StartUp Decorator: Is Embroidery Right For You?

Commercial embroidery is a constantly changing industry with plenty of market potential. Before you enter the business, however, you have a lot of important decisions to weigh.
Oct 22, 2007

By Stephen Batts

This is the first in a series of exclusive online articles designed to help prospective decorated apparel business owners get off on the right foot, offer part-timers guidance to becoming full-time and provide home-based apparel decorators the information and insight they need to succeed. For classroom instruction, visit ISSshows.com for a complete schedule of courses on how to start and grow an embroidery, screen printing, heat printing or inkjet garment printing business.

So you're thinking of getting into the embroidery business? Great, welcome to the club! Though the industry has experienced many changes since the advent of computerized embroidery machines more than two decades ago, it is still a vibrant industry with plenty of market potential. But first you need to decide if you want to jump in full time or part time.

Among the most evident changes in the industry over the years has been the increase of home-based and part-time embroidery businesses and franchises. According to the 2006 IMPRESSIONS Decorated Apparel Universe Study, 64% of embroiderers are home-based and 39% part-timers. Franchises comprise a small but growing portion of the 20% of the industry that is retail based.

The cost of entry for embroidery has dropped dramatically during the past 10 years, as much as 50%, in fact. In 1996, for example, a singlehead embroidery machine would have cost $20,000. Today, you can purchase a machine for less than $10,000.

Couple this low entry cost with the fact that most small businesses tend to work with people they know through word of mouth, and it is easy to see why these trends have emerged:

• Embroidery represents a good part-time opportunity for additional income with very little overhead.
• Sales contacts often can be found through existing employment.
• It provides a way to grow into a larger business while maintaining a steady income and benefits.

Some people start an embroidery business simply to supplement their income or as a hobby turned profitable. These people have no intention of the business turning into anything besides a part-time venture. However, as someone who started as a part-time embroiderer and now operates full time, I can attest to the benefits of starting an embroidery business for a side income. It really is a great way to start:

• It can provide a nice supplement to your income.
• It gives you a chance to test drive the business to see if this is something you would like to do full time.
• And it allows you to build the business without the stress of trying to replace your income until it reaches a point where it can.

One indicator that you might want to move to full time would be if you already have a book of business that you are sub-contracting out. Or if you are looking at starting from scratch, you need to have a significant amount of work lined up and some very good contacts. At the very least, you need to be aggressive in your sales.

The challenge of owning your own embroidery business is the balance of selling and producing. If you're out selling, you're not producing. If all you do is produce goods, you run out of work to do because you're not selling. Overcoming this challenge is the key to a successful business.

Steven Batts, a 14-year veteran of the embroidery industry, is a regular speaker at the Imprinted Sportswear Shows.He owns Righteous Threads Embroidery, Greensboro, N.C., which offers digitizing, embroidery, machine maintenance and repair, and consulting. Call him at (336) 379-9380 or e-mail rthreads@bellsouth.net.

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As we continue to look at the differences between a home hobbyist and a commercial embroiderer, let me reiterate that the difference between the two is not just a matter of location. I am a commercial embroiderer who works from home. The difference is mainly a matter of mindset. We can get technical and try to classify embroiders by their equipment, but the reality is that a commercial embroiderer is in business for profit and the other in it for fun.
September 15, 2008

Boost Profits by Streamlining Embroidery Production
Eliminate time-wasting practices.
Earlier, we looked at the differences between home embroidery machines and commercial machines, and found the biggest difference, besides durability, is that commercial machines are designed around production; it’s about getting work on and off the machine as quickly as possible.
August 29, 2008

Why a Consumer Embroidery Machine Is Not Cut Out for Commercial Work
When starting an embroidery business, one of the first steps is choosing your machine. Make sure you know what to expect before deciding between a consumer-grade or commercial embroidery machine.
Recently, I received a phone call from a woman who is considering opening an embroidery business and wanted some advice. One of the questions I asked regarded the type of machine she wanted to purchase. She told me that it was a sewing machine with an embroidery attachment and that she could get the whole package for about $600.
August 18, 2008

How to Make the Leap from Hobbyist to Commercial Embroiderer
Many hobbyist embroiderers make the transition to commercial embroidery. But there are a few basics to know before venturing out into the commercial world.
Something interesting has happened during the past decade. Home sewing machines with embroidery attachments have increased in popularity, creating a new generation of embroiderers. A love of embroidery is driving this new segment, and many are realizing the possibility of a career doing what they love.
August 04, 2008

Read a Good Book Lately?
Take one of these books on your vacation, and you may discover ways for business improvement you never dreamed of.
As we enter the summer months, many of you will head to the beach or other spots for relaxation. And while on vacation, you may enjoy picking up a good book to read. If you are going to be reading, you might as well read something that will improve your business. For this issue of the Impressions Newsletter, I thought I would share with you my summer reading plan since you may find some of these books useful for your business.
July 21, 2008