The decision to start a catering company can be the beginning of a lucrative and profitable business. This form of restaurant-style service can yield a high rate of return, require a minimal amount of investment and has great potential for growth and expansion. In fact, according to the National Restaurant Association's 2009 Restaurant Industry Forecast, social caterers are one of the fastest-growing segments of the restaurant industry. Although current demand for this type of service runs high, there are cost, labor and financial pitfalls aplenty. Planning and developing a clear picture of your business will help you steer clear of some common mistakes.
Find the foodies. As with any business, the most important step is to identify your market. Is your neighborhood packed with corporations, small businesses or production plants? How will you reach them? A flier campaign or email blast may be effective. Or perhaps you will have a vendor cart to tempt hungry people when they pass by. Are you located in a tourist location where an employee could take lunch orders from boaters or other vacationers? Don't overlook conventional advertising such as newspapers, magazines and coupon books.
Put on your face. Determine just what you will look like to potential customers. Will you have a storefront and an on-site kitchen? Or, do you plan to produce your wares and sell them vendor-style? Will you deliver from your home kitchen to the streets of the corporate park, or will customers place an early morning order and pick them up at lunchtime at a designated location? Will you require delivery persons or vehicles? Once you decide the outline of your business it will be easier to color in the identifying characteristics.
Feed the masses. Decide your menu. Since lunch can cover a wide range of choices, narrow yourself down to four or five selections. This will help you control your initial food costs. Include an item that will become a signature dish---a homemade soup or bread.
Register your business. Be sure that you adhere to state, local and Internal Revenue Service guidelines for new businesses. In addition, there may be city licenses and requirements. Contact your local chapter of SCORE for advice and guidance.
Package with flair. Remember that everything that goes out of your kitchen is an opportunity for marketing. Order containers marked with your logo or pre-stamp your bags and cups. Be sure that you have the right container for the job---cups for cold and hot beverages, containers for soup, hot and cold sandwich packaging.
Prepare ahead. Keep track of the amount of prep work that you do, as this will help you to determine future food needs and costs. Keep track of your inventory. Rotate your ingredients, as this will help cut down on waste.
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