You did not state where exactly you are located or where you wish to operate this business. That will greatly affect your startup and overhead costs as the above posts have suggested. You may also wish to consider the viability of such a business - that is, can it generate a consistent profit?
Catering is what is called a "niche" industry, which means it caters to a very narrow range of consumers. In this case, the niche is not only those who are having celebrations, but those who are having celebrations large enough to cater, and who choose to purchase cupcakes as opposed to regular cakes, wedding cakes, entrees and appetizers, etc. My main suggestion would be to offer cupcakes as merely one of your items, and diversify your other offerings so that you can attract as many different kinds of customers as you can.
As this is most likely for a high school assignment or a small home business, such advice may not apply, I realize. If you are genuinely looking to start up such a company, your overhead may be very small, but so will your revenues.
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