How to Open a Catering Business From Home
Catering businesses can be be started for between $500 and $1,000. Just start with the basic kitchen appliances that you own. Later, when your catering business is more profitable, you may consider installing commercial ovens and stoves. You can also purchase a franchise if you want to take advantage of a brand name and training. However, a franchise can cost you over $100,000. Set aside a spare bedroom for your office. That way you can more easily calculate the home office deduction, according to the Internal Revenue Service. The home office deduction is based on the square footage of your dedicated office space.
Other People Are Reading
Things You'll Need
- Vendor's license
- DBA (doing business as)
- Wholesale food supplier
- Business cards
- Fliers
- Menus
Instructions
-
-
1
Create a name for your catering business. Register your catering business as a DBA (doing business as) through your local county administration or city hall office. Apply for a vendor's license through the same office. Get a sales tax collection permit from you state tax department so you can collect sales taxes from customers.
-
2
Open a catering franchise if you prefer. Visit various catering franchise websites such as those listed in the Resources section, especially if you want to focus on corporate lunches and parties or on catering birthday, ice cream or theme parties. Find a large wholesale food retailer like Sam's Club or Costco for your food if you are starting your catering business from scratch.
-
-
3
Apply for a bank loan if you need money for a franchise or food supplies. Call the Small Business Administration and apply for a loan. Prepare at least a one-year sales and profit projection if you apply for a loan through the Small Business Administration.
-
4
Contact other catering services in your area, especially if you are starting your business from scratch. Ask these competitive catering companies what types of foods they offer as well as their prices. Make a list of the foods in which you want to specialize. Choose from among cold meats and fresh vegetables, roast beef, chicken and various appetizers, for example, depending on the event. Set your prices in accordance with the menu, the number of guests and the estimated hours for food preparation.
-
5
Contact corporations in your area to cater business meetings and special events. Leave business cards, fliers and menus with company owners or managers. Call bridal shops, wedding planners, photographers, cake decorators and country clubs for potential wedding references. Place an ad in the both the local print and online Yellow Pages.
-
6
Hire employees as your business grows. Start putting your efforts into growing your business and adding clients. Train employees how to cater parties or events on their own. Find a restaurant location for your operations to handle larger volume of business.
-
1
Tips & Warnings
Make sure you are legally permitted to operate your catering business from home. Contact the health department in your city. They will need to do an inspection of your cooking facilities before you begin your operations. You may also need a certification and additional licenses, depending on the regulations within your state. Also, get some insurance to protect yourself from potential lawsuits.
References
Resources
- Photo Credit Siri Stafford/Photodisc/Getty Images
