Cupcake shop with walk-in trade

Local shoppers, families, workers on lunch breaks, event organisers and people ordering for parties and weddings.

Single cupcake and box sales over the counter, plus higher-value special orders and event catering. Adding coffee or other bakes can raise the average spend.

• Baking at volume
• Managing costs and stock
• Customer service
• Marketing and local networking

• Commercial rent, business rates and fit-out costs can be high, so check your numbers carefully
• Register with your local council as a food business before opening, and expect inspections
• Planning permission or change of use may be needed for food premises, check with your council
• Allergen labelling and information rules
• Employer's liability insurance once you hire staff, plus public liability and buildings or contents cover
• Sales can be seasonal and depend on footfall

Startup costs are typically around £8,000 to £40,000, depending on the premises, fit-out and equipment. Commercial rent and business rates can be high, so check your numbers carefully before committing to a lease.

Monthly revenue is typically around £3,000 to £12,000, depending on your location, footfall and how many event orders you win. Sales can be seasonal, so allow for quieter months in your planning.

Check registering as a food business with your local council before opening, and expect inspections. Also check planning permission or change of use, allergen labelling, and insurance such as employer's liability once you hire staff, plus public liability and contents cover.