Jenniffer White ...
I create a pretty inexpensive photo station in my shop. I use a couple of lights I got really cheap at IKEA and made a small rack that holds 4 different photo papers. Recently I added a couple of magnetic bars (also from IKEA) so that I can hold up fabric samples too. I will hit the fabric sections of the craft stores and usual;y buy the remnants. Usually 2 yards of fabric is plenty.
A good entry level DSLR will take better pictures than a point n shoot, but good lighting is key to a good picture. Sometimes the best pictures o my cakes is when I get them outside in the natural sunlight.
Here’s a picture of my photo booth setup:
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