Starting a catering business can be lucrative but you need to know how to put all your ducks in a row. Here’s some step by step tips on how you can start your own successful catering venture.
Catering is one of the easier food service businesses to get into because you can start small and scale up. However, like any other business you need to have a clearly defined focus. If you’re taking food to customers rather than serving it in your own location you’ve got three choices.
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Of course, there’s a lot of crossover between these categories but they give you a scaffolding to build your business on. Hammer Out a Budget
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If you have a budget to start your catering business with, your chances of success go way up. For example, if you’re just starting out you might want to make your first few events self-serve. That way you can save some money on hiring staff.
Pricing out the mandatory staples for your menu at first gives you a good ballpark to work in. Remember some of the add-ons like chocolate will have big price swings. All the numbers should be written down in your business plan. Get the Equipment
One helpful notion is to look at sourcing some of the equipment you’ll need like tables and chairs, linens and utensils. It’s easier to find the right companies if you rent before buying anything if that’s the route you’d rather take.
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You’ll be to have room and the right equipment to store the food before it gets delivered. You can look into a vendor to make sure it gets transported or do that job yourself. Create the Menu
Now that you have all the tools in place, it’s time to plan your menu. This requires some careful consideration about where you want to focus and on what group of prospective clients. Here’s a few hints in this article about how to set your menu apart from the competition.
Knowing the people that will be attending helps tremendously here. For example, older people like milder foods and a fitness crowd will demand healthy meal choices. Market and Advertise
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There’s lots of options on how you can begin to advertise and starting out simply is usually a good idea. In today’s digital marketing world, you can’t really afford to ignore mobile and video as avenues to pursue. That doesn’t mean you should ignore brochures posters and pamphlets either.
Rob Starr is a staff writer for Small Business Trends. Rob is a freelance journalist and content strategist/manager with three decades of experience in both print and online writing. He currently works in New York City as a copywriter and all across North America for a variety of editing and writing enterprises.This article was co-authored by Madison Boehm. Madison Boehm is a Business Advisor and the Co-Founder of Jaxson Maximus, a men’s salon and custom clothiers based in southern Florida. She specializes in business development, operations, and finance. Additionally, she has experience in the salon, clothing, and retail sectors. Madison holds a BBA in Entrepreneurship and Marketing from The University of Houston.
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If you host dinner parties for your family and friends every chance you get, you're up on food trends and you have an entrepreneurial spirit, consider starting a catering business. You have the advantage of starting small with relatively low overhead and building your business as you gain more clients. Read on for information on how to find your niche, launch your business and spread the word.
This article was co-authored by Madison Boehm. Madison Boehm is a Business Advisor and the Co-Founder of Jaxson Maximus, a men’s salon and custom clothiers based in southern Florida. She specializes in business development, operations, and finance. Additionally, she has experience in the salon, clothing, and retail sectors. Madison holds a BBA in Entrepreneurship and Marketing from The University of Houston. This article has been viewed 714, 931 times.
To start a catering business, start by deciding what kind of food or events you want to specialize in, like appetizers and cocktails or wedding receptions. Once you know what kind of food you want to make, start coming up with a menu and testing it on your friends and family. Also, since most local laws prohibit catering companies from operating in a home kitchen, you'll need to rent a space where you can prepare food. You'll also need to purchase catering equipment that you can use on-site, like serving platters and utensils. To learn how to set up your catering business and hire staff, scroll down!Your family begs you to host every holiday gathering, your friends rave about your fabulous dinner parties and you’ve won several cooking contests. These are all signs that you might be great at running your own North Carolina catering business. It may take some time and effort to attain success at such a venture, but if you love to cook for others and consider yourself a culinary success, it will be well worth the time and preparation.
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Decide what business structure your catering business will have. Typical entity choices are partnerships, corporations, limited liability companies or sole proprietorships. You will also need to determine the name for your business, which needs to be something distinctive and memorable.
Visit the Register of Deeds Office in the county where you plan to do business and register your business name if your catering company will be a sole proprietorship or general partnership. Use the Resources link to find the website for the correct Register of Deeds office.
Register your catering business with the North Carolina Secretary of State office if it is a corporation, LLC, LLP or limited partnership. Access forms and further information on the Secretary of State’s website (see Resources).
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Obtain the appropriate licensing and permits for your catering business. You will need a Culinary Permit, a Permit for Food Service Facility and a Mixed Beverages Catering Permit. Use the Resources link to access application information for each of these permits through the Department of Commerce.
Apply for tax certifications with the North Carolina Department of Commerce. Selling the foods your catering service provides requires you to charge a state sales tax to the customer, for which you need a Sales/Use Tax Account. If you have employees, you will need Withholding Tax certification. You can obtain more information from the Department of Commerce website (see Resources). Don't forget to obtain a federal Employer Identification Number (EIN) if you have employees.
Put together a business plan (see Resources) to help you structure your business and set goals. A business plan is also a necessary part of any request for financial assistance.
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Request financial assistance from lenders, investors or by applying for small business grants. Entrepreneur Magazine states that start-up costs for a catering business range from $10, 000 to $50, 000. Visit the Small Business Administration website (sba.gov) for guidance on obtaining funding.
Look for a location for your business. Perhaps you want to start in your home (be sure to check local zoning laws) until you build enough of a clientele to find a commercial location. If you have the funds, you may want to start in a commercial kitchen location right from the start.
Obtain the merchandise and equipment you’ll need to provide your catering service. In addition to a kitchen, you will need cooking utensils, places to store food (both perishable and non-perishable items), dishes, linens and silverware in large amounts, depending on how you plan to serve the food.
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Put together a menu of the items you will offer customers. Organize those items in main entrees, side dishes and desserts. Determine the prices for each item on your menu by factoring the preparation time and costs, as well as other overhead costs for your business.
Contact local venue providers to request that they recommend your catering services when customers secure the venue location. Promote your business through other means, such as advertisements in local phone books and publications, or setting up a booth at local wedding planning events.
You may also need to obtain licensing and zoning permits for the city or county you choose for your catering business’ location. Contact the city and county agencies for more information.
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