Lay the fabric piece onto acetate or wax paper. Cover both sides of the fabric with Mod Podge. To do this apply a generous coverage of Mod Podge to one side of the fabric, flip it over sticking the fabric to the acetate. Then you can cover the other side. Leave it to dry.
Print out the word you want to have on your banner in reverse. Trace the word onto the smoother side of the fabric (still in reverse).
Cut the word from the fabric using the scissors. You'll have no fraying due to the Mod Podge. Use a craft knife to cut out the small areas.
Cut your felt into a point on one end. To do this, mark the center of the felt and about 2 - 3 inches on each side (depending on how sharp you want the point. Cut from both side marks to the center to create the point.
Apply a strip of glue to the top edge of the felt and stick the dowel rod to it.
Apply more glue to the felt and roll the dowel until it is totally covered in felt. Use something to hold the felt and dowel in place while the glue dries.
Apply a generous amount of Mod Podge to the back of the word and stick it to the felt. Let dry.
Cut a length of twine and tie to both ends to hang the fabric banner.