How to Start Your Own Catering Business

The Catering Business has become very popular throughout the United States. People with a passion for cooking and a knack for fixing some great dishes have started their own business and made it very successful and you can too.

In order to make your business a success you need to have a good business plan. Is this going to be a part time or full time business? What kind of events will you cater, such as buffet, formal dinners, birthdays, company parties. Will your business be full service, corporate catering or custom catering? Plus, you will need to choose a name for your business, set up your kitchen, find some food suppliers, check on insurance, and possibly a software program to manage your recipes and business. Another idea would be to analyze the market, see how other caterers operate and see what they charge.

What kind of training do you need? Well, it's good if you are already a great cook and excel in food preparation. However, taking some courses at your local community college, or at a culinary institute would be to your advantage. Learn what you can from other caterers, like what types of foods they prepare and where they get their supplies. It's great to be a good cook but you need to be a good planner also, be organized and flexible, and have a good personality so you can relate to others. Having good people skills and being able to work under pressure is a must. You don't need special education to become successful. But if you are able to understand exactly what your client wants and then deliver the product that will put you on top.

What about start-up costs, supplies and equipment. If you don't have a lot of money to start your business, that's fine. You can start small and work part time until you get the business going. Your start-up costs will depend on whether you are having your own kitchen (your own kitchen would have to be approved and some states require you to have a certified kitchen separate from what your family uses) or a commercial one. If you are using your own kitchen it depends on what you put in it and the costs could range from $1000 to $80,000. A lot of caterers do cooking on-site, either using their facilities or equipment provided by their clients. However, there will still be prep-work in your kitchen facilities. If you want to keep costs down in the beginning you can rent items, such as kitchen facilities, china, tables, tablecloths, utensils, linens, serving equipment, and other staples. If you don't have your own money to get started then I would suggest a business loan or there are business grants available.

If you have previously owned your own business then you have a good idea on how things should be done. But if not, then you will need to know how to do client consultations, how to set your prices, which includes service charges and gratuities. You will need to know how to prepare a catering estimate, how to prepare contract, and another important thing is getting a deposit(how much) and the final payment.

Plus, you will have to deal with cancellations and what needs to be done about scheduling. It would be helpful to have sample menus for dinner receptions, along with sample estimates, contracts, schedules, and invoices. Learn the tips on quantity cooking for adults and children, and how you will transport the food to the various events. All these things you can learn from other caterers, business courses, food catering classes, books or ebooks. You will need to keep good records, and there are some excellent computer programs to help you keep things straight and current. If you don't have the time to deal with the major part of bookkeeping then you could hire an accountant to handle things for you.

What kind of Licenses and Regulations are there? The Licenses and Regulations will very depending on your city and state. You might want to check with Local Health Department, City Offices and with your State Offices. You will need a permit - plan review application and there will be a food service application and fee. Some states require an annual permit to operate a catering business. Your state retail food code contains safe food regulations. You should be familiar with all safe food handling practices. You will need to register you business name with your state and possibly your city. Also, some states require anyone selling food to have a sales tax number. Most businesses need a federal tax identification number (EIN) and there are various ways to apply. Y

ou can check with your state to make sure you need one. As far as ways to apply, with internet access you can apply online at the irs.gov/businesseswebsite, where you can find more information and resources, or you can call toll free 1-800-829-4933 Monday through Friday 7:00 am to 10:00 pm local time and the third way is to apply by mail.

Do You Need Insurance? Insurance is essential for any food business but how much insurance you will need depends on how big or small your business will be. If it is just you and a couple other workers then obviously the amount of insurance would not be the same for a big company. You might need insurance that includes product and personal liability, as well as coverage on space used for the business, equipment, vehicle use and workman compensation for employees. Despite all the preparations taken with health recommendations there is always the possibility that someone may become ill after eating food that was prepared by you, or an employee may get hurt while on the job or there might be a kitchen fire so having the right insurance is a plus!

How much money can you make? Catering is a $5 Billion a year industry. There are unlimited possibilities; the catering field is definitely a place where great wealth can be made. But how much is made depends on you and how much you put into it whether it's part time or full. Catering requires excellent management and organizational skills in order for the business to succeed. The amount of money you make will also depend on type of event and the size. An in-demand caterer in a large metropolitan area can easily gross upwards of $200,000 per year, while a small part time caterer in a small town could possibly make around $50,000 per year. It really all depends on you and how motivated and determined you are to succeed!

There are several ways to market your business. You can start by advertising in your local newspaper, or through your local radio or television station, you can make up some business cards and pass them out, or put up some fliers around at your supermarkets or events. One of the best ways is word of mouth, once you establish yourself, your good business practices and great food will talk for itself. So set your goals, be flexible, be open for suggestions, build a good reputation and your business will grow. Remember happy customers, will be returning customers.