A Short Guide to Starting Your Own Catering Business

If you love to cook, and you live to entertain, you may be primed for a lucrative career as a caterer. Owning a small catering business is one of those rare entrepreneurial endeavors where you can truly do it your way - from what gigs you take, to where you operate and what kind of food you serve. Some caterers make Southern BBQ from their backyard, while others rent a professional kitchen to turn out fine, haute cuisine. It's up to you. 

But before you enter the wild world of catering, here's a short guide containing a few of the key steps to get you there successfully.

Look for Blind Spots in the Market

Market research is key when starting any business. You have to look at the existing market, determine what areas are saturated and what areas are underserved, and then dig deeper into those underserved areas. Once you have a pretty good idea of the demand out there, you can carve out a niche for yourself: caterer specializing in Filipino food for weddings, for instance.  

Get All Requisite Licenses

Following your local regulations, acquire any and all licenses you might need. This page gives you a good understanding of the required licenses, including Food Safe approval, Food Inspection, and liquor permits.  

Brush Up on Finances

A small investment in QuickBooks or some other tax software, as well as a few internet tutorials on accounting and finances, will do wonders for your business. Of course, if you prefer to outsource the accounting end of the business to a professional, no one will fault you; just make you budget for their services when you write your business proposal. 

Create a Menu Repertoire 

Creating a set menu isn't as important as creating a repertoire of foods you are comfortable cooking. If you can make a mean crab cake but you are also proficient with Thai flavors, when the opportunity presents itself, you will be able to make a Thai crab cake. The possibilities are endless. Of course, to back that up it's important to have a few stellar, signature recipes in your back pocket. 

Test Your Food With Friends

No friend will pass up free food, and it gives you a great opportunity to test what is working and what needs improvement. Encourage honesty over placation, and constructive criticism over simple "yes" or "no" answers. 

Lease a Business Fleet

Transport is important to any catering business. Rather than buy a fleet, which can throttle your cash flow and put you at a tax disadvantage, it's better to lease your vans. When you choose a leading leaser like Auto One for your business fleet the dealership can also act as a one-stop-shop, so you can outsource all your servicing, detailing and upgrading to the staff. 

Hire Staff

Finally, you need people in your corner - friendly, hardworking, punctual people who believe in your business. Some small business analysts maintain that it's best to use temp staff until you can build up a steady business. That's not a bad idea. But make sure to go through a reputable temp agency and vet the candidates; one disgruntled line cook or waiter can tarnish your fledgling business image. 

Catering can be fun, rewarding and yes, even lucrative. Follow these key steps and you'll be cooking up cash and delicious meals in no time.