How to Calculate Start Up Costs for a Catering Business

Starting your own catering business offers an exciting prospect for earning money and indulging your love of cooking. Before you embark on such a journey, you should write a business plan and calculate the starting costs. You don't want to get in over your head before you even begin.

Instructions

Difficulty: Easy

1. Get in touch with local health authorities about obtaining a license. Find out what fees you need to pay to become a caterer.
2. Decide on a location for your new business and how much money you need to outfit it according to local codes. You probably need a kitchen facility separate from your home kitchen. You can either remodel an existing room for this or add a room to your home. You could also buy or rent a separate property for your kitchen.
3. Research what equipment you can rent and what you need to purchase for your catering business. You can rent facilities, silverware, tablecloths and many other items. What you need depends on what type of food you want to cook and how big a catering business you intend to have.
4. Determine how best to advertise your catering business. You can rely on word of mouth or invest in professional advertising. Starting costs vary depending on how you advertise your new catering business.
5. Consider whether or not you can run the catering business on your own or whether you must hire help. Add employees' salaries into your calculations.
6. Contact an insurance agency about covering your catering business. Possible insurance needs include personal and business liability, as well as insurance for any vehicles used for the catering business.
7. Add all of the costs together to determine how much it will be to start your catering business. Consult someone already in the field to make sure you've considered everything.