BEFORE cutting the button shape out, it is important to make the holes. Once the small button is cut, it is just too hard to hold it to punch (or drill) the holes accurately. First, make a divot with a center punch in the template button holes. This makes it easier to see the hole through the hole in the lower jaw of the hole punch. Center the divot in the hole in the lower jaw of the 1.8mm or 2mm hole punch, depending upon the size of the cord being used.
Pro Tip: Go larger as you never know when the cord being used is just a tad too thick for the smaller hole. Also, the divot makes it easier to use a drill bit to make the holes.