Start a Catering Business for Fun and Profit

Whether it's the love for food or the money, starting a catering business can be a satisfying experience.

Although most people start a catering business for plain fun, catering few friends and associates, if you put some serious effort into it, it can be extremely lucrative and a gratifying experience. If you are hard working, sincere and love to cook and serve, there is nothing more satisfying than a catering business.

(article continued below...)

The best part of this business is that depending on the amount of work you are going to put into, there are plenty of niche areas you can specialize. From small time events like birthday parties, get together, kid's parties, to large events like weddings, conferences, involving hundreds of people, there is plenty of room for everyone.

However, as majority of the contracts you get are through referrals, this business can be very intolerant. There is no second chance. You mess up an event, your name is tarnished and you have to work double hard to make for it. So you require a lot of energy, dedication and ability to work under pressure if you want to succeed.

Demand

There is great demand for catering service and the industry is growing at a rate of 7 to 10 percent annually. Whether it's a company meeting or a small birthday party, everybody is looking to hire the services of a qualified caterer. For companies and businesses, catered parties and events boost their image and increase their sales. Homemakers like to use the services of a caterer as they simply don't have the energy and enthusiasm to plan and prepare for an event. Today's working women has far too many responsibilities on her shoulder.

What You Need

Though culinary skills are a deciding factor in determining the success of your business, it simply isn't enough. You must be experienced in managing, planning and dealing with people. Most of the caterers who are successful have had some experience working in the industry. If you do not have any prior experience, either work under someone till you learn the tricks of the trade, or get yourself formal training at a reputed institute.

Research all the successful caterers in your locality and analyze what makes them click and decide on a USP (Unique Selling Proposition) that is going to make your services standout (of course, other than the quality of the food).

Startup Costs

Depending on your financial status, you can start a catering business with as little as $1000 to as much as $20,000 or even more. Most caterers start with using their own kitchen and renting out equipments. This brings down the initial cost greatly. However, if you have a fool-proof business plan and sufficient funds, you can start with a professional kitchen and your own equipments. Most caterers also do the cooking on-site using their own equipments or of their clients. This takes of the burden of investing in a kitchen. So depending on the type of service you are going to provide you need to invest sensibly.

Legal Considerations

There are some legal aspects you must consider before getting started like applying for a state food dispenser's license and approval of the site where you are going to cook approved by the local board of health. Selling food cooked in a place that isn't up to the law is a serious offence and can land you behind bars.

Your manufacturing practices and quality of ingredients used must also meet the standards specified by the law. You must also get the food you prepare tested to make sure it doesn't cause any illness.

Spreading the Word

As this business grows largely through word-of-mouth, traditional advertising isn't that effective. Building links with those involved in this industry like food suppliers and event planners can help you tremendously in spreading the word regarding your business. You must also be very creative and on a constant lookout for opportunities where you can showcase your talents. Places like exhibitions, shows, fairs, seminars are excellent places to display your talent. In the initial start-up stages, you must also be willing to incur losses to grab a contract.

Catering Resources

Institutes and Programs

Associations

Others

  • catersource
    Provides education, support and products for the caterering industry.

Books and Guides