Starting a business is a big decision, and of course you need the right equipment, and I agree, lots of capital. I was so disappointed the novelty cupcake shop in my town just closed down after only 18 months. Running a business nowadays is very hard work, and you really have to be on your game to run with the competition and get the customers in your door. Not only would you need the right equipment to physically make the pastries and coffee for your shop, but you'd need to hire the right employees you can trust to keep the place going, and think about what kind of marketing you're willing to invest in.
I think what made this place I'm thinking of fail so quickly is that whenever I went in there it was always empty. They didn't have a website, their Facebook page was weak, and no one had ever heard of it, so no one went. I don't know what their business plan was but as an outsider it didn't seem like they advertised or made great leaps to get their name out there to the public, even in local papers and fliers. It was such a cute place, and their cupcakes were delicious, but they still ended up going out of business.
In order to have a successful baking business, it seems, you don't just have to have the baking skill, but business sense and a willingness to do what it takes to get your name out there in bright, flashy capital letters.