Cupcakes are the latest entrepreneurial frontier, at least according to the New York Times.

New York City’s Magnolia Bakery, which was featured in an episode of “Sex and the City” and a popular “Saturday Night Live” video, seems to have started the cupcake craze which is quickly spreading to other parts of the country. Traffic to cupcake blogs is on the rise, and the Food Network will debut a new series called “Cupcake Wars.”

The market research firm Mintel predicts cupcake sales nationwide will grow by 20 percent in the next five years, the Times reported.

The Times outlines four cupcake business models:
— The Chain: You need a great product, brand and location to get a chain off the ground.
— Web-Only Store: One blogger decided to start selling cupcakes through her Web site, but has yet to make enough money to quit her day job.
— The Cupcakes and More Store: A number of bakeries make cupcakes their signature product but also sell coffee, lunch fare and other baked goods to draw more customers.
— The Cupcake Bakery: This means making enough cupcakes to sell to other bakeries and stores. One business owner stressed the importance of branding and marketing in making this kind of operation successful. For example, she lets customers know her cupcakes are made with organic, local and natural ingredients.