How to Start a Catering Business

If you enjoy cooking and planning, starting a catering service may be the perfect choice for you. As a caterer, you'll be in charge of planning and delivering appetizers, desserts and drinks for all kinds of events, from weddings and birthday parties to conferences and receptions. Many caterers also provide boxed lunches, cakes and picnic fare. Owners of a catering business make an average of $20,000 a year working from a home kitchen.

Suggestions

1. Call your local Health Department to check up on regulations. You will more than likely need to get a series of permits, insurance and inspection certificates.
2. Decide if you want to provide chef services (also known as in-home catering) or if you want to start a larger business, in which case you will need to rent an industrial kitchen.
3.  Plan a menu, paying special attention to what type of food you plan to offer and what type of food is off limits. Dishes that require exotic ingredients or are complex may not be the best option at the beginning of your business.
4. Consider taking a few classes or workshops to learn about food trends and exotic meals before you start. Or invest in a business management class so you learn what's involved in managing your own business.
5. Contact the National Association of Catering Executives to learn more about the business, get ongoing support and connect with other professionals in the business.

Tips

• Deciding on a niche market is important, since you will need to buy the right equipment to prepare the food.
• Other options in the food industry include selling home-cooked meals or bakery products through retail food stores or gourmet shops. You can also try partnering with hotels to offer meal delivery to rooms or with event venues to provide boxed lunches.
• When you're getting started, consider selling or giving away gift certificates so people can try your services risk-free and without any kind of long-term commitment. Giving samples away at supermarkets and shopping centers (together with a business card or a sample menu) is another way the word out about your business.
• Decide if you need a loan or if you can fund the business on your own. Take time to create a business plan and get organized long before you plan on getting started.
• Between fees for permits and cooking equipment, you're looking at an initial investment of at least $1,000. Catering is not a home business that can be started for no money down, so keep that in mind if you're on a tight budget.

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How to Start a Catering Business in Your Home

Do you enjoy cooking? Are people constantly complimenting you on your homemade dishes? Have you been asked to cater events before? You could create a nice income for yourself by doing something that you love and starting your own catering business from home. You can start small by renting equipment and other items and later buying them as your business grows.

Suggestions

1. Consider the start-up costs. You will be saving money by working from home because you won't have to worry about renting a place. However, you still need equipment. Save money in the beginning by renting things such as dinnerware, utensils, tablecloths and linens. Once you start making money, invest in these things. Draft a budget to determine how much you can spend when you are first getting started.
2. Hire employees. Obviously you won't need a full staff all the time---only when you are catering events. You will need people to help you set up, and also waiters and waitresses to attend to the guests. In the beginning, you can probably handle the office work yourself, but later, consider hiring a more permanent staff. First, check with local temp agencies to find employees you can hire only when you need them. This is important because you don't know how many clients you will be getting until your business starts to take off. Visit temp agencies in your area to discuss your options.
3. Hire employees. Obviously you won't need a full staff all the time---only when you are catering events. You will need people to help you set up and also waiters and waitresses to attend to the guests. In the beginning, you can probably handle the office work yourself, but later on you might want to consider hiring a more permanent staff. First, you should check with local temp agencies to find employees you can hire only when you need them. This is important because you really don't know how many clients you will be getting until your business starts to take off. Kelly Services is a temp agency that provides employees to businesses all over the world. See Resources for link. Visit local temp agencies in your area to discuss your options.
4. Check with your city hall to determine what permits you will need. Because you will be serving food to the public, you will need to be properly licensed. There are also restrictions about advertising to the public when you don't have a license. You need certification from the health department because your business involves food. You also need approval from the zoning board. You might also need food handler licenses for your employees. These requirements vary from state to state, so check with your city hall.
5. Advertise. Start by catering an event for a friend or family member for very little profit. This gives you exposure, and you can begin circulating word-of-mouth advertising. Print business cards and sample menus to hand out to people who inquire about your services. Give the business cards and sample menus to clients to hand out to their friends when they are in need of a caterer. Engage in cooperative marketing with individuals from noncompetitive business fields such as wedding planners, disc jockeys, photographers and florists. A great website is an essential advertising tool for any business. If you know little to nothing about web design, get help from a professional.
6. Take culinary classes to enhance your skills. Stay on top of the game by learning as much as you can. These classes can help you choose signature dishes to specialize in and really make a name for your company. These don't have to be classes at an actual culinary institute. You don't need a certificate of achievement to hang on your refrigerator. You just need an edge over the competition.

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