First, let's lay out the design in the XCS software.  I have provided a design file with the pattern of the leather patches I used.  The diamond shape is kind of hard to align everything working off of the edge, but having the shape of the patch helps to line everything up.

Next, you can place your own logo or use the one included. You will also want to edit the text. I had to move the text box and realign it because the number of characters changes the shape of the textbox.  

I find that using the arrow keys helps with alignment.  You can also select the patch outline and the text and use the align horizontal center to help.

The settings are for the D1 5W laser.  You may need to adjust the settings for your laser configuration.

Be sure to follow all the safety guidelines for your laser and always wear personal protective equipment when the laser is in operation. 

I have found that using the gantry to visually align the patch across the top two corners of the patch helps to ensure it is square with the laser.  I also like to use tape to secure it.  These leather patches are very light and the air assist or fans on the laser may blow it out of alignment.

These patches have an adhesive on the back, but sewing the patch onto the hat ensures a higher level of durability.  We have tried a machine, but hand sewing seems to get the best results.