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Sewing as a Business:
A Guide for Home-Based Sewing Professionals

Contents


Home-based sewing businesses are becoming increasingly popular as more people are turning skills, hobbies, and ideas into profitable ventures. A home-based business allows for flexibility because it can work around family schedules. It also gives you the independence of being your own boss, which can be a satisfying experience.

A home-based sewing business is not for everyone. For some people, it is little more than supplemental income. For others, it may be the major source of family income.

If you decide to pursue a home-based sewing business, carefully plan and consider the topics in this publication to help increase your chances of success. In some cases, the information may prevent your making an unwise decision.


Decision To Begin a Home-Based Business

You must determine if your traits, skills, and abilities are appropriate for a home-based sewing business. Self-discipline is very important. Working for others means many responsibilities are shared with other employees. Being in business for yourself means you carry the whole load. Some people don't want the responsibility of licenses, regulations, taxes, insurance, record keeping, advertising, and pricing. Do you?

You may find a home-based business confining, stressful, and physically exhausting. On the other hand, being on your own can be stimulating, financially rewarding, and satisfying.

Advantages and Disadvantages

Advantages of a home-based sewing business include a flexible schedule, integration of family and work responsibilities, less involvement with others in a regular work environment (power struggles and red tape), no commuting time (unless you travel to a customer's home or place of business), control of your own environment (temperature, light, work breaks), self- determination, and independence.

Disadvantages of a home-based sewing business include risk, loss of home space used by family, interruptions, lack of self-discipline, little opportunity to delegate tasks to others, and legal requirements.

Being committed to a business may mean lack of freedom to do other things.

Other Factors To Consider

Before making your decision to go into business, thoroughly study the situation. Search for answers to the following questions:

  • How likely is it the business will be profitable?
  • What is the competition?
  • Is there a need for the product or service?
  • Do I have the necessary sewing skills?
  • Do I have the necessary business skills?
  • Am I ready to make a commitment to the business?

A home-based business may cause problems within the family. You need your family's support. They need to take you and your business seriously. What help can you expect or do you need from family members? Will you have adequate time to spend with your family? Use of their money, skills, and time often makes the difference between success and failure.

Lack of planning and insufficient financial backing join poor management as main reasons businesses fail. Five out of seven small businesses fail in the first few years of operation. Improve your chance of success by careful planning and timing.


Legal Forms of Ownership

One of the early decisions for a person starting a home-based business involves choosing the best form of organization and ownership. The form of organization used depends on the type of business, how many owners or investors are involved, and how tax and liability issues will be handled.

Sole Proprietorship

The sole proprietorship form usually is advantageous to a new business because of ease in organization. The business owner is responsible for all financing, management decisions, and liabilities of the business.

Advantages
  • Owner in direct control (you are the boss).
  • Low start-up (organizational) costs.
  • Least government regulation.
  • Ease of formation and simple structure.
  • No double taxation.
  • Business losses can offset personal income.
  • Owner receives all profits.
Disadvantages
  • Total (unlimited) personal liability.
  • Limited financial resources (capital).
  • Lack of continuity as a result of disability or death of owner.
  • Owner may have limited managerial expertise.
  • All profit is taxed as personal income.
  • Can expand only with "after-tax dollars."

Most home-based sewing businesses use the sole proprietorship form. It is simple, inexpensive, and requires less complex record-keeping methods than do the other forms of ownership.

Partnership

A partnership provides the opportunity to pool the capital and management resources of two or more individuals to conduct business. The two types of partnerships are the general and the limited.

A general partnership is fairly easy to establish. A written partnership agreement drawn up by an attorney should be used to clarify business arrangements and to avoid misunderstandings. The partnership agreement should include a list of the rights and responsibilities of each partner and his or her heirs, the management and continuity arrangements for the business in the event of death or disability of one of the partners, the profit distribution plan, and any special conditions or arrangements that may affect any of the partners through operation of the business. When signed by all partners, the agreement is an enforceable contract.

Advantages
  • Simple organization.
  • Additional personal resources (financial and managerial).
  • The right to select partners.
  • Low start-up (organizational) costs.
  • Limited outside regulation.
  • No double taxation.
Disadvantages
  • Unlimited liability for partnership obligations.
  • Lack of continuity in event of death or disability of one partner.
  • Sharing of profits.
  • All profits are taxed as personal income.
  • Difficult to raise additional capital.
  • Hard to find suitable partners.
  • Divided authority (limited decision making).

The limited partnership permits investor involvement with liability limited to the amount of the investment or the amount agreed to in the limited partnership agreement. The partnership must include at least one general partner who has general liability for the debts of the limited partnership. The general partner usually manages the business. The limited partner usually exercises no control over the business of the partnership but is merely an investor.

Advantages
  • General partner maintains control of the business.
  • Limited partner can invest with a limit on personal liability.
  • Easy way to secure capital.
  • Business not taxed directly.
Disadvantages
  • More complex to organize.
  • Limited partner has no control over the business.
  • General partner has unlimited personal liability for the obligations of the business.
  • Lack of continuity in event of death or disability of the general partner.

Corporation

A corporation is a separate legal entity from its owners, the shareholders. It can enter into contracts, be liable for any obligations, and must pay taxes on income as well as dividends distributed to shareholders.

A corporation attracts capital investment funds by selling shares of stock in the company to investors or by trading stock for assets. Generally, stockholders are not liable for claims in excess of the current value of their shares. Corporate officers may be required to personally guarantee bank notes or loans and, therefore, are personally liable for the obligation. Other creditors generally can lay claim only to the assets of the corporation.

Advantages
  • Limited personal liability.
  • Legal entity.
  • Specialized management.
  • Transferable ownership.
  • Perpetual life.
  • Easier to raise capital.
Disadvantages
  • Closely regulated.
  • Most expensive to organize.
  • Complex organization and management.
  • Extensive record keeping necessary.
  • Double taxation.

One corporate form home-basers may consider is the "S" corporation (Subchapter S Corporation). The "S" corporate structure should be considered when:

  1. The owners expect operating losses.
  2. Large dividends are anticipated.
  3. The owner's individual tax rates are lower than the corporate tax rates.
  4. There are 35 or fewer stockholders.
  5. The corporation has only one class of stock.
  6. It is a domestic corporation.

The "S" corporate structure allows a tax burden shift to shareholders. The election is made formally on Form 2553 filed with the Internal Revenue Service. The election can be made at any time during the previous year or up to March 15 of the year of election. By April 15, the "S" corporation also must file an informational return allocating profits or losses to shareholders.

Before deciding on a corporation, consult an attorney and a certified public accountant. Their expertise can help you avoid the many problems and possible pitfalls of establishing and maintaining a legal corporation in Mississippi.


Obtaining Financing

Most home-based businesses require start-up funds. Begin by making an inventory of necessary equipment and items needed to start up your business. Indicate if it is to be purchased or if it is something you have on hand. If it has to be purchased, would it be an advantage buying it new or used?

Don't make the mistake of buying a piece of new equipment that fails to provide you with all the features necessary to your business, thinking you will upgrade it in a couple of years. And do not pay for expensive features that will not be used.

An inventory plan may resemble the following:

Business Inventory Plan

Sewing Machine

$1,200.00

New

Overlock Machine

643.00

New

Tabletop Press

500.00

New

Office Desk and Chair

150.00

Used

Filing Cabinet

on hand

 

Storage Chest

on hand

 

Answering Machine

on hand

 

Business Cards, Business
Forms, and Stationery

100.00

 

Business Telephone
Installation $93.00
Deposit $200.00

293.00

 

Remodeling bedroom for
business area; shelves;
lighting; opening for
exterior door

1,600.00

 

TOTAL

$4,486.00

 

How much do you have to invest in your business? Look at your savings, stocks, bonds, cash value of life insurance, and equity in real property. How much of your assets are you willing to commit to your business? Although this is a personal decision, you should be prepared to finance between 20 percent to 50 percent of your expenses. Anything less than 50 percent may be viewed as "too risky" for lender involvement. A lender wants to know you have enough at risk you will go to extreme lengths of energy and effort to make the business successful.

If you do not have enough start-up money, you will have to borrow. Getting someone else involved financially is a decision you must carefully consider.

If you decide to borrow money, you need to develop a written plan to submit to the lender. A flow chart for planning and developing your business for loan consideration may look something like this:

Develop
a
business
plan

Analyze
sources
of
capital

Prepare
loan
proposal

Present
proposal

Step 1

Develop a business plan

In the financial community, a business plan is the tool you need. It is a typewritten report showing the lenders you have planned your business. It is designed to give them confidence in you. If you don't need very much money, say $10,000 or less, you may not need a complicated plan.

Basically, the business plan answers the following questions (in logical order):

  1. What is the business?
  2. What is the product or service?
  3. Is there a market?
  4. What is the competition?
  5. How will the product or service be marketed?
  6. How much money is needed?
  7. How will money be repaid?

Step 2

Investigate potential sources of capital

Life insurance policies -- Most life insurance policies (except term insurance) have a cash value amount to borrow against. A cash value amount is normally available during the third and subsequent years a policy is in force. The owner normally may borrow up to 95 percent of the cash value. The interest rate varies by company and policy. In some cases, the interest can be deferred indefinitely. The policy loan will reduce the dollar value of the policy. In case of death, the loan is repaid first, with the remainder given to the beneficiaries. Does this jeopardize your family's security? Should you purchase term insurance in the interim?

Friends and relatives -- You may choose to borrow money from friends and relatives to start up the business. However, many friendships and family relations have been severed by "inter-borrowing." If you decide to borrow within the friend or relative group, do it on a business basis. You may want to ask an attorney to develop a binding contract. Then repay the loan as agreed, just as though your friend or relative were a traditional lending agency.

Local financial institutions (banks, savings and loan associations, credit unions) -- Financial institutions generally are conservative and want to know your ability to repay. They thoroughly examine a loan request and the monetary amount you are willing to put at risk. For start-up expenses, loans generally are limited to 50 percent of the money needed. Loan officers look for borrowers with good credit ratings and sound business plans. Interest rates and repayment plans vary from institution to institution, so comparison shop for the loan that best suits your circumstances.

Finance companies -- Finance companies are concerned about a person's ability to repay a loan and generally are more interested in the quality of the collateral put up for the loan than in a person's history or business projections. Usually, the cost of borrowing from a finance company is several percentage points higher than a bank's, savings and loan association's, or credit union's.

Step 3

Prepare a loan proposal

A loan proposal is necessary and often required for all business loans. It becomes the "talking tool" in your negotiations for money. It should include a brief summary of your business, the service or product you plan to market, and a realistic view of your competition.

A brief history of yourself, including your skills, prepares the reader for your business ideas. It outlines sources of funds to be invested in your business, including the requested funds from the lending agency. The proposal also should outline the repayment plan and list references.

Step 4

Present the loan proposal

Depending on whom you are presenting the proposal to determines the formality of the presentation. If you have done your homework, regardless of the situation, there are no surprises. Your well-outlined plan speaks for you, whether it is formally referred to a loan committee or informally discussed over a cup of coffee.

Regardless of whom you include in the financing of your business, whether it is a bank, friend, or relative, insist all details be in writing. This protects you and the lender and can eliminate future misunderstandings that cause permanent family rifts.

Credit Evaluation

Lenders usually use the five C's of credit when evaluating loan proposals: character, capacity, capital, collateral, and conditions.

Character centers on the loan applicant's integrity, trustworthiness, and attitude toward honoring outstanding credit obligations. Is he or she honest? Does he or she intend to pay?

Capacity deals with the individual's or business' repayment ability. This is frequently evaluated on the basis of history, income, and credit analysis.

Capital refers to the general financial position of a borrower, with emphasis on tangible net worth. A lender needs to know what is owned (assets) and what is owed (liabilities).

Collateral is represented by assets a borrower can pledge as security for the loan.

Conditions refer to how dependent a particular borrower's situation is on general economic trends and special developments. The higher the dependence on these external factors, the higher the associated credit risk.

Lenders look more favorably on loan applications providing necessary personal and financial information and showing the home-baser has done homework.


Licenses and Regulations

Federal, state, and local governments regulate and tax businesses for several reasons, such as raising revenues, protecting the public from dangerous substances and fraud, and protecting businesses from unfair or illegal competition. If you are starting a home-based business, you will want to determine in advance the licenses, permits, and filing requirements required by various agencies. You may need some type of business permit or identification number to purchase supplies wholesale.

Licensing -- In many Mississippi communities, anyone engaged in operating a business for profit is required to purchase a privilege or business license. Application and payment for a license are generally made through the city tax collector for businesses located within a municipality and the county tax collector for businesses located outside a municipality.

Zoning -- Many Mississippi towns and some counties have zoning ordinances restricting certain business activities to designated areas. There also may be local guidelines regulating business activities, such as the use of advertising signs, lighting, and parking. Become aware of local ordinances before making any major investment in your home-based business.

Work agreements -- A work agreement can be a help in your sewing business. It doesn't have to be formal with a lot of legal terms, but it is binding and protects you and your customer. It also projects a business-like image.

A work agreement simply states the terms under which the work will be done and the method of payment. It can be on a special printed form, handwritten, or written on a sales ticket. Make duplicate copies so you and the customer will have a copy of the agreement. You will want to include some of the following items on the work agreement:

  1. Business name, address, and telephone number.
  2. Date of agreement.
  3. Customer's name, address, and telephone number.
  4. Description of work to be done (include pattern number, view, changes, special details).
  5. Notions supplied by the customer.
  6. Notions and services supplied by the sewing professional.
  7. Cost estimate.
  8. Method of payment (cash, check, or credit card); never allow work to leave your home without full payment.
  9. Final fitting and completion date.
  10. Return clause (you may want a time limit when work may be returned for changes and adjustments).
  11. A clause providing for sale of unclaimed work.
  12. A disclaimer for loss or damage due to theft or fire (unless covered by insurance).

A work agreement is designed to protect you and your customer and should be signed by both of you. Specific legal questions about work agreements always should be directed to an attorney.

Labeling -- Federal laws require wearing apparel be permanently labeled with the following information: care procedures, manufacturer's name or registered number, and country of origin. In addition, fiber content must be labeled, but it does not have to be a permanently attached label.

Care labeling -- The "Care Labeling of Textile Wearing Apparel and Certain Piece Goods" label covers all manufacturers and importers of textile wearing apparel and all manufacturers of textile piece goods sold to consumers for the making of wearing apparel. It exempts hats, gloves, hosiery, totally reversible garments without pockets, garments that can be totally washed and dry-cleaned by the strongest methods without harm, articles completely washable and retail for $3 or less, and garments sold to institutional buyers.

Care labels must give instructions for regular care during ordinary use and enjoyment of the garment. They must warn against cleaning procedures that would harm the garment.

Failure to provide reliable care instructions, warnings, and reliable evidence is considered a violation of the Federal Trade Commission Act and could lead to penalties or fines.

The rule is explicit about the label itself. It must be permanently fastened, permanently legible, and available to the consumer at the point of purchase.

Registered identification numbers -- A registered identification number (RN/WPL) will be issued by the Federal Trade Commission to qualified persons residing in the United States (can be used in lieu of the manufacturer's name on textile fiber product labels).

The number can appear any place on the label and must be used when the name of the manufacturer is not stated.

To obtain an application for an RN number, write:

Federal Trade Commission
Los Angeles Regional Office
11000 Wilshire Blvd., Suite 13209
Los Angeles, CA 90024

Country of origin labeling -- The regulation stipulates all textile, wool, and fur products, including apparel, sold in the United States must carry labels identifying their country of origin.

Each product made in the United States from U.S.-made materials must be labeled "Made in U.S.A."

Each product made in the United States but not totally from U.S.-made materials must be labeled accordingly, e.g., "Made in U.S.A. of imported fabric."

Textile fiber products identification act -- Fiber content information is required at point of purchase but is not required to be permanently affixed to the garment.

Knowing the characteristics of each family of fibers can help the consumer know something about the performance to be expected from a product. Labels must state the percentage (in order of predominance by weight) of each fiber making up five percent or more of the total weight.

Fibers making up less than five percent of the total weight need not be named and can be listed as "other fibers."

For additional information and full details, please refer to the rules and regulations published by the Federal Trade Commission.

Labeling children's sleepwear: Sizes 0-6X and 7-14 -- The Consumer Product Safety Commission Code of Federal Regulations (16CFR1615) and (16CFR1616) defines children's sleepwear as follows:

"Any product of wearing apparel sizes 0-6X and 7 up to and including size 14, such as nightgowns, pajamas or similar or related items, such as robes, intended to be worn primarily for sleeping and activities related to sleeping." Diapers and underwear are excluded from this definition.

Any garment covered by the definition must be tested and must pass the flammability requirements stipulated in the regulations.

The usual care labeling regulations apply; however, care labels also must warn against treatment that would cause deterioration of a flame-resistant finish.

Copyrights -- Copyright is a form of protection provided by U.S. laws to the authors of original works of authorship, including literacy, dramatic, musical, artistic, and certain other intellectual works. Copyright protection begins from the time the work is created in fixed form. The copyright immediately and automatically becomes the property of the author who created it for the life of the originator plus 50 years.

To obtain copyright protection, place notice of your copyright on the item before its sale. The notice should contain the following:

  1. The symbol ©, the word "Copyright," or the abbreviation "Copr."
  2. The name of the copyright owner.
  3. The year of first publication of the work.
Example: © 1993 Jane Smith

This serves as notice to the public that you claim a copyright and makes illegal use of the work a copyright infringement. The use of the copyright notice is the responsibility of the copyright owner and does not require advance permission from, or registration with, the Copyright Office.

Copyright registration is optional and generally not a requirement for protection. However, registration provides several advantages to copyright owners. It establishes a public record of the copyright claim and is necessary before an infringement suit may be filed in court. Registration may be made at any time within the life of the copyright.

The Copyright Office Public Information Office number is 202/707-3000. This number may be used for general copyright information or questions relating to copyright registration.

Patents -- A patent for an invention is a grant of a property right by the government to the inventor. The right conferred by the patent grant is "the right to exclude others from making, using or selling" the invention.

A patent is given only to the first inventor. If one innocently "invents" something already patented, no second patent is granted.

Patents are granted for a "new and useful" process, machine, manufacture, composition of matter, or ornamental design for an article of manufacture.

Patents last 17 years, except design patents, which last 14 years. Obtaining a patent is a complicated process. Consult a registered patent attorney specializing in patents.

For more information on patents, write: Commissioner of Patents and Trademarks, Washington, DC 20231 or call 703/557-INFO.

Trademarks -- A trademark or service mark is a word, name, symbol, design, phrase, or slogan (or a combination of these items) used by individuals, groups, or organizations to identify goods or services and to distinguish them from others. Trademark registration is handled by the U.S. Patent and Trademark Office. The Copyright Office has no authority in trademark matters.

For additional information and an application form, write: Commissioner of Patents and Trademarks, Washington, DC 20231 or call 703/557-INFO.

Mississippi also provides for registration and certificate of registration of service marks or trademarks ($25 filing fee lasts 10 years). To receive form, write: Secretary of State, 202 N. Congress St., Suite 601, P.O. Box 136, Jackson, MS 39205-0136.


Insurance

As the owner and operator of a home-based business, you have more exposure to liability and property loss than living in a home used strictly as a residence. Most homeowner's insurance will not cover claims related to business in your home. If a customer comes to your home and falls on the steps, your homeowner's insurance may not cover any legal action because the customer was at your house on business. If a customer's property or even your own equipment used in your business is lost or damaged by fire or theft, your homeowner's policy may not cover the loss.

Some insurance companies can add a rider or endorsement to a homeowner's policy to cover home businesses. A separate policy may be needed in some cases. Consult your insurance agent to determine the most appropriate coverage for your business.

Consider the following insurance coverages when exploring your business insurance needs with your agent:

  • Liability insurance to cover the property of others, bodily injury, damages such as libel and slander, and operations of hired independent contractors for which you are held liable. A blanket liability insurance policy can also cover legal fees and court costs. Liability coverage of up to $1,000,000 is relatively inexpensive. Be sure it covers all risks that could happen.
  • Extended coverage rider for windstorm, hail, smoke, explosion, or vandalism protection.
  • Special protection to cover loss by fire or theft of business records, cash, other business documents, and property, including tools and inventory.
  • Product liability insurance, especially if your home business involves clothing manufacturing.
  • An endorsement or rider to your personal automobile policy for business use if the car is used to make deliveries or for other business purposes.
  • Other types of insurance, including sign coverage, life insurance, disability insurance, health insurance, and a retirement plan.

Remember, the main purpose of insurance is to enable you to continue your business and lifestyle if a misfortune occurs. Identify and prioritize your risks to avoid being underinsured or overinsured. Consult with more than one insurance agent and compare the coverages to determine what is adequate for you and your business. Always have something in writing stating what your business coverage is. This is especially important if your business liability is being insured under a personal homeowner's or automobile policy.

Insurance risks change. Annually review your insurance coverage with your agent and the risks you face.


Pricing

The majority of people already in a home-based sewing business did not find it easy to set their prices; and those just starting out have trouble deciding, too.

Pricing is one of the most difficult problems for the sewing professional. Home sewers in Mississippi as a whole tend to set their prices too low--there are two main reasons for this:

  1. They find it hard to believe that people will actually pay the price they really need to charge to make a profit.

    Sometimes this is true, but most of the time this statement is based on belief, not fact. Don't fall into this trap. Don't be the fearful businessperson who sits back and worries that no one will pay more. Smart entrepreneurs are offering the same product or service at two or three times your asking price--and they are getting it.

  2. They tend to underestimate the value of their time and expertise (especially women who have stayed at home with little or no salaried job experience).

    If this happens to describe you, don't sell yourself short. It is not job experience that determines the worth of your time in a home-based business. It is what you know and what you do with the time that counts. In truth, the major products a home-based sewing business has to sell are time and expertise, and they must be valued accordingly.

    You must set your prices high enough to cover your costs and earn yourself a reasonable return, yet low enough so customers will buy your product or use your services.

    Realistic prices attract customers and build sales volume. Whether you are high-priced and only a select few can afford your product or service, or lower priced for greater appeal, you must be sure the return is enough to be profitable. You won't last long if too few come to your door or if your prices are so low you do not make a profit.


Sewing For Profit

In a home-based business, the total cost of producing a product or service is composed of three major factors: direct costs, salary, and overhead/operating expenses. This is the information that should be used for setting your prices. The more exact you figure your costs and set prices, the greater your chances for a continued and profitable business.

Direct costs -- Include all the materials and supplies that go into making a product. In a home-based sewing business, in most cases, the customer is responsible for supplying fabrics, patterns, and notions. However, there may be times when you use your own zipper, thread, interfacing buttons, etc. These costs may seem incidental, but they can add up quickly. Before you know it, you could be using a couple of dollars worth of your own supplies in every garment you make.

Salary -- You should pay yourself a set salary. After all, that's why you're in business, to make money. The following are two methods sewing professionals use to determine salary:

  1. By the job -- Develop a complete list of the various sewing tasks. Determine how long it takes you to complete each task. Each sewing project can then be broken down into tasks that are added up to give a total time figure (in hours). Decide how much you want to pay yourself an hour. For each sewing project, multiply the total time figure by dollar per hour to determine your salary. (Refer to Construction Price List.)
  2. By the hour -- Keep an accurate account of the total amount of time required to complete a sewing project. This means keeping a written log of what you did and the amount of time required. Decide how much you want to pay yourself an hour and multiply the total time figure by dollar per hour to determine your salary.

Overhead/operating expenses -- Include all the business costs not directly related to the actual production of a specific product or service. In a home-based sewing business, this includes taxes, advertising, rent, demonstration materials/supplies, office supplies/equipment, business-related travel, insurance, business permits, maintenance and repair of equipment, sewing supplies/notions/equipment, utilities (electricity, telephone, etc.), professional assistance (accountant, attorney, etc.), and other costs related to the overall operation of the business.

The following are two methods used to determine overhead costs:

  1. Average method -- If you have been in business for at least a year, it should be fairly easy for you to pull all of your overhead figures together to arrive at an average hourly cost. But if you are just starting, you will have to do some "guesstimating."

    To illustrate how overhead figures fit into the pricing picture, let's assume that your annual business overhead costs are $3,000, and you're working 1,000 hours per year on your business. That means your average hourly overhead rate is $3 ($3,000 ÷ 1,000 hours). For example, a skirt that took 2 hours to complete would have a $6 overhead cost added into the total charge.

  2. Percent method -- Determine your total overhead expenses for a year. Divide the total amount of your direct costs plus salary for a year into the first figure. For example, if you received $5,400 last year for direct costs and salary and you had $1,500 in overhead costs, you would divide 1,500 by 5,400 to get an overhead percentage of 28. That translates to 28 cents that should be added to every dollar you charge.

Start now to document all the overhead costs that will affect the profitability of your business in the months and years to come. At the beginning of each new business year, analyze your overhead costs, then adjust your prices accordingly.

Up to this point we have discussed how to determine your A-Direct Costs, B-Salary, and C-Overhead Expenses. To determine the price you charge your customer for a sewing project, you add these three figures together. In other words

A + B + C = Price

An alternative formula for pricing, called the "hourly rate formula," takes a different approach. The hourly rate is determined through a calculation based on desired income, time, and expenses. Decide how much you would like to net for the year, then estimate the number of working hours per week and multiply this figure by the number of workweeks. Next, add your direct costs and overhead expenses for the year and divide by the number of working hours per year. Add this hourly figure to the first hourly figure to get the final hourly rate you will need to charge to realize your desired net income at year's end.

Example: Let's say you want $6,000 net income and you work part time 20 hours per week x 50 weeks, or 1,000 work hours per year. Divide net income by 1,000 work hours to get a $6 hourly rate for your time. Now add up direct costs and overhead expenses for the year. Let's assume they are $3,800. Divide this expense figure by 1,000 hours to get an hourly expense rate of $3.80. Add this to the $6 figure to get a total of $9.80, or the amount you must charge per hour to realize $6,000 net income at year's end.

Using this formula, you have already taken into account direct costs and overhead expenses; thus, to determine the price of a sewing project, multiply the hourly rate by the total number of hours spent on the project. In other words

(Hourly rate) x (Number of hours) = Price

Practice calculating prices using different approaches. Analyze the prices, keeping in mind location, reputation, skill level, and competition also are factors to consider when determining a pricing system for your business. Once you decide on a pricing system, use the same approach for all customers. This avoids confusion in setting rates and avoids problems with pricing differences that could occur.

Regardless of the system used, provide the customer with a written estimate to help avoid possible misunderstandings later. The estimate should reflect the maximum charges. Final charges to the customer may be less but should not be more unless there are circumstances explained to and accepted by the customer.

Itemizing your bill may help customers understand the amount of time involved in making and fitting a custom garment or home furnishing. Include the costs of materials and hours needed to complete the garment. People who do not sew do not realize the number of hours required to design, fit, and actually sew a garment or home furnishing.

Although you have determined basic rates and developed ranges, never give a final quote over the telephone. Always see the pattern or project, fabric, and the person before quoting a price.

If customers question your price by comparing your products to someone else's garments or ready-to-wear, you should stress the quality of your custom work and the skill and talent needed to produce it. You may provide personal service others do not. If they still want a lower price, politely suggest they go elsewhere. Remember, you can't sell at a price lower than your expenses or you won't be able to stay in business.

If friends and relatives expect a reduced price, explain this is your business and, just as they work for their incomes, you expect to be paid for your efforts. Some sewing professionals suggest an exchange of work in equal value, while others give a set across-the-board 10 to 15 percent discount to relatives.

Be prepared to offer a discount (10 percent to 20 percent) off your selling price whenever you sell an item in quantity. The customer has saved you the cost of selling each piece individually. You can afford to pass on some of your savings.


Consignments

You may choose to sell on consignment where a retail store displays your products, advertises, and sells them for you. For this service, they charge a flat fee of 30 percent to 50 percent of the selling price. You may want to consider asking the consignor to pay 20 percent, 30 percent, or 50 percent up front, then you refund it if the item doesn't sell within a certain time frame. This will provide you with working capital to make more of your products.

The store generally pays its consignors once a month for merchandise sold. A consignment store should reflect a neat, friendly, yet businesslike appearance. Other merchandise in the store should be similar in quality to yours. The store owner should be able to suggest realistic selling prices for your products.

Disadvantages

Since you own the products until they are sold, the store is not responsible for theft or damage. Another disadvantage is your money is tied up in the merchandise until it is sold. It's in your inventory, not the store's. If an item does not sell, it may be returned to you in less-than-saleable condition or be out-of-date.

Inspect written agreements carefully. Be sure to include all of the details you find necessary to protect your investment.


Teaching Sewing for Profit

Teaching sewing is a business, too. You must cover costs and earn a profit. How much profit you can generate depends on how carefully you plan and promote your programs, how much you charge, and how well you control your costs.

Your profit objective will affect how much you charge for your programs. You won't be able to generate profit if you don't price aggressively. Forty-five dollars for a 6-week, 15-hour "sit and sew" course is a bargain. Ten dollars for a 2-hour seminar is reasonable.

Examples

Type
Class

Student
Fee

Total

Number
Students

Total
Revenue

Revenue/Hour
Teaching

"Sit and Sew"

$45

6 lessons
(15 hours)

10

$450

$ 30

Seminar

$10

1 lesson
(2 hours)

20

$200

$100

At first glance, $30 and $100 per hour seem great--but in teaching you will have overhead expenses and preparation time to take into consideration.

The following is a pricing formula some successful sewing professionals use to determine student fees for courses they teach.

Begin by deciding the amount of money you want to earn monthly. Remember, this figure needs to include all direct costs and overhead expenses. Next, decide how many courses you would like to teach per month and, based on class structure and content, how many students you can handle per class.

Multiply the number of students times the number of courses. This gives you your total number of students. Next, take the amount of money you'd like to earn per month and divide it by the total number of students. The resulting figure will be how much you need to charge each student (student fee) per course in order to earn your desired monthly salary.

For example, you have decided to earn $2,000 in a peak month, and you will only teach four courses that meet once a week for 4 weeks.

These courses will be strictly lecture/demonstration classes. Thus, you can handle a maximum of 20 students per class. (The number of students you can handle for a lecture/demonstration class will vary greatly, depending on available space because you might be teaching in a home or fabric store.)

Now for the formula: number of students x number of courses = total number of students (20 students x 4 courses = 80 students per month). Then divide the desired monthly earnings by the total number of students to determine the student fee ($2,000 ÷ 80 = $25 per student).

Chances are you may not start out with full enrollments but you should be able to build to this within a year of offering exciting sewing programs.

If you are working on your own, you set the salary. However, if you are working with a retailer, discuss terms in advance. How teachers are paid varies greatly among retailers. Nevertheless, certain patterns have emerged.

Straight salary -- Teachers who also work in the store are often paid at the same rate as other salespeople or slightly above on a weekly basis. In a few cases, teachers who also sell are paid at one rate while selling and at another higher rate while teaching.

Salary plus commission -- Some teachers are paid the same salary on an hourly basis as the other salespeople in the store. In addition, they receive a commission for each student signed up for the sewing program beyond a minimum enrollment. This helps increase participation because it puts some of the responsibility of enrollment with the teacher.

Percentage of student fees -- Some stores offer teachers a percentage of student fees. In the event of a small enrollment, the teacher would decide if the program would be held. In some cases, retailers offer 80 to 100 percent of the student fees to the teacher. In this case, the retailer is counting on the income generated from sales during and following the sewing program to support the program being held in his/her store.

Hourly wage -- Teachers who do not also work on the sales floor are paid an hourly wage. Some stores will match the "going rate" for adult education teachers in the local school system.

In summary, the main purpose in operating a business is to make a profit. Prices should be established from an accurate accounting of your direct costs, overhead expenses, and time spent. Compare several pricing methods and decide on the one best suited to your needs. Pricing is a skill you must develop if you are going to have a successful and profitable sewing business.


Financial Records

Record Keeping

Accurate financial records are essential to the smooth operation of any business. The key to an effective and efficient record-keeping system is to set it up correctly in the first place. If you are unsure about how to do this, it may be worth it in the long run to seek advice from an accountant. Shop around for a good accountant who is familiar with and appreciates home-based sewing businesses.

Begin with a separate bank account for the business. Do not combine personal and business receipts and expenses. This causes confusion and inability to properly account for the business operations.

Pay all business expenses by check and keep all receipts of business expenditures, noting check number and date paid on receipt. If you wish to use business funds for personal expenses, make a "withdrawal" (write a check payable to you) and deposit it in your personal account and then pay the personal expense from your personal account. Do not pay personal expenses directly from the business account. Deposit all business receipts intact.

A good record-keeping system consists of a minimum of a cash receipts journal and a cash disbursements journal. Inexpensive journals and business forms are sold in a variety of places.

Cash Receipts Journal

The cash receipts journal has columns for various categories of receipts with a line for each, including date, source of cash, and total amount. All columns of the cash receipts journal should be totaled each month followed with year-to-date totals.

Cash Disbursements Journal

A cash disbursements journal has columns for various categories of expenditures with a line for each expenditure, including date, check number, payee, description of expense or purchase, and total amount. The column categories may be merchandise for resale, supplies, interest, utilities, taxes, wage or salary expenses, owner's withdrawals, and other common purchases or expenditures. All columns of the cash disbursements journal should be totaled each month with year-to-date total for each month.


Taxes

As a professional businessperson, you must take responsibility for all federal, state, and local taxes required by law. A useful document titled "Reporting Requirements for Mississippi Small Businesses" provides a summary of regulations governing the establishment and operation of businesses in Mississippi. The document is divided into three sections: federal regulations; state regulations; and city and county regulations. Write to MDECD, Enterprise Development Division, P.O. Box 849, Jackson, MS 39205 for a copy.

In addition, you will want to take advantage of all tax deductions allowed for home-based businesses. The cash receipts journal and the cash disbursements journal provide convenient means of collecting required tax information for all cash transactions.

Business Use of Home

Sales Tax

In some cases, Mississippi requires the collection of sales tax from home-based businesses. Refer to the following chart for requirements for the collection of sales tax in home-based sewing businesses.

Requirements for the collection of sales tax.

Activity

Client

Items furnished by you

Sales tax to be
collected by you?

Comments

Labor

Materials

Alterations

Individual

Yes

No

No

 

Alterations

Retail Store

Yes

No

No

Sales tax collected by store.

Alterations

Laundry/Cleaners

Yes

No

No

Sales tax collected by laundry/cleaners.

Craft Items

Individual

Yes

No

No

 

Craft Items

Individual

Yes

Yes

Yes

 

Craft Items

Retail Store

Yes

Yes

No

Sales tax collected by store.

Garments

Individual

Yes

No

No

 

Garments

Individual

Yes

Yes

Yes

 

Garments

Retail Store

Yes

No

No

 

Garments

Retail Store

Yes

Yes

No

Sales tax collected by store.

Home Furnishings

Individual

Yes

No

No

 

Home Furnishings

Individual

Yes

Yes

Yes

 

Home Furnishings

Retail Store

Yes

No

No

 

Home Furnishings

Retail Store

Yes

Yes

No

Sales tax collected by store.

Teaching

Individual

N/A

N/A

No

 


Marketing

Marketing is the process of determining what customers want or need and providing it at a profit to the seller. Marketing includes all activities involved in getting goods and services to the customer from the producer -- market research, advertising, promotion, pricing, customer relations, and professional image.

Target Your Market

Successful businesses "target their markets." They aim their product messages toward a certain "type" of person. All advertising, promotions, and public relations are devoted to attracting that "type."

A classic error commonly made when starting a business is trying to make your business appeal to everyone--to be all things to all people. Typically, new businesses think appealing to the widest range of consumers is a surefire prescription to success. However, in a home-based sewing business, you need to narrow your focus and target your market.

The first step in targeting your market is to know your product and its potential audience. Nothing can kill a business faster than marketing the wrong product to a target audience. For example, try marketing career clothing sewing courses to housewives, or sew pageant gowns in an area where no one competes in pageants. Successful marketing is a combination of aiming the right product toward the right market.

The basic principles of targeting your market are simple. And, surprisingly, these techniques are the same whether you run a multimillion dollar corporation or a home-based business.

Successful marketing consists of:

  1. Researching, analyzing, and evaluating your potential market.
  2. Relating and communicating your products or services to a target audience.
  3. Efficiently producing marketable products or services.

Analyze Yourself

Before you begin analyzing your potential market--analyze yourself. Ask:

  • What knowledge or skills do I have that others need or want?
  • What experience do I have to offer others and can they benefit from them?
  • Are my knowledge and experience put to use outside my business and are they visible in my market place?
  • How is my service different from other similar services?
  • What are my strengths? At what am I best?
  • What are my weaknesses? At what am I not good?
  • What tangible results or benefits do my products or services produce for potential customers?

Note the word benefit--anytime someone pays money for a product or service, he or she really is buying benefits. As a customer of a sewing professional, the benefits might be a superbly fitting dress that is unique. As a customer of a sewing course, the benefits are the satisfaction of choosing a fabric and pattern for a garment and then making it. Keep in mind a customer always pays for benefits whether tangible or intangible.

Analyzing yourself brings into focus your strengths and your weaknesses. Begin now to emphasize what you do best and improve or eliminate your weaknesses.

Analyze Your Market

Once you've decided on a product or service, what you are good at, and what you would like to do, analyze your market to see if you have a market.

Who are your potential customers? (For example: custom dressmakers--brides, disabled persons, preemies, pageant participants, children, pregnant women; teachers--teens, children, brides, pageant participants, pregnant women, career women--the two can overlap.)

  • What benefits are they looking for? Do they match the benefits you have to offer?
  • Where are they located? -- urban versus rural.
  • What are their income levels?
  • What price will they pay?
  • How can you reach them?
  • Are their needs being met successfully by an existing business?
  • How many different types of potential customers do you have?

Each potential customer is a target market with distinct needs you can address; for example, housewives, corporate vice presidents, young marrieds, retirees. Learn everything you can about each market's buying motives--what they buy? why they buy? how they buy? where they buy? A successful marketing campaign strives to meet the needs of its target market.

One aspect of determining the market for your product or service is to identify your competition, if any. Are similar products or services offered? Compare the quality, features, and value of your product or service to the competition.

Identify the attributes you should emphasize to create a unique need or to be most appealing to the customer. You may have to offer special services, such as delivery, to increase the appeal of your product.

Determine what share of the market is realistic for you to reach. Would that market share be worth all of the effort required to attain it? Determine if there is room for you and your competitors, as well as potential for expanding the market.

If there is no competition, find out whether your product or service can be promoted successfully to create a demand for it.

Advertising and Promotion

Advertising relates and communicates your products or services to potential customers so they will want or need what you have to offer.

Advertising is not difficult once you have identified your customers and targeted your market. This helps you determine when, where, what, and how to advertise. Advertising lets your prospective customers (target market) know about your product and makes them want to buy from you.

Decide what form of advertising you need. The advertising you choose should project the kind of image you want for your business. Professionally printed business cards suggest a quality product. A handwritten note tacked on a bulletin board suggests less-than-professional work.

Regular, steady, targeted advertising attracts more customers than do splashy, appeal-to-no-one advertisements. Zero in on your specific target audience with cost-effective advertising. Plan an appropriate advertising theme using the name of your business and featuring a logo (if you have one). People tend to remember catchy (not overly cute) names, slogans, and logos.

Choose the forms of advertising that work best for your business.

Word-of-mouth. Word-of-mouth advertising is the very best advertising for a home-based business, because it is free, sincere, believable, and unsolicited. Be sure the "word" is favorable by building up a good reputation. Be professional, meet deadlines, keep appointments, and do not accept more work than you can deliver.

Good business practices and friendly hospitality will enhance your business and make people want to return. Building a reputation takes time, so you will have to use other forms of advertising as well.

Business cards. A professionally printed card is an asset to almost any business. Include your name, business name, address, phone number, products or services you provide, and an attractive logo, if you have one. Give cards to interested people you meet. They may not buy your product or service now, but may refer someone to you at a later time. Many times home-sewing professionals use their business cards as hang-tags on their finished garments. This is done by punching a hole in the business card and attaching it to the garment with a ribbon.

Letterhead and envelopes. Printed letterhead shows your customers you are a professional business person. You may want to announce the opening of your business by mailing notices to prospective customers. Letterhead stationery also is necessary when purchasing materials and equipment from wholesalers and suppliers for your business.

Brochures. A brochure can be small, inexpensive, and attractive. Get advice from a printer. You may want to hire a graphic designer to help with the layout of pictures, text, and lettering. Even though brochures can be moderately expensive, they may be a good choice for marketing your particular business.

Direct mail. Mailing brochures or letters to businesses or people likely to become customers may be helpful when you first open your business. Mailing again at regular intervals throughout the year also may help. Mailing can be expensive and should be weighed with the other options when you decide on your advertising campaign.

Bulletin boards. Post professional-looking brochures, flyers, or business cards on public bulletin boards in restaurants, grocery stores, laundromats, apartment complexes, schools, or anywhere visible to your target market.

Newspapers. Contact local editors and tell them about your new service or product. An editor may want to do a feature story, especially about your grand opening. An article can be free advertising and may be more effective than a large, paid ad. Be sure to thank the editor if he or she runs the story. Getting space in a newspaper may be easier if you can tie into the activities of a charitable organization, or a community activity. Include a black-and-white picture and news release.

Classified ads. Ads in local newspapers and shoppers guides are appropriate for many home-based businesses.

Portfolio. Put together a collection of your best work. Many people take photographs of every project. You may want to include a resume and list the advantages or special features of your business. Include letters from satisfied customers, and be prepared to suggest several past customers as references.

Shows or displays. Displaying some of your work in a public library or bank may be appropriate. Have business cards available for people to take. Be sure the display is secure so you do not lose valuable merchandise.

Other businesses. You may want to advertise in a business that complements yours. For example, a fabric shop or dry-cleaning store may be willing to let you advertise for alterations. Cooperative advertising benefits both businesses.

Telephone book. Check with the phone company for the time of printing for the next book. Be sure to get your business name in the white pages. A listing in the Yellow Pages may also be helpful, especially for service businesses.

Local radio and television stations. Some radio stations have local talk shows. Call the directors to see if they are interested in discussing your home-based business. A purchased radio or television ad may be expensive, but it is worth looking into when tied into some news feature or special event. For example, if you specialize in making pageant gowns, an ad during a beauty pageant may be well worth the expense.

Local organizations. Joining local organizations provides a good opportunity to make valuable contacts. By participating in community activities, you increase the visibility of your business.

Networking. A network is a collection of acquaintances and business peers you depend on for information, services, support, and access.

The emphasis in networking is on exchange, matching needs with resources. For example, if you have more garments to complete than you have time, you would refer some customers to another sewing professional with whom you have a reciprocal agreement. Or perhaps you need to know the name of a good supplier for a certain type of fabric, so you would call up a business peer for a suggestion--and she knows she can call on you in the future.

Network relationships are based on mutual respect for the other's ability to help when needed, as needed.

Customer Relations

Good customer relations are essential for any business. Money spent on advertising and promotion could be wasted if the customer is not treated appropriately. Business people should deal with customers in a manner that neither offends them nor allows them to take advantage of you or your business.

Before you open for business, establish policies on dealing with customers, Try to anticipate problems, objections, or special situations that may occur, and determine how you want to deal with them.

Home-based sewing business owners should strive to convince the customers they are genuinely interested in them. Providing a good product or service reinforces this. Work failing to satisfy you or the customer is a poor advertisement for your business. According to consumer surveys, a person who has had an unpleasant experience with a business will tell 9 or 10 other people. Some may tell as many as 20 others.

By solving complaints promptly, these customers may not only come back but will have something positive to talk about. Customers who have had good experiences with a business will tell an average of five other people, some of whom may become new customers.

Professional Image

Developing a professional image may be difficult when you work out of your home. Projecting a businesslike image is an important part of building credibility with your customers and contributes to your professional self-image.

First, consider yourself and your personal appearance -- be neat and well-groomed when clients call at your home (includes clothing, hair, and make-up). As a sewing professional, you should look professional and set an example. Wear clothing you have made. Sew distinctive clothing for yourself and family members. Attractive, well-made, and well-fitted clothing is constant advertising as you interact with people in your community and clients in your home.

If your interests are in home furnishing (window treatments, slipcovers, or reupholstery), your home should be an example of your work. Keep the room designs in your home current, attractive, and distinctive. Whatever kind of sewing you do, keep in order rooms the customers view. Ten minutes a day spent tidying up will give rooms a neat look and customers a positive impression. Cluttered areas look bad and can be hazardous.

Subscribe to professional and trade publications to keep up-to-date. Build a small reference library. A good basic sewing reference is necessary. Consider some books on special topics, such as sewing with imitation suedes, sewing with natural suede or leather, or energy-saving window treatments. A reference on wardrobe planning, personal color selection, or interior design will broaden your background and help you provide more service to clients.

Enroll in update classes, seminars, and workshops to learn what's new. Always be aware of new opportunities -- you will feel more confident and competent and offer a better service to clients. Being a sewing professional is not just sitting at home and sewing; it also is knowing what is fresh and new in the areas relating to your business.

In summary, marketing is a continuous process, and you should not neglect it once your business is launched. You need to be aware of trends and changes in your market so you can respond to them. If your product or service is not selling, consider changing it, the price, the name, or its function. You may also want to change the materials you use, the customers you sell to, your advertising methods, or update your skills.

Remember, perseverance and flexibility can keep you in business when your competitors fail. If you establish the fact people need and will pay for your product or service, identify the appropriate market, and appeal to those customers' particular needs, then you should have a successful business.


Planning a Home Sewing Center

If you plan to sew as a business venture, the organization of the sewing center is the key to presenting oneself as a professional. However, where anyone sews often is a very disorganized area. Often it is the exception rather than the rule to have an organized sewing center. A sewing center is usually space adapted from a previous use. It can be temporary or permanent space.

A sewing area can be located in the laundry room, bedroom, kitchen, or even a living room. It can be a closet, a piece of furniture (wardrobe or a chest), or a separate room designed specifically for the center.

When locating your sewing center, it is important to consider the space required for the different activities an efficient sewing center should accommodate. Areas for cutting/marking, sewing at the machine, sewing by hand, pressing, fitting, and storage for all sewing equipment, partially constructed garments, and mending are essential.

Space Requirements

Research has found a cutting surface 28 to 36 inches wide, 56 to 72 inches long, and 34 to 40 inches high is the most desirable. The ranges in width, length, and height are given because the dimensions for a cutting table vary according to the amount of space available as well as your height and arm proportions.

The cutting surface should be at a height that prevents stooping. If you are of average height, a cutting surface 36 inches high will probably be appropriate. This height should be adjusted according to the individual's height.

Since many fabrics are 60 inches or more wide, a surface at least 30 inches wide is necessary. Thirty-six inches is the preferable width. A cutting table 56 inches in length allows you to lay out the longest pattern pieces and leaves room on the surface for the rest of the folded material. A 72-inch length allows more of the pattern pieces to be laid out at one time.

A cutting surface should be accessible from at least two sides. Access from four sides is preferred. Eighteen to 24 inches of clearance on each free side of a cutting/marking surface permits the individual to move without hindrance.

A table may be built for cutting and marking or the surface may be incorporated into some other part of the sewing center. An existing table may be used by raising its height by setting its legs on building blocks.

Space also is needed for hand sewing, assembly of pattern pieces by pinning or basting before machine stitching, and for putting such things as the partially constructed garment.

Surface dimensions of 18 x 36 inches are adequate for all your auxiliary needs. It is desirable for this space to be within easy reach of your sewing machine. A height of 24 to 27 inches will allow you to work at the table while seated.

A sewing machine table should be 28 inches high, 40 inches long, with at least 20 inches to the left of the needle and 15 inches to the right. The sewing machine needle should be 7 inches from the front edge of the table and at least 12 inches from the back edge. This provides a table width of at least 19 inches. At least 3 feet of space should be allowed in front of the sewing machine for a chair.

When selecting a chair to be used at the sewing machine, select one comfortable as well as mobile so you can move from machine to pressing to hand sewing without getting up. A chair 16 inches high will allow you, if you are of average height, to sit and work comfortably. A swivel secretarial chair on casters makes an ideal sewing chair, since it provides maximum mobility.

Space for pressing is also critical since the typical ironing board is 54 inches long and 16 inches wide. This allows you to press garments while seated. If your space is limited, you may prefer to use a tailor's pressing board rather than an ironing board.

A mirror is needed in the sewing center for fitting and viewing. The mirror should be at least 18 x 60 inches with the top 72 inches from the floor and a front clearance of 8 to 10 feet long and 3 to 4 feet wide. This allows space for you to fit another person or for you to use a dress form.

Lighting and Wiring

Twice as much light is needed for sewing as for casual reading. Good lighting, general and local, is essential in the sewing center.

General light is usually provided from a ceiling fixture. General lighting requirements for a room where sewing will be done depends on the size of the room. If your room is less than 8 x 10 feet, you should have a ceiling fixture using 150 watts incandescent or 60 watts fluorescent light. If your room is 10 x 12 feet or larger in size, you will need two watts per square foot incandescent or one watt per square foot of fluorescent.

Lighting experts recommend at least 150 watts incandescent or 60 watts fluorescent local lighting for cutting, marking, and machine sewing. A light such as this should be shaded so it does not shine directly in the eyes of the person sewing. It should be positioned 14 inches above the working surface, 12 inches to the left of the needle, and 7 inches from the wall. The bottom of the shade should be at eye level and the inside of the shade should be white.

An adjustable recessed reflector or recessed eyeball fixture positioned in the ceiling above a point 13 inches to the left of the needle and tilted toward the needle also may be used to provide local lighting for machine sewing. Fluorescent lights shielded by a panel are good under cabinets located above the sewing area.

Three hundred watts of incandescent light are recommended for hand sewing. If you plan to use a floor lamp to provide local lighting, it should be positioned so the center of the shade is 15 inches to the left (or to the right for a left-handed person) of the work center and 12 inches back to the rear of the chair in which you will be seated. A lamp with a base height 40 to 42 inches is recommended. The table lamp should be positioned so the center of the shade is 15 inches to the left (or to the right for the left-handed person) of the work center and 6 inches back toward the rear of the chair.

If there is much detail or if you will be sewing for a prolonged period of time, you need additional light. You can use a 75-watt reflector bulb in an adjustable socket clamped to the stem of a floor lamp. Position it below eye level and about 12 to 18 inches from the sewing.

High-intensity portable lamps may be positioned so the shielded bulb is within 10 to 12 inches of the sewing. Do not use a high-intensity lamp as the sole light for hand sewing.

If you use fluorescent lighting in your sewing center, for local or general lighting, it is best to use deluxe warm white tubes that give flattering light. It does not distort colors any more than incandescent light.

Provisions also must be made for adequate wiring in your sewing center. Locate duplex convenience outlets within easy reach of the sewing machine, iron, and other equipment you may be using. Take care to locate convenience outlets so cords plugged into the outlets will not interfere with traffic patterns. It may be desirable to install outlets 40 to 42 inches above the floor for easy access.


Time Management

A major challenge for many home-based business people is managing time. In some businesses, work can be performed when time permits or during brief periods of time in spite of recurrent interruptions.

One problem for an individual with a home business is friends often telephone or drop by unexpectedly. They do not always realize you have time commitments. Inform them of your set working times and ask that they stop back later. If they phone, ask them to call back after a certain time or tell them you will return their call at that time.

Some guidelines to free up more time through wiser use of time:

  • Arrange storage areas and work centers so items used frequently are at your fingertips.
  • Do more than one thing at a time. Some tasks require minimal concentration, and this time can be used to plan other activities.
  • Use bits and pieces of time for tasks that can be done in only a few minutes.
  • Learn to say "no" if your involvement in too many activities becomes a problem. Don't spread yourself too thin.
  • Recognize the time of day when you are most productive. Perform your most important tasks during this prime time.
  • Delegate as many tasks as you can. Identify certain jobs (home or business) that can be handled by other family members.
  • Reduce clutter. If too much clutter is allowed to build up, tension may develop from feelings of being "snowed under."
  • Try to eliminate heavy work periods. Shift some of the work to earlier or later periods to free time for other things.
  • Prevent a crisis. Don't procrastinate and let a failure to act become an urgent matter.
  • If you tend to put off major tasks, divide them into many small, manageable tasks.
  • Indecision is nearly always a mistake. Avoid worrying by choosing the alternative that seems better and follow through with it.
  • Look at ways to improve every task. Try to find ways to make them quicker, easier, simpler, and less tiring.
  • Learn to plan ahead and anticipate problems before they occur.
  • Think through your jobs so you can work efficiently. Careful organization can prevent the loss of valuable time in preparing for them. Time for a home-based businessperson means money. Use it carefully and spend it wisely.

Hiring and Employee Relations

Most home-based sewing businesses start with only one person. Gradually, family members may become responsible for certain duties. As the business grows and becomes more successful, you may be faced with hiring additional help.

The people you hire represent your business to the public. Sloppy workmanship and lack of pride in the product or service can make a potentially good product or service unacceptable in the marketplace. The image portrayed and the ultimate success of the business depend on the people working for you.

A job description (including all duties assigned to the position) should be clearly outlined in writing before hiring an employee. An individual's skills should fit the job to be performed. Although friends and acquaintances of present employees are considered one of the best sources of new labor, they can create real problems. Caution is also advised in hiring your own friends. Let the applicant's qualifications be the deciding factor.

Hiring the employee is just the beginning. The first few days on the job are critical in setting an employee's perspective and attitude and making the job meaningful. Orienting the employee to the job and the business saves time and money in the long run. Continuous in-service training may be necessary in some businesses to keep up with trends and remain competitive.

Wages and any benefits should be agreed upon before the employee starts work. This should be in writing. Employee expectations that are not met (for example, part-time supplemental income vs. entirely earning a living) often stand in the way of their productivity.

Communicating clearly with employees is very important if the employee is to understand duties, goals, and objectives of the business. Likewise, your understanding of employee needs, goals, and desires helps you motivate them to become productive and proud in the work they do.


Summary

If you have decided to start a home business, you've chosen a challenging adventure. It may be a risky one, at least for a time, with pitfalls along the way. But sound planning and careful management will help you minimize these risks and make your experience in business a pleasant and profitable one.

Remember, you must be willing to devote extra time and effort to your business, especially as you're getting established. With a strong commitment to success, you will be better equipped to make your home-based business financially and personally rewarding.


References

Portions adapted from the following:

"Home-Based Business...Is It For Me?" by D. Zeocha and J. Winge, North Dakota Cooperative Extension Service, 1986.

"Homemade Money," by Barbara Brabee, Virginia: Betterway Publications, Inc., 1989.

"Sewing For Profit," North Central Regional Publication 208, by Joyce Smith, Ohio Cooperative Extension Service, 1983.

Other Contributing Authors and Reviewers:

Mitchell Colburn, Attorney-at-Law, Tupelo, Mississippi.

Zoel Daughtrey, CPA, Professor of Accounting, Mississippi State University. Frances Graham, Extension Housing Specialist, Mississippi State University.

Vicki Lyn Hastings, former Educational and Marketing Director, American Home Sewing Association.

Alice Shinn, Former Extension Clothing Project Coordinator, Mississippi State University.


Appendices

Construction Price List

 

Construction
technique

(hr)

$6/hr

$8/hr

$10/hr

 

Initial measurements and evaluation

1/2

3.00

4.00

5.00

 

Help with pattern and fabric selection

1/2 +

3.00+

4.00+

5.00+

 

Pattern alterations

1-2

6.00-12.00

8.00-16.00

10.00-20.00

 

Pretreating fabric

1/4-1/2

1.50-3.00

2.00-4.00

2.50-5.00

 

Layout, cutting, and marking

2.50-5.00

4.00-8.00

5.00-10.00

   

Match plaids, extra

1/2-1

3.00

4.00

5.00

 

Seams and darts

1/2 +

3.00-6.00

4.00-8.00

5.00-10.00

 

Collars

1/2-1

3.00-6.00

4.00-8.00

5.00-10.00

 

Neck facing

3/4

4.50

6.00

7.50

 

Sleeve (set-in)

1

6.00

8.00

10.00

 

  Two-piece

1 1/4

7.50

10.00

12.50

 

  Gathers

1 1/4

7.50

10.00

12.50

 

Cuffs

1/2 +

3.00+

4.00+

5.00+

 

Armhole facings

1

6.00

8.00

10.00

 

Zipper

 

  Lapped or centered

1/2

3.00

4.00

5.00

 

  Handpicked

3/4

4.50

6.00

7.50

 

  Fly front

1

6.00

8.00

10.00

 

Front opening band

1/2-1

3.00-6.00

4.00-8.00

5.00-10.00

 

Pockets

 

  Patch

1/2-1

3.00-6.00

4.00-8.00

5.00-10.00

 

  Welt

1-2

6.00-12.00

8.00-16.00

10.00-20.00

 

Waistband

1/2

3.00

4.00

5.00

 

Elastic casings

1/4-1/2

1.50-3.00

2.00-4.00

2.50-5.00

 

Buttonholes

  Machine

-

.60 each

.80 each

1.00

 

  Bound

-

1.50 each

2.00 each

2.50

 

Sew on buttons

 

  By hand

-

.45 each

.60 each

.80 each

 

  By machine

-

.25 each

.30 each

.40 each

 

Snaps, hooks, and eyes

-

.90 set

1.20 set

1.50 set

 

Belt

  Tie

1/2

3.00

4.00

5.00

 

  Buckle

3/4

4.50

6.00

7.50

 

Topstitching

1/2 +

3.00+

4.00+

5.00+

 

Pleats and tucks

1/2 +

3.00+

4.00+

5.00+

 

Underlining

1-2 1/2

6.00-15.00

8.00-20.00

10.00-25.00

 

Lining

 

  Simple dress

1 1/2-3

9.00-18.00

12.00-24.00

15.00-30.00

 

  Coat and jacket

2-4

12.00-24.00

16.00-32.00

20.00-40.00

 

  Skirt and pants

1-2

6.00-12.00

8.00-16.00

10.00-20.00

 

Cover buttons

-

.30 each

.40 each

.50 each

 

Custom shoulder pads

1

6.00

8.00

10.00

 

Hem

  No-edge finish

3/4

4.50

6.00

7.50

 

  Edge finish

1 1/4

7.50

10.00

12.50

 

Follow-up fitting

1/2+

3.00+

4.00+

5.00+

 
Adapted from information from the Iowa Cooperative Extension Service.


Sewing As A Business
Base Garment Construction Price List

Garment

Time (hr)

$6/hr

$8/hr

Skirt, A-line or straight

  Unlined

4

24.00

32.00

  Lined

5

30.00

40.00

Skirt, pleated

4 1/2+

27.00+

36.00+

Skirt, plaid fabric

4 1/4+

25.50+

34.00+

Blouse--long sleeves, cuffs, collar

4 1/2+

27.00+

36.00+

Blouse--lace, ruffles, pleats

5+

30.00+

40.00+

Dress--short sleeves, chemise

6

36.00

48.00

Dress--long sleeves, waistline

7 1/2

45.00

60.00

Dress--full skirt, floor length

8 1/2

51.00

68.00

Jacket, unlined

8

48.00

64.00

Jacket, tailored, lined

10

60.00

80.00

Coat, tailored

12

72.00

96.00

Pants, lined

5 1/2

33.00

44.00

Pants, unlined

4 1/2

27.00

36.00

Bridal gown

20

120.00

160.00

Bridal slip

2

12.00

16.00

Bridesmaids

15

90.00

120.00

Mother-of-the-bride

10

60.00

80.00

Evening gown

15

90.00

120.00

Refer to
Construction Price List for added costs of construction details not included above. Adapted from information from the Maryland Cooperative Extension Service.


Sewing As A Business
Alterations Price List

 

Garment/Alteration

Time (hr)

$6/hr

$8/hr

 

Pants*

  Shorten or lengthen,
machine blindstitch

1

6.00

8.00

 

  Lengthen and face**

1 1/2

9.00

12.00

 

  Handstitched hem

1/2+

3.00+

4.00+

 

  Adjust waist size

3/4-1 1/2

4.50-9.00

6.00-12.00

 

  Adjust seat/crotch

3/4-1 1/2

4.50-9.00

6.00-12.00

 

  Adjust hip/leg size

3/4-1 1/2

4.50-9.00

6.00-12.00

 

  Replace pocket**

1

6.00

8.00

 

  Add lining**

1 1/2

9.00

12.00

 

  Replace or reposition zipper**

1

6.00

8.00

 

Skirt*

 

  Shorten or lengthen,
handstitched hem

1-2

6.00-12.00

8.00-16.00

 

  Lengthen and face**

1 1/2-2 1/2

9.00-15.00

12.00-20.00

 

  Adjust waist/hip size

3/4-1 1/2

4.50-9.00

6.00-12.00

 

  Add lining**

1 1/2-2

9.00-12.00

12.00-16.00

 

  Replace or reposition zipper**

1

6.00

8.00

 

  Replace elastic in waist**

1/2-1

3.00-6.00

4.00-8.00

 

Blouses, Skirts, Dresses*

  Shorten or lengthen sleeves

1-2

6.00-12.00

8.00-16.00

 

  Replace sleeve -- elastic**

1/2

3.00

4.00

 

  Reset sleeve

1-1 1/2

6.00-9.00

8.00-12.00

 

  Make new sleeves*

2-3

12.00-18.00

16.00-24.00

 

  Add shoulder pads**

1/2-1 1/2

3.00-9.00

4.00-12.00

 

  Adjust belt size

1/2

3.00

4.00

 

  Make new belt**

1

6.00

8.00

 

  Add machine buttonholes

-

1.20 each

1.60 each

 

    Hand

-

.60 each

.80 each

 

    Machine

-

.30 each

.40 each

 

Add hook and eyes, snaps**

-

1.00 set

1.60 set

 

Shirttail hem

1/2

3.00

4.00

 

Taper or add darts

1/2-1

3.00-6.00

4.00-8.00

 

Narrow collar

1-1/2

9.00

12.00

 

Replace collar or cuffs**

2-3

12.00-18.00

16.00-24.00

 

Adjust neckline

1-2

6.00-12.00

8.00-16.00

 

Adjust shoulder seams

1-2

6.00-12.00

8.00-16.00

 

Adjust dress waistline

1-3

6.00-18.00

8.00-24.00

 

Replace zipper**

1-2

6.00-12.00

8.00-16.00

 

See Skirt for others

 

Ties

 

  Narrow

1/2-1

3.00-6.00

4.00-8.00

 

  Shorten

1/2

3.00

4.00

 

Coats, Jackets

 

  Shorten or lengthen

1-2 1/2

6.00-15.00

8.00-20.00

 

  Lengthen and face**

1 1/2-3

9.00-18.00

12.00-24.00

 

  Recut

2+

12.00+

16.00+

 

  Replace lining**

3+

18.00+

24.00+

 
** Add 50 percent to price if lining is involved.
** Extra charge for fabric and notions unless supplied by customer.
Adapted from information from the Maryland Cooperative Extension Service.

Sponsored by
American Home Sewing Association
Extension Service-USDA
Mississippi Cooperative Extension Service

Prepared and distributed by Dr. Beth Duncan, Home-Based and Entrepreneurial Business Specialist

Mississippi State University does not discriminate on the basis of race, color, religion, national origin, sex, age, disability, or veteran status.

Publication 1667
Extension Service of Mississippi State University, cooperating with
U.S. Department of Agriculture. Published in furtherance of Acts of Congress, May 8 and June 30, 1914. Ronald A. Brown, Director


Copyright by Mississippi State University. All rights reserved.

This document may be copied and distributed for nonprofit educational purposes provided that credit is given to the Mississippi State University Extension Service.
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