STARTING A NEW BUSINESS

[annlittle1]

Hi, I'm Phyllis Hughes of Oklahoma City. I've been lurking for a few weeks. Forgive me if this is long--I tend to be very wordy.

I lost my job back in October and have been trying to find another one, but listings for R.E. Underwriters are slim pickens in this area. But after being home for the last three months I've decided I want to stay at home. My therapist agrees that it would be best for me. Yes, my last job drove me into therapy and put me on lots of anxiety medications. I really don't want to go back to it or anything similar to it.

Long Arm Quilting sounds like something I would really like to do. I love working with fabric and threads. I've only completed a couple of wall hangings as far as quilting goes, but I really enjoyed doing them. Now comes the problem. Without me working, we've lost half our income. I doubt if there is any way I could get a loan for the machine. Having been in finance for twenty years, I've come up with a way to buy it, but it would mean cashing in some investments that we have. It would cost us a fortune in taxes and penalties, but if it would get me started in a business at home it would be well worth it to me. I'd have to do some more working with finances to get our debts down to be manageable on DH's salary, but I think I could do it. That would give me time to ppp and start building a business The problem is convincing DH. I don't want him to think this is some harebrained scheme that will put us into bankruptcy.

DH is all for me starting an eBay business, but I don't think it would be profitable, nor something I really want to do. I've really thought this through and want to start the LA Quilting business. I've read Linda Taylor's book on Long Arm Machine Quilting and am really excited about it. But how do I go to husband and tell him I want to cash in a third of our investments to do this? Am I nuts?

Thanks for the help/hand holding.

Phyllis

[JudyL]

Phyllis: Why don't you talk to some of the newer longarmers and see how long they've been in business and how much business they're getting. If you're trying to replace an income or even a portion of an income AND replenish your investments that you cashed in, you may be disappointed.

Also, you do not have to start out with a new, top of the line machine. While I don't recommend starting out this low, I started out with an OLD (ancient) short arm machine that cost me $500. I used it for two years and had more business than I could handle. We had added a few updates to the machine (but it was still pretty difficult to use . . looking back. At the time, I thought it was pretty cool), I sold it for $750, bought a used Ult. I without a stitch regulator, used that for several years, then moved up to the Millennium.

I am not trying to discouarge you but in order to have an accurate idea of what you can expect to earn, you really need to talk with some of the new longarmers. I know there are some who hit the deck running and had a waiting list right off the bat but I know there are some who are struggling.

Good luck!

[Kim]

Phyllis,

I agree with Judy about thinking about a used machine. That would save you from having to cash in a large amount and get you started for some time. I think if you don't know about the longarm chat site that you look into it as well. They have used machines on their. I think that all companies have used machines that way you can get some type of warranty. Just try to get what you can afford for nowand don't go into huge debt right off the bat. The other expenses that add up are batting, backing, threads, panto's ect its not cheap. Yes it's very gratifying, but a risk as to how fast you catch on and how fast you get business and how much you get. Good luck, Oh ya about your DH ask him to go with you to the companies I am sure that APQS and any others will explain anything he wants to know. I don't have APQS but all of them on this site are very helpful. Even to non apqs'ers LOL!

[Praise Works]

Phyllis - I'm fairly new on the list but have been in business 4 yrs. If there's any way at all for you to find someone who rents time on a machine (even moreso than a short tryout experience at a dealership), try to get some hands-on experience. That way you'd get a feel for turning "I think I can" into "I know I can" or I can "commit" to this . . .

I would advise you to invest cautiously at first. The bigger investment doesn't guarantee the bigger returns. I've done ok with my lesser amount. Like others, I was cautious (still am) in my $$ invested. I began w/a $500 machine, next was a $4,000 used machine. Just this October, I updated again to a newer used machine.

For a husband unsure about this as a business venture, I would suggest going on-line and checking out the re-sale values - especially on USED machines - as proof of this business's economic stability and growth. (I ended up selling my used machine for $700 MORE than I paid for it 4 years ago.) It's amazing how well they maintain their re-sale value! For all that we women can tend to go by our "intuition" in these types of things, that dollar-and-cents angle speaks to a man. (It also does alot to enlighten the Banker that thinks "the little lady wants to buy TOO EXPENSIVE a sewing machine" . . . (sorry, but that's true in some places . . .)

If you have the time to explore this as a venture, I would encourage covering all the bases before making the investment. Keep asking questions - people are good to answer. Read all that you can, glean from them what applies to your situation, and . . . pray alot (I say that seriously Take care.

[slkinney]

I agree that you should start slowly and see if you really want to do this. I started on a HandiQuilter (the old table-top style) with my own domestic sewing machine. Soon decided this was definitely something I wanted to pursue. We went with a homeowner's loan, after I patiently did my "homework" about longarming as a business and then had several discussions with my DH about the future. He agreed that it was a good investment, with reservations about how it would affect HIS future -- until the machine was delivered. That day it dawned on him that this was a real MACHINE (define that as a TOOL) and he loves tools! Now, I have trouble keeping him away from the studio when I'm quilting! The added advantage is that he is also a wonderful artist and has now become my "design consultant" and can do custom designs for my clients who want really special treatment -- retirement is looking pretty good at this point! This is a business we can both enjoy and both continue doing until we are too "feeble" to continue -- maybe another 25 years, if we're lucky. DO YOUR HOMEWORK and then try to find someone who will let you spend time on a machine. And GOOD LUCK!

[White Rooster]

APQS has some info. and forms that will help you put together a business plan. Check with longarm quilters in your area to see what they are charging. Also see if a dealer will let you practice of their machines to see if you like it. Then do the numbers. See how long it would take to pay back your initial investment and earn you an acceptable income. Lastly, take everyone's advice, buy what you can afford without liquidating investments until you have some experience under your belt. Best of luck and keep us posted on your progress.

[annlittle1]

Thanks for all the responses and great ideas. Actually, I have been thinking about buying a used machine to start with. You are all so right, I don't want to make a huge investment and then discover it wasn't for me. I can't imagine I wouldn't love it though because anything I can do with fabrics and threads I love. I've done needlework for twenty years and have been sewing since I was a teenager. That was a long time ago! Like I said I've made a couple of wall hangings that were quilted. I'm taking a quilting class right now to be sure I know what I'm doing. I've also bought and read about a dozen books on piecing and quilting.

I don't expect this to replace our investments and make an income at the same time. I definitely won't make as much as I did as an underwriter. The money isn't the most important thing in the world to me. After the last three years of dealing with office politics, I just want out of it. I want to be at home, but I do need to contribute to the family income. My husband's idea of an eBay business isn't going to work for me. I had my first auctions closing today and I nearly went crazy trying to keep everything straight! I'm a very creative person, so I really think I would like the Long Arm Quilting business.

A couple of you mentioned looking up re-sale prices for used machines. Can you tell me where to look. I haven't had much luck finding prices on used machines. APQS and Gammill both say to call for pricing. There is a quilt store in Tulsa that rents time on a machine. The nearest dealership that I've found is about three hours away in Texas. I think I may talk my sister into taking a drive down there this week with me.

Actually, DH is not usually hard to convince about things. I'm the conservative one in the family and have always handled the money. He knows that if I say "I want to do this" that I've thought it through and think its possible. As I said, I may have to do some finagling with the rest of our finances to be sure that it is feasible, but after all, that has been my line of business for twenty years. I'll talk to DH about it this weekend so that I can go down to Texas this week.

If I don't start adding to the family income we may have to cash in all of our investments and that I don't want to do.

Again thanks for all of your suggestions. I am getting excited about this. I got out the tape measure and figured out where I can put it. A 12' table should fit into my sewing room with plenty of room to spare.

Thanks again,

Phyllis

[Guest Linda S]

Phyllis,

Do you by any chance own (or like most of us are buying) your home? It may be worthwhile to investigate taking out a home equity loan to buy a machine. That is how I got mine and I just finished my taxes -- it worked out really well for me. Long ago when I bought the house, I had to cash in some investments to get the downpayment and it took so long to recover from that. I'd hate to see you go through paying all those penalties if there is another way. Also, if the business ends up not working for you, you're only out whatever you lose in the resale of the machine, and not all the penalties you paid to give it a try.

It will take you a while to get going on customer quilts. You'll need time to practice. I had done several quilts on my home sewing machine before I bought a longarm, so my learning curve was a little bit shorter, but I still am learning new techniques and different ways of doing things. It will still be a while before I feel confident "quilting for show" for a customer. If they intend to show my work now, I'd rather they didn't tell me. Lots of them come out just fine, but I don't consider them art yet!

Linda