Laying the Foundation for Starting a Home Catering Business
Laying the Foundation for Starting a Home Catering Business
So, you've decided to start a home based catering service. That's a great option for someone like you that loves to cook and entertain. First, just like building a house, starting a home catering business, you must start by laying the foundation. Before you purchase a single business card or brochure you need to know certain basics of starting a home catering business. Here is a checklist of things you need to look into before you venture into business.
Write a Business Plan. All businesses, big or small require a business plan and so does your home based catering company. Here you need to be clear about whom your clients will be, how much money you're ready to invest and how much income you plan to earn. Your business plan should be short term and long term. The catering industry can prove to be lucrative, provided you're able to first manage the basics.
Know your Target Audience.Who will be your main clients? Will you focus your catering services on office parties; wedding receptions; birthday parties; anniversaries, reunions, private parties, etc? Are you capable of serving a large number of guests or only small groups? How many people can you serve at a time and how many people will you need on your staff? The important thing is to decide on a market or two and focus your efforts on building your business around your target market. Once you've decided on the size of your audience then you need to look at the finances.
Investment. Starting a home catering business will give you the opportunity to start off small with minimal investment. Planning to start off small, catering only to small groups of 20-30 people will require a minimum investment of $1,000 to $2,000. With this investment you can purchase the basic used equipment and cover the cost of licenses, permits, business cards and flyers.
License and Insurance. Visit your local or county court house to determine the specific requirements for operating a home catering business. Some state require that you prepare food from a commercial therefore it is important to know the laws in your state.
Marketing and Sales. You may be a great cook and you may have all the expertise for starting a home catering business but does anybody know about it? Marketing and sales are critical for growing your business. Initially word of mouth marketing family and friends will help you build your business slowly while you get the hang of how to operate your business. However if you wish to sustain your business then you must advertise. Keep in mind that all advertising does not have to be expensive. You can easily create a fan pager on Facebook as well as join other social media sites to market your business. It's free to join these sites. You can also send out weekly or monthly eNewsletters that contain fun and interesting facts about food; this is the perfect way to keep your company in the forefront of potential clients.
If you're an exuberant person who loves good food and meeting
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