Starting a Catering Business from Home

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Consumer spending is increasing, and it’s an exciting time to be a caterer. When consumer spending increases, so do catered events. This has caused many people who dreamed of owning a catering business to take the chance and start one. In many situations, a catering company starts as a home-based business. This is a cost-effective way to create a good situation where a person can focus on growing their business rather than paying for a location. Certain steps should be taken to start a successful catering business.

Catering License

One of the first things to consider is obtaining any of the licenses and permits required to operate a catering business. This could involve different state-level licenses as well as a business license.

Depending on the location of the business, there could be licensing requirements by the local, county as well as city governments. It may be necessary to get permits related to serving food. This could be a food handling license and health permit. Depending on what the business offers, a liquor license may also be necessary. Some special events may require special permits.

Research

A catering business is like any other business, a person needs to do their research before they begin operating. Take time to know the competition and learn what is working for them. Also, notice what is not working for them. Try to discover what would be a competitive advantage and develop it. The competition may not offer fresh desserts or salads made while a customer waits and more.

It’s also important to know about the demographics in the area where customers are located. A tourist area may require providing services for special events. Healthy food may be a focus when the demographics are for young people under 30. Event management platform for caterers like Hirana should also be considered. This is software that can help keep inventory, finances and more organized for a catering business.

Create Menu

One of the most important aspects of a successful catering menu is diversification. Many people want to experience a dish as well as try it. A catering business must be certain to not overextend itself when it creates a menu.

A plan must be in place to facilitate a menu before operating. When creating a menu, pricing is a concern. At the beginning of a catering business, it’s important to not have a menu that requires many expensive ingredients. Markup is part of being able to pay the operational cost associated with a catering business.

Business Insurance

There are a variety of possible risks associated with having a catering business. It is important to have insurance in place to protect against these risks. This could include coverage for people getting ill from food a catering business provided, employees slipping and falling, transportation accidents and more.

It is important to try and find an insurance broker or agent who has experience providing insurance coverage for catering companies. If a person starting a catering business asks an established catering company about insurance, the established company will help.

Renting Or Purchasing Tools

It is important to have the right tools. A catering company’s equipment will play a strong role in the future of the business. It is possible to buy or rent the right equipment. To figure out what works best, a person will have to answer a few questions:

  1. What are the risks of renting equipment and what would be the benefit?
  2. What equipment will the company’s menu require?
  3. Is it possible to afford purchasing equipment?
  4. Is it more cost-effective to rent equipment?
  5. Does the projected start-up budget permit purchasing equipment or only renting what is needed?

Storage

There is no getting around the fact that a catering business will require storage. One of the keys to success will be having the company organized. Customer information and cooking equipment should be kept in a central location. Vertical space has proven to be an excellent way to store cooking equipment with many catering companies.

Staff

It’s important to hire the right people who are willing to dedicate themselves to the business. If it is a home-based business, too much staff at a person’s home is not a good thing. Having people work remotely is often a good idea. Staff should know the expectations of them regarding their work with the company and more.

A catering business is the best opportunity for someone to leverage their love of cooking into a business they enjoy. It’s important to always be flexible and open to learning. Things should be expected to go wrong. It is how someone reacts to them that will determine if their business is successful.