Vinyl cutter... absolutely. Embroidery machines are difficult from what I understand (their machines get WAY complicated, with the threading, needles, all that) With a vinyl cutter you open up your shop to a whole world of automotive/storefront graphics. A customer comes in and wants 20 mugs for his business, offer him some discounted vehicle graphics (which you can get away with charging alot for) and assure him that it will drive business to his shop and offer a reciept to make the entire purchase tax deductable... see where I'm going with this? Plus you can do T-Shirt work just as well with it. Killing 2 birds with one stone, and it's way below your budget with lots of room for expansion with cheap/low overhead. Just my 2 cents, good luck!