At what point is it just a leap of faith?

We did exactly what you're contemplating last year.

Good luck.

First of all , good luck and sorry to hear you are about to be laid off.
15K should be enough to get you started, especially if you look to buy the portable Brother PR650 machine. I dont know the prices in the States ( If you are in the states) but the PR´s are a good start up machine and 15K is more than enough. They also have some on board software for text and a few pictures as well. If a complicated design comes along then use an external digitiser.
If you want a more robust, commercial machine then 15K should buy you that and maybe software as well. But it will use up your entire budget and leave nothing left over for a rainy day.
Break even? A good queston and that will be down to you and your ability and luck at finding customers. I broke even in my second year with my start up costs of around $25K. This is my third year , Ive now bought a second machine , Im not growing much but Im not loosing trade either.
Good Luck
Earl

Thanks for the great advice nametags and EnMartian. You have good points and I appreciate the input. I am interested in your opinion on all of us who are expressing interest in starting up a business. Do you feel there is sufficient work, with the economy, to support many new small business ventures?

One piece of advice.
When you start dealing with the dealer, you'll find they won't come of their retail price very much, in my experience.
When you decide on a machine, get quotes from several dealers, and never tell them who the other dealers are. It worked for me.
On the pricing, switch gears and tell them you want accessories added to the purchase. Add more standard hoops, and a clamping system with several hoops to your purchase. Add more thread spools, and a few boxes of good bobbins. Get more backing, and add more types of backing; i.e. adhesive, soluable, mesh.
If they have a certain type of digitizing program that comes with it, make them upgrade it to the top tier,,,,,,it really costs them nothing to upgrade, they just try to charge you more.
Add an extra hat hoop, or hat hoop accessories.
These people are just like car dealers, they'll only give or offer what they have to, to make the sale. Negotiate hard, and you'll come out on top.

Again, good luck.

Having a niche can make a big difference when gaining new customers and asking for a good price. Unfortunately, many people provide baby/youth items so you may have to specialize even more such as organic baby wear or choose another area. Also, you might want to check on the new CPSIA laws regarding clothing for youth.

If you can talk up clients such as retail stores ahead of time that might lead to regular orders. If you decide to provide business wear consider contacting printers, promotional products distributors and sign makers.

Hi Kellian74
I know you posted this some time ago but I felt that maybe my experience can be of some help to you. I had always done some crafts and sewing but had never done embroidery before. In December of last year, I purchased a baby lock professional embroidery plus machine. it was costly but the salesman provided software along with 2 of every hoop including the hat hoop and attachments.
Not knowing anything about embroidery, I started reading every forum and website that I could find and practicing on t shirts and hats.
This is my fifth month and I do this evenings after work but this week alone I have done over 50 hats so far. I got these orders by giving a couple of hats out free and talking it up at work. I like doing hats for women mostly and they love them. It is very rare to find a nice pastel hat with nice embroidery for women since most hats are geared to men.
I also do a lot of hats with the cancer ribbons on them or different cancer symbols.
I agree that there is a demand for hats and most small teams cant afford a big company who want minimum orders before they will embroider for them. This is the niche I find myself in and I dont mind one bit. You will find your niche and if you enjoy crafts and being with your family, then you will enjoy what you do and your love of your work will show in everything you set you hands to.
Good luck and you know the leap of faith is just that..faith in yourself..

kelliann74
Im pretty much doing the "homework" thing as well. Ive been reading alot of sutff on here, but just joined and finding my way around. Im glad you asked those questions, but what Im worried about is that with the economy the way it is, I would hate to make the investment of starting then have everything go south. I know I sound paranoid about jumping in, but it is a big leap!

OH, and try to do hats,,,,I know many don't like doing them, but, it's a good foot in the door thing.

You didn't mention your location, that's fine, or your area (rural, small, large,city,etc.). That's a key factor.
You'll be competing with the same type of people as yourself,,,,"Moms With Machine", so to speak. Other folks that just bought a machine, and started. They've usually found their niche after a time, so find one that will be yours. As of now, you may think you're about the only one doing this. But, in my experience, as soon as you start, and people find out, they'll start telling you who all is doing it as well.

Make sure the money you invest is somewhat disposable. Meaning you can do without it, and not have a huge payment.

Good luck. PM me if you have any other questions.

I think a lot of success depends on how well you plan, and how willing you are to put yourself out there to get business. A lot of new business owners think if they have a website or start a blog or a Twitter account that customers will flock to them. It doesn't happen that way. It takes a lot of patient work and effort to build name recognition, whether you're online or working in your local neighborhood. You have to be willing to publicize yourself whenever you can, while still maintaining your standards of work and customer service.

Starting a business is never easy, but a lot of businesses have been started when the economy was not at its best. The lessons you learn now will certainly help you prosper when the economy does get stronger.

nametags: Sorry, I wasnt sure if you were addressing me or kelliann74-new to this forum stuff. Im in a "sort of" rural area, yet not far from major city; and have access to tons of people. I really was thinking that perhaps there are "too many" moms with machines but now I think its just a matter of growing a business, even now, that will seperate me from the moms with machines. I think you are on the mark with your last statement, and I appreciate your comments very much. I will be sure to send you a message if I have more questions.

EnMartian: Thank you so much for your post. I value everything you and others are saying, and believe me, it is a help. I know it will take time and perseverence to be successful, and I believe you eventually can't just rely on one source of income either. There has to be some versatility in what you do or you may get left behind.

Again, thank you to both of you!

We were paranoid too,,,still are. But, you have to have the disposable cash to buy this stuff. SO, if you're borrowing the money, loan or lease, you've got to have the cash coming in to pay the payments. That's plain and simple.

The economy sucks, and will for awhile,,,what type of area do you live in, large or small town or city. Suburbs or downtown?
Will you do this out of your home, store front, flea market, etc? There's expenses with each, but different ones.
IMO, you have to have some cash to buy garments with to get some samples out to folks. You have to show them what you can do.
How's your friend network,,,would they buy from you,,,,,
Don't overprice yourself at the start,,,,but, you have to pay for what you're doing.
Look around your area,,,,are there others doing this,,,,check out the towns around you, malls, shopping centers, flea markets, etc.

Good Luck.

I am sorry to hear you story.I know something about embroidry machine.as we all know,different kind of machines have different prices.the most important issue is what kind of machine you like?how about the price?If you really need i can give your some advice.[EMAIL=digitizing@autoemb.com]digitizing@autoemb.com[/EMAIL]

I think it's always a leap of faith. You have to believe in yourself before anyone else will believe in you.

If there is a embroidery trade show in your area, definitely attend. That will give you a chance to see a lot of vendors and machines.

Don't forget a big part of making a business a success is letting people know you're there and what you can do. Wear your work. Always carry business cards. Have a Twitter account and a Facebook page and make sure you're active on them. Be selective about who you follow or friend and have a clear goal in mind about with whom you want to connect.

Join your local Chamber of Commerce and go to any business luncheons or gatherings they have.