7 Tips for Starting an Embroidery Business (2019)

7 Tips for Starting an Embroidery Business (2019)

if you’re thinking of starting an
embroidery business there are seven critical things that you need to do to
make sure that you’re ready for the challenge now luckily they’re actually
very easy to do and anyone can do it I’ve compiled a seven step guide where
we’re gonna walk you through each step and how to do it so let’s get started
step one is to determine your ideal customer and learn his or her needs so
the reason why it’s important to first think of who your customer is going to
be is so that you can stock up on the right materials and tools needed to
serve those customers let’s say I wanted to start an embroidery business and I decide
I want to tap into the fraternity and sorority market I know what I’m going to
sell to them just by knowing who that customer is step two is to find the
right machinery so let’s go back to the sorority and fraternity market that I
mentioned earlier we know that these Greek organizations are going to need a
lot of bulk uniform apparel so you’re gonna need a machine that can keep up
with this demand and therefore you’re gonna want to go with a multi needle
over a single needle you’re also gonna need to make sure that your machine is
compatible with the different accessories that you need in order to
serve your market so after you’ve figured out the machinery and the
materials that you’re most likely going to be embroidering on you can more or
less estimate the cost of doing business which is step number three find out your
cost so generally in business there are two types of cost you have your indirect
costs and your direct costs your indirect costs are going to be more like
your overhead costs such as rent and utilities meanwhile your direct costs
are going to be related to the production process so this means it’s
gonna vary a little bit depending on the sales that you make in the embroidery
business your indirect costs and your direct cost can actually be pretty
minimal you can reduce your indirect cost simply by starting from home and
your direct costs are always gonna be pretty minimal compared to other
businesses however you’re also gonna want to be mindful of costs that you
probably haven’t yet thought of cost like digitizing packaging and shipping
it’s important that you add all of your particular costs into your pricing
structure in order to make a pricing structure that works for your business
so you don’t end up underselling yourself number four is to register your
business now it’s important that you register your business in order to get
access to tax-free purchases and wholesale prices in order to register
your business you have to do the following first
you’re gonna want to start by filing for an EIN which is an employer
identification number on second you’re gonna want to file for Articles
of Incorporation within your States and last you’re gonna want to turn to your
local government to see what their resale licensing regulations are and if
there are any permits that you need to get in order to get your resale
certificate to get access to wholesale goods that way you would not have to pay
taxes and instead your customer will pay the taxes on that good step number five
is to stock up on materials now one of the main questions that embroiders posed
when they first started embroidery business is how to determine how much
stock to have now some embroidery machine companies will give you some
starter materials so you can get started on your first order or two but you’re in
that time you’re gonna want to make sure that you order materials so that you
have enough for your next order so how do you determine how much stock you need
on hand well some embroiderers what they do is that they actually just order
their stock as they receive their orders that way they don’t have to go through
any financial risk of overstocking however what that also does that works
against you is that it can drastically increase your turnaround times and even
lead your customers elsewhere however if you’re embroidering on the side this
approach might work for you you can also get around this issue by finding
wholesale suppliers near you that way you can get faster reduced shipping or
you can just buy in person now if embroidery is your main source of income
then the ideal scenario is to have all the materials that you’re gonna need in
stock that way you don’t pay more for rush shipping or even worse end up
losing a customer to someone who does have a faster turnaround number six is
to create a pricing structure and notice I said structure and not sheet because
most embroiders don’t have a pricing sheet instead they have a pricing
structure the reason why you can’t really just offer a pricing sheet is
because the price really depends on the design that the customer wants
embroidered so because of the nature of the service embroiderers turn to pricing
structures such as the one dollar per 1000 stitch count rule and what that is
is that you charge one dollar per 1000 stitches in the design now this does
have its complications in some cases it’s accurate but in other cases it just
at work sometimes you either over price or under price an item because you’re
following that rule so the best thing to do that a lot of embroiders are doing
now is to come up with a target profit per hour and price your garment based
off your raw cost and the time it takes you to complete the garment so the main
thing to remember is that time is money that’s something that a lot of creators
tend to forget just because they’re pricing based off the raw materials but
you definitely need to be pricing based off time step number seven is to create
an online presence if you’re planning on selling online a good place to start is
either Shopify for posting your products on your own website or Etsy just for
listing your products on a search engine like platform whether or not you’re
planning on selling in person or online you’re gonna want to set up a social
media presence now this is important because rest assured if someone is going
to buy from you they’re most likely gonna check out your social media first
just to see what your quality is like and what type of work you’ve done in the
past when setting up your social media you’re gonna want to make sure that you
have some great photos of the work that you do and that you have your contact
information in your bio so people know where to reach you speaking of contact
information you definitely want to list your business on Google this will allow
customers who are searching for embroidery services in your area to find
you listing your business on Google is also absolutely free and it gives you a
platform for your happy customers to go ahead and leave reviews that way your
potential customers will be more attracted to your business and pro tip
the more reviews you get the higher your chances of being found on Google are
alright so there you have it these are these seven critical steps for getting
started in the embroidery business now what better way is there to put this
insider information to use than by seeing what the pros are doing I went
ahead and interviewed four embroiders and I asked them a little bit about how
they got started and what advice they have for newbies so go ahead and check
it out I have linked it below thank you guys for watching

Comments (7)

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  4. Thank you for this video this helps alot trying to decide on either embroidery or digitizing

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