How to Start an Embroidered Bag Business

culled from:wikihow.com

If you have a good sense of fashion and design and are interested in embroidery, a home business selling custom bags could be a great way to make extra money or earn a full-time income. There are many types of embroidered bags to sell, and people buy monogrammed or embroidered custom bags for gifts and personal use. You can sell to stores or directly to customers at your own online or retail store. Learn how to start an embroidered bag business.

Steps

1

Define your target market to determine the type of custom bags you produce. This is important to help you get the equipment and supplies you need to meet your goals. It will also help to focus your advertising and marketing efforts. You can create custom monogrammed makeup bags, tote bags and purses to sell to stores or individuals for bridal parties, gifts or personal use. Another idea is custom designs sold in a boutique or online store.

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   Write out your business plan. It will help sharpen your goals, and you'll have a tool you can use to get financing if needed. Include a marketing and start up plan.
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   Learn about the custom bags' market. Read journals and books about custom embroidery. Network with suppliers and professionals at events and trade shows. Join embroidery associations to get the latest news, trends and ideas for how to start an embroidered bag business.
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   Decide how to produce your custom bags. Hand embroidery is a good start for a small home business, but to produce in enough volume to make a profit, you'll probably need an embroidery machine. Compare the warranty, training and support options of different machines. Choose a machine that will work on the type of material used for your custom bags.
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   Locate suppliers for tote bags, makeup bags, purses, athletic and travel bags and any other materials you decide to work with. You'll also need a source for thread, designs and other accessories. Make up a system for ordering supplies and an inventory of your supplies so that you can order quickly when running low on items.
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   Find a location for production and sales. If you choose to produce in a home business, you'll need a clean space that is large enough to hold your equipment and supplies and some office space for files and administrative tasks. If you decide to open a store, find a location with good foot traffic near complimentary businesses.
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   Contact your local government offices to find out what kind of licenses you need. For a storefront, find out local zoning requirements that affect traffic and parking. Contact the IRS to find out how to register your company.
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   Talk to a business adviser about how to start an embroidered bag business. Work on a plan to deal with financial issues like taxes, accounting, and insurance and liability coverage for your goods and property.
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   Learn basic business skills, or hire a part time assistant for support. You'll have to manage accounting, orders, customer service and marketing.
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   Create an online presence. Open a storefront on Etsy or eBay to sell your products to individuals. Create an e-commerce website to sell wholesale or retail orders.