Starting a Catering Business

Plan well and reap big rewards
By Judy Rakowsky Freelance writer/editor Demand for catering is brisk and growing, which invites new businesses that can be highly profitable with low startup costs. Beyond having a flair for food preparation and stylish presentation, however, a successful catering business must be built on smart planning and an ability to nail cost estimates and master event logistics. Before you launch a catering business you need:
 
*Flexibility to deal with constant change.
*People skills to please clients, who are your best marketing agents.
*Superb organizational skills, because timing is everything

Plan ahead

Start with software programs that help you map out your business plan, evaluating key costs and practical considerations.
Try: PlanMagic offers a business plan program geared to restaurants and catering businesses. BusinessPlanPro offers 500 sample plans, including a catering business plan.  

Research requirements

License requirements vary by state, and most state health departments require on-site inspections of kitchen facilities before granting a license. A business license, tax license and certificate of occupancy are standard in most states.
Try: Get certified by the National Association of Catering Executives, which will introduce you to the ropes of permitting, which typically involves getting permits from municipalities and state alcoholic beverage authorities for each catering event. Also, buy inexpensive sample catering agreements and contracts at FindLegalForms.com.

Pick your niche

Whether it's catering casual summer picnics or throwing fancy weddings, the type of affairs you choose to create will focus many of the decisions on equipment, staffing, and even marketing needs.
Try: Scope out menus, cuisines and the preparation logistics at AllFoodBusiness.com and Foodservice 411.

Equip your kitchen

In the beginning, renting a commercial kitchen may make sense just like leasing tables, glasses and linens. At some point, business growth may lead to outfitting a commercial kitchen with used and new appliances and equipment.
Try: Get expert advice on what you need from a food service consultant. Then try a one-stop supplier such as KitchenConsultants.com or cKitchen. To maximize your buying power, you can join Short Order, an alliance of caterers and restaurants.

Know how to make food safe

Hygienic food preparation is a must, which means up to date training for all personnel. There are classes available in bricks and mortar facilities as well as online training options.
Try: Premierfoodsafety provides classes in several languages at multiple locations and there are many online options including an online education course is from North Carolina State as well as a CD-Rom training course available for purchase from Chipsbooks.    

Cover yourself

Catering insurance is essential for unforeseen incidents ranging from a diner contracting food poisoning from food you provide to a traffic accident that damages the food en route.
Try: Review a sample insurance addendum for catering. Also, the Small Business Administration provides information about adequately insuring your business. Insurance Noodle focuses on small business insurance and can be a good starting point. 

Do your homework

No matter how good the food and service you can lose your shirt on nitty gritty details from last-minute cancellations to inaccurate cost estimates.
Try: Invest in a Catering Business Start-up Guide Kit, which helps you price services, estimate food quantities and establish menus. It also offers links to government checklists for startup businesses and other helpful information from the Small Business Administration.  

Experience and good people

You need paid experience in a restaurant, private club, hotel or in a seasonal facility as well as proper training to establish yourself.
Try: Check out Culinary Business Academy for catering training programs and catering schools at EducationCenterOnline.org. When you need to hire workers, the National Association of Catering Executives has job postings.

Market Yourself

Once you are up and running you'll find it's a competitive business, especially during busy holiday seasons. So find a niche and brand yourself.
Try: Get listed on catering referral sites like DirectCatering.com. Also LocalCatering.com only charges $4 per catering lead.  

• Show clients you are serious by contacting them a month after the event seeking feedback. Word of mouth referrals are powerful.
• Try to suss out extremely difficult customers and don't take the job. When you are starting out, an impossible to please client can drain your energy and momentum.
• Network with other small business owners, not necessarily competitors, for support and practical tips.