I got interested in machine embroidery when all that was available was a 4x4 hoop. People were getting inventive and doing whole jacket backs on these machines. I remember most of the articles, but now can't find them online.
What you do is split the design, mark it, and use your templates to set up the next batch of stitches. It is a lot of work, it can be done. The continuous hoops work this way. There are extra hoop templates that you can buy to help placement. If you only split once in a while, these are far cheaper than a new machine.
The last design I split was a Babylock circular design to make a clock. My Pfaff has a 12x12 hoop, but you need to turn the hoop over. I split design using Masterworks, sewed and marked half, turned hoop over and did other half. It turned out. Yes, it's extra work, and yes, I'm stubborn.
Here's one old page. I lived on this page with my 1475. It does have some hints on how they did it.
http://www.cyberport.net/users/milnerwm/FAQ.html