Ask any entrepreneur, building a business from the ground up—in any industry—is one of the most challenging careers you can choose for yourself. The hours are grueling, the responsibility for yourself and your team can be nerve wracking, the stress is immeasurable, and you can’t simply leave your work at the office at the end of the day. It’s also one of the most rewarding, fulfilling journeys you can embark on.
Starting your own business provides an opportunity to build something meaningful, to forge your own path to success, to do things your way, and to leave your mark on the world. It’s a vehicle for turning your dreams into reality, but it’s not for the faint of heart. It’s not a sprint, it’s not even a marathon; it’s an endless succession of dashes, hurdles, climbs, dodges, falls, and leaps of faith. That’s why they often say entrepreneurs have to be crazy. What I’ve found though, which may just be a variation of the same theme, is that what entrepreneurs really have to be is passionate. Passion is what drives successful entrepreneurs to work harder than anyone else. It’s what fuels those late nights and early rises. It’s what drives the need to learn each in and every out of an industry. And it’s what sustains you when the going gets impossible.
With that in mind, I sat down with one of the most successful entrepreneurs in one of the most unforgiving of industries. Candace Nelson turned her home baking business into a celebrity endorsed sensation before becoming a celebrity chef and television personality. I spoke with her about her journey from banker to baker and her experience leaving the lucrative world of investment banking to follow her passion for food that brings people together.
Liz Elting: Thank you for taking the time to speak with me today. Could you please tell the readers a little bit about yourself and your career?
Candace Nelson: I’m a serial entrepreneur, a bestselling author, Wall Street Journal contributor, angel investor, TV personality, executive producer, wife and mom. I started my career working in investment banking and the internet start-up scene before completely shifting gears to follow my passion and attend pastry school.
In 2005, I opened the doors to Sprinkles, the world’s first cupcake bakery. Despite early naysayers, our 600-square-foot bakery in Beverly Hills disrupted the legacy bakery industry and ignited a worldwide cupcake phenomenon. In 2012 Sprinkles introduced its Cupcake ATM, a cutting-edge contactless cupcake delivery system. Sprinkles has sold over 200 million cupcakes, has over 20 stores, 30 Cupcake ATMs, and 1000 employees. In 2017, I co-founded Pizzana, a fast-growing chain of award-winning Neo-Neapolitan pizzerias. In 2021, I co-created and executive produced Best in Dough, a Hulu show starring Pizzana executive chef Daniele Uditi. You may have also seen me on the small screen where I am the executive producer and star in Netflix’s Sugar Rush and Food Network’s Cupcake Wars. Last year, my book, Sweet Success: A Simple Recipe For Turning Your Passion Into Profit was published by HarperCollins Leadership and is a Wall Street Journal bestseller.
Today, through my company CN2 Ventures, a family office and venture studio, I’ve backed a diverse portfolio of startups in the specialty food, retail, health, wellness, and early childhood spaces with a focus on female and underrepresented founders.
Elting: What led you to launch a bakery business? Was that always part of your career plan or the result of a big pivot, as I know you had previously worked in investment banking. What spurred that transition and what was that experience like? (Like myself, you grew up a little all over the world. How did those experiences impact your approach to cooking and business?)
Nelson: Most of my childhood years were spent as an expat in Southeast Asia. And when I had a craving for the treats I missed from home, like brownies and chocolate chip cookies, I couldn’t go to the corner store in Indonesia and buy them so I had to learn to bake them myself. And I did. I spent hours in the kitchen with my mom baking from her worn out copy of the Joy of Cooking and developed a real passion for baking. I loved learning about the science of food, I loved spending time with my mom in the kitchen, and I loved that baking gave me a sense of connection and belonging to my homeland.
Fast forward to my college graduation, baking was the furthest thing from my mind. Top of mind for me was landing a job that would pay the rent. So I opted for the best paying job I could find—as an analyst in the corporate finance department of an investment bank. The pay was good, but the work was tough and the hours were long. After two years, I switched to a position in an internet company during the dot-com bubble. Unfortunately, when the bubble burst, many companies, including the one I worked for, went out of business, and I found myself unemployed.
Shortly after that, 9/11 happened, and it made me realize how fleeting life is and how important our choices are. Until then, I had been blindly following a career path that I thought would bring me security and success, but it hadn’t delivered on either. So, I made a conscious decision to pursue something I truly loved and enrolled in pastry school to pursue my passion for baking.
Elting: How did you take a custom cake business in your home to the world’s first cupcake bakery to a nationwide brand with celebrity fans?
Nelson: Taking a custom cake business from my home to the world’s first cupcake bakery and eventually expanding it into a nationwide brand with celebrity fans was an incredible journey. To accomplish this, I knew that reinventing the humble cupcake required a comprehensive approach, transforming it from the inside out.
It all began with a meticulous focus on the ingredients, recipes, and baking techniques. I prioritized freshness by baking my cupcakes in small batches throughout the day, ensuring that each bite delivered a delectable experience. But it didn’t stop there; every detail mattered in setting Sprinkles cupcakes apart. With a meticulous attention to detail I transformed a simple treat into a sought after indulgence that got people talking. Sprinkles captivated customers far and wide, including many of the top names in Hollywood, such as Blake Lively and Oprah Winfrey.
Elting: What initially inspired you to reinvent the cupcake? And why did you choose to exclusively sell cupcakes as opposed to a wider menu like traditional bakeries?
Nelson: I firmly believe that the best ideas are often right in front of us, waiting to be rediscovered with a fresh perspective. The cupcake has long been rooted in American culture, enjoyed as after-school snacks and at birthday celebrations, but it was mostly relegated to plastic clamshells at the grocery store. I saw an opportunity for transformation and set out to reimagine this mass-produced childhood snack into an artisanal and aspirational treat.
My vision involved swapping ordinary ingredients for top-tier alternatives and shedding the childlike look for a sophisticated aesthetic. Through this reinvention, the cupcake transcended its humble origins, ascending from a mere lunchbox staple to a gift-worthy offering. Placing the once-humble cupcake on a pedestal, I established the world’s first “cupcake only” bakery. By owning such a specific niche, Sprinkles quickly secured its reputation as the premier cupcake bakery around the world.
Elting: How did you differentiate your business and brand from other bake shops? And how did you approach carving out your own space in a crowded market? Was it strictly about the product and ingredients? About original flavors and offerings? Or was it more about the branding and business approach itself?
Nelson: Our approach was to focus on the product itself, improving every single aspect of the cupcake with meticulous attention to detail: from the frosting, to the wrappers, to the decorations. And most importantly, we did things our way, rather than trying to follow current trends or emulate what was popular at the time. For example, our bright and bold decoration became an iconic symbol of our brand and was so distinctive that we ultimately trademarked it, further solidifying our uniqueness in the market.
The conversation has been edited and condensed for clarity.
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