Author :chef ssentongo Geoffrey
<Food entrepreneurship >
With low startup costs and the ability to decide your own business model. A home-based catering business is an exciting entry Into culinary entrepreneurship!
With no “customer-facing”space needed, starting a catering business from home can be a affordable to start and as a great way to either supplement your full-time income or replace it entirely.
Follow this step-by-step guide to get your home based catering business off the ground.
1 – know the law around home-based catering
Before you file any paperwork or spend your money to establish your business entity, you need to know what is possible in your area.
* Does your area /state ever al-low for catering out of your home?
* If so, does your kitchen meet the health department guidelines?
These rules may require more ventilation than your kitchen can provide, a three-compartment sink, and non permeable surfaces, like stainless steel counter tops, rules vary from state to city. So make sure to get the details.
2 – Start looking at the numbers
There are two factors to a business profitability-income and Expenses. Before you jamp into your new venture, start sketching your financial outlook and making some projections so you can see your way to a money-making business.
* WHAT will it cost to open your doors?
There are costs associated with every business.
* How much will it cost you to start your cute ring business at home and how long will it take to recomp those costs?
Try to keep your expenses low at the beginning, instead of buying all new equipment and serving dishes, where can you find second-hand or even marketing instead of a pricey online od?
Will you be able to cover these startup costs out of your bank account, or do you need to seck a small business loan or grant?
Even if you don’t need outside funding right away, you may want to secure a loan just to cover any possible emergencies.
# ~How much can you Expect to bring in?
* How many events can you reasonably cater per year or month?
* How long do you plan those events to be?
This is a vital part of your planning process, and goes to the very heart of your home catering business.
* What do you want your business to look like?
Is this going to be a full-time venture with a team that serves large weddings and corporate every weekend to be booked.
* OR do you envision it as a supplemental business to your full-time job, or a fun money-making hobby?
If that’s the case, you may only plan to do one small, high-end dinner party per month, focusing on personalised service.
* Do your plan to be a company of one?
This will limit the size of the event you can manage but it also reduces your expenses.
#~ Create your Business Entity
Name your home-based catering business. Time to brainstorm some names! Check out for the name which has not been in use and the website is not already been registered so that you can avoid confusion.
* Create your Business Structure
Consult with an attorney and tax professional to decide what the best business structure for your company.
A sole proprietorship is the easiest to create, but it doesn’t keep your personal and business assets separate. A limited liability company will protect your personal assets from business debts or liability.
* Create a menu
Now that all the paperwork is done out of the way let’s talk food!
There are caterers for all types of specialities, from regional cuisine to farm-to-table to catering for specific dietary restrictions. When pricing your menu, you will consider your food costs, labor costs and additional overhead to make sure you can cover all of your expenses and still make some profits.
* Assess your Equipment
What do you have and what do you need?
If you offer baked goods on your menu you may need a second stand mixer or refrigerator, chafing dishes and sternos to keep food hot.
* when you have all these extra items, where will you keep them?
You need anough storage shed.
* Start Building Relationships with vendors
As a catering business owner you have access to wholesale food suppliers that can supply you with bulk ingredients at better prices. Start communicating with vendor’s early to get an idea for who has the best price, quality delivery times, etc thank beyond the food.
* Hire and Train your staff
Even if you can handle all the cooking on your own, who is going to serve it?
Two or three people may be enough to keep a buffet well-stocked. But if you plan a seated meals, you’ll need more staff.
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