You can usually shrink a design by using Wilcom Truesizer, but from what others have said, about 10% is the most you can shrink it. If you have Embrid or another digitizing program, you can "split" designs into segments to fit your hoop. The only types of designs that don't split or re-size well are fsl. I have SewWhat-Pro and I use it to split designs and it will also split designs to use in multi-position hoop.

try sewwhatpro free download trial you can reduce a design in there and it will automatiaclly reduce the stitch dencity for you. i have reduced by 50% and still had it sew out ok. you can then save to file in the format you wish

On my Janome, I can only downsize 10%, or increase 20% with out it affecting the stitches.
If I have a design in the format it was digitized in, eg JAN for Janome digitizer Pro, I can decrease or increase as much as I like with out it affecting the stitches.
Sometimes turning a design, either diagonally or vertically, will make it fit the hoop

The free WilcomTruesizer works well, it reduces the stitch count, what most bought programs do as well. You MUST make a rest stitch-out, however, sometimes unexpected things happen when downsizing. The second method is splitting a design in two parts, but for that you need the right software, Embird is relatively cheap and does a great job. It works for a great number of machines too.

Shadoe, thanks for asking - you can usually - it the stitching is very dense you may not get away with it - without the correct program, however. *4U