Remove hoop from machine but do not unhoop the fabric, using small snips
trim the fabric as closely to the stitching line as possible without
cutting the stabilizer
I also like to use just the tip of a blade to snag JUST the fabric and
trim inside the circle too
Re-attach hoop to the machine and continue stitching design

When you get to the step that shows a 3/4 outline remove the hoop
before stitching it

turn your hoop bottom side up and lightly sprits the design area with
a spray adhesive

Take your backing fabric and fold down at least 1/2" to the wrong side
and press to form a nice finished edge

Place the fabric over the design area on
the back of the hoop (the spray will hold it in place just fine)
making sure the folded edge of the fabric is to the top

After stitching the next step ( the 3/4 outline) remove the hoop from
the machine again and trim as close to the stitching as possible on
back

return hoop to machine and finish stitching design

Remove stabilizer and Voila! one adorable little taggie that can be
used as a gift tag or as a money or card holder for gift giving!