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.

In any business, you will want to list the reasons why you want to go into your own business. For example, Helen wanted to start her own business because she wanted financial independence and self-management.

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?

Once you have figured out your line of business, the next question will determine in what direction you would like to go. This is where you need to decide your niche or your target market. Study the market carefully to see which opportunities are there for you. In embroidery, you need to decide on what kind of services you offer. Here are some sample services you can offer:

  • Personalization
  • Corporate Apparel
  • Specialty Gifts
  • Monograms
  • Fashion Embellishment

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?

Next, you need to think about your work area. How much area will you require to fulfill your business needs? How much room do you want for your inventory, supplies (hoops, thread, backing, and ect.), machinery, and computer? This will help you conclude if you have enough space in your shop to work efficiently and comfortably.

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.

Once you have reviewed your business, it’s time to decide which machine is right for you. Our educated staff can help you decide which machine is the best fit for your business. We want to start you off on the right foot to get you comfortable in the business.

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?

Next, is a business plan. A business plan can help guide your business along the right path. Developing a business plan will force you to think through some important issues that you may not otherwise consider. Your plan will become a valuable tool as you set out to raise money for your business, and it will provide milestones to gauge your success.

US Small Business Association
Inc. Magazine
Business USA

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.