Wednesday, 9 December 2015

Top 7 Tips For Starting A Catering Business

Catering is as an evergreen business proposition. Most catering businesses start because a person's cooking hobby has won praises from family and friends, but the majority get shut within a few months due to lack of proper business planning. Catering is not just cooking and serving, it involves many factors related to business operations. This article discusses the important ones necessary to succeed with your own catering enterprise.

Top Tips for Catering Business

While maintaining quality, taste, hygiene and freshness in the food is of paramount importance to any catering, it is equally important to look at other aspects of the business.

 1. Get Prior Hands-on Experience: Before starting on your own, it is always better to get a hands-on experience with reputable caterers. Such direct work offers real exposure to small details,risks,challenges, bottlenecks and grey areas of the catering business, without you making a large financial investment on your own. This experience will not only help you learn the tricks of the trade, but will also serve as an opportunity for a realistic self-assessment about your preparedness and temperament for catering

2. Monetary Assessment: How will you attract clients to get orders (advertising and marketing)? Where will the staples and other food ingredients be sourced from? Which localities will you serve (markets)? Where will the food be prepared (your in-house location/client location)? How will food be transported to maintain freshness? How many helpers and vendors would you need (staffing)? All need to be considered, while keeping in mind your available budget and a realistic business assessment.
3. Infrastructure Requirements: Depending upon the local laws, you may (or may not) be allowed to start catering from your home-based kitchen. You may need to rent out a dedicated commercial kitchen space, or take orders on the condition that clients arrange for the location of preparation (like, at a wedding venue). Beyond the food items and ingredients, you may need to arrange for necessary cookware, bakeware, serving cutlery, and even transportation. Instead of buying upfront, renting such equipment on an as-needed basis is a good option, especially when you are just starting and are tight on budget.
4. Pricing and Cost Consideration: Basic food staples may not show wide price swings, but other mandatory add-on ingredients (like chocolate, or exotic fruits) may show high volatility in prices. The further out an occasion is when a caterer takes the order, the more risk she runs on price uncertainty. It is best to keep pricing on an ad-hoc basis, and provide quotes considering any adverse price moves.

5. Get on Approved Caterer Lists: Most ceremonial venues maintain a list of approved caterers, and getting on that list assists in getting more business. While startup caterers may not be able to get into that list immediately, you should keep trying after having arranged for a few successful local catering gigs.

6. Network and Promote: Online social networks can help spread the word about your newly started catering business, but there are other mediums to consider. Joining an organization like National Association for Catering and Events of your country can help you network with established businesses. Through their conferences and meetings, you can learn the industry best practices to run your business more efficiently. Serving your unique food items through a food-stall during a local community event can also assist in getting you the much needed marketing.

7. Keep the Backup Ready: Beyond your ideal preparations, there are a few things that could go wrong despite your best efforts. For example, what would you serve if the kiwi fudge you put on the menu cannot be prepared because kiwis are not available at any nearby market? Who would be the backup if your main cook calls in sick? What are the terms in case of a last-minute event cancelation? Having a backup plan ready, and getting the client buy-in to those in advance, always helps.

Written by Shobite seth

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