- - This 29-year-old invested $20,000 ‘on a total whim’ to open an embroidery store in New York that now brings in $1.6M a year. Here’s how she did it

Danielle AntoszDecember 28, 2025 at 9:45 PM

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Abby Price

The American entrepreneurial spirit is in full swing in recent years, with applications to start new businesses rising 12.5% each year between 2020 and 2023.

In fact, TD Bank estimates that close 1.7 million new businesses may be formed over the next year. (1) Moreover, Americans are side hustling more than ever before as of 2024, with 36% of us spending our free time making extra cash. (2)

And your success story may be closer than you think.

For a full year, the embroidery machine that would change Abby Price’s life sat untouched in the basement of her New York City shop. Price launched her company Abbode in 2019 as a graduate student, selling dried floral arrangements to local buyers on Facebook.

By early 2022, she’d expanded into a storefront financed by $20,000 in savings and help from her parents. She was bringing in enough revenue to justify splurging on the $15,000 embroidery machine “on a total whim,” she told CNBC Make It. (3) But without the skills or space to run it, the machine sat gathering dust.

The turning point came in 2023, when the machine needed servicing. To make hauling it upstairs worthwhile, Price hosted a two-day pop-up offering free embroidery with every purchase. The first day generated five times the previous Saturday’s sales.

Price and her business partner, COO Daniel Kwak, leaned in. Abbode shifted its entire model toward personalized embroidered products, both online and through in-store events. By 2024, the company had doubled its revenue to $1.59 million.

As of late 2025, Abbode projects $4 million in annual sales, with roughly a quarter coming from live events and brand collaborations with L.L. Bean, Charlotte Tilbury, and the Ritz-Carlton.

While Price’s success may seem like good luck, it takes dedication, sweat and business sense to make it. So what lessons can budding entrepreneurs learn from her story? Read on for what you before starting a business.

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The real price tag of starting a small business

Price’s path mirrors the financial reality of many small business owners: a mix of personal savings, small loans, and calculated risks were in store before profits materialized.

According to the U.S. Small Business Administration (SBA), founders typically face a long list of startup expenses before earning a dollar: rent, equipment, inventory, utilities, insurance, website costs, payroll, and professional fees add up quickly. (4)

Bankrate reports that the average small business spends around $40,000 in its first year, though costs vary widely by industry, size, and location. Most founders use their own money, but about 77% of startups without employees rely on personal funds like savings, credit cards, or cash from friends and family. (5)

The type of business can also impact costs. Brick-and-mortar shops are the most expensive, as designing and outfitting a store averages around $147 per square foot, meaning a modest 500-square-foot space can top $73,000.

While online businesses can be started for a lot less, they still require web design, marketing, and inventory. Service businesses may begin with low upfront costs, but expenses rise if they add staff or office space.

Those numbers help explain why many founders hesitate to make the leap. The risks are real — and the costs can pile up fast. That’s why timing matters.

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When to take the leap — and how to protect your finances

Before turning a side hustle into a full-time venture, the SBA recommends calculating your startup costs and estimating your break-even point. This includes gathering real-world numbers for rent, inventory, equipment, taxes, and salaries.

Talking to other owners, comparing vendors, and using tools like break-even calculators can help clarify what you need before launching.

If you're thinking about leaving a full-time job, financial planners often recommend meeting three benchmarks:

Consistent revenue: Your business should cover its own expenses and a meaningful portion of your personal budget for 6–12 months.

Emergency savings: Keep three to six months of living expenses separate from business funds.

A clear growth path: You should know exactly how extra time will translate into more revenue.

Protection matters, too. That includes choosing the right legal structure, opening a separate business bank account, getting appropriate insurance, and avoiding optional expenses until revenue stabilizes.

For example, Price didn’t leap immediately. She tested her concept on Facebook, then in a temporary retail space, then with a two-day embroidery event. Only after demand proved itself did she invest in more machines, staff, and space.

Whether your dream involves embroidery, e-commerce, or something entirely different, the path is similar: start small, run the numbers, confirm demand — then scale intentionally. The leap of faith is easier when you’ve built the financial runway.

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Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

TD Bank (1); Bankrate (2); (5); CNBC (3); U.S. Small Busimess Administration (5).

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Original Article on Source

Source: “AOL Money”