ok here's what I did in a few minutes... I make no promises and it could turn out complete ****e... so try it on some test-fabric first. We've got a $400 5" by 7" Brother machine and it gets the job done on the simple things my wife monograms and appliques. It does large letters very well like names and such, but small areas it tends to lack at and lettering in satin-stitch it seems to want to glob up on... but that could just be my embroidery files. I use some cheap software called PE-Design to convert monogram files from one type to the other and to make quick digitizing of photoshop/illustrator designs into PES files.
I'd love to have some industry-standard software, but I can't see spending over a grand on software for not even a home-business but more of a hobby for my wife and I. I'd rather spend a grand on a nicer machine that won't spend as much time in the shop.
That said, here's a 4"x4" PES file. Your machine should be able to shrink it down, but I'm not sure what that'll do to the threadcount and spacing and all that jazz. I'm pretty much a noob when it comes to doing quality embroidery work... it's just something I self-taught myself when I got the software. If it looks like garbage when you shrink it on your machine let me know and I'll try making a smaller 2" by 2"... the auto-digitizer threw a fit at the small negative spaces in the top of the logo when I tried making it 2" by 2".
https://www.dropbox.com/s/u9caszozdrrogaq/Lotus.pes?dl=0