This podcast is brought to you by ColDesi

Starting an embroidery business isn’t just about choosing the right machine—it’s about building a smart, profitable strategy from the ground up. In this episode of the Custom Apparel Startups Podcast, we walk you through a step-by-step (and somewhat inverted) approach to launching a successful embroidery venture.

Step 1: Start with the Product Vision

Begin by asking: What do you want to make?

This might include:

● Branded polos and work shirts

● Letterman jackets and athletic wear

● Wedding gifts and event favors

● Monogrammed baby blankets or towels

● Decorative linens and home goods

● Customized uniforms or aprons

Your product choices will directly influence what kind of machine and supplies you’ll need—and how you’ll market.

Step 2: Identify Your Ideal Customer

Think about who you’ll sell to:

● Service professionals (plumbers, electricians, salon owners)

● Schools, sports teams, and booster clubs

● Moms-to-be and event planners

● Pet owners or equestrians

● Boutiques and retailers

Different customers expect different quality levels and pricing, so tailor your approach.

Step 3: Research Market Pricing

To know if your business idea will work, explore:

● Local and online price ranges for products like embroidered polos, letterman jackets, or monogrammed linens

● What your target customer segment is willing to pay

● Value-added options that justify premium pricing

Step 4: Do the Math

Profitability begins with cost awareness. For each product:

● Calculate your wholesale blank cost

● Estimate how long it takes to make (i.e. items per hour)

● Determine the gross profit: (Price – Cost of goods)

● Multiply that by your hourly output to find potential hourly revenue

Example: $25 sale – $12 cost = $13 gross profit

If you can make 5 per hour → $65/hr potential

Step 5: Build a Marketing & Sales Strategy

● Word of Mouth: Ask happy customers to refer friends

● Local Outreach: Partner with local businesses or schools

● Online Selling: Set up a Shopify, Etsy, or WooCommerce store

● Social Media: Showcase your work to build credibility

Step 6: Plan the Administrative Side

● Get a business license

● Set up a bank account

● Handle sales tax and business taxes properly

● Track income and expenses

Step 7: Address Art & Digitizing

Your embroidery business needs high-quality designs. Options:

● Use ColDesi Graphics for pro digitizing: coldesi-graphics.com

● Learn software yourself (if you’re artistic and tech-savvy)

● Outsource until you’re ready to bring it in-house

Step 8: Choose Trusted Supply Partners

● Threads, stabilizers, blanks, and accessories: colmanandcompany.com

● Machines and tools: avance-emb.com

Consider what additional tools you may need (e.g., hooping stations, heat press for patches).

Step 9: Evaluate & Adjust

Revisit your numbers:

● Can you price competitively and still profit?

● Are you marketing to the right audience?

● What can you improve before launch?

Step 10: Launch Your Business

Once you’ve validated your product, customers, pricing, and production—go for it! Don’t wait for perfect. Start selling, learn as you go, and adapt.