Here is how I finished my little sheep embroidery.
I found a hoop just the right size.
Trim the fabric around the hoop.
Next, start to glue the fabric to the inside edge of the hoop.
Apply the glue to the inside edge and fold over the fabric...
Continue to glue the fabric around the whole hoop...
Let it dry!
Then, you will need something to cover the back. You could use cardboard or any type of paper. I always use brown paper bags. I like the look of the brown paper.
Trace your hoop and cut your circle.
Next, put some glue around the edge so you can attach the paper circle to the back of the hoop...
Place the paper circle on the hoop and lay it down with some pressure to hold it in place and allow to dry. I used a couple pairs of scissors.
** UPDATE: If you have made it this far, I thought I would update this post and let you know I now prefer to finish the back of my hoops using this excellent tutorial.