How to Run a Catering Business From Home

If you are already an accomplished chef and love spending time in the kitchen, starting your own catering business at home might seem like a natural step to take. A catering business can be relatively simple to start compared to other businesses because it doesn't require a lot of specialized equipment or inventory. On the other hand, there are a few things that you should take into consideration before deciding to undertake this project.

Instructions

Difficulty: Moderately Challenging

1. Try to make a general business plan. What kind of events would you like to cater? Do you think there is a market for this type of service in your area? How much competition would you have? Is there any particular niche you could like to fill or quality that would set your catering business apart from the others?
2. Look into food and business laws in your area. While many home catering businesses are operated under the radar, you may have to follow a number of guidelines if you want to consider becoming fully licensed. One challenge is that many states require food services to prepare food in a specially zoned commercial kitchen, which is something not many people have at home. There are a few ways to get around this requirement, however. One simple trick is to only prepare food in the kitchens of your customers, for example, to go over to people's houses before parties to help them cook (or do it for them). In this case, technically you are selling your service (cooking) rather than the food you have prepared, so you may not need to use a commercial kitchen.
3. Even if you end up cooking elsewhere, you will probably need to dedicate some space in your home to various business uses, including storing bulk food supplies that you use for catering, using a telephone and maybe a computer and keeping your papers organized.
4. Make sure to keep thorough records from the very beginning of operation. Save receipts for any equipment or food you purchase, plus copies of invoices that you send to customers and careful records of payment that you receive.
5. Decide whether you will work alone or involve anyone else in your catering business. It can definitely be helpful to have more hands on the job, but it can also make things more complicated from a business standpoint. If you want to have employees, you may need to be a registered official business and you may also incur certain obligations in terms of paying social security tax and providing insurance for your employees. If you don't want to work alone, you might consider setting up a partnership instead, which can be much simpler.
6. Make promotional materials like business cards, a website, advertisements and sample menus. Also, decide how you will price your services. This is a good thing to have figured out before you get your first potential customer, because they will certainly want to know.
7. Let people know that you are going into business and consider offering to cater a few parties for free to get some exposure for your new home business.
8. When you get some business, make a contract detailing exactly what services you will provide. What foods will you prepare, and how much of them? When will you arrive at the event? What type of serving containers will you use? Will you provide any plates, cups, or utensils? Will the food be hot or cold? Will you need any refrigerator space, water or electrical outlets? Will you serve the food, or remain at the event to set out more as it gets eaten? Who will clean up? What is the cost for your services, and when will it be paid?
9. Make sure to show up on time, dress appropriately for the event and provide an excellent quality of food and service.