• There are certain costs involved in starting an embroidery company.embroidery image by Inger Anne Hulb?|kdal from Fotolia.com
  
  An embroidery company can be a creative, fun business venture, but starting it will cost money. Whether you plan to offer custom embroidery from home, or open a mall booth offering embroidered hats, it will take funds to generate profits in this business. Your embroidery company's finances will need to be accurately planned for and managed for you to be successful, especially during the start-up stage.
  
  

Equipment and Supplies

• Having embroidery thread, needles, fabrics or bases to embroider, and machines is essential. When starting out, buy the highest quality embroidery machine you can afford--it will save you money in the long run. Ensure that you buy wholesale, rather than retail supplies. To do this, you will likely be required to buy in bulk and place a minimum order, but you'll pay much less than you would getting supplies from a craft or fabric store. The initial cost of supplies and equipment can be as low as $250 if you already have an embroidery machine, or over $1,000 if you have to buy a new machine.
  
  

Permits

• To operate your embroidery business legally, you will likely need to get a permit or business documentation, even if you will be running the business from home. The most common permits embroidery businesses need are a fictitious name certificate, or DBA, and an employer identification number, or EIN. If your state collects sales taxes, you probably need a sales and use tax permit as well. EINs are free to obtain from the Internal Revenue Service's (IRS) official website, and state tax permits are usually free as well, though some localities charge a small fee. The cost of getting a DBA varies from county to county, ranging from under $20 to over $70.
  
  

Marketing

• Developing a marketing plan is the best way to gain clients for your embroidery business. To do this, employ a variety of promotional and marketing tactics: join a craft suppliers association or network; buy ads on popular crafting and embroidery blogs, websites and forums; host embroidery demonstrations at local craft stores; offer discounts to embroidery clubs. The cost for marketing can be less than $50, if you have web and print design skills or access to someone who does, or several hundred dollars if you choose to buy ads in high-profile crafting publications.