☑ HOW TO START AND MANAGE A HOME-BASED CATERING BUSINESS

Food catering is one of the most lucrative and profitable home-based businesses an entrepreneur can start. Aside from having a high potential for expansion and growth, the market is so big there is practically enough room for small but smart start-ups to grow into profitable and stable business operations. If you have a passion for cooking and a knack for preparing tasty dishes, this business could very well be your ticket to financial success.

Aside from culinary passion, however, a caterer must be a superb planner and manager as well. To be effective, you need to be very organized yet flexible enough to cope with last minute changes. You also need a keen empathy for people and insight on what they enjoy in different environmental settings.



STARTING ON A SHOESTRING BUDGET
Aside from using your own kitchen at home (or extending it into the garage) you could also start your catering business by using rented items to keep initial costs to a minimum. You may rent, utensils, tables, tablecloths, serving equipment and other items. By doing these, you will be able to accomplish three things that will strengthen your base; 1) establish a reputation; 2) develop capital for investment and expansion and 3) gain experience and assess how much time and money you really wish to invest in it . Along the way, you’d also be able to realistically evaluate how the business will impact your family.

PRICING YOUR SERVICES
Determining the costs of catering an event is the most important part of covering your expenses and earning profits. Caterers price their services by using different methods but the basic formula is somewhat similar to the following:

Cost of Ingredients + Operating Expenses + Labor + Profit = Price

This formula is meant only to guide your pricing decision. In truth there is no such thing as a “correct” price. It all still depends on the type of event being catered, special services offered and how much the competition charge.

LEGAL CONSIDERATIONS
Aside from municipal business permits and tax requirements, you will also be required to pass government sanitary and health standards. These involve added expenses on your part but you colud consider them as part of your investment in building the reputation of your business.