My mum has her own business making cakes. She spends between 12 and 60 hours a week making her cakes. She made £3k profit last year. She makes everything from cupcakes to wedding cakes - will attach a pic to show they are good. She charges £1.50-£2 a cupcake depending on what they are, between £35 and £80 for an occasion cake, and anything from £150-£400 for a wedding cake. We're in the north west. People just won't pay more than that where we live.
Her cakes are amazing but people just don't realise what goes into it. For example, somebody comes in and asks for a 'simple' wedding cake - 3 tiers, plain white iced, 3 fondant flowers, one on each tier. Just the mixing baking takes 4 hours. Left to cool, then buttercream, jam and icing takes 2 hours. Each fondant flower takes over an hour to make. Then must be attached to the cake and usually is painted, that could take 2 hours. Then more icing is dyed the correct colour, rolled and cut into letters e.g. 'Elizabeth and James', then attached to the cake. That's another hour at least.
I've seen her spend 5 days on a cake that, once ingredients, electricity and gas etc are taken out of the equation, plus petrol for delivery, she might only make £150 on. She'd be better working a minimum wage job. Which she now does as it just isn't a sustainable business.
I really don't want to put you off, but I think you'd have to be really good and very efficient and live in an area where people can afford to pay more, in order to do it. Good luck to you.