Like all business, starting up a catered operation requires a financial investment on your part. As ambitious caterers have to make such a large budget investment, they sometimes put up their property as collateral. While this is a risk, it also brings the opportunity to make money. But before such a trade is made, you need to remember one very important thing: never gamble more than you can afford to lose.
So, what kind of financial investment is required to start a catering business? Generally, you can start a catering business for around $2,000. This will include all of the necessary licensing plus start-up supplies and equipment. You can call your local courthouse to find out which agency in your state is in charge of controlling catering certificates like an LLC. Along with your business license you should obtain a tax ID number. You can get a tax ID number from the IRS.
Plus, you will need a food handler's permit for both you and your employees and a liquor license if you plan to serve alcoholic beverages. There are also a few other expenses you should consider. There is still marketing, and the cost of the materials and equipment really depends on how large of a establishment you plan on starting off with. The small exposure for advertising will most likely cost around $500 to $1,000 to start.
The most important thing is to make sure that you have enough money to live on while your business is getting off the ground. It can sometimes take a while for a new business to see a profit when it is just getting started.
Owning a business means that you not only deal with the aspects of catered like food preparation, you'll have to be an accountant, secretary, tax preparer, people manager, marketing/sales/advertising representative, and bill collector. Some of the business end of the tasks include bookkeeping, scheduling, and marketing in addition to website maintenance and responding to emails. You can plan on doing all of the business tasks on your own or you can hire someone to perform these tasks for you. Being able to acquire sales for your business is the most important task.
You will need the right person to start a service-oriented establishment. In other words, you need to be a "people person". Being a people person is the ability to talk effectively to other people like they were acquaintances. You have to assume the needs of your customers and have the ability to satisfy them. Interaction is a must!
If you are feeling a little weary about the abilities it takes to run a successful catered business, there are steps you can take to prepare yourself. It helps to talk to those who own their own establishment. Possibly even if it is not a catering establishment, a lot of businesses deal with the same kind of responsibilities and tasks. You don't have to have an MBA to start your own catering business, but you can take a few courses in services management to help you on your venture.
So, what kind of financial investment is required to start a catering business? Generally, you can start a catering business for around $2,000. This will include all of the necessary licensing plus start-up supplies and equipment. You can call your local courthouse to find out which agency in your state is in charge of controlling catering certificates like an LLC. Along with your business license you should obtain a tax ID number. You can get a tax ID number from the IRS.
Plus, you will need a food handler's permit for both you and your employees and a liquor license if you plan to serve alcoholic beverages. There are also a few other expenses you should consider. There is still marketing, and the cost of the materials and equipment really depends on how large of a establishment you plan on starting off with. The small exposure for advertising will most likely cost around $500 to $1,000 to start.
The most important thing is to make sure that you have enough money to live on while your business is getting off the ground. It can sometimes take a while for a new business to see a profit when it is just getting started.
Owning a business means that you not only deal with the aspects of catered like food preparation, you'll have to be an accountant, secretary, tax preparer, people manager, marketing/sales/advertising representative, and bill collector. Some of the business end of the tasks include bookkeeping, scheduling, and marketing in addition to website maintenance and responding to emails. You can plan on doing all of the business tasks on your own or you can hire someone to perform these tasks for you. Being able to acquire sales for your business is the most important task.
You will need the right person to start a service-oriented establishment. In other words, you need to be a "people person". Being a people person is the ability to talk effectively to other people like they were acquaintances. You have to assume the needs of your customers and have the ability to satisfy them. Interaction is a must!
If you are feeling a little weary about the abilities it takes to run a successful catered business, there are steps you can take to prepare yourself. It helps to talk to those who own their own establishment. Possibly even if it is not a catering establishment, a lot of businesses deal with the same kind of responsibilities and tasks. You don't have to have an MBA to start your own catering business, but you can take a few courses in services management to help you on your venture.
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