Starting A Cupcake Business With The Right Ingredients

In addition to being a cupcake blogger, I am an also a small business bookkeeper/blogger and one of my clients is a non-cupcake bakery, The Treats Truck. After reading several emails and comments from our readers, I created a guideline for aspiring cupcake bakery owners. Here are 10 ingredients (other than eggs, flour, sugar, milk) that I think are necessary for a successful cupcake business:

1. Do some research both online and offline. Check business sites like Inc and All Business for small business advice. Visit cupcake businesses to get a handle of how much rental space you need, how many employees and what kind of equipment.
2. Create a business plan. This is so intimidating for many but you have to create a visual representation of what you want your business to be. Draw a picture of your storefront. Create of wish list of what you want to sell. Then support your dreams with solid numbers like monthly overhead expenses, food costs and marketing.
3. Money. How are you going to finance this? A lot of women don’t borrow money from banks to fund their businesses, but they should. Many banks can offer small businesses a good line of credit that can help you get things ramped up. Borrowing from family or friends is not the best idea because even if your business does well, family and friends may mistake their loan as an investment which may lead them to meddle in your business.
4. Come up with a name, but do a trademark search first. Nicole Mahler learned the hard way since she had to change her business to Bangerang Bake Shop after threat of litigation by another company.
   
5. Cross all the t’s and dot the i’s! Set up a company structure (LLC, S-Corp, DBA) Insure your business. Trademark your name and logo. Have a separate business checking account.
6. Don't buy expensive ads in a newspaper. Get the word out about your business cheaply by telling people both offline and online. Blog your business. Get business cards. Twitter your business. Send samples to people who will write about you. Offer to sponsor cupcakes at a local business conference.
   
7. Make friends with your local competitors. You can learn from each other and refer business to each other if one of you is too busy. I truly believe that "everything that rises must converge".
8. Find a few passionate people to work for you.
   
9. Learn to delegate (eventually).
10. Build your brand everyday with excellent product and customer service.