Starting a Catering Business
What is a catering business?
Many people dream of starting their own business and don’t know where to start. Catering offers the perfect opportunity for those with a flair for cooking and decorating. Catering, once seen as the provision of food for a function, now involves additional services. This takes in the full gamut of event planning: food preparation and serving, provision of tables, chairs, utensils and lighting.
For health reasons, to start and operate a catering business you will need to acquire the necessary certificates and permits. So find out what your State requires for the operation of a catering business. Check the local health department for their requirements as well.
Before starting, consider what type of catering business you want to operate. This is important as there are specialties in this field. Some caterers offer ethnic food while others have built a name around providing themed catering services. Unless you are really skilled in one particular area of food preparation there is no need to specialize.
Start-Up Costs
Most new businesses will have start-up costs. Catering is no different – no matter how small you start there will be need for capital outlay. Operating costs can range from a few hundred to thousands of dollars. You can use your own savings, borrow from family and friends, enter a partnership or borrow from a bank to finance your venture.
Operating from home will help keep initial costs down, which is convenient if you are starting your catering business without a lot of cash. Even if you can do most of your cooking where the function is being held, some pre-preparation is necessary. This will ensure that the food is ready when it is needed. For example, cutting up vegetables and seasoning can be done at home.
Some equipment is essential and will impact costs. Luckily, many items needed by a caterer can be rented these days, including:
- Stove
- Refrigerator
- China
- Utensils
- Tables & chairs
- Tablecloths
Caterers are sometimes saved the expense of purchasing some basic items when they cook onsite. However, you will need your own equipment when more jobs start coming in.
You will also need a vehicle for taking food to the venue. If you don’t have a car or truck for yourself, ask family members and friends to assist – even at a cost. Renting transportation is another good option.
Good Skills to Have
Apart from being able to cook, caterers must have good interpersonal skills. This is one of those careers that hinges on making people comfortable. To make your catering business different from all the others, you should be a creative thinker. Look for ways to serve food and decorate a table to make it stand out. Guests will want to use your catering service when they host a function.
Time management is also important. You must always be able to work with the schedule of your clients.
Marketing/Finding Clients
The best way to market your new catering enterprise is to start with your immediate circles. Cater to birthday parties and events for family and friends to get a feel for the business and ask them to refer you to others. Word-of-mouth advertising is one of the most effective ways of building new business.
Getting a professional looking website up is also important. This doesn’t have to cost anything in the initial stage as there is free Website building software online. Or even better find out if a friend or family member can do this for you.
Putting ads in local newspapers and online will help you get noticed. Send out letters or emails about your catering business to wedding and event planners.
For some, catering is the first step towards starting their own restaurant. It is a good way to build a reputation while earning capital. One cornerstone to success in catering as in most other businesses is the will and desire to succeed. Catering may seem like an easy job, but it calls for discipline and great customer relations.
Before starting, gather all your information on catering and business management. Organizations such as the Small Business Bureau and Chambers of Commerce can also provide useful information.
Thank you to Jessica McCurdy Crooks for this "Starting a Catering Business" article.
