All of what Steve says is true and good, but I'll tell you the secret that so many people fail to grasp, even though it's obvious. It doesn't matter what the business is, but this is about cupcakes. You need to sell them, that's the secret and don't laugh. If you make a cupcake for a dollar and sell it for $3, then you need to SELL 100 cupcakes to make $200. That's even without thinking about overhead. So many people want to say, "I can make XXX things a day", but if you don't sell them they just pile up on the living room floor. In order to make $500 a week, you need to make, and sell, 300 cupcakes a week, every week - in this case I'm thinking overhead. 25 - 12 cupcake tins. More than just your friends are going to buy. It's all about cash flow.