If you love crafting and designs, and you are wondering how much does it cost to start an embroidery business, then you have landed at the right place. Whether you plan to run it from home or open a full-scale shop, embroidery business is a super creative and profitable idea.
From customized T-shirts, caps, towels to company logos and gifts embroidery is in high demand currently. Starting your own embroidery business can be low-cost if you do it smartly. This is a full guidance about embroidery business that includes startup costs, equipment needed, training, and answers all your questions.
Why Start an Embroidery Business?
There is a growing market for customized products:
Small businesses want logos on uniforms
Brides and Mothers love personalized gifts
Etsy and Amazon Handmade sellers look for local embroidery help
Corporate clients order in bulk
And the best part? You do not need a huge budget to start this business, especially from home.
How Much Does It Cost to Start an Embroidery Business?
Here is a basic breakdown of cost for a beginner-level embroidery setup:
Expense Category Estimated Cost (USD)Embroidery Machine$500 – $15,000, Threads & Supplies$200 – $800, Hoops, Backings, Needles$100 – $500, Design Software$200 – $1,500, Training / Online Courses$50 – $500, Website & Logo$100 – $800, Marketing & Packaging$100 – $500, Business Registration$50 – $300, Workspace Setup (optional)$300 – $2,000.
Total Estimated Cost$1,600 – $21,900
So depending on whether you go basic home-style or full commercial, starting an embroidery business could cost as low as $1,500 or as high as $20,000 plus.
Types of Embroidery Businesses (and their Cost)
1. Home-Based Embroidery Business
One of the cheapest business to start
You can run from garage or spare room
Machine cost is lower (single-head machines)
Best for custom gifts, small orders
Startup Cost: $1,500 – $5,000
2. Commercial Embroidery Shop
Need multi-head embroidery machines
Space is required for storage and workers
Handle large orders from schools, sports teams, companies
Startup Cost: $10,000 – $25,000+
3. Online Embroidery Business
Sell through Etsy, Shopify, Amazon Handmade
Dropshipping or print-on-demand models are possible
Invest more in branding, packaging, and product photography
Startup Cost: $2,000 – $7,000
Choosing the Right Embroidery Machine
Your embroidery machine is your most important investment.
🔹 Entry-Level Machines (for beginners):
Brother PE800
🔹 Mid-Range Machines:
🔹 Commercial Machines:
You need to make sure that you choose machine that:
Supports custom designs
Easy to operate & maintain
Works with your design software
Embroidery Software Cost
To create or edit embroidery designs, you will need software like:
Embird
Wilcom Hatch
SewArt
Brother PE Design
Most softwares cost from $200 to $1,500, but some have monthly plans starting at $30/month.
Supplies You’ll Need
Some basic supplies you need to keep in stock:
Threads in different colors (polyester/cotton)
Bobbins
Stabilizers (cutaway, tearaway)
Embroidery hoops
Scissors & trimming tools
Blank garments like caps, towels, T-shirts
Buying in bulk will save cost in long run.
Do You Need Training?
You do not need to be expert designer to start, but few trainings will help you:
Operate embroidery machines
Handle different fabric types
Learn digitizing techniques
Fix machine issues quickly
You can take online courses from:
Udemy
Skillshare
YouTube (free tutorials are also good to learn)
Training cost is around $50 to $300, depending on the course type.
Setup Workspace at Home
If you are planning a home embroidery business, setup a clean and organized workspace:
Table for machine
Storage boxes for thread, fabric, tools
Ventilation (machine gets warm)
Good lighting for detailing
You can use small corner or full room depending on machine size.
Legal Stuff & Business Setup
Starting embroidery business legally involves:
Registering business name (LLC, sole prop, etc.)
Getting Employer Identification Number (EIN) (for taxes)
Local business license (check city rules)
Opening a business bank account
If you are planning to sell online, also setup:
Website with payment gateway
Social media handles
Etsy or Amazon seller account
Legal and branding cost: $200 – $1,000
Profit Potential from Embroidery Business
Example:
Selling 50 custom caps @ $15 = $750
If your cost per cap is $5, you earn profit of $500
As you grow gradually, you can earn:
$2,000 to $5,000/month working from home
$10,000+/month if you can handle commercial orders
Profit margin in embroidery is around 50% to 70% which is pretty good compared to other crafts.
Tips to Save Money When Starting Out
Start with 1 good machine, not multiple
Buy supplies in bundles
Use free embroidery designs initially
Do not rent a shop too early, work from home first
Build Instagram and Etsy presence to get clients free
FAQs About Starting an Embroidery Business
Q. Can I start embroidery business from home?
Q. How much money do I need to start embroidery business?
Q. What is the best embroidery machine for beginners?
Q. Is embroidery business profitable in 2025?
Q. Do I need to know sewing to do embroidery?
Q. Where can I sell my embroidery products?
Q. How long does it take to learn embroidery?
Q. What if my machine breaks?
Final Thoughts
Starting an embroidery business in 2025 is affordable, fun, and profitable if you are planning smartly. Whether you start from home or go for big one, then understanding the costs and investing wisely are the key to initiate this business.
Keep your startup lean, focus on quality work, and market your business well and soon, your embroidery side hustle could turn into a full-time income stream.
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