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Low - $1,000 (working from your own kitchen)

&10 &11 &20
Start-up Investment


High - $75,000 (outfitting a professional kitchen)
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Revenue $200,000 - $2 million

Profit (Pre-tax) - $50,000 - $1 million
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You can begin your catering service out of your own home, using a spare bedroom as your office. You can use your own kitchen (but be careful about Health Department regulations) or perhaps rent a kitchen in a restaurant, school, or church on an as-needed basis. You needn't employ any full-time waiters or bartenders etc.,there's a whole army of part-time people out there willing to work when you need them. There are very few items you may need to cater an affair that you can't rent for the day, these include china, flatware, glasses, tents...

About the only immediate cash-outlay you'll encounter is what's needed to market your services. You will want to think carefully about what market you want to target and pick your advertising medium to reach that targeted population... If you are interested in catering for weddings, you may want to contact florists, department store heads, musicians, and people in charge of places that book weddings. If corporate entertainment is more to your liking you'll want to contact the corporations in your area (the chambers of commerce should be able to supply you with area names).

Know Which Side Your Bread is Buttered On
(G)astronomical Profit Potential

Whether you plan to cater small, intimate affairs every day, or huge extravaganzas for %0,000 people once a year, the profit margin potential in the catering business is extremely high. Some caters manage to walk away with 66% of pre-tax profits. That figure may seem hard to believe, but when you stop and think about all the ways caterers can keep their overhead to practically nothing it becomes a more credible figure

By far the most important marketing tool you will need to cultivate is word of mouth. Most brides, corporations, etc.,are not going to risk embarrassment by trying an unknown caterer. If you are fortunate enough to have a good reputation when you enter the catering business, i.e., were the chef at a successful restaurant on that in your advertising. If you are starting cold, you may need to be really creative in order to get your business going.

Perhaps you will need to invest some capital in throwing a party of your own and invite the decision-makers from various corporations in your area, or the aforementioned florists, department store heads, etc. These people are not going to risk their equally valuable reputations by recommending an unknown entity -- so give them something to remember and to endorse.

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netbizken

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