Get Your Business Up and Running!
Are you ready to turn your side hobby into a lucrative business? Or would you like to add new services to your existing business? Starting an embroidery business is ideal for people looking for a profitable creative outlet. Being your own boss and working from home are only a few of the benefits. We at ZSK Central can help with all the necessary tools you need to get started. From offering business plans to helping find your niche in the industry, check out our business start-up education materials.
Starting and managing an embroidery business takes motivation and talent – our knowledgeable staff has the expertise to help you make your first steps. Keep reading for tips on how to start your own embroidery business.
The second step is to figure out which business you want to enter. For Example: Carol decided to start an embroidery business because embroidery is her current hobby. She would like to turn her hobby into a profit center.
So, in starting a business, you must ask yourself two main questions:
1. Why do you want to go into business? Why do you want to start a business?
2. Which business is right for you? Which business would you like to dive into?
After exploring your alternatives in services, you need to establish some other embroidery variables. Here are some questions to help you out:
What kind of garments do I offer to stitch on?
How much embroidery do I need to do per day?
What is the competition in my area? What are they offering?
If you do not currently have a shop/work space or your current space is not big enough, you will have to decide where to put your shop. Some embroidery businesses are out of people’s homes in areas such as a garage or basement and some are store fronts in a strip mall or a kiosk in a shopping mall. This is all dependent on what kind of business you want to run. For any work space, you may want to research all laws pertaining to embroidery businesses – ie: zoning, noise levels, electrical, ordinances, fire code, ect.
Some embroidery equipment requires dedicated outlets and 220 VAC. Cost is another factor. What are your “work area” expenses? These expenses include rent, electrical, heat, air conditioning, ect. These are part of your fixed costs.
We even have a great trade up program to help your business grow. Share your business plans with one of our sales reps and he or she can help direct you to the right machinery. Questions you will want to ask:
What machine configuration is a good fit for my production, and for my target market(s)?
What do you offer new businesses like mine?
What kind of training programs do you have?
What kind of support do you offer on your machines and software?
What is the warranty on your products?
What if I need a bigger machine in the future?
How long has your company been around and what is your background?
After all these considerations, you need to set up a cost analysis. The cost analysis will help you figure out what your hard costs are and what you will need to make in profit. First, you need to lay out all of your costs that go into your embroidery business – including machine payment, running the machine, consumable items, electricity, rent, sewer, ect. Once you figure out your expenses, you can now determine how much you need to make per month to cover your costs. This will help you decide on a pricing structure.
The pricing structure will be different for the different machine configurations, so there isn’t just one recipe for embroidery. This pricing structure will determine what you will charge customers for your embroidery services – which factors in all your costs.
At our advanced training, we go over the average pricing structures. You will also want to check out your competition and what they are charging. But, don’t just base your pricing on the competition – look at all your factors.
Decide what your business structure will be as well. How many employees do you want to employ? What are your business hours? What is your full capacity? Where do you draw your limits? These are all factors that you need to work out for your embroidery business.