As told to Caitlin Dewey
What did you do before you sold cupcakes? Everyone in my family is a lawyer -- my father's a lawyer, my grandfather's a lawyer. So I went to law school and spent six years working as a trial lawyer for my family's firm. Then I did coding for two years at another law firm, which was insanely boring. But I was also planning my cupcake business and trying out cupcake recipes on my co-workers.
When did you make the switch? I quit my job in July 2009 after I saw that someone in New York City had opened a cupcake truck, which I thought was a great idea. I realized I had to do this in Philadelphia or someone else would.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
What are your costs? For the first year of operation, start-up costs were about $50,000. The truck alone was $20,000, and the vendor's license was about $5,000. The rest depends on rent and salaries. I have five employees, whom I have to pay a good wage.
How did you raise the money? My husband and I took out loans and sold a piece of the business to a family friend. We also had to live off my husband's salary after I quit my job, so we downsized everything we could. I sold my diamond engagement ring. My husband and I went from living in a three-bedroom home with two cars to a small apartment with one car.
How many cupcakes do you sell a day? We aim for 500. It's a little slower in the summer, when the students are away.
And what do you pay for ingredients? Our baking costs are not that high -- we're not talking oysters here. For $500 I can bake 2,000 cupcakes. We sell them for $2 each.
Is the business profitable? In the first year, we made $100,000, but we're putting a lot of that back into the business now. I'm starting to look into retail and wholesale outlets. I'd like to open some kiosks.
Do you have any regrets? Sometimes when I have friends over to my apartment now, I'll see them glancing around discreetly, as if they're looking for something. I have to ask them, "You're just here for the cupcakes, aren't you?"
-
Should You Renew Your CD?With rate cuts impacting earnings, we examine if now is a wise time to renew CDs.
-
7 Ways to Plan Now to Save on Medicare IRMAA Surcharges LaterUnderstand the critical two-year lookback period and why aggressive planning before you enroll in Medicare is the most effective way to minimize IRMAA.
-
Law Reversal Looming? Trump Eyes 2026 Gambling Winnings Tax ChangeTax Deductions It's no secret that the IRS is coming after your gambling winnings in 2026. But how long will that last?
-
Amazon Resale: Where Amazon Prime Returns Become Your Online BargainsFeature Amazon Resale products may have some imperfections, but that often leads to wildly discounted prices.
-
Roth IRA Contribution Limits for 2026Roth IRAs Roth IRAs allow you to save for retirement with after-tax dollars while you're working, and then withdraw those contributions and earnings tax-free when you retire. Here's a look at 2026 limits and income-based phaseouts.
-
How to Search For Foreclosures Near You: Best Websites for ListingsMaking Your Money Last Searching for a foreclosed home? These top-rated foreclosure websites — including free, paid and government options — can help you find listings near you.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How Much Life Insurance Do You Need?insurance When assessing how much life insurance you need, take a systematic approach instead of relying on rules of thumb.
-
When Does Amazon Prime Day End in October? Everything We Know, Plus the Best Deals on Samsonite, Samsung and MoreAmazon Prime The Amazon Prime Big Deal Days sale ends soon. Here are the key details you need to know, plus some of our favorite deals members can shop before it's over.
-
How to Shop for Life Insurance in 3 Easy Stepsinsurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
