Stay-at-home mom used her last $5 to start a business. Now, it's a booming million dollar empire

The mother of seven and the owner of a cupcake business, Mignon Francois, has become a true trailblazer for all women, moms, and her community. The single mom from New Orleans turned a $5 investment into a million-dollar business, using nothing but her baking talent and savvy financial strategies. Today, her business, The Cupcake Collection , generates revenue of over $1 million in a year, as per Black Business . Francois has also become a philanthropist.

Here's how Francois turned $5 into a million

Francois and her family moved to Nashville, Tennessee, where her husband started work as a foreman. The family had limited income and everyday expenses became a struggle. They didn't even have running water or electricity and relied on a generator for power at night, she shared with Business Insider .

While her neighbors didn't know about the family's struggles, they were aware of Francois's baking talent. It was one of the family's neighbors who brought the first baking order for Francois back in 2009.

They asked her to make 600 cupcakes for $1 each. Since Francois had no money, they agreed to take 60 cupcakes at first. With only $5, which was their dinner budget for the day, Francois walked down to the store and got all the ingredients.

When she got paid that evening, she put the $5 back in the dinner budget from the $60 earning and kept on baking to complete the rest of the order. This marked the beginning of a venture that would soon make her a millionaire.

Using savvy financial strategies

Francois told BI that being a black woman, she felt that she didn't have the same opportunities as others. She shared that she didn't have a great relationship with bankers and she couldn't afford to have a bank account.

So she turned to using her own strategies to budget and allocate money. Since the family didn't have a fixed income, Francois started dividing her money into envelopes based on necessary expenses.

She took financial expert Dave Ramsey's advice on prioritizing shelter, utilities, transportation, and food, expenses before paying for anything else. When she made profits from selling cupcakes, she divided the taxes into envelopes as well.

She further used the debt snowballing method to aggressively tackle her small debt payments and reduce the burden of her student loan and medical bills. When she had extra money she increased the debt payments and she also wrote letters requesting forgiveness for her medical bills.

In late 2008, Francois officially founded The Cupcake Collection, which now catered to a wider customer base. She also hired staff and started paying them on a weekly basis to avoid owing anyone money.

The Cupcake Collection offers cupcakes, birthday cakes, and wedding cakes across the nation and generates over $1 million each year.

Creating a legacy

Francois uses her story to inspire others. She serves as the board member and mentor at Pathways Women’s Business Center and Nashville Entrepreneur Center, The Entrepreneur reported.

She also works with a grassroots organization Corner to Corner that helps people to create businesses. Her company sponsors scholarships at Tennessee State University and collaborates with other local organizations that help with education and food insecurity.