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Expert Guidance On Starting A Home Catering Business

Mar 15, 2008
If you are thinking about catering business start, then the following is a simple summary of things you will need to look into:

1. Getting a license: You cannot think of start your own catering business without a license. This license is given by the government, and state rules will apply.

2. Finance: Finance is an important requirement to start any business. To start with a home catering business, you need to invest some money. You can invest according to what you need to put in kitchen. Initially you can invest less by renting the kitchen items, table, tablecloths and linens, serving equipments, etc.

3. Location: A good location is the key factor of a successful home catering business. Before issuing the license, the Health Department will inspect the location that you have planned to use for preparing food. According to the law, the food operation area for catering should be separate from the kitchen facility at home. Your location must also be in a good location, from the business point of view.

4. Insurance: Insurance is necessary expense for the protection from unexpected reasons. It includes personal liabilities, place used for business, equipments, products, vehicles, worker compensations, etc.

5. Profit Making: No one plans out a business without profit in it. To make your catering business profitable, you must plan some proper strategies, including the proper price for the service. Determining the cost of an event is important. Here is the formula that can help you in calculating the price of your services.

Material cost + labor + variable costs + fixed costs + profit = price of service

Material cost includes cost of food and beverages, transportation and handling charges acquired on the material.

Labor includes cost of preparation of food and services, wages paid to employers, etc.

Variable cost includes vehicle expenses, rental expense, utility bills, etc.

A fixed cost includes insurance, purchase of equipments, marketing and advertising, etc.

Profit is the percentage added to your total cost. The percentage is added to each item in the menu or the type of menu.

6. Plan a creative menu: You should plan the menu according to the type of event, timing of an event, number of people to be served, equipments available, amount of money to be spent, etc. The menu should contain popular and delicious items; it should balance texture, flavor, shape, size, etc.

Well, these are just some of the things you will need to start out with. This sufficient knowledge will put you on the right track of home based catering business. The rest you will definitely learn through experience.
About the Author
Sean's article on Starting A Home Catering Business provides some interesting insights on how one should go about the whole thing. You can read more articles from him on this subject at the following link:
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