How to Start an Embroidery Business

Start an Embroidery Business
Start an Embroidery Business (Image:

The Embroidery Machine

Any embroidery business requires that you have a quality embroidery machine. But buying an embroidery machine is more complicated than it looks. Today's embroidery machines come with a host of different options for software. Software ranges from packages that help you create basic embroidery to those that are capable of full color complex designs. It is important to choose an embroidery machine that can grow with your business. Look for a machine that has the room and ability to upgrade its software as your business grows and technology changes.


Depending on where you plan to operate your business from, you may need to apply for a business license. You will also need to apply for either an LLC, or another form of business format, to help with taxes and banking. If your business stays small, you may be able operate under self-employment, but as your business grows you will need to take the proper steps to stay legally open.


Once your equipment and structure is in place you can start to decide on a location. If you plan on staying small, and the zoning requirements allow it, you may be able to sell your embroidery directly from your home. However, if you plan to have an actual storefront or studio, you may want to look at commercial rentals in your area, or commercial real estate options. Be sure to compare areas and prices before you sign a contract.


Even if you choose self employment, you are still responsible for taxes. If you choose to hire additional employees to help run your business, accounting can get even more complicated. It is important to either hire an accountant, or if you choose to do your own accounting, keep very detailed records to avoid IRS audits.

Advertising and Promotion

Now that you have the details of operation, it's time to get the word out about your business. There are many different ways to promote your new embroidery business. You can use print ads, mailers, newspaper ads, television and radio and the Internet. Another great way to market your products is to arrange sales around specific seasons. For example, as fall turns to winter, promote embroidered hats and sweaters. You can also take advantage of holiday seasons to help move additional merchandise.

Expand and Upgrade

As your business grows, consider expanding both your output of merchandise and the business itself. That may include moving from your home to a mall kiosk, or buying a larger store front. As your business grows, also grow the quality of your equipment. Embroidering machine technology evolves just like any other field of technology. Keep up to date with new equipment and software to stay ahead of the competition.

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