Kate Carrara had a high-paying job as a lawyer in Philadelphia – a position she said was "insanely boring." So she quit the corporate life to start a mobile cupcake store, and she hasn't looked back.
Carrara said in a recent interview with Kiplinger's Personal Finance that the enterprise cost about $50,000 to get off the ground. The truck itself cost $20,000; a license cost another $5,000. Carrara had to sell her engagement ring to raise capital, and she and her husband downsized to one car and a small apartment.
Now that the cupcake business is off the ground, though, the expenses aren't as substantial. It costs just $500 to make 2,000 cupcakes, Carrara says – and she sells each one for $2.
The cupcake entrepreneur reports that she's sinking her profits back into the business and is thinking about setting up retail outlets or "cupcake kiosks."
Carrara's experience is typical of many entrepreneurs. She kept her day job while planning her new venture, was forced to pare her living expenses and scrape together capital and is now focused on expansion. Her experience can offer a template for those who want to begin their own company – it's a process fraught with risk, but one that can ultimately prove rewarding.