How to Start a Catering Business at Home in Ten Steps

Catering is a multi-billion dollar industry in the US and is the fastest growing segment of the food service industry. If you enjoy working with food and people then catering could offer you a great small business opportunity. This article sets out ten basic steps that you can follow if you are looking for information on how to start a catering business at home.

Research

Start by finding out as much catering business information as possible. Also make a point of learning about general business marketing and management if you are not already knowledgeable in these areas. Taking a few classes to prepare to be a business owner is one good idea. You also have to research the catering market locally so that you can understand as much as you can about your competitors and your prospective clients. Sourcing ingredients and other supplies is an important part of the business. Look into a variety of local options and find out about what discounts are available to you if you buy in bulk. Restaurant owners will be able to give you a lot of tips here.

Local Health Regulations

Talk to local authorities and find out what permits you would require to run a business operation involving the commercial preparation and distribution of food. Look into the requirements for setting up and running a catering business from home. Zoning bylaws may restrict your activities here too so make sure that you are fully informed before proceeding.

Experience

Get some experience in commercial food preparation by working in a restaurant kitchen or for another catering service for at least a couple of months. This can be a great way to learn how to scale up from making four servings for your family to making 150 servings for a wedding.

Insurance

Make sure that you look into the insurance policies that you will need for your company assets and your company's liability. You must reduce your risk in the event that anything goes wrong and damages result that your company is liable for. You also need to make sure that you have appropriate policies to cover your home, contents and business assets.

Using your Home Kitchen

Assess your home kitchen to see what it is capable of and if any upgrades or equipment purchases are necessary.

Put some Menus Together

Put together some sample catering menus that may suit various occasions and run them by others in the food service industry for advice. Get an understanding of what the current market demand is like by looking over the menus of other catering companies. Do some research into modern trends in cuisine. Try to thoroughly understand the cost and volume of the ingredients required and how many people the menus are designed to cater to.

Have a Practice Run

Before jumping into catering why not try it out first and see how you go. This is easy if you offer to cater a dinner for a number of friends or work colleagues. They can contribute to the cost of the groceries and you can prepare a dinner party for 15 or 20 people. This will give you a chance to get a small taste of what it is like to cater to a crowd. After the meal you can ask for honest feedback about what they thought of your food, presentation and service.

Funding

Decide how you will fund the business. Get a decent idea of start-up costs for a catering business and then work out if you will be able to fund the business independently. You may need to consider a small business loan or some other form of financing.

Marketing

Think about a suitable catering business name and have a graphic designer do some logos for you to consider. Creating a solid brand is important when starting out in business as this will influence customer perceptions of your company. It can be hard to change course later so you should think hard about what your brand's values are and how you want your brand to differ from those of other caterers. Put some thought into how you will go about doing your marketing. Clarify the market that you want to target, define your products and services and working out how you will go about pricing them. Look into different advertising and marketing methods to understand how a catering business can get leads. Lastly you need to work out a sales process to take you from the point of a customer enquiry through to a deposit being paid.

A Catering Business Plan

Look into completing at least some form of business plan. This will allow you to run a simulation for how you expect the business to run over the first one or two years so that you can work out if your proposal is profitable or not. It will also be a useful place to compile all of your research and to set out your goals and intentions.

The catering industry rewards those that plan ahead and are highly organized. Follow these ten steps and you will be well prepared when you start a catering business at home.

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How to Introduce Your Gourmet Food Business

It is most likely that you often invite your friends and relatives to keep sampling your best dishes because you love gourmet foods. People who love cooking so much are always doing this, but the best way to expose your dishes to people is by opening a food business.

To introduce as many people to your gourmet food business as much as possible, just invite as many of them as you can on the day you start producing the food and let them taste your cooking free of charge. You need not implore them to come and buy, but just tell them to feel free to serve themselves. That is how you will end up with loyal customers.

You could also go as a volunteer at a school function or a place like that where your cooking will be sampled by all. If you take time to make as many varieties as possible for such occasions, you will soon find parents and staff, asking about your dishes.

This will start landing you some invitations to serve at smaller functions, house warming or birthday parties. That is a good way to start acquiring a small customer base.

Another step to take is to attend as many house parties as possible and be sure to carry one of your favourite gourmet food items. As they begin to praise your dishes, you will be signing on customers without them knowing it.

Of course many people will begin to notice you and your kindness. It will win you many friends and as the social circle continues to widen, so will your list of future customers. You might also find that a few people will begin to buy from you.

If you care to join some community activities; like volunteer work in a church, school or social center, it will give you a good opportunity to meet more people and let them sample your food.

At first it will be expensive on you as you try to charge moderately for the food, but you must keep it up. To do this, you will need to do your shopping economically and serve just small portions which will not drain more of your money. Remember when one day the business starts to grow; will be a good time to recover your costs.

Carry with you some of your best dishes as you go to different functions, and your list of gourmet food items will continue to grow on people's pallets. Soon they will start looking for you to sell to them.

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Beginning Your Own Food Business

Many chefs and cooks aim to make money out of their delicious dishes. A good concept is not enough in starting your own restaurant, though. You have to plan, learn the business and customer service techniques, and maximize tools like the Internet and restaurant search engine marketing. Food is not just a need, but also an object of passion and, sometimes, obsession. Many love to indulge in food, while cooks and chefs enjoy cooking for them. These same cooks and chefs would love to make money from their expertise, as well. This is why starting a food business is a common idea. Getting into this venture is not simple, though. This article will discuss some of the things you should know about making it big in the food industry, and some resources you should use, like the Internet.

There is more to a Great Food Business than the Concept

Many people attribute successful food businesses to a unique concept. This creative idea may be the backbone of a restaurant, but it is just one of many parts. A good concept will just remain as it is without the talent. Only a good chef can bring out the potential of a nice restaurant idea. If you are a cook but can't handle leading a restaurant, make it a point to hire a good chef and a dedicated supporting team. The workforce is important in any business.

You should also think of a good location - one that is accessible and business-friendly. The concept should suit the location, and people should find that location easily. Without a good location, your business cannot prosper.

If you have no concept in mind yet, you can start the other way around. Know the market and location first. Find out what food the people love, and one that matches their location well. The risk of this approach is you might come up with a concept that is exciting for now but does not have the potential to last long. As an entrepreneur, you should have a good business vision combined with people's demands.

Food Menu

Creating the food menu is vital in starting a restaurant or a food kiosk. Keep the menu short, but work smart in making it taste the best. A menu with huge variety can only spell doom for your staff. Start small but create a specialty out of it. This is where you can build your business identity.

Promote!

Exhaust all possible resources where you can promote your business. If you have the budget, post signs around your city with the name and address of your business. Use your creativity and include a map or instructions to get to your restaurant. Introduce some gimmicks like discounts for the first 50 or so diners.

The Internet is a free medium where you can also promote your business. Build a website and maximize social sites like Facebook and Twitter to spread the word to your network. You have the option of hiring professional services. Search engine optimization can help make your business more visible online. There is even a specialized means for your industry: restaurant search engine marketing. Providers dedicate this to users who are into food business. This lets you connect with more suppliers and customers alike.

Execution

Quality service is critical in any food business. Owners have to make sure their employees treat their customers right. Don't cut corners, especially with anything that directly goes to the guests, like ingredients and equipment. Allocate a part of your budget for regular enhancement, be it the menu or the restaurant.

At all times, just capitalize on your resources, subscribe to restaurant search engine marketing, study recipes to improve your menu, and always look for new ways to provide quality service.

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4 Mistakes That Start-Up Restaurant Businesses Make

Restaurant business requires unwavering efforts, dedication and perseverance to achieve success in this type of business. You need to relentlessly brainstorm in order to come out with a suitable concept for your food business. Remember a single poor decision of yours can bring downfall to your food business. Moreover, you should have success-oriented character traits such as zeal, perseverance and a great sense of commitment. As a restaurant owner, you should be able to overcome hurdles that come ahead, and may sometimes change your business tactics if required. Mistakes are a part of every business. You should strive hard to work on your mistakes, and make smart and flawless decisions in your business. Being resilient will help you achieve success in a short period of time.

Here are four common mistakes that many newbie restaurateurs make while starting their food business.

Loopholes in Planning

There is no doubt that planning a business is a boring process, but without a concrete plan your restaurant cannot be a profit-making venture. A solid plan includes business idea, research and market potentiality. It enables you to operate your business in a streamlined manner. Apart from business plan, you should also have a financial plan and marketing plan too. However, it is to be mentioned that your plan should be free from flaws. Otherwise it will not give you desired results. While planning your business, you can seek professional help from experts like chartered accountant, lawyers or financial consultants.

Starting Without Any Specific Goal

A goal gives you a direction when you first start your business. It keeps you on track during your day-to-day business operations. Setting goals help you evaluate what you want to achieve and how you can achieve. As a restaurateur, your business objectives should be attached to your mission and value statements. Make sure your goals and objectives are relevant, specific, attainable and realistic.

Avoidance of Latest Technology

Small business owners should not avoid using new technology, as it can help them work more efficiently and save money at the same time. Although, it may require time for you to learn and understand new technologies, you should not hesitate to implement new technologies, as it can affect your business in the long run.

Not Making a Proper Budget

Budget is a crucial factor and you should decide it carefully while starting your business. You should not overspend as well as you should not spend too little on your start-up project. Keep in mind that large investment without proper execution cannot bring success to your food business. You should make reasonable budgetary decisions while purchasing equipment and software for your business. You should also determine your budget wisely while executing your marketing strategies. Similarly, you should not spend too little that it limits your potential for success.

Besides, fear of failure and lack of confidence can also lead to business failure. Likewise, poor marketing strategies can bring pitfalls to your food business too. Moreover, other common mistakes that most entrepreneurs make are choosing a wrong location and hiring less manpower.

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How I Started My Restaurant Business

Oliver Trezise opened his restaurant, The Yurt, in Thornham in rural North Norfolk, in the summer of 2009. He retraces the steps he took to turn his unique idea into a culinary crowd-puller.

"I'd worked in the catering and hospitality industry for seven years, managing various hotels and restaurants. I wanted to do something of my own.

"A yurt is a portable, felt-covered, wood lattice-framed structure in which nomads in the steppes of Central Asia traditionally live. They're fantastic. My mum runs a cottage rental business and she emailed me details of yurts she'd found online. She thought they'd make an unusual additional shelter for the garden.

"Then I met Andrew Jamieson, owner of Drove Orchards, who wanted to open a coffee shop in his grounds. I suggested a restaurant as an alternative and he liked the idea. Three months later, my mother, step-dad and I opened The Yurt.

Sorting out premises

"I was born and bred in Norfolk, knew the 'foody' scene and identified a gap for something simpler and cheaper. Having a restaurant in a yurt is different; therefore it has novelty value. Buying one also costs significantly less than a permanent building or trying to find premises on the main coastal road here in North Norfolk.

"We approached King's Lynn and West Norfolk Council's planning department and invited Environmental Health in. The Yurt is so unique that it didn't fit into to any of the council's definitions, but eventually we made a full planning application. We also had to apply for an alcohol licence, which was delayed somewhat, so initially we only had a weekend licence.

"We researched a few yurt-makers but a company in Cumbria offered the best quality and most practical solution. Soon they began to make the Yurt, which they later erected onsite in Norfolk.

Start-up advice

"I sought general business advice from my mum and a few people I knew who ran their own businesses. We put together a rough business plan and sought advice from an accountant. We didn't borrow from a bank, but used our own savings and did what we could to minimise costs. For example, we used timber from a scrap yard to make tables and bought some chairs on eBay for £5 each. Most things we bought were second-hand.

"I did some free food safety training at the local council under their 'Safer food, better business' scheme. They sent us a pack that included cleaning schedules and a diary to record details of products we would throw out. Then if there's a problem, we can show it wasn't because we've used out-of-date ingredients.

"We also carried out a health and safety risk assessment. Obviously, because I've managed restaurants, I already had a good knowledge of food hygiene rules and best practice, as do the people I employ. Hygiene is essential when you run a food business — you can't leave it to chance."

Pre-launch marketing

"Our customers are a mix of locals and people with second homes in the area. Many people saw the yurt from the road and stopped to have a look. Quickly, word spread and interest grew.

"I also wrote and distributed a press release one month before opening. The Eastern Daily Press wrote a full page about us. Obviously, the people who come to visit the Orchard and its farm shop are told about the restaurant and we get a lot of business this way.

"Our main marketing initiative was a launch weekend for locals. We put flyers around the two local villages and spoke to more than 500 potential customers in the area, telling them more about their new local restaurant and its food. We've been full every Friday and Saturday night since."

Recruitment advice

"We've got 15 regular staff and take on more at peak periods. Staffing was our main challenge, because you have to find the right people. We advertised in local newspapers and approached the catering college in King's Lynn. At first it was just two chefs, two waiting staff and me, with my mum and step-dad helping out occasionally. Recruiting staff became easier the more we became established.

"We work closely with the Orchard and use its fruit and vegetables, as well as benefiting from its good reputation. Our mussels and crabs come from Brancaster and we use two local butchers. Offering delicious, rustic dishes made from wholesome local produce is very attractive to our target market. It also helps to keep costs down.

"Our menus are seasonal and our evening menu changes daily. I produce the menus on my PC, but we paid a freelance designer to create our website. We print our menu inserts and slot them into an outer card, which we had printed by a company in Norwich. They also do our flyers and business cards.

"The Yurt is doing very well. In fact, we've done so well that we've now taken over the Deepdale Café in Burnham Deepdale."

Oliver's top three tips:

• Be as original as you can. Being different can provide a valuable competitive advantage, which is vital in a busy market place.
• Take your time when looking for staff. Having good people in all areas of your business is a must. They are the face of your business.
• Don't leave anything to chance when it comes to food hygiene, health and safety and licensing rules. If you lack knowledge, seek expert advice.

http://www.startupdonut.co.uk/startup/start-up-business-ideas/how-i-started-my-restaurant-business