If you read our last blog post, you may now be more encouraged to start a catering business from home. But what exactly do you need to do to make it happen? Well, the answer to that is these steps for starting a catering business!
Keep on reading as I walk you through these key processes to get your home-based catering business off the ground.
1st Step For Starting A Catering Business: Conduct Thorough Market Research
The first step in starting your catering business is to really get to know your market. This includes doing the following:
- Figuring out who would want your catering services and what kind of food they like. Are people in your area into fancy wedding banquets, or do they prefer casual birthday parties, or is there a demand for vegan and/or gluten-free menus?
- Think about the prices people are willing to pay and what times of the year get really busy with events. This part of the job might involve some online research, talking to people, and maybe even checking out different types of events to see what’s popular. Getting this step right sets you up to create a business that really fits into your community and stands out from the competition.
Understanding what people around you want and what other catering businesses are offering (or not offering) can help you find your own special spot in the catering world.
What happens if you skip market research?
Not doing market research when you start your catering business is like trying to hit a target while blindfolded. This means you might make a menu that doesn’t fit what people in your area are looking for. For example, you could end up offering fancy, expensive dishes in a place where people prefer simple, affordable food, or the other way around.
Also, you might set your prices too high and scare customers away, or too low and not make enough money. Plus, you could miss out on finding a special service or dish that nobody else is offering to any potential client. In short, skipping market research can lead to making bad choices for your business, wasting time and money, and having a hard time getting and keeping customers.
2nd Step For Starting A Catering Business: Develop a Solid Business Plan
After you’ve got a good handle on the market, the next big step is to make a solid business plan. Make sure it includes the following:
- How much you’ll charge for your services, who you want to cater to (like weddings, parties, or corporate events), and how you’ll let people know about your business.
- How much it’ll cost to start your business, keep it running, and make a profit.
Having a clear business plan helps you stay focused and organized. Plus, if you ever need to make business loans or get investors, it’s ideal to have a plan that shows how making an investment in you is a good idea!
What if you start running your business without a plan?
Sure, you can start your catering business without a plan, but there’s a good chance things won’t turn out right. Without a business plan, you might experience these:
- Spending money too fast
- Finding yourself in situations where you’re not prepared, like a big event that you don’t have enough staff or supplies for.
- A hard time tracking goals and progress—you might not know if you’re making enough money to cover your costs or if you’re charging the right prices.
In short, without a plan as a basis or something to fall back on, you’re going to make things riskier and stressful for yourself.
3rd Step For Starting A Catering Business: Get the Necessary Licensing and Permits
This particular step is important because you want to be a legitimate and legal business entity, even if you’re just operating out of your own kitchen space. That means making sure you have all the right licenses and permits. Depending on where you live, you’ll need different kinds of permits, like a food handler’s license, a health department permit, and maybe a general business license.
Getting these licenses might seem like a lot of paperwork and maybe a bit of a hassle, especially when you just want to start a catering business in the Philippines, but trust me. It’s worth it for your own peace of mind and for customers to trust that they’re eating food that’s safe and prepared in a clean environment.
What are the consequences of skipping this step?
If you don’t go through the proper steps and channels, you could get into legal trouble, which can mean fines or even having to shut down your business. Additionally, operating without the necessary permits can damage your reputation. If word gets out that you’re not properly licensed, it can be really hard to build trust with potential clients and make it difficult for your catering operation to grow and succeed.
4th Step For Starting A Catering Business: Create a Memorable Brand and Marketing Strategy
A good marketing strategy gets your name out there and brings in customers. Do the following to accomplish this:
- Think about what makes your cooking or your service special and use that to build your brand.
- Your brand is what makes you different from all the other catering companies out there, so make sure it’s memorable—come up with a catchy name, a logo, and even a unique color scheme.
- Don’t just stop at having a brand—you need to let people know about it via a marketing strategy. You can use social media, like Facebook or Instagram, to show off your food and tell people about your services.
- You could also make a website, hand out flyers at events, or team up with local event planners.
What if you don’t take the time to make a brand and strategize your marketing?
If you don’t invest time in building your brand or your marketing strategy, you’ll struggle to stand out in the competitive catering industry, making it hard to attract and retain customers. Without a way to spread the word about your services, many potential clients won’t even know your business exists. This lack of visibility can lead to fewer bookings and limited growth opportunities.
5th Step For Starting A Catering Business: Plan Your Menu Carefully
Since you are running a food business, it’s super important to think about what types of food you’re going to offer. Here are some things to keep in mind.
- Your menu is like your business card—it shows off what you can do. Make sure it has a good mix of different kinds of dishes so you can please all sorts of customers.
- As mentioned above, include things for people who might be vegetarian, or who don’t eat gluten, so everyone has something they can enjoy.
- Think about how much the ingredients cost and how long each dish takes to make. You want a menu that’s not just tasty but also doesn’t cost too much to make or take too long to prepare.
Can’t I just offer whatever food people look for?
There’s always the temptation to offer a wide range of foods that people are looking for, but it’s not always the best idea. Why?
- If you try to make too many different kinds of food, you might need lots of different ingredients and a lot of time to prepare everything. You’ll end up overexerting yourself which can affect the quality of your service and your food.
- As Chef Joey Prats says in this feature, it’s better to focus on a few things. This way, you can make sure the quality is always top-notch, and you won’t get overwhelmed. Plus, having a speciality can make your catering business stand out from others.
6th Step For Starting A Catering Business: Invest in Quality Equipment and Supplies
The sixth step is to make sure you have the right tools and supplies for your catering operations. This means:
- Getting things like reliable stoves, sharp knives, and sturdy pots, pans, and chafing dishes.
- Think about what you need for serving the food, like trays, dishes, and utensils.
- Note that it’s worth spending a bit more on these because they’ll help you cook better and faster, and they’ll last longer.
- Find some trustworthy suppliers who can give you fresh and high-quality ingredients. Having good supplies means your food will taste better, and that’s what will make your customers happy.
Can’t I save up by just spending on less-than-quality equipment?
You might think you’re saving money upfront by buying cheaper, lower-quality equipment, but it can actually cost you more in the long run:
- Low-quality equipment often breaks down more easily and doesn’t perform as well.
- You might end up with food that’s not cooked properly or you could face delays in your service as your business grows.
- This can disappoint your customers and hurt your business’s reputation.
- You’ll also likely have to replace or repair cheap equipment more often, which adds up over time.
Investing in good-quality equipment is a smarter move because it’s more reliable, lasts longer, and helps you maintain a high standard of service.
7th Step For Starting A Catering Business: Hire and Train a Skilled Team
If you want your catering business to last, you’ll have to admit to yourself that you’ll need a team. Even if you’re great at cooking, you can’t do everything alone, especially as more orders come in. You’ll need chefs, servers, and maybe even a person to help with cleaning or deliveries.
Look for people who are not only good at their jobs but also friendly and professional because they represent your business. Once you’ve got your team, it’s important to train them well. Make sure they know how to prepare and serve food the way you want, and that they understand the importance of customer service.
Is hiring and training a team really necessary?
Like I said earlier, you can’t do everything yourself. A well-trained team can make a huge difference in how smoothly your events go and how happy your customers are. They can help you handle bigger jobs and make sure everything runs on time.
Plus, having a team allows you to focus on the parts of the business where you excel, like creating menus or networking with clients, while they handle the day-to-day tasks. It also means you can take on more events and grow your business faster.
Final Thoughts
Starting a catering business, especially from home, is an exciting journey filled with opportunities and challenges. But by following these seven steps, you’ll be well on your way to launching a successful catering business in 2024.
Of course, I’d want to help make you even more successful. That’s why you should watch for my next blog post, where I’ll talk about simple hacks to get more business and referrals as a startup catering business. These tips will be invaluable in expanding your client base and enhancing your brand’s reach.
Stay tuned! And while you’re here, don’t forget to sign up at The Bailiwick Academy to access courses that will inspire and expand your future catering menu options!
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