An embroidery business can be run from your home or a small shop. If you’d like to start an embroidery business, the biggest hurdle is likely to be paying for a professional embroidery machine, since new machines can cost many thousands of dollars. If you don’t have the cash on hand, consider leasing a machine instead.
When developing a budget, consider not only the cost of leasing the embroidery machine, but also all the essential extras such as hoops, embroidery thread, cap frames, a computer and the necessary software to run it. Include everything in your initial figures. For example, if you want a $12,000 embroidery machine, you may need to spend another $3,000 getting set up. If the lease payment on that amount totals $330 per month, that's how much product you have to sell simply to cover the cost of the machine.
Before you sign a lease, give some thought to the type of machine you want to buy. Many new business owners start with a single-head embroidery machine, which is less expensive but also slower than systems with multiple heads. Consider how much room you have for your embroidery machine and how much business you think you will get, as well as how easy or hard a particular machine is to use and to maintain. A faster machine may be nice, but be sure you will have enough work before obligating yourself to the larger payments that go with a faster setup.
Contact Leasing Companies
Many different companies lease embroidery machines. Contact several of these companies and tell them what you are looking for. Ask what kind of terms they offer, including leasing periods and your options if you decide to move to a larger machine before your lease period ends. Some companies may be able to offer you a great deal on a used embroidery machine, helping you to get started for less than you might expect. Ask about any support the company offers, so you know who to contact for help in running the machine or fixing problems.
Complete the Agreement
Once you’ve found the embroidery machine you want from a company you like at a price you can afford, it’s time to complete your lease agreement. Expect to fill out a credit application and to be able to prove any claims you make about your income and expenses. Once your credit is approved, you will sign a lease agreement. Be sure to review the details, especially the number of payments and the monthly amount, as well as any servicing requirements. Sign the agreement to complete the process.