How to Start a cupcake Business

How to Start a cupcake Business from Scratch

The cupcake business has become the subject of many success stories. This has become such a supposed sensation it has even spawned a TV series entitled Two Broke Girls.

Several other shows make mention of cupcakes as a business, and all these, along with cooking shows, have brought this enterprise into the public eye.

Two broke girls cupcake business

Image courtesy of Radio Times

It is true that there are people who make a living successfully from this business.

However, in order to follow suit and achieve the same positive results, it is necessary to learn a few lessons about cupcakes as a business.

Capital Outlay to Start

capital investment

Bakeries, diners, and existing establishments can easily start selling cupcakes as one of their regular items.

They would only need to invest in the labor and materials needed to produce the cupcakes, plus equipment if they don’t have this yet. In other words, these already established businesses would have an easier time getting into the cupcake business.

Baking equipment

They can merely pick up a recipe, tweak it a bit, and display them in their showcases.

They would have the benefit of incidental clients – people who go in to buy bread or have a cup of coffee.

The private entrepreneur who wants to start a cupcake business would have rather a bit more to figure out such as the product, capital, clientele, space, labor, and permits, for a start.

On top of that, he or she would have to consider the equipment needed to sell the cupcakes, such as a cake display.

It’s a good thing that with a few keyboard strokes, one can now find, select, and purchase a cake display available online. Still, a good number have made a go of this business, and they probably learned as they went along.

Skill Level and Quality Control

Baking and decorating skills

Almost everyone can make cupcakes, and almost everyone loves cupcakes. That’s all you really need, right? Wrong. To start a viable business out of making cupcakes, a person has to have a certain level of skill and a relatively stable recipe. He or she must know how to manage the production of possibly a hundred cupcakes of the same kind. Consistency is something paying

customers will expect and demand. Friends may ooh and aah over the cupcakes you give them as gifts, as customers, their behavior and standards will be vastly different.

You Don’t Own Your Cupcakes

Unlike other products that can be patented, the cupcake can be copied by just about anyone and sold anywhere. There is no exclusivity in the business, so if your recipe is the basis of your success, you had better hang on to it very tight.

The only thing you can patent is the name you put on your box or on your wrappers.

Sustaining the Market

Coffee and cupcakesPeople eat bread every day and children drink milk regularly up to a certain age. There will always be a market for bread and milk. The question is will there always be a market for cupcakes. People will eat cupcakes and a good number will profess to love them; but that doesn’t mean they will eat cupcakes daily, or even weekly. The nature of the cupcake market is that people will eat them maybe a few times a month. Anyone who wants to venture into this business successfully must have enough of a market to sustain the volume of sales needed to keep afloat.

Consider Current Health Trends

People are no longer as blissfully uncaring of things like calories, saturated fat and sugar – all of which a cupcake has in generous portions. If the trend towards health consciousness continues, the market for cupcakes may fade. People who eat cupcakes once a week may limit such treats to once a month; others may decide to give it up. This, too, is to be considered when planning to venture into the business of making cupcakes.

If you were thinking of going into the business of baking cupcakes, a wise step to take would be to find resources that can help you make a business plan. Find people who will help you look into all the requirements to start such a business and the honest-to-goodness challenges that go along with making a go of it.