Catering Business Start-up Tips

What Is Involved In Running A Catering Business?

Caterers have the opportunity to work intimately with both private customers and event planners. A caterer has the gift of designing a perfect menu for a number of different social events such as parties, weddings, meetings, etc.

There are a variety of caterers out there, some specialize in specific events or types of food. Others work with all different kinds of cuisine in a variety of settings. Some caterers run a one-man show, while other caterers work in large companies.

The specific duties will vary depending on your environment. Running a catering business involves marketing, sales, food preparation, food service and cleanup. Caterers are responsible for ordering food and planning menus; hiring and training employees; working long hours even on weekends and holidays; evaluation of products and ingredients to make sure that all standards of quality are met; and creating recipes.

Equipment Necessary To Run A Catering Business:

Kitchen equipment and utensils (appliances, ovens, warmers, pans, pots, knives, etc.)
Chairs, tables, tablecloths, etc.
Delivery vehicle
Serving equipment, dishes and silverware
Mixers, juicers, food blenders
Dishes
Silverware/Cutlery
Tables/chairs – other necessary furniture

The Cons Of Running A Catering Business:

You may have to put up a substantial amount of money or collateral to get started.
Working long hours with little time off
Not much time to enjoy the fun side of the business

The Pros Of Running A Catering Business:

You have a huge opportunity to make a considerable income.
Freedom of being your own boss and getting things done your way
An opportunity to use your creativity and unique ideas

Skills Necessary To Run A Catering Business:

Good cooking skills
The ability to cook large amounts of food
Good scheduling Skills
The ability to design creative and unique menus
The ability to work with customers to prepare the right menu for each event
Good social skills
The ability to handle decision-making and administrative tasks
Basic business skills

Photo of Couple at lunch

Licenses Necessary For Running A Catering Business:

You will need a business license, a food service permit, a food handler's permit for both you and your employees.

In addition, if you plan to serve alcoholic beverages, you may also need a liquor license. You should also research the local requirements specific to running a catering business in your area.

Associations:

The International Caters Association

The Sustainable Catering Association

Employees & Job Requirements

The majority of catering businesses rely on an on-call staff, while the bigger companies employ some more permanent positions including sales, marketing, kitchen manager, chef and receptionist.

A catering director plans and manages the overall catering tasks and supervises operations such as kitchen tasks, staff and sales.

12 Steps To Starting A Catering Business

Before You consider a Catering Business See 16 Questions to Consider Before Starting a Business
1. Ensure A Catering Business is for You!

You have a choice as to what business you're going to start, so start one that's right for you. Getting into the right business can dramatically increase your success. Get into the wrong business and your success rate drops. Read Five Secrets to Getting into the Right Business for more information.

2. Understand How A Catering Business Operates

How can you run a Catering Business if you don't know much about the business? What if you run into an issue that you can't or won't deal with? Then what? You're in a business that you hate working in and that's a problem. See Understand How a Business Operates for more information.

3. Make Sure there is a Profitable Market for Your Business

What's the use of starting a Catering Business that is not profitable? You'll be putting all your effort in something that can't support itself or you. There are a variety of issues when it comes to setting the stage for profitability. See Tips for Identifying a Profitable Market.

4. Create a Business Plan For Your Catering Business

A business plan is a must for any size business because it helps you stay focused, see the big picture, and get funding. It's something that you create when you start your business and then update as your Catering Business evolves. Read our free online guide on How to Write a Business Plan

5. Set up your Business Team

Setting up your team includes finding the right employees and professionals that will help you run your Catering Business.

You don't need to employ everyone you work with, but you will need a team of people you can depend on, which could consist of a lawyer, accountant, banker, and consultant, as well as professionals in your industry. See Creating a Business Team for more on this subject.

6. Get a Small Business Loan if You Don't Have the Money to Start

If you don't have the money to get started, then you'll need the necessary financing or you won't have the opportunity to start your Catering Business. This can be done as a small business loan, a personal loan, or other small business financing options.

For more on financing your Catering Business see our guide on Financing Your Small Business

7. Legalize Your Catering Business

In order to run your Catering Business legally you'll need to abide by government rules and regulations on the state and local level.

You'll need to do your research, determine what type of business (sole proprietorship, corporation LLC, etc.) to register, create and register your business name, and register your Catering Business with state and local authorities.

To go through the business registration process, see Chapter 6: Making Your Business Legitimate, starting with 6 Easy Steps to a Good Business Name.

8. Get Equipment for Your Catering Business

In order to run your Catering Business successfully and efficiently you'll need to acquire the right type of equipment. How can you run an online business without a computer? You can't! This is an important issue. See Acquiring Equipment for more on this topic.

9. Insure Your Catering Business

Make sure you have the proper insurance for your Catering Business. Without the right coverage you could lose everything you've worked for. For tips on insuring your Catering Business, see our free online guide: Insuring Your Small Business.

10. Prepare To Accept Money

You'll need a way to accept money, you can't depend just on cash or checks. You'll need to accept plastic: Visa, MasterCard, and American Express. To do that you'll need to apply for a merchant account. See Setting Up a Merchant Account for more on this topic.

11. Set up Your Accounting System

Running a Catering Business requires you to collect taxes, and report your earnings. So it's best to set up an accounting system in before you start your Catering Business. See Setting Up Your Accounting System for more on this topic.

12. Acquire Customers for your Catering Business

In order to exist, every business needs customers. Getting customers is one thing you'll need to be good at. If you can master the tasks of getting customers, it's just like turning on a cash machine almost any time you want. See Acquiring Customers for more on this topic

See Also: Our Free Online Guide to Starting A Business

10 Catering Business Success Tips

1. Make Delicious Food

2. Ensure Excellent Customer Service

3. Develop Skills to Organize Events

4. Wear Professional Attire

5. Ensure a Sanitary Environment

6. Make Your Pricing Competitive

7. Keep Profits High Without Sacrificing Service

8. Develop Excellent Business Management Skills

9. Keep Business Expenses Low

10. Develop Excellent Communication Skills

Books:

Start Your Catering Business

How to Start a Home-Based Catering Business, 4th (Paperback)

Everything Guide to Starting and Running a Catering Business: Insider's Advice on Turning Your Talent into a Career

Videos:

Catering Business Issues's:

Estimating Startup Costs - Find out if you're forgetting something

Business Location - Choosing A suitable one For Your Catering Business

Build or Buy A Business? - Buying an existing Catering Business

Catering Business Research:

Here are some popular terms people are looking for online. These may help you during your catering business research:

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Business Builders For Your Catering Business:

Business cards for Your Catering Business

Business Plan for Your Catering Business

Business Insurance for Your Catering Business

Small Business Loans: Finance Your Catering Business

More Business Ideas:

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