About Startup Costs
The startup costs provided in this database include an approximate financial investment that will be needed to start the business. This is generalized information and should only be used as a yardstick to determine business startup costs. Your investment will vary based on factors such as equipment, transportation, licensing and permits, operating location, working capital and initial marketing and advertising budgets. Remember a successful entrepreneur is one who carefully researches and plans every aspect of a new business venture, including the financial investment needed to start a business and the working capital required to achieve positive cash flow.
Business At A Glance
Catering
Startup Costs: $10,000 - $50,000
About
Home Based: Can be operated from home.
Part Time: Can be operated part-time.
Franchises Available? Yes
Online Operation? No
Love food? Love people? Bring your interests together with a catering business.
Business Overview
If you’re one of those fearless people who enjoys giving elegant dinner parties, you get rave reviews from guests and your relatives beg to have holidays at your house because of your cooking, then catering might be your cup of tea. As a caterer, you’ll plan menus and elegant or playful presentations for everything from company picnics to debutante balls, then cook it all up, deliver it to the event, serve it and clean up afterward. You can specialize in affairs like weddings; specific goodies like cakes or cookies; or clients like corporations, charities or individual parties. While your family may clamor for your meatloaf and mashed potatoes, you’ll need more than just the ability to whip up some spuds. You’ll also need a flair for presentation--the ability to make the fruits (and other foods) of your labors look fancy--as well as a talent for the latest trends in foods and party ideas. You’ll also need an abundance of organizational, time-management and record-keeping skills. Catering requires lots of hard-core planning and pacing. Last but not least, you need a good grounding in safe food-handling practices, product liability laws and health regulations, and good people skills. The advantages to this business are that it’s creative and fun--you can throw a party any time you like and serve up all sorts of new dishes and new ideas--and somebody else foots the bill. It’s gratifying--people always appreciate being fed, and when your presentation is elegant or intriguing, they’re impressed as well. You can start part time and you can base your office at home.
The Market
Your clients can be people with something to celebrate--a wedding, anniversary, graduation or other milestone--or any other kind of bash. You can go after the corporate market, helping to make a splash at conferences, meetings, employee-morale boosters and grand openings, or you can set a course for businesses like yacht charters, sunset cruises and dinner theaters. To snag the celebratory types, develop a referral network--introduce yourself to wedding planners, bridal boutiques, cake decorators and bakers, florists, and card and party supply shopkeepers. Hand out brochures and business cards and check in often. Bring a few choice tidbits, snazzy hors d’ouevres or sinful desserts to give as goodwill gestures. Everybody loves an unexpected treat and the person who delivers it--this is a good way to ensure that they remember you fondly and refer you to their own clients. For corporate and other business types, send a sales letter and brochure, then follow up with a phone call requesting an appointment to discuss your services. Cater a charity event in exchange for publicity, then get your company written up in local publications. Volunteer yourself for a local radio chat show and answer questions about throwing successful parties.
Needed Equipment
Other than a commercial kitchen, the only things you need to get started are a phone and a delivery vehicle. A computer and printer are always nice but not a necessity for starters. You can get around the kitchen problem by arranging to use a restaurant’s facility for a small fee in its off-hours or by sharing the rental costs of a commercial kitchen and its use with other caterers.
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