She Turned Her Last $5 to $10,000,000

Cupcake Business

Author

Millionaire Syrup
April 05, 2024

She Turned Her Last $5 to $10,000,000

Cupcake Business

Introduction

The Cupcake Collection has become a beloved institution in Nashville, and its founder, Mignon Francois, is a local legend. Starting with just about her last $5, Mignon turned her grandma's cupcake recipe and a strong determination into a thriving $10 million cupcake business during the 2008 recession. Despite not being a baker, she transformed that initial $5 into $600 within the first week, and her success only grew from there.

How The Business Started

Mignon began by baking cupcakes in her own home kitchen. Initially, she didn't intend to run her business from home, but due to financial constraints, she couldn't afford to lease a commercial space. So, she decided to make the best of her situation and started baking from the comfort of her own kitchen.

When it comes to managing a growing team, Mignon has a clever approach. She started by making a list of tasks that she didn't enjoy or didn't have the expertise to handle. Then, she sought out talented individuals who excelled in those areas and outsourced those tasks to them.

Mignon believes in creating a team that feels valued and invested in the success of the business. Instead of keeping all the profits to herself, she ensures that her team shares in the benefits by rewarding them for finding ways to save money and increase the profit margin.

By giving her team a stake in the company's success, Mignon creates a culture of ownership and responsibility. This motivates her employees to go above and beyond, treating the business as if it were their own

Tip #1
If you want to start your business in a unique way, Mignon’s advice is to think outside the box and not just follow what everyone else is doing. For example, one of Mignon’s customers suggested a new concept for her cupcake business in Nashville. Mignon listened to her customer's idea and realized it had potential. She started using her cupcake truck to bring the cupcakes directly to the customers instead of relying on traditional market research methods. Once she saw people lining up for miles to get her cupcakes, Mignon knew exactly where to place her locations for maximum success.

How The Business Grew

Mignon’s marketing strategy to grow her business revolves around a few key elements. First, she believes that learning from the past is crucial for shaping the future. So, she continues to prioritize word of mouth as a powerful marketing tool. When customers come in and share their preferences, Mignon and her employees actively listens and uses that feedback to improve the offerings.

Now that she has more resources, Mignon has expanded her marketing efforts. She's using billboard advertising to increase visibility and reach a wider audience. Additionally, she's embracing digital marketing, including text message marketing. It's exciting for her customers to see messages go out, announcing new flavors or special offers, and seeing people respond to them.

Mignon also values her email subscribers and ensures they're the first to know about exclusive deals and opportunities. This way, she nurtures a sense of community and gives her loyal customers the inside scoop. And the cupcake truck, named Joy, is driven around town, catching people's attention and reminding them about The Cupcake Collection.

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