You are welcome, Deb. As an avid embroiderer (not just my nick-name) I do wish I had some information before I spend money. Don't get me started on software unless you are really wanting a lot of info!
Another thing that I actually did determine was that having a multi-needle machine was not necessarily the answer if you are starting a business. Two used higher end machines are worth their weight in gold. Don't forget, your machine, no matter how pretty, can/may/will have issues.
I do know an embroiderer who has 3 multi-needle machines and she says she runs between them fixing stops, broken thread and changing projects. And, she does about 40-50 orders per day. Unless you are doing only designs, (which I have not found to be a hot item) you will be using just one or two colors on the majority of work.
Let me count the ways that you need to be thinking about (I HIGHLY recommend you find a 'Business Plan' book/document/Internet instructions):
1) When you are considering starting a business, you need to determine how much of your own money you really want to invest for the start up. Most of us are not in a position to get funding. Furthermore, funding usually means interest as well as pay back. You need to discuss your financial situation with someone knowledgeable. Costs add up quickly - believe me. (Some places offer free financing but that payment is there come rain or shine - and, if you miss a payment by 1 day, they back charge you all the interest at prevailing rate!! I have a story on that too!)
2) How much time are you able to devote to your business? Are you looking to really look toward a full time, real income? or part time, supplemental income? This is really important to carefully consider. Many people don't realize the time commitment a business really can be. Do you really know how busy you already are? Do you enjoy your free time? Are you willing and able to be working long hours as needed? (I find that after about 10 hours, I make so many errors that it is not worth it.)
3) I have seen many articles that say things like: "I was taking the machine off the truck and all these people asked me about getting items. . . . " I suspect that these claims are:
a) A. True
b) B. True but exaggerated
) C. Unlikely
d) D. A recollection that is false
e) Some people are up and running quickly, some not. What is the difference? - I wish I knew.
4) I could go on, but a professional accountant (not one fresh out of college) may be able to steer you very well.
I don't mean to discourage your ambition, but I want you to be practical. I have been doing this since January 2005 and when it is good, it is terrific. But there are other times as well.
I have tried multiple times to get a forum started for embroidery entrepreneurs, but I cannot seem to be able to keep it going. I suspect that embroiderers feel that sharing is detrimental to their business. Nothing could be further from the truth. Sharing is for supporting each other. If you become a super star from someone else's information, good for you. That is unlikely. Furthermore, each person will put his/her own spin on an idea, it is called free enterprise.
Hope this helps!
Pat, The Avid Embroiderer.