The passion for all things cupcake has exploded since the late 1990's and shows no sign of slowing down. The craze that began with New York City's Magnolia Bakery. The impact has been a seven-fold increase in cupcake sales in the last 5 years. While some predicted the cupcake market would reach a saturation point or that the economic collapse that began in 2008 would be the end of the cupcake trend, the demand is still growing. Even with our recent economic troubles, people are still spending money on small indulgences, especially bakery items. It is a great time to start a home-based cupcake business.

Perhaps you've been told by friends and family that you should go into business for yourself because of the scrumptious cupcakes you make for holiday and birthday celebrations. Perhaps it's simply been your dream to provide delectable desserts to the people in your community and be involved with the special events that occur in people's lives. Whatever your reason, opening a cupcake business at home takes a great deal of time, planning, dedication, and commitment.

There are many things that must be considered when contemplating opening a home cupcake business. The first consideration is the legality of selling food produced in a home kitchen. There are currently only a handful of states in the U.S. that have cottage food laws and permit the sale of home-produced baked goods directly to the public. These include Iowa, Kentucky, Maine, Michigan, New Hampshire, North Carolina, Ohio, Pennsylvania, Tennessee, Utah, Virginia, and Vermont. Within other states there are some exceptions on a county by county basis. It is important to check with the state Department of Agriculture and your state and local health departments to discern the rules in your community.

Once you've determined that a home based cupcake business is legal, the second step is writing a business plan. Everything from what kinds of cupcakes you will offer to how you will price your products are all important details you need to begin working out even before you open your business. Writing a business plan will help you think through all the decisions you must make and the steps you should take before you ever buy your first ingredient and open for business. The best place to start when writing a new business plan is your local Score office.

Creating your business plan should be something you do before you open your business. It not only ensures that you will have a map that helps guide you through the initial decisions of opening your business but it also paves the way for you to have the ability to receive both commercial loans and Small Business Administration backed financing. Just like having the right recipe can mean the difference between a great cupcake and one that no one wants to eat, taking the right steps before you open your business can ensure that you will still be there in the years to come.