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According to the National Restaurant Association's 2006 Restaurant Industry Forecast, social caterers are one of the fast growing segments with a reported 4.7 percent growth index. The catering industry is a highly competitive field. If you understand your market and provide clients with the types of food and excellent service they desire, you can generate a hefty profit. It takes time and money to start a catering business. Certain credentials are required including certification in food handling and safety; along with a Board of Health certification; Federal and State licenses and various county or township licenses.
The first task you will need to accomplish when creating a catering business start-up is to develop a business and marketing plan. Unless you are funding the business yourself or with the help of friends and family, you will want a professionally prepared plan to provide to banks and potential investors.You will want to work with a professional commercial leasing agent to assist you in finding the appropriate location for your business. If you plan on catering from home, you will need to conduct research to determine what licenses are required. You will also need to have your home inspected by your local Board of Health and obtain certification before you can begin charging money for your catering services. Catering business start-up costs can range from $2500 (if you work from your own kitchen) to more than $100,000. Depending on the types of food you will be offering, you will need a professional kitchen and appliances, along with serving equipment, dinnerware, flatware, glassware, napkins and tablecloths, folding tables and chairs. In order to keep your catering business start-up costs to a minimum, consider renting many of these items from a party supply warehouse. Oftentimes, you can obtain wholesale pricing and will not be charged sales tax when you have a state tax exemption certificate. Oftentimes, you can hire temporary employees through employment agencies. Most catering business only employ 1 to 6 full-time employees and the rest are hired through agencies on an as-needed basis. Keep in mind that you will need a vehicle large enough to accommodate the transportation of food and serving equipment. This might be accomplished by using your own personal automobile, or may require a full-size catering truck. Last, but not least, you will need to purchase business liability insurance. The food industry is a risky business and lawsuits occur on a daily basis. Make certain your business is properly covered and includes protection against food poisoning claims. |
