Position the template onto the fabric or item that you'll be embroidering. I'm making a pillow with this stitchout, so you can see that my fabric is already marked for placement.

Using an air-erase pen or other marking tool, mark the axis lines (both horizontal and vertical), as well as the center point of the designs, onto the fabric.

Do this for the monogram design, as well as both of the letters.
 

Remove the template and draw lines on the fabric connecting the marks.

You can see that my fabric has horizontal and vertical axis lines for the monogram design, as well as the letters. Now I'm ready to start stitching!

I'll begin by embroidering the monogram design. I hooped the fabric and stabilizer together, making sure that the axis lines matched up with the marks on the hoop.
 

 Attach the hoop to the machine and load the design. Scoot the hoop so that the needle is directly over the center point (most embroidery machines have this capability).

Embroider the design!

After embroidering the monogram design, load the letter that you want to stitch. Move the hoop so that the needle is directly over that letter's center point. Embroider the design!