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Founders want to expand their store in a gentrifying part of downtown Hamilton

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Kate Hunter, left, holding her daughter Juniper, and Liz Simpson launched Needlework, a fabric shop and creative workspace, in a quickly gentrifying part of downtown Hamilton, Ont., four years ago.Glenn Lowson/The Globe and Mail

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In addition to selling fabric, clothing patterns and books, the pair offer sew-by-the-hour spaces and textile workshops as well as classes in cross-stitch, embroidery and sewing. Now that they are making a profit and have nearly paid off their startup loan, Ms. Simpson says they would like to expand. But what should they do?Glenn Lowson/The Globe and Mail

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Dana Barath works on a sweater. The shop’s two founders recently bought a $15,000 long-arm machine for quilting. It allows for the making of large quilts, and Ms. Simpson and Ms. Hunter have added classes and rental time on it. Would it be better to continue to invest in more specialized equipment or should they hire people to develop and run new classes and workshops?Glenn Lowson/The Globe and Mail

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Needlework co-founder Kate Hunter’s daughter Juniper is the centre of attention on open craft night.Glenn Lowson/The Globe and Mail

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A couple of customers look through fabrics at Needlework. Another option the founders are considering is the development of their online store and Web presence. Ms. Simpson says it’s hard to maintain that while running the physical store, especially since her partner is on maternity leave and she only has one part-time employee. “While an online store doesn’t demand physical space, it demands time, and there are only so many hours in a day,” says Ms. Simpson. “The challenge there is finding the right person and making room in our budget to afford even a part-time dedicated person.”Glenn Lowson/The Globe and Mail

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In the past year, fabric made up about 53 per cent of the store’s sales, Ms. Simpson says, with notions (including tools, books and patterns) earning 28 per cent, and classes with 19 per cent. But the classes fuel the fabric and notion sales, as students need to purchase items.Glenn Lowson/The Globe and Mail

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The pair would like to expand but they aren’t sure which direction to go in.Glenn Lowson/The Globe and Mail

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