A love for cooking and a passion for service can be turned into a profitable venture as a catering business. There are many types of catering, from corporate catering Melbourne. Before beginning a catering business, here are some tips an entrepreneur might find helpful.
The first step should be making an inventory of all the things one requires. One should start with the equipment necessary for the job, from the cooking appliances to the storage requirements. Home appliances might be helpful for a small population, but a catering company will likely require bigger or more equipment. The list should include the smallest of details, and should be made with the help of professionals or consultants. The entrepreneur should determine the scope of their business and the niche they are most comfortable with. Depending on the funding available, they might elect to start small, or go big. Funding options include savings, or loans from financial institutions. A compassionate loan from a family member or friend can also be useful. When dealing with close friends or acquaintances, one must make sure they have a written agreement regarding the loan an payment terms.
The niche can be in terms of food items or population served. There are numerous service options, from corporate events to birthdays and wedding catering. To increase the chances of excelling at a niche industry, find an area that the industry has neglected, or an area one is comfortable and passionate with and they feel that they can excel in. capacity is also important when choosing a niche. One might not have the capacity to handle 100 guests but they can handle small bridal showers and engagement parties.
The menu should also be decided beforehand. Small changes can be made along the way as the caterer learns more about their target industry. The menu should be based on the caterer’s skills and specialties, and what the target market wants. The pricing policy should be wise, high enough to make profits, but affordable enough to stay competitive. Pricing can be a tricky issue, and is influenced by many factors. It depends on the location of the catering company, the prices of the ingredients and the time taken to have the food prepared. The projected profit margin might also determine the pricing. While food is the core, the catering business is more than just food. Most locations and events expect the catering company to provide the chairs, tables, tent and decorations for the event. The catering company must know supplies of these items in the area before they set off.
Away from the service provision, the financial and legal aspects of the business must build a strong foundation for success. The entrepreneur must develop a string business plan which covers all the investment they require to set up the business and run it for the first few months until it makes enough profits to start repaying the initial investment. Licenses and permissions from the local authorities to run a business and handle food for a large population must be obtained early.