most companies will offer discounts on samples or have packs you can purchase for less than you might otherwise as you’re starting out.
Find some suppliers you’d like to work with when ordering your embroidery threads, backing, bobbins, etc. While you’re at it, select a digitizing company (or two) you’d like to work with as well. Trade shows are great places to meet vendors of all kinds. While your there, take a few classes, not just to learn the basics, but acquire any of those advanced skills you’d like to incorporate into your embroidery business. And don’t forget to network with the other decorators you will come across at these kinds of events, as these may not only become valuable industry contacts, but good friends as well.
The Reality of Starting Your Own Custom Embroidery Business
Once you are up and running, expect some failures. Like every decorating process, there is a learning curve. One of the things that sets embroidery apart from other garment decoration types, for example, is in the way the fabric responds to being decorated. Certain fabrics require different stabilization and handling techniques to look good when embroidered. You will also make human errors, such as sewing a garment to itself or forgetting to rotate a logo and having it end up facing the wrong direction. It’s all part of the process.
Of course, mistakes can also lead to missed deadlines and the extra cost of replacements. To help minimize the impacts of these kinds of things, try ordering a few extras in case you end up losing one or two. If everything goes smoothly, you can always use them as future samples or decorate them and include them with the order as a kind of thank you. Build those costs into your pricing and look at it as an insurance policy to protect the experience of your customers and your peace of mind.
Another way to give yourself some breathing room is by adding a cushion to your deadlines so you can add any necessary replacement items to your weekly inventory order if that makes sense.
Finally, for those existing decorators who have not yet taken the plunge, consider the return on the investment when branching out into embroidery. The only mistake I made when I added embroidery to my business was not doing it sooner. What I failed to consider was the potential return on my investment, that and the opportunity to open up new channels of revenue that far outweighed the cost of my interest payments. I could have increased my revenue much sooner had I thought to consider what my margins would be.
After adding embroidery to my business, I went from surviving to thriving and growing faster than I could have ever otherwise imagined. It helped turn slower months into profitable ones by adding new products to fill the gaps in an otherwise difficult time of year. Bottom line, embroidery is a high value service that will always be a part 
of garment decoration—something to keep in mind when deciding whether or not to make the investment. The profit margins that are integral to embroidery may, in fact, be just what your business needs. Many projects can also be kept running while the operator does something else, allowing a business to grow its income without increasing the number of hours worked or number of staff.
Katie Wubben is the owner of Trouble Me Knot Embroidery, an embroidery training company and distributor of a wide range of embroidery supplies, including everything from needles to bobbins, backings and, yes, thread and HoopMaster products. Wubben also sells Melco and SWF embroidery machines and is a veteran presenter with the Impressions Expo’s educational conference program as well as a number of other shows around the United States. For more information, go to troublemeknot.com.
