How much does it cost to start a cupcake business?

From Paula Spencer

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


how to 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 Today by Paula Spencer) If you are in the process of writing your cupcake 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]


3 thoughts on “How much does it cost to start a cupcake business?”

  1. 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?

  2. Hello!

    I was just thinking. Do I have to have a business license to set up a Facebook page for my business? Is that conisidered advertising?

Leave a Reply

Your email address will not be published. Required fields are marked *