Side Business?

Thought I'd start Monday off with a wacky idea. A friend of mine owns a custard shop with her husband. She grew up working the counter at the custard shop, and decided one day, when she was financially viable enough to get a loan, to buy the place. This has recently inspired me to daydream…. what if I had my own little side business? Because I am in no way ready to commit to a location yet (especially not my current one), this side business would need to be portable. And it would need to be something that afforded me with deep satisfaction, since I would have to spend so much extra time and energy to keep it going alongside my normal job (and writing aspirations).

What affords me great satisfaction is not custard, but cupcakes. I’m from the South originally, and while I never quite submitted to the mother/grandmother’s voice in the head telling me that my personal worth was tied to my execution of the perfect grits / biscuits/ red velvet cake, to me, baking is pure pleasure. The aromas, indulgent tastes, working with your hands to physically transform ingredients – it’s one of the most relaxing and rewarding activities. And the cupcake is the perfect representation of the nonessential, wonderfully playful treat.

So now my daydream revealed: I should start a cupcake catering business (that would of course eventually transform into a cutesy retail empire). Why cupcakes and why I think there is a demand for a cupcake catering business right now? Jamie Fahey of the newly-opened Atlanta Cupcake Factory was recently quoted in a cupcake-themed blog saying: “The world has become such a harsh place in so many ways and cupcakes bring comfort and a sense of well being to many people.”

I feel a little like a girl with a lemonade stand right now, but what the hell, I’ll try a little pricing exercise to see how much I’d have to sell my cupcakes for to make a profit. First the expenses, on the smallest scale: I figured around $100 for one-time start-up costs (business cards, portable storage, etc.) and then around $18 per dozen for ingredient/décor costs. This might be a little high for the flour, vanilla, etc., but I’d rather overestimate my costs than the opposite.
After doing some research, I find that cupcakes range anywhere from $2-$4, but I think $2.50 / cake sounds about right for me. If I gave a slight discount per dozen $28/dozen, I’d have to sell about 10 dozen to break even on the enterprise, and from there it’s all profit positive. Plus, I would have the pure pleasure of having someone else pay me for playing in the kitchen. Next steps, I think will be to create a portfolio and start capturing some of my past work. In order to do this I will have to overcome my strong dislike for taking pictures of food. Small price to pay!
More to come on whether this side business ever gets off the ground…