If one has a passion for cooking, are organized and have good customer service skills, a catering service may be a great business for him. Caterers will provide food, sometimes supplies and service for social events like weddings, anniversary parties and just about any other gathering.

Skills For Business

Love of food and the passion to cook both are important skill that would be helpful in running a catering business. To run a successful catering service one will need to be able to work well under pressure, keep his calm and be reliable. When one is offering a service-based business he is selling his dependability instead of a product.

Equipments

If one is just beginning a catering service he might be able to eliminate some start up costs by renting equipment instead of outright purchasing it. In the long run renting probably would end up being more expensive if it’s done over and over but until one gets a few contracts and some cash flow it could be the way to go.

Besides the equipment he will need to do all the cooking, he’ll need chafing dishes for serving the food hot and insulated containers for transporting it. One will need some other basic business items as well. A phone line, fax machine, client contracts, and possibly even a computer and internet access if he plans on working online at all.

Get Started

If things go well and one is still ready to move forward with his decision and start this catering service one needs to choose a name. Even before choosing a name it might be a good idea to check into the legalities of beginning his own business.

Print up some flyers and hang them at local grocery stores, his library, etc. Send out a brochure to area companies that could possibly use catering services for social events. Have business cards made up so that they are handy to give out when he is in public.

If one has a love for cooking especially in large amounts and providing a service to others starting a catering business might be right up his alley. Search other caterer’s in his area; he will want to offer reasonable prices and find ways that he can make himself unique so that he isn’t just another caterer out there.

Start Profitable Catering Business

One of the most lucrative and profitable home businesses with a high potential for expansion and growth. It is both financially rewarding and fun. The catering business is one of the most lucrative and profitable home businesses with a high potential for expansion and growth. It is both financially rewarding and fun. Each catered event - whether birthday parties for children, breakfast in bed and intimate candlelight dinners for two, company dinner parties for 50 and wedding receptions involving a hundred or more guests is a new experience and challenge with a new group of people.

Whether one caters events on a full-time or part-time basis, the opportunities are excellent. However, catering is a demanding work, requiring stamina, ability to work under pressure, and excellent interpersonal skills. His success will greatly depend on his reputation. To build a good reputation in the business, he should be willing to work hard and the ability to work under pressure. This kind of entrepreneurial business is definitely growing and becoming more popular with people of all income levels.

Demand For Catering

The demand for catering has increased tremendously through the years. According to the National Restaurant Association's 2000 Restaurant Industry Forecast, social caterers are one of the fastest-growing segments of the restaurant industry, with sales expected to reach $3.6 billion in 2000 - a 5.7 percent increase over its 1999 level. As impressive as the figure may be, there is great likelihood that it still underestimates the industry, as many home-based caterers are not even listed in the phone book.

Driven by the rising number of higher-income households and a strong economy, catering sales is expected to continue to soar as more companies, corporations, charities, civic groups, event organizers and individuals call on caterers to host on- and off-premises events. Businesses of all sizes are using catered lunches, cocktail parties and dinner meetings to build their images and increase company sales. It is a matter of keeping up with the competition in promoting a company and/or product.

Present lifestyles have also given way to increased demand for catered food service. Instead of laboring for hours, even days, in the kitchen preparing for parties or events, many homemakers now call on a caterer to provide sumptuous and unforgettable feasts for their guests. An increasing number of working mothers are paying to have catered birthday and graduation parties, as well as wedding receptions handled by caterers. Because if she is working outside the home, today's mother just does not have the time or the energy to do all the planning and staging of a memorable party. Even the concept of eating out is slowly being changed by the business of catering: instead of going out to a restaurant to partake of a good meal, families can call on a caterer for that same great food.

Start-Up Costs

Catering offers an opportunity for starting a food service business with a lower initial investment than opening a traditional restaurant.

In the catering business, one can start as small or as big as his wallet will allow. The start-up costs for a catering business will depend on what one put in her kitchen and can range from $1,000 to $80,000. Most caterers do the cooking on-site, either using their own facilities or equipment provided by the clients. However, one would still need to do some prep-work in her own kitchen facilities (e.g. pre-cutting vegetables, etc.)

To keep the initial costs down, he can opt to start his catering business by renting items. One may rent the use of kitchen facilities, china, utensils, tables, tablecloths and linens, serving equipment and other staples. He can start buying his own equipment only when he has steady revenues. By renting equipment, facilities and supplies, he can use his first few months to build his reputation, develop some capital for investment and expansion and evaluate how much time and money he wants to invest. He can also take the start-up period as the time to determine the impact that this business will have on his family.

Income Potential

Like any other business, however, catering requires excellent management and organizational skills for the business to succeed. His ability to keep his operating costs down while maintaining a high quality service is also essential. The income potential of catering depends on the size of the events he caters.

A quick survey of successful caterers across the nation shows that began with zero capital by working out of their homes. The basic starting up investment would appear to be around $500, with some big spenders capitalizing their idea with as much as $15,000 in order to get off to a fast start.

Many claim that profits in the catering business are the best in the food and beverage industry. An in-demand caterer in a large metropolitan area can easily gross upwards of $200,000 per year, while a small part-time caterer in a small town can count on at least $50,000 per year.

To cut down costs, one can employ several strategies to help keep his bottom line richer. He can use his house as his office; hiring employees and renting a kitchen in a nearby restaurant only on days he has catering events. With its seasonal nature, catering usually does not require a large number of year-round employees.