How to Start a Longarm Quilting Business

Part 1 - How to start a Longarm Quilting business - Background

Longarm quilting businesses offer a unique set of services, assisting hobbyist quilters with the parts of their quilts that require a special, larger machine, called a longarm machine and frame. Many longarm quilters will also sell their own artistic creations, accepting custom work when a customer comes to them with an inspiring piece.

Our guide is in 3 parts:

• Part 1 - How to start a Longarm Quilting business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a longarm quilting business?

Most longarm quilting business owners manage everything from their home office/studio. Before getting started, coordinate with your insurance professional to identify any additional insurance needs that could arise from this business venture. One uninsured claim could shut your business down for good. In addition to these needs, it is important that you invest a portion of your budget towards marketing your business.

Many entrepreneurs entering this industry already own a frame and machine that they are comfortable with. If you are due for a new one, these setups range anywhere from $1,500 to over $7,000. There are used options available; just make sure you purchase from a reputable retailer and have tested out the equipment prior to purchasing. Your new machine, plus needles, thread, pantographs, and the other items needed to properly set up a business in the U.S. will set you back up to $15,000.

What are the ongoing expenses for a longarm quilting business?

Ongoing expenses for a longarm quilter are fairly minimal. In addition to the standard administrative fees associated with running a business, business owners are encouraged to attend conventions annually. This is a great opportunity to stay abreast of emerging trends and network within the community. You will also want to make sure your equipment is serviced regularly, which will help reduce lost revenues due to failed equipment. You will be required to reinvest a portion of your earnings to purchase supplies for any upcoming projects. This money is recouped once you collect fees on said project.

Who is the target market?

This industry caters to a very niche market. The vast majority of your clients will be quilters who lack the necessary skills and/or equipment to finish their own creations.

How does a longarm quilting business make money?

Each client has their own set of unique needs. Fees are collected based on the services required and are set based on hours invested and supplies required. The fee structure is similar for custom and original pieces sold by the longarm quilter.

How much can you charge customers?

Each quilt will be priced based on the services required, techniques used, price of material, and time spent on the creation. Experienced quilters recommend determining a base hourly rate ahead of time. This will simplify the quoting process. When approached with more complicated orders, you can then determine the average time it would take, including additional time spent on more in-depth techniques, and multiply that by your hourly rate. Longarm quilters who are unsure how long a specific technique would take are urged to add an additional percentage to the total price – 25% to 75% is standard, depending upon the complexity and size of the work. Some longarm quilting service businesses charge a flat fee per square inch.

How much profit can a longarm quilting business make?

Total annual profit depends upon your fee structure and the number of orders you complete. If you charge by the square inch, a basic longarm service on a queen size quilt will earn you just under $100, with a king size coming in at $125. To increase profits, many business owners offer a variety of additional services, including creating custom quilts for interested clients.

How can you make your business more profitable?

To maximize profitability, consider taking as many custom orders as possible. You can charge a higher rate for these pieces, potentially doubling your income and requiring lower production numbers. Many quilting professionals have also found success teaching quilting classes, as well as selling their own patterns.

Day-to-Day and Growth

What happens during a typical day at a longarm quilting business?

As a longarm quilting business owner, much of your day will be spent on the longarm machine. But there are a number of other tasks you must tend to on a regular business to ensure you are treating this like a business, rather than an extension of your hobby.

• Answering inquiries, via telephone and/or email, from potential customers

• Collaborating with clients regarding the specifics of their order

• Managing inventory, delivering original quilts that have been sold

• Shopping and ordering the essentials for each project

• Marketing your business and completed projects

• Tending to administrative duties such as sending out invoices and paying bills

• Researching new techniques and industry trends

As the business begins to mature, it may be necessary to hire an assistant to handle administrative tasks, allowing you to focus solely on the duties that inspire you most.

What are some skills and experiences that will help you build a successful longarm quilting business?

Those entering this industry have typically been creating quilts as a hobby for many years. Therefore, they possess the necessary skills and experience to create their own masterpieces and help less experienced quilters realize their quilting vision. However, hobbyists turned entrepreneurs are urged to carefully consider this from a business standpoint. When approached for a quote, it’s important to provide the client a realistic timeframe; and stick to it. Additionally, your quoted price includes all materials and time spent, so it is critical that business owners have enough experience to make these estimations accurately. Failure to do so results in reduced profits.

As mentioned, this is now a business, rather than a hobby. Therefore, those who do not possess strong business management skills or are not educated in modern marketing strategies are encouraged to seek assistance from professionals who are experienced in this realm.

What is the growth potential for a longarm quilting business?

The growth of your business is directly tied to the number of hours you wish to dedicate to production, as well as consumer demand. Quilters looking to take their business’ growth to the next level are committed to a strong marketing strategy, hiring additional longarm quilters to ensure orders are fulfilled on time and at or below budget.

What are some insider tips for jump starting a longarm quilting business?

Successful longarm quilting business owners offer the following advice:

• Carefully consider all ongoing costs associated with managing your own business. Price your services accordingly.

• Develop a thick skin and really push the customer for input. There is nothing worse than a client saying “Just do whatever” and then reporting back later that this was not what they were looking for at all.

• Practice long and hard, really sharpening your skills, before deciding to take money for this specialty service.

How and when to build a team

Longarm quilt business owners encourage those just entering the industry to work with professionals who can help guide you through the process of starting and managing a business. While it may increase your budget, the additional profit realized will more than make up for monies spent. If and when demand increases, you might want to consider hiring more longarm quilters. When interviewing prospective employees, carefully consider their experience and what skills they bring to the table. While they may be completing the work, it is your name that goes on each quilt.

Part 2 - Is a Longarm Quilting business the right fit for you?

Part 3 - Action plan to launch your Longarm Quilting business in 90 days