“Part 2- Organizing Your Embroidery Business – Receiving Area – Receiving The Orders”
In part 2 of this series on Organizing Your Business I am going to start talking specifically about the individual work areas or work stations within your embroidery shop. In this article I am going to start with the first area in your business after the order has taken. That area is Receiving.
In part 1 of this Organizing Your Business series, I showed you a floor plan that is below on this page. This is a small shop with 2 embroidery machines and the square footage for this shop is about 1,000 square feet. I drew
up this basic plan, but it is not drawn perfectly to scale. This plan was to show how you can lay out your shop for a good work flow and not specifically for an exact floor plan.
This is a basic floor plan that I had when I had a 6 head machine and a 2 single head machines. The single head machines were sitting next to each other and in the floor plan it is listed as one machine. At the time I had 5 employees, 2 machine operators, 1 hooper, 1 person finishing, and 1 person doing shipping & receiving.
It does not matter how large or how small your shop is, what matters is how you have it laid out and how many steps you are saving going from one area to another. Each one of your areas or work stations need to be laid out in such a manner that it is physically easy for the person working in that area and efficient for the work flow.
One of the main concerns for employees is the table height that they are working at. It must be the right height for the person so that they do not have back aches and are not wasting time with the movements that are required for them to take as they are performing their tasks.
Received Orders Ready for Processing
Whether you have a large shop or a 1 person at home embroidery business, you must follow the same type of a system in order to be efficient in your work flow. The first process that occurs after the order is taken is the Receiving of the order.
Your Receiving area needs to consist of a large table preferably with a back (like a short wall) built on it so that you have a place to hang your orders that are not complete in one form or another. The tools that you need for this area are a Copier or Computer and Printer and Plastic Job Folders for your orders. If you do not have a wall that you can hang the orders on, you can file them in a file box under your table.
As soon as the Order Processing is completed you are ready to Log in the Order. This is the first step in Receiving. You can Log the order in on the computer and then print out a copy daily and place it in a 3 ring binder. This binder will be stored on the Receiving desk. If you do not choose to Log in on the computer, you can create your Log in Form, print out the blank forms and fill them in as the orders come in. If you are an embroidery shop where you have someone that receives the orders specifically, you can have them fill in the form as they receive the orders and at the end of the day, it can be input into the computer. This is the process for many small to medium sized shops. The Log in form should include the following information:
- Date (the order came in)
- Job Number
- Customers Name
- Job Name
- Item Description
- Quantity of Pieces in Order
- Process (embroidery, screen printing, twill, heatpress)
- Date Due
- Date Goods Arrived from Distributor
- Date Shipped
The work order may come in from the customer by phone or email without the garments. If you are working with a Retail customer, you will be the one that is ordering the goods. The garments are shipped in separately from a distributor or manufacturer. Log the order in, assign it a job number and attach a copy of the order to a clip board marked “Waiting for Goods”. When the Goods come in from the distributor or manufacturer, you pull out the Work Order and match it to the packing slip from the distributor. The order must match exactly.
- PO Number
- Quantity
- Item Number of the garments
- Color
- Sizes
You need to physically count all of the items and check to make sure that the color and sizes are correct and that there are no damaged goods. Notify the customer that the garments have been received and that there is a complete match or that there is a problem with the order and it is up to the customer to make whatever corrections there are to be made with the distributor or manufacturer. If it is for a Retail customer, you are the one that has to solve the problem with the distributor or manufacturer.
Design Work Can Begin As Soon As Job Is Logged In
After the goods have been successfully Logged In and even before the Goods are received the process for the design can begin. The design and sew out can be done and approved by the customer while you are waiting for the Goods to arrive. Many times the entire job can be ready for production as soon as the goods arrive from the distributor. I will talk more about the design process in another article.
Once you have all of the information together and you have all of the correct items, place all of the information along with the order inside of a clear plastic Job Folder and tape it to the front of the box that has the goods inside of it. If there is more than one box label each box with the Order No., Job Name and Box 1 of however many boxes in the order. It is now time to place the order in Staging area of “Received Orders Ready for Processing”. At that point the order can be picked up by the next person that is going to process that order. In the case of the Embroidery area, the next stop is Hooping. In our next article I will talk a lot about the Hooping area. This is a big subject with lots of variables!
Part 1 In Organizing Your Business – Creating An Efficient Floor Plan And Workflow In Your Embroidery Business!
Over the next few Ezine issues I am going to be sharing with you about how to “Create An Efficient Floor Plan and Workflow in your Embroidery Business.” In part 1 I am going to be talking about how to create a Floor plan that will give you a good work flow and not waste steps. One of the key elements to a highly profitable embroidery business is a good management system and part of that management system is a good work flow.
Setting Up Your Work Room To Create An Efficient Work Flow
Creating a blueprint for a good floor plan for your embroidery work room is one of the first things that should be done to insure that you will have an efficient work flow. A layout for the most efficient work flow should be done in a loop if at all possible so that each area is not conflicting with another area. In a good work flow the work runs efficiently from one production area to the next and without it, there are too many wasted steps from one job process to another. Below is a basic drawing of a small shop that has 2 embroidery machines. No work should be on the floor that is not in progress.
The workflow is as follows:
1. Order Processing
2. Receiving – Receiving should be located as close to the incoming door as possible.
3. Staging – Received orders waiting for the prep work and hooping.s
4. Prep - Where they are hooped and placed into baskets or bins ready to be transported to the embroidery machines.
5. Staging 2 – After they are placed in Baskets -Orders hooped ready to go to the machine.
6. Embroidery Machine – To be embroidered
7. Finishing - Where they are trimmed and packed. The Packed garments are then ready for Shipping.
8. Shipping or Picked up
If you are working from your home, your floor plan may be a little different and you may have only one door into your embroidery room. If this is the case, Shipping can be located in the same area as the Receiving, but on the other side of the area.
The best physical layout of your shop will determine how you will be able to place your embroidery machine for the best possible production. The most efficient layout I have found has been having tow machines across from each other with one side table in the center or two narrow tables in the center, one for each machine.
Another efficient way is a U shape having the third or smaller machine at the end of the U. In a single head shop or an in home shop, the prep area and Finishing area can be located on the same table directly across from the machine but keep your areas in different locations at each end of the table and you will be able to function more efficiently. The Prep area at one end and the Finishing area at the other end. If you have two machine, you can have them both across from table or one can be at one end of the table at the Prep area and one across from the table. It will depend on how large your room is and how it physically set up. Both layouts can be efficient.
Create A Blueprint Of your Embroidery Workroom Area
Before you start moving anything around, draw up a blueprint on a large piece of graph paper. Draw and cut out pieces of paper that represent the machines, tables and all other existing equipment. Draw these peices to scale so that it will work for you. Lay the marked pieces ont he graph paper and move each piece of the area that will represent where it should be moved.
Have every thread shelf, backing shelf or racks, hoops steamer, everything that you use that takes up floor space in these drawings so that nothing is missed. Once you have your layout exactly the way that you want it, take a glue stick and glue them into place. This will help you make sure that everything does get placed in the proper location when you do make your move. It will help everyone that is involved with the move be more efficient.
If any electrical or carpentry work is required, supply the contractor with a copy of the blueprint. This will help to explain exactly what is needed and will make it easier for everyone concerned. A well-organized floor plan is a critical factor when you are creating a highly efficient work flow.
The next article in this series we will about organizing each work area within your embroidery business. This is a very important aspect in creating a well organized business!
How To Plan Efficiently For Your Embroidery Business!
Now is the time to start planning more efficiently for your Embroidery Business for 2012! In this video I talk about how to start planning more efficiently and I give you 10 Tips to Help you start planning more efficiently for your business! I divided this up into 2 videos because of the size of the files. Part 1 and Part 2.
Download Video: MP4
In Part 2 of this video I give you a link and a special price to the Embroidery Business Plan program. Make sure that you get the Coupon Code from the video and use it when you purchase the Embroidery Business Plan Workshop. It will save you $50.00!
Download Video: MP4
Time To Start A New Embroidery Business Plan For The New Year 2012!
It’s that time of year again to start a New Embroidery Business Plan for the New Year 2012! It is hard to believe that another year is about to close and a brand New Year is almost here! This has been an incredible year in my business. I have been able to make many strides forward in my business this year and have learned a lot this year about marketing and growing my business.
Learning new ways to improve my business has always been a priority to me and any time I have the opportunity to receive new information to make my business better I make sure that I jump on the chance to do so.
This is the time of the year that we need to get caught up with our bookkeeping, turn our information over to the accountant and make our plans for the New Year. This is always an exciting time to me. I love to look back on what I have done and look forward to the New Year. I am not always happy with the past results or accomplishments but with every New Year there is a new beginning. There is always something new to look forward to in the New Year.
Set Aside Time To Close Your Books And Create New Business Plan
For several years, I have set aside the week between Christmas and New Years, to close my books and create my new plan for the year. For all of those that have taken my Embroidery Business Plan Course, you know that I always plan out my entire promotional activities for the next 12 months and I plan consistently on a 60 day cycle. This allows me to make changes during the year and it also helps me to have a plan in front of me every morning so that there is no guess work at what I have to do to start my day! With this type of planning I do not have the overwhelm feeling that so many people feel when they are trying to put a plan together.
Planning for your embroidery business does not have to be hard or overwhelming. You need to have a plan in front of you at all times to help you run your business and keep you on track. This is very important and it helps you to grow at a much faster rate.
Many of you also know that I time out every task that I do regardless of what it is. I keep track of all of my tasks and try to improve my timing on them consistently. I am always looking for ways to save time and increase my income. I have heard for many years that “Time is Money!” I think of that every time I am doing a new project and I look for any opportunity that I can to save even a few minutes with each task.
My Favorite Timing Tool!
I have a little tool that I use on a daily basis that I want to share with you. This will be my Christmas Gift to you! It is called the Pomodoro Technique! It is a method of timing yourself using a Pomondoro (timer) that is simple but very effective. It was developed by a French gentleman. I do have the timer that they are showing and I am using it as this very moment, but a simple kitchen timer will work just as well and teaches you to work in blocks of time. This tool that I am sharing is a downloadable pdf booklet showing you what the method is and it also has downloadable forms and a cheat-sheet that will help you get started. I love this tool.
I found out quite a while ago that many of the very successful internet marketers use timers to control their time and it seemed very intriguing to me. At first I thought that it was a crazy idea, but when I started using it myself I found out how effective it really was.
Embroidery Business Plan for 2012
To help you get started on your new Embroidery Business Plan for the New Year, I have decided to put my Embroidery Business Plan course on sale. I want to make it easy for you to get started creating your new plan for the New Year! This course is easy to follow but there is a lot to it. At the end of the course, you will have your Embroidery Business Plan together and your entire Promotional Calendar in place for 2012.
Go to EmbroideryBusinessPlan.com and you will see that the home study course is $147.00. I will be offering this to you starting today for $97.00 until 12/31/2011. When you click on the link, it will take you to the order page and you will type in the Coupon Code of PLAN2012 in the lower left corner of the order form.
Now I want you to click on the link and download your booklet The Pomodoro Technique and start using that today. Then order your Embroidery Business Plan course so that you can get started on your new Embroidery Business Plan for the New Year 2012! Don’t forget to enter your Coupon Code PLAN2012 so that you can get that big discount! I want you to have a great New Year and I want to see your business grow at a faster rate than you have been able to make it grow in the past! 2012 is a whole new beginning for each one of us!
5 Ways To Avoid Cash Flow Issues In Your Embroidery Business
Having enough cash to run your embroidery business at times can be a real challenge but this is an area that you must stay on top of at all times. It is so easy to run on a day to day basis and forget how important managing your cash flow is to the overall health of your business.
Number One Way To Manage Cash Flow
The number one way to manage your cash flow is to get at least 50% down for each sale and collect the remainder on delivery or pickup of the finished product. This is the way that all Retail and Small Business accounts should be handled. Make sure you are making a profit on each sale.
Keep An Eye On Automatic Withdrawals
Do you have automatic withdrawals from your bank account? Stay on top of these to make sure that they are accurate and up to date. If the date that they are being withdrawn is causing you issues, ask your supplier to change the date to one that will better work for you. I found some programs on my statement that are no longer useful for me but the money was still coming out every month. If this is happening to you, cancel those programs. This one action alone resulted in $119.00 more per month in my bank account.
Keep Track Of Your Payments
Keep track of when your payments are due. If they are due in 30 days, and you do not have an early payment discount, pay them on the last day that they are due. This will keep you current wit your supplier and yet you can hold onto your cash as long as possible. Make sure that you pay them within the period that they are due to avoid having to borrow from your credit line or payment any interest on that payable.
Offer Early Payment Discounts
If you have contract accounts, make sure that they are current with their payments. If you offer them a small early payments discount, many will take advantage of it and pay early.
Create A Cash Flow Budget
Create a Cash flow budget or Cash Flow Statement that you will use on a daily basis. When you write a business plan you are required to write a Cash Flow Statement and many times it just stays with the business plan and never looked at again. Bad mistake! This Cash Flow Statement should be used and checked at least once per month to see if you are staying on track. If not make some adjustments.
Keeping a close eye on your cash flow or cash outflow will help to give you the cash that you need when an emergency arises or you find a special sale that you can take advantage of. Managing your cash flow can keep you in business much longer than just having a profitable business. A profitable business can go out of business just because they do not have enough cash to run with on a monthly basis.
Joyce Jagger
The Embroidery Coach
© 2011 Joyce Jagger, The Embroidery Coach
WANT TO USE THIS ARTICLE IN YOUR EZINE OR WEB SITE? You can, as long as you include this complete blurb with it:
“The Embroidery Coach, Joyce Jagger simplifies the complex world of embroidery into easy to understand lessons. Her passion is to help get the new embroiderer off to a fast start and help the existing embroiderer improve their skills so that they can provide higher quality embroidery and increase their profitability! Get her FREE Mini-Course “The 5 Mistakes Embroiderers Make” at www.TheEmbroideryCoach.com”
Learn How To Control Your Cash Flow In Your Growing Embroidery Business
I just received an article from my bank that would help you as you are learning how to control your cash flow in your growing embroidery business. If you are a one person shop some of this article may not apply to you, but now is the time for your to learn “How to Mange Your Cash Flow” and will help to give you the tools to be able to actually grow your embroidery business.
Many embroidery business go out of business because they lack the cash flow to keep them going especially during the tough times and to me this is very sad. I really hate to see this happen when it could be totally avoided with the right education and systems in place. Learning how to control your cash flow is a must if you want to stay in business and take your embroidery business to a level that will give you the profit that you are looking for in your business.
If you find this article helpful, please leave me a comment below. I would really appreciate it.
Joyce Jagger
The Embroidery Coach
Embroidery Business Plan Workshop
Preparing your Business Plan is the first step in creating a highly profitable embroidery business. We are only one week away from the first session of our Embroidery Business Plan Workshop where I will be teaching you step by step how to create your own business plan. It is going to be a business plan that you can use to measure your business and will be your the Road map that you need to run your business on a daily basis.
You will be taught in this workshop how to create that daily plan for each area of your business whether it is a one person embroidery business in your home or a multi-head shop with employees.
Click on the link to sign up for your opportunity to be in this first session of this Embroidery Business Plan Workshop and finally be able to start planning the type of business that you have always wanted!
Joyce Jagger
The Embroidery Coach
Embroidery Industry Trends And Challenges In 2011
Recently I was interviewed by a writer, Chris Ruvo from Stitches Magazine about the Embroidery Industry Trends and the challenges that embroiderers are facing in 2011. This interview in on the Research tab page of the Stitches Magazine website.
In this Podcast I spoke about how embroiderers can diversify their product offerings to bring in more dollars to their business. One of the big trends is the combining of embroidery with digital printing. When you are combining the two medians you can create a low stitch count design but yet it can look like a high dollar product.
Another trend this year is the Rhinestone transfers. This can be offered alone or in combination with the embroidery to add even greater value to your product offerings.
The embroiderers need to be able to diversify and add more services to their product line. In today’s market the average embroiderer cannot survive on embroidery alone. They must be willing to add other products and services to attract more clients and be able to offer their current clients more choices.
Click on the link The Embroidery Industry Trends And Challenges podcast and listen to the entire interview. This may help you plan for your future growth within your embroidery business.
Joyce Jagger
The Embroidery Coach
Embroidery Business Plan Workshop
If you have an embroidery business and do not have a business plan, you do not want to miss our “Embroidery Business Plan Workshop”.
I have the “Embroidery Business Plan Workshop” scheduled to start on June 22, 2011. If you were not able to be on our “How To Plan For Your Embroidery Business training call, you can listen to the replay. There was a lot of great information in this call on how to get started with your planning within your embroidery business.
Each and every area of your business needs to have a plan and during our Workshop, you will learn exactly how to create a business plan , one that will work for you in your business on a daily basis and help you to get all of the areas of your business planned and running more efficiently.
Make sure that you click on the link, to see “How To Start Planning For Your Embroidery Business“ today!
Joyce Jagger
The Embroidery Coach
Saving Time – Part 4- Helping Your Customers Make Quick Ordering Decisions
In Part 1 of our Saving Time series I talked about how to save time Creating Embroidery Design Layout Style Sheets, in Part 2 I talked about Limiting Your Embroidery Lettering Styles and in Part 3 it was about creating Sample tags for all of your showroom embroidered product samples. Today I am going to go over how to create an Organized Ordering System.
An Organized Ordering System
An organized ordering system is simple to put into place. This is true when you have all of your information computerized and even if you are using paper forms to be filled out while you are waiting on the customer. You can create Sales Order Packets with all of your forms included so that you do not have to look for your information forms while you are working with your customer. Inside of this Sales Order Packet you should have:
- Customers Quote form
- Your Order Form
- Form of Payment
- Production Timing Form
- Artwork Production form
- Packing slip.
When you are first working with a customer, they usually want a quote before they place an order. Prepare your customers quote and make a copy of the quote form for him to take with him. Place your copy along with all of the other forms into a file marked Customer Quotes. When the customer comes back to place his order, pull the packet of forms from the quote file and you are ready to complete your order taking process.
By having all of these forms together in one packet, you will keep all of the customer information together and you will prevent mistakes from occurring.
During this series we have gone over 4 ways to help your customers make quick ordering decisions. You want the order process to be a pleasant experience for both you and the customer. When you offer your customers so many options they only get confused and it takes longer for them to make a final decision and sometimes that final decision is no decision. Reducing the amount of choices you have to offer will save you and the customer a lot of time.
I hope that this series has helped you to become a little more organized in your ordering process and that you see the value of taking the time to go through your ordering process and make some immediate changes that will benefit both you and the customer!
Joyce Jagger
The Embroidery Coach
