Do you want to start an embroidery business from home or on a small scale? If so, find here a derailed business plan guide covering aspects like cost, licenses, process, machines, and much more.
Embroidery is a value-added process and service in the garment decorating industry. Embroidery is a process of decorating fabric or other material using a special sewing machine with multiple needles and thread or yarn.
What is Embroidery?
Embroidery is an art of creating designs and pictures primarily done by needles through threads. Traditionally it is done on clothing and home furnishing items. However, in present times, it is done on any platform which is stitchable. Embroidery initially was done manually by skilled embroidery artists. Nowadays, with the advent of machines, most companies prefer machine-made embroidery for commercial production.
The art of embroidery came into existence after people invented to produce the fabric. It is widely accepted the art of embroidery originated from China way back in the 5th to 3rd century B.C. Subsequently, embroidery became popular all across the world. The first modern embroidery machine was invented by Josue Heilmann in France in 1832.
Is Embroidery Business Profitable?
In this age of fashion and lifestyle trendy products, the uses of embroidery products are increasing globally. One can operate this business part-time or full-time basis. Also, the embroidery unit can be initiated home-based or by having a rented workplace. The global embroidery market is growing at 20% per annum. The main reasons for embroidery business are easy to start and profitable are the following;
- Low Startup Cost
- Does Not Need Much Space
- Demand is there around the Year.
11 Step Business Plan Guide to Start Embroidery Business
1. Understand the Market
The first step before starting an embroidery business is to understand the demand of the local market. Do market research and collect information from existing embroidery manufacturing units, customers, and understand the gaps.
Primarily you can target small business owners, business houses, retail businesses who need to present a professional image with brand identity. Many business houses or corporate are interested in caps, shirts, t-shirts, jackets, sporting their business name with a message. You can also contact with large clothing manufacturer and garment exporter who are in need of embroidery service. You can also work for them.
Don’t forget the online market. There is a huge demand for embroidered items in the online marketplace.
2. Get Trained
One thing must be remembered, there are many types of embroidery work that exist like open work, counter thread work, outline work, void work, etc. You have to be creative in designing items like beachwear, kidswear, cushion embroidery, etc.
Some sort of training is needed to start and operate a commercial embroidery unit. Also, you will need to have some skills in graphic design. Having some fashion designing knowledge will be a big plus. You can attend training institutes that offer relevant courses if you are a beginner.
3. Create a Business Plan
Create a business plan for your embroidery unit business with a mission statement and goals. Calculate startup budget including the cost of machinery, required manpower, working capital, and promotional cost.
Determine your product and target audience. How you will be going to face your competitors in the industry. Calculate expected revenue and break-even point.
Read: How to Write An Embroidery Business Plan
4. Name Your Embroidery Business
Take some time off and select a proper relatable name for your embroidery business. The name must be such that customers can relate your company with the services you are offering.
Read: How to Name Your Business? Step-By-Step Guidelines
5. Register Your Business
If you are looking to build a hassle-free and legally compliant business, registering your business is a must. Talk to local attorneys and register your business.
6. Licenses & Permits
Every state and country sets different mandatory licenses to start and run businesses. Check out with the local competent authority and procure those licenses and permits.
7. Buy Sewing Embroidery Machine
The embroidery machine is the single most critical investment you need to make in this business. If you have a machine dealer in your locality, talk to them and find the best as per your budget.
However, if you don’t have any such dealer, online marketplaces offer some of the best embroidery machines at the best price. Buying the machine will largely depend on the scale of operation. The Brother Embroidery machine is a good option for home-based operation.
If you are looking to make it on a slightly larger scale, Alibaba can be a good place to get the best quote for the embroidery machine.
8. Procure Raw Materials For Embroidery Business
Other than the embroidery stitching machine, computers with design software. The main raw material is verities yarn. Always use quality raw material and needles.
In the embroidery business, getting a proper supply of raw materials is a critical aspect. Find suppliers. Negotiate with them. And choose one reliable supplier with the right price and delivery schedule.
Some of the basic things needed in embroidery are the following:
- Thread or floss
- Embroidery Hoops
- Thread organizer and
- Plastic bobbins
9. Get Proper Embroidery Software
If you are serious and want to create a long term successful embroidery business, investing in embroidery design software is a must. It will help you in creating new designs at much ease. Additionally, for smooth bookkeeping, accounting software is much needed.
10. Fix Proper Pricing
Proper pricing is the secret to getting more customers and hence more profitability. Check with other local competitors and fix a price which aptly covers the cost and value of your work.
11. Promote Your Embroidery Business
Promote your business in some local classifieds. You can give some advertisements in garment magazines. Create a catalog of promotional items.
Nowadays, having a website is a must for any business. Check our detailed guide on how to create a website/blog.
Suggested Read: Top 10 Best Free Website Builders for Small Businesses
Contact with business houses and meet them personally with samples. Retail garment business houses can also be your client. Make an online presence of your embroidery unit business. Show your product variety with detailed information, price, and minimum order quantity. You can initiate an online booking and cash-on-delivery system.