This research aims to obtain a business strategy and operating strategy that can be applied by SMEs after the outbreak of the Covid-19 virus. The author conducted literature research and interviews with company owners. Analysis techniques in strategy formulation were carried out through three stages: the input stage, the initial stage, and the decision stage. The input stage used an external factors evaluation matrix, an internal factor evaluation matrix, and a competitive profiles matrix. Based on the EFE matrix analysis, the company's external factor that threatens is the unstable economic condition due to the Covid19 outbreak. Meanwhile, the existing opportunity is that the market share is still quite wide, so E-embroidery makes the best possible use of these opportunities by doing online marketing to introduce their business. Based on the CPM matrix, E-embroidery has the lowest position compared to the other two examples of embroidery companies, although there is a slight difference between E-embroidery and Cimahi embroidery companies. The matching stages use the IE matrix, the grand theory matrix, and the SWOT matrix. Based on the IE matrix, it can be seen that the value of the company's external factors and internal factors is in quadrant I or high. Eembroidery is in growth and development. Based on the grand strategy matrix, it can be concluded that E-embroidery is in quadrant I. Companies that are in quadrant I have a strategic position. The decision stage uses the QSPM matrix. Based on the QSPM matrix, it can be concluded that the value of the product development strategy has a total attractiveness value of 6.128. This value is higher than the market penetration strategy, with a total attractiveness value of 6,083. The product development in question is an effort to increase the product's added value by utilizing fabric waste. This cloth waste can be utilized by using the remaining cloth that becomes waste into an additional layer of embroidered cloth media to maximize embroidery results.