Open Your Own Catering Business - 3 Mistakes To Avoid

Open Your Own Catering Business - 3 Mistakes To Avoid

Catering entrepreneurs make a number of mistakes in their business. The results reach from company failing to depressing revenues or increase costs dramatically. These are three mistakes that are specific to the catering business.

Working in an Unlicensed Kitchen

It is illegal to run a catering business out of just any kitchen, and certainly out of a home kitchen. While you may not run into grief at first, or even for a long time, if someone should ever become sick from your food and you are sued, your insurance company can refuse to cover you if you were operating illegally. Further, you could be shut down by the local health department at any time for working out of an unlicensed kitchen. For an attribute of your business that is so key to its success, make decisive that you take every step to operate on the up and up.

Ignoring the Private / Corporate Balance

If you choose to serve only individuals or only businesses, you may expedite your marketing and save on some expenses in the short term. However, you will find at some point that you are misplaced out on business that will help your kitchen remain utilized more often if you serve only one of these markets. By balancing service to both, you hedge against trends that impact one market but not the other. You can also prevent too much of your business from coming from a few immense area businesses by persuasive private parties as well.

Buying Too Much Equipment

When you launch your catering company, only buy equipment that you are certain you will use consistently. Keep in mind that occasion rental equipment companies take place, and you can build a relationship with a rental company guaranteeing a tune out for your orders. This can make it possible to lower the cost to your customers while expanding their options for chairs, tables, tablecloths, silverware, etc.

If you buy too much equipment up fanfare, you incorporate up a lot of your capital in these assets and may following find out that they are not the pieces that customers price. Operate for a while before buying more than the basic equipment and then only buy the equipment when you see you have had to rent it multiple times. Plan your chief purchases carefully and spread them over time so you can skin them with the company ' s earnings. You should either charge the identical prices for the item ' s use as a rental company would and keep the eventual profit, or charge a lower remuneration if it will revitalize more sales in the long - run.