Start a Successful Embroidery Business
An embroidery business is a relatively simple one to start, although there are upfront costs for equipment, training and inventory. You can create designs with easy-to-use software and allow a machine to create sophisticated and high-quality embroidered products. Ensure that you have planned your business carefully and that you can reach specific customers with your products, and you will be able to run a profitable business from home on your own schedule.
Instructions
1. Create a business plan. Getting into the embroidery business has an upfront cost of $10,000 to $50,000 for equipment and inventory. Before you spend that money, spend time carefully planning your business and ensuring that you have a large enough potential market, and can charge enough for your services to make a profitable business in your area.
2. Investigate your competition and determine where the gaps in the market are. There may be large embroidery factories that serve a wide variety of your potential customers, leaving room for you to do small, custom projects for local schools or businesses. Or you might find that small, custom shops are common in your area but no one can take on large jobs for corporate clients. Local embroiderers may focus on simple, repeatable designs, like monograms, while you can put an art background to work in creating beautiful and detailed designs for high-end furniture or bridal gowns.
3. Set up your business. You will need to file for a business license through your state's website, establish a business bank account, and consult with a C.P.A. or tax accountant to ensure that you are properly accounting for sales tax and personal taxes.
4. Finance your business. If you plan to finance your start-up out of your savings, ensure that you have enough money not only to run the business until it comes profitable, but also to pay for living expenses for up to a year until your business can pay your salary. If you'll need a bank loan, bring your business plan to lenders and shop around for the best rates. Investigate sources of investment--friends, family or small local angel investment firms. Be prepared to spend several months on fund-raising.
5. Invest in your equipment and inventory. You will need an embroidery machine, which costs $8,000 to $14,000; design software that costs $600 to $15,000, averaging $3,500; small tools and equipment like needles and hoops, for $300 to $2,500; and an inventory of hats, T-shirts, uniforms or whatever other types of items you might be embroidering. You will also need training on the equipment you purchase, some of which comes with the equipment. You may need to purchase more training depending upon the sophistication of the machine and your current skill level. Try to put off these investments until you have a contract for work in hand, or have established a retail location where you or another business owner can sell your embroidered goods.
6. Market your business. A professional website is a requirement of business these days. You will also want to contact local businesses or uniform supply stores, or engage a salesperson to make cold calls for you. Convey to your customers that you understand what their challenges are, and that you can help solve those problems.
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