I agree with kikiandkyle...
I've been designing cakes for family & friends for several years, but just recently made the jump to make it official. Last October I became licensed, started renting a commercial kitchen and was officially open for business. While renting, my husband and I renovated our home to accommodate an IN HOME licensed kitchen. It was finished by June 1st and was THE best decision we have ever made! I live in a rural area, but market to a larger city about 25 miles from my home. I was able to take the risk and start this business because of a few reasons:
1. I have always been a stay at home and my husband's job has always been our primary income source, so there was no second income to give up.
2. My children are older (15,13,11) and I deliberately waited for them to be this age before starting on this venture. Had I started this when they were still very young, my heart would have been with them and not the business...I would have constantly been torn.
Another great way to increase your "caking" income is to acquire wholesale accounts. I've built relationships with coffee shops/cafes and it has helped bring in revenue even when the custom cake orders aren't pouring in. Plus, this is a way to get my business cards/name to the masses. I utilize their storefront (with their permission of course) and it sure beats having my own storefront and all of the overhead that comes with it ;)
Good luck, ScrumdidlyCakes!