How much does it cost to start a cupcake business?

by paula on March 14, 2009

From MainStreet.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
[From Starting a Cupcakery By the Numbers | Launching | Small Business | Mainstreet]

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