How to Start an Embroidery Business – Complete Beginner's Guide (2025)

How to Start an Embroidery Business – Complete Beginner's Guide (2025)

Tibor Petréč

Thinking about turning your embroidery hobby into a full-time business just like we did with OtaruWear? You're not alone. More and more creative entrepreneurs across Europe are starting successful embroidery businesses — and the best part? You don’t need a warehouse full of machines or a huge team to begin. With the right strategy and a reliable single-head embroidery machine, you can launch a profitable business from your home.

In this guide, we’ll walk you through every step to help you get started — from legal basics to choosing the right equipment and avoiding common mistakes.

 

👩🎨 Who Is This Guide For?

This article is made for:

  • Hobbyists ready to turn passion into income
  • Designers starting a custom apparel brand
  • Business-minded creatives who want to offer embroidery as a service
  • Anyone curious about starting an embroidery business in or outside the EU

🚀 Step 1: Understand the Embroidery Business Landscape

Embroidery is no longer just for uniforms and towels. Today, it's booming in:

  • Custom streetwear (hoodies, caps, shoes)
  • Merch for influencers, creators, and local brands
  • Corporate gifts and promotional items
  • Personalized baby clothes, wedding gifts, and more

The key to success is finding a niche — something you're passionate about, with demand.

For example:
🎯 Anime-inspired streetwear, eco-friendly baby items, or pet-themed designs.

🧾 Step 2: Legal & Financial Setup in the EU

Each EU country has slightly different rules, but here’s a general checklist:

✅ Register a Business

  • Start as a sole proprietor (freelancer) or limited company (s.r.o / GmbH / SARL) depending on your goals.
  • Visit your national business registry (e.g., Slovensko.sk for Slovakia, Guichet.lu for Luxembourg).

✅ Get a Tax ID

  • Register for VAT if your income exceeds national thresholds (e.g., €49,790 in Slovakia).
  • Consider OSS (One-Stop Shop) for EU-wide VAT management if you sell cross-border.

✅ Open a Business Bank Account

  • Keep your business and personal finances separate from day one.

✅ Consider Insurance

  • Business liability insurance and equipment insurance are highly recommended.

🧵 Step 3: Choose the Right Embroidery Machine

The heart of your business is your machine. For most beginners, a single-head, 15 or 12 needle industrial embroidery machine is perfect.

Here’s why:

  • ✅ Compact and space-saving — fits in home studios
  • ✅ Can embroider on hoodies, caps, shirts, hats, and more
  • ✅ Automatic thread trimming, Wi-Fi connectivity, and touchscreen control
  • ✅ Affordable compared to multi-head machines

🔍 What to Look for:

👉 Explore Our Professional Single-Head Machines Here

💡 Step 4: Set Up Your Workspace

No fancy warehouse needed. You can run your embroidery business from home with:

  • One embroidery machine
  • Sturdy table or stand
  • Laptop with embroidery software (e.g., Wilcom, Chroma, Hatch or free alternatives)
  • Good lighting
  • Shelving for threads, stabilizers, blanks (hoodies, caps, etc.)
  • Packaging materials for shipping

Start small and scale as you grow.

🎨 Step 5: Design & Branding

Your designs = your brand.

Here’s how to stand out:

  • Start with 10–20 test designs in your niche
  • Use high-quality embroidery files (DST, PES, etc.)
  • Offer personalization (name on hoodie, pet portraits, etc.)
  • Create a brand identity: logo, colors, Instagram profile, and Shopify store

💰 Step 6: Pricing Your Work

Pricing embroidery isn’t just about thread cost. Consider:

  • Time spent on digitizing and production
  • Machine amortization
  • Packaging & shipping
  • Business overhead (taxes, software, etc.)

Example:

Custom hoodie costs:
€6 blank hoodie + €0.80 thread/stabilizer + €4 time = €10.80
Sell at: €35–50 depending on market + branding

⚠️ Common Mistakes to Avoid

❌ Ignoring VAT and tax rules in your country
❌ Not niching down (trying to please everyone = nobody buys)
❌ Undercharging (your time is valuable!)
❌ Overthinking designs — simple sells best

📈 Step 7: Start Selling!

You can sell your embroidered products on:

  • Your own Shopify store (best for branding + profits)
  • Instagram Shop / TikTok Shop
  • Etsy or local marketplaces
  • At local markets and craft fairs

📸 Tip: Use high-quality product photos and videos to showcase stitching quality. Show your machine in action!

💬 Final Thoughts

Starting your own embroidery business is 100% possible — even from a small room with just one machine. The most important thing is to start. Focus on learning, improving, and delivering high-quality, creative work.

At OtaruWorks, we help embroidery entrepreneurs across Europe with reliable machines, fast support, and a friendly community. Whether you're just starting or looking to upgrade, we've got your back.

🎯 Ready to Start?

👉 Check Out Our Machines
💬 Or Contact Us if you have questions – we’d love to help you get started!

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