How much does it cost to start a cupcake business?

by paula

From Cupcake-business.com

Cupcake businesses are posting steady sales despite a sour economy. Interested in starting your own cupcake company? Here’s what it took to launch The Sweet Tooth Fairy Bake Shop, a brand new cupcake shop in Provo, Utah.

 

The Small Business:
The Sweet Tooth Fairy Bake Shop
1227 S. University Ave.
Provo, Utah
Est. Jan. 31, 2009

The Start-Up Costs:
Security deposit = $3,600
Construction = $25,000
Start-up inventory =$5,000
Oven = $8,000
Pots, pans, tables and racks = $8,000
Permits = $1,000
Total start-up costs = $50,600

The Monthly Expenses:
Staffing = $3,500
Rent and utilities = $3,000
Inventory = $1,500
Insurance = $100
Rough monthly expenses = $8,100

Number of $2.25 cupcakes she must sell a day to break even: 120

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start a cupcake business
Interested in more information about the expenses related to starting your own cupcake business? Checkout our blog or order a copy of our Book (Start a Cupcake Business) If you are in the process of writing your business plan, we have an entire section on our site with articles and resources to help.

[Original inspiration for this article: Starting a Cupcakery By the Numbers | Launching | Small Business | Mainstreet]

 

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{ 2 comments… read them below or add one }

Hunnicutt January 9, 2012 at 7:35 am

Hi I’m thinking of starting my own cupcake business, but different from this equation. I want to start a Mobile cupcake business (you know, a cupcake truck) Could you help me figure out the start up cost for that business?

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paula January 15, 2012 at 6:19 pm

A complete start up formula, including expense worksheets and start-up calculators is available on our sister site about starting a cupcake business.

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