The present invention relates to a method of making clips which can be used to engage body tissue for the purpose of closing wounds. Such clips are generally annular in shape and have radially inwardly extending tines. It is often desirable for such clips to have a small lateral dimension, but manufacturing difficulty has been encountered in making small clips because of the difficulty in cutting materials accurately when attempting to produce a clip with closely packed elements. The present invention avoids these difficulties by first forming a precursor which, in one embodiment, has the tines extending radially outwardly from the annular body and then forms the clip by inverting the precursor such that the tines extend radially inwardly. In an alternate embodiment, the precursor is formed with an over-sized lateral dimension and then compressed inwardly to bring the tines closer together and to reduce the lateral dimension of the precursor. It is preferred to manufacture such clips from a superelastic alloy such as nickel-titanium, in which case the inverted or compressed precursor must be heated and quenched to heat set the clip in its final shape.