My process for embroidering words onto hoops:
Trace the outline of the hoop and cut out a piece of thin paper in the shape of the area you want the words to be in.
I go in with pencil first, then pen to make sure things look even. Then pin down the paper and embroider right on top of my lines. Once it’s all embroidered I carefully pull the paper out from underneath, using a pin to get the bits in between the letters. And it is finished!