The Clover Tapered Tailor's Awl is very useful in punching holes in leather and fabrics, (carefully) pulling/pushing out corners and widening out spaces.
Tracy says, "I use mine ALL the time when making ornaments and small hang-ables. Simply mark your hole placement, then push the awl through to make a hole the size you need, string your ribbon and you have a fast and easy hanging loop." If you're worried about broken fabric threads or fraying, applying a bit of fray check or similar (and allowing it to dry before inserting the ribbon/cord/yarn/string will keep everything in place.