How To Start An Embroidery Business

Scam Risk is here to help you protect yourself and fight back
By: Scam Risk - Expert Reviewer

How To Start An Embroidery Business: 12 Things To Consider

The popularity of embroidery grows globally every year. This explains why many people are going into the embroidery business. Industry growth is accelerating.

Owning embroidery businesses is now more accessible than ever before. No matter how small or big you start, it can be highly profitable.

In this article, you’ll learn everything you need to know to start an embroidery business.

It will teach you how to stand out from your competitors, which embroidery equipment you’ll need, and how to start an embroidery business at home.

Towards the end of this article, you’ll find answers for some of the most frequently asked questions on how to launch an embroidery business…

But most importantly, you’ll be shown the exact system several others have used to build their own business to over $40,000 a month in mostly passive income.

Table of Contents

What Does An Embroidery Business Do?

Embroidered apparel is a highly lucrative business.

With just a decent embroidery machine, some other pieces of equipment, and some basic embroidery skills, you can quickly get started.

Every day, thousands of companies are looking for ways to boost their brand awareness. Their logos can be imprinted on caps, sweatshirts, masks, and other apparel.

Sports teams, schools, clubs, other organizations, and companies can also market your embroidery designs.

Although others believe this is a business with a lot of competition, you can opt to embroider T-shirts instead.

Experts say that hoodies, jackets, and fleeces are generally more profitable. Starting related businesses, such as screen printing and T-shirt printing, can help you increase your earnings.

How Can I Start An Embroidery Business?

It is essential to consider whether you have the right motivation and attitude before starting your own embroidery business.

You’re probably here because you are convinced that the information you are reading will help you.

In addition to your financial considerations, it is crucial to consider the initial outlay for acquiring a machine and software that will enable you to accomplish your goal.

Working from home alone or hiring a small team of staff to aid you in your work will be a decision you have to make.

How To Start An Embroidery Business in 12 Steps

These are the steps to get started in your machine embroidery business.

Step 1: Differentiate Yourself from Your Competitors.

A print shop can set itself apart from others by not requiring customers to supply the garments. 

One way to remain competitive is when a print shop offers customers contemporary garments that are a bit more refined than what they can get from their local neighborhood print shop.

Margin is also heavily influenced by it. When your shop provides clients with high-quality garments, you can achieve two things:

  • Increases profit margins to sky-high levels
  • Makes customers extremely happy and satisfied

The Best Way To Differentiate Yourself

Suppose you’re trying to beat your competitors. To do that, you must know their businesses, strategies, and services.

You can predict their next move by keeping an open eye on what they do.

You will be able to ensure your offerings rival theirs by knowing the exact competition.

Step 2: Learn Everything You Can About the Embroidery Industry.

Getting started with embroidery will require that you learn a few basics.

If you can, find an experienced embroiderer who will help you learn what you need to know. Read as much about custom embroidery as you can.

Videos on YouTube cover a variety of topics related to commercial embroidery.

Join embroidery and custom apparel organizations to keep in touch with the latest news and trends in embroidery and custom apparel.

There’s no better organization to join than the Embroidery Trade Organization (ETA). Being a member of the association will allow you to learn new marketing strategies and network with other members.

Attending embroidery trade shows can also provide you with an opportunity to network with suppliers and business owners.

Step 3: Buy Your Commercial Embroidery Equipment.

To start your embroidery business, you will need equipment.

An embroidery machine is the most essential piece you’ll ever need. You can damage your business by choosing the wrong embroidery device.

Another option is to purchase an existing embroidery company. This eliminates the need to search for a space or purchase equipment.

You can upload the design to the computer using computer-controlled embroidery machines. You can see your embroidery design on the computer monitor and make changes to it as needed.

Sewing Machines Plus is a great place to shop for an embroidery machine. They have well-known brands like Janome, Juki, and others.

You should look for [embroidery equipment] that offers support and training because it can be challenging to learn the software.

It’s possible, to begin with, a modest budget by purchasing a home embroidering machine or by embroidering by hand. As your business grows, it is best to invest in a larger machine.

The niche you are working in will influence the kind of machine you choose. If you plan on making T-shirts, you will need a machine capable of tubular sewing.

If you are thinking about making embroidered patches, you will need an entirely new type of machine.

What Is The Best Embroidery Machine To Start A Business?

Janome Horizon Memory Craft 12000, which is ideal for home-based businesses, is the best embroidery machine.

This device is highly versatile and can be used to both embroider and sew. It is easy to use and very efficient, meaning that you can finish your embroidery projects in a short time.

Step 4: Don’t Take On Too Many Projects.

When you start your embroidery business, it’s tempting to take on multiple projects. However, this is a recipe for failure. In the beginning, focus on two or three things so you don’t diffuse your efforts.

Don’t bite off more than you can chew. Pick the right projects to take on. It’s really easy to get stars in your eyes when you see something come along that looks like you’re going to make money on it because it has a high dollar value tied to it.

Step 5: Create An Embroidery Business Plan.

The success of your embroidery business depends on how well your business plan is.

Without one, you are like a ship drifting at sea. With one, it’s easy to map a course for your embroidery company from where you currently are to where you want to be.

Fit Small Business provides a one-page template for business plans. Rocket Lawyer is an excellent resource for state-specific templates.

Check out this SBA resource for help in crafting your business plan. SCORE also offers some resources you may find helpful.

Step 6: Get Your Licenses and Permits.

Before you can open an embroidery shop, you will need to call various government offices to determine which permits or licenses you will require. Some of these offices may be federal, while others are state or local.

Here are the licenses and permits required in start your embroidery business.

  • Fictitious name/ DBA
  • Local Business License
  • Building Permit
  • Fire Inspection Certificate 
  • Seller’s Permit
  • Registration As An Employer

Find out the state licenses needed for your embroidery company. The SBA website offers more information about applying for licenses, permits, and other assistance.

Step 7: Get Business Insurance.

Small business insurance is necessary to protect you from financial loss and risks if an unexpected disaster occurs with your embroidery business.

Your embroidery business’s assets, income, and property will be protected by small-business insurance (also known as commercial insurance). Small businesses most commonly purchase a business owner’s policy (BOP).

It offers three basic types of coverage.

  • General liability coverage
  • Business property coverage
  • Business interruption coverage

Step 8: Set Up Your Website.

To keep your customers informed and explain your business value proposition to new customers, you will need a website. Websites can also help drive embroidery sales and increase brand recognition.

First, choose a domain name. Next, secure web hosting. WordPress is a good choice. GoDaddy will also allow you to register your domain name.

Next, optimize your website. This will increase your search engine rankings and drive more traffic. Your website should be optimized for mobile devices as most customers will check it out on their smartphones.

Email marketing can be used to communicate business updates to your visitors.

This article from WP Beginner will help you improve your email marketing skills. Another great article from the US Chamber of Commerce is worth reading before you start your email campaigns.

Step 9: Harness The Power Of Social Media.

It has only taken social media a few years to prove that it can be an extremely effective marketing technique for any business.

This is why it’s impossible to ignore the immense power of social networking when you think about ways to promote your business.

Step 10: Set Your Embroidery Prices.

Embroidery prices usually reflect a per-thousand-stitch rate which is multiplied times the number of pieces. A fixed fee could be charged for every thousand stitches or an hourly charge.

This article is from the SBA and provides additional information on setting prices.

Step 11: Find Potential Customers & Plan For Marketing.

Often, the word of mouth strategy is used to grow a home embroidery business. Informing friends and family about your new business is a great way to reach potential customers.

If you have ever worked in the industry before, you can get in touch to inform your colleagues about your new offering.

Planning your marketing campaign is essential. If you have a large business, flyers or social media are a great tool to target key customers and find success.

Step 12: You Can Expand Your Business And Hire Assistants Or Keep It Small.

In your initial stages, you might only see yourself working alone and selling a handful of products.

Dreams can be realized and reached new heights than you ever imagined. Some people just carry on and live the life they want, while others see the potential for growth in their businesses.

Hire an assistant for tasks you enjoy delegating if you want to concentrate on specific areas.

You have to know your limitations, be honest with yourself, and consider the effects on your business if you are struggling.

Starting An Embroidery Business: Is It Profitable?

If you have the proper market knowledge and the necessary embroidery and business skills to do the physical work, embroidery can be highly lucrative.

You can make it work with technology and the right software to do the job you want to do to generate a good income.


What Are The Steps On How To start An Embroidery Business?

  1. Differentiate Yourself from Your Competitors.
  2. Learn Everything You Can About the Embroidery Industry.
  3. Buy Your Commercial Embroidery Equipment.
  4. Don’t Take On Too Many Projects.
  5. Create An Embroidery Business Plan.
  6. Get Your Licenses and Permits.
  7. Get Business Insurance.
  8. Set Up Your Website.
  9. Harness The Power Of Social Media.
  10. Set Your Embroidery Prices.
  11. Find Potential Customers & Plan For Marketing.
  12. You Can Expand Your Business And Hire Assistants Or Keep It Small.

What Are Embroidery Services?

The embroidery technique involves sewing needles and threads onto apparel, fabric, and other materials for decoration. This can be accomplished with either a machine or by hand in some cases.

How Much Does It Cost To Start An Embroidery Business?

Low startup costs – the embroidery business does not need a huge budget to get started. There are embroidery machines with a single head for under $12K that are excellent and commercial quality, and come with software and supplies.

Is All Embroidery Thread The Same?

Embroidery threads come in a variety of textures, colors, and weights. There are several types of thread you can choose from depending on the type of fabric, thread count, and embroidery style. As far as choosing embroidery thread is concerned, there are very few hard-and-fast rules.

Conclusion: To Start Or Not To Start an Embroidery Business

If you have the motivation and desire to get started and the knowledge and passion for creating great products, you could consider starting your own embroidery company.

Make sure you plan ahead and choose the suitable machine for your target market. This article should have provided all the information you need to begin your journey towards starting your own embroidery business in this ever-growing, lucrative industry.

What Is Our #1 Recommendation For Making Money In 2021?

Our review team has come across a program in the real estate industry that is next level!

Although it’s not real estate in the traditional sense, it’s all digital.

Yup, Digital Real Estate!

With digital real estate, you have the opportunity to completely walk away from your 9-5 job!

Sound too good to be true?

Of course it does!

But it isn’t…in fact, business owners wish they had this skill!

What exactly is the skill?

Well, basically you are acting as a conduit for small business to increase their bottom line.

What we mean is…

You are helping these businesses grow!

But how?

All you have to do is build and rank a website and forward certain jobs off to a business owner in town, you could even email it to them!

This works for literally any service based business… ie: tree service, plumbing, towing, etc. 

How Do You Get Paid And How Much?

Simple, after you forward the jobs off to a business owner and he makes closes the deal, you simply ask to agree to a WIN-WIN arrangement.

A fair price to charge per lead, depending on the industry is 10-20%… let’s just use the tree service industry for example and go by worst case scenario.

Let’s say you build and rank the site and only 20 jobs a month come in. The average tree service job is anywhere from $500-$2000!

That means at bare minimum you have an asset worth $1000 a month!

See why they call it digital real estate now?

That’s a rent payment. 

The great thing is how easy it is to scale. You don’t have to answer the phone…all you have to do is get the phone to ring.

Truly passive income!

The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.

You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.

Once the training program is completed you will also have access to a Facebook group where you can ask questions and be in a community with others on the same journey as you.

Digital real estate allows you to have passive income with most of your day being spent OUT of the brick and mortar landscape.

Now, we know you probably have tons of questions… 

So, check this out to learn more.

Share This Article:
We will be happy to hear your thoughts

Leave a reply

ScamRisk's #1 Online
Business Recommendation:
You know deep down what you're meant for. Now they will show you how to go get it.
Scam Risk

Be first in line to read all the new Scam Risk Reports as they're published!

Select the categories that interest you the most

We don't share your information with any 3rd parties and we will never spam you.