There is no right answer to the question as the perspective is missing. Any profit is good when the comparison is to not having a profit. The question is often asked in terms of what is an appropriate profit %, which too is difficult.
Perspective then makes a huge difference. If I make a profit of $100 it is obviously better than anything less than 100. However if the time period is one hour it is far better than the same $100 over a week or a year.
Can you live on your profit in a manner you find acceptable? Is the profit reasonable in relation to the time and other (capital) investment?
In the end it is really up to you.
Agree that any profit is a good profit.
Before starting, ensure that -there is a market for your business and you are equipped to fulfill any potential orders.
Many of our clients start off small scale, maybe on a part time basis whilst still maintaining some paid employment.
If cupcakes are your ideal business have you considered starting up without the associated costs of running premises? Perhaps market your business online, sell privately or try to build a business by supplying your cakes to existing retailers? One of our clients started that way and after 2 years felt confident enough to open their own shop.
Remember that there are lots of free tools online to help with business planning, etc
Good luck
Some busineses take 5 years to bring in a profit.
Remember you have expenses, licences, tax accountant, insurance, etc to pay for.
In my town 3 of these have popped up in the past year.
Only 1 is still in business.
Careful of where you live.
Some places are full of healthy people that don't like lard, butter and sugar.
I sell online and my view is any profit is good. It means you are doing something right, assess trends, prices and what's necessary frequently. If it doesn't add value, get rid of it.
When starting up a business, what is the ideal profit to make a year e.g. a cupcake shop?
