Nearly half of this industry is made up of home-based businesses, but there are also those retail and commercial/industrial locations, mobile operations, kiosks, and all sorts of other configurations. That said, your success hinges on how well you use the space you have, so you should design your space to fit your current needs.
Accordingly, maximize the use of your space. Walls can hold threads and hoops on pegboard. On the floor you will need a place for your computer; file space for customer files and catalogs; flat surfaces where you will do the hooping; a home for threads, hoops, scissors, and stabilizers; a place to collect the goods as they come off the machine; and a spot for incoming orders and inventory and a place for completed orders.
If you find yourself walking in circles or back and forth in your workspace, move things around or duplicate them until you have what you need where you need it when you need it. Consider wearing nippers on lanyards so that you always have access to them. Waist aprons work great to hold scissors, pens, and capped nippers as well. Laundry carts on wheels can help to move inventory around quickly.
—National Network of Embroidery Professionals (NNEP)