How to Start an Embroidery Business

Learn about the custom embroidery market. Join embroidery and custom apparel associations to get the latest news, trends and ideas for how to start an embroidery business. Attend trade shows to network with suppliers and other embroidery professionals. Read journals and books about custom embroidery.

Write out business and marketing plans and define your target market. The customers you sell to will determine the type of clothing and accessories you produce, which will help you choose equipment and supplies and help to focus your advertising and marketing activities. The commercial market, creating custom embroidery for uniforms, giveaways and other marketing items, is one type of customer. Private customers look for custom embroidery on gift items and clothing.

Choose an embroidery machine. Most embroidery machines connect to a computer and include software to produce digital designs. Look for a machine that offers a warranty, training and support, since mastering the software can be difficult. Choose a machine that will fit your production goals and the type of material you plan to work on, and software that will produce the results you need. It's possible to start small with a home embroidery machine or embroidering by hand and investing in a larger machine as your orders grow.^[1]

Call your local government offices to find out what kind of licenses you need. File with the IRS to register your company.^[2]

Find a location to work and sell your items. Many embroiderers start at home. You'll need a clean space that is large enough to hold your computer, embroidery machine and supplies. You'll also need some office space for files and administrative tasks. If you choose a storefront or plan to have customers come to your home, find out local zoning requirements that affect traffic and parking.^[3]

Talk to a lawyer, accountant or other business adviser about how to start an embroidery business. You'll have to deal with financial aspects like taxes and accounting, and insurance and liability issues to cover your goods and property.

Let your friends and business associates know that you are starting a custom embroidery business. The quickest way to get started is with word of mouth advertising.^[4]

Learn basic business skills, or hire a part time assistant for support. You'll have to manage accounting, orders, customer service and marketing.^[5]

Locate suppliers for other items you'll need, like thread, clothing and accessories. Create a system for ordering supplies quickly when you need them. Keep your supplies inventoried so that you know when you are running low on items.