What type of towel are you stitching and what type of design?
Here is a tutorial I watched a few days ago. The embroidery results looked nice when it was finished. A big concern is how the towel looks after it washed so stabilizer techniques are important. Don't forget to use a "topper" so the threads don't sink down into the fabric.
https://www.youtube.com/watch?v=EcLiEcnCFwI