Are you dreaming of owning your own catering business? It’s possible, good news! Many new businesses have found that social media and other technological advances have made it easier to get in. But, it is still important to have a plan.
Market research is essential before anything else, even if you’re thinking of ‘punny brand names’. It is not worth introducing a new catering business into a market that doesn’t need or want it. Look at the existing services in your niche when you do research. Remember that these services will be your competition once you launch the business.
Talk to your local community about whether they require a caterer. What do locals think is going wrong with existing caterers? Are customers looking for a specific service? This could lead to potential market gaps.
This is great news for your business – you can move on to the next stage if there’s a gap.
Create a Business Plan
This doesn’t mean that you should only write goals for your business. You can’t simply write “we will provide catering services for the local community”. Instead, answer these questions:
Where can you find ingredients?
What services are you offering?
How can you promote your business and get exposure?
How do you transport food and other equipment to your clients?
How do you finance this venture?
What is your USP (unique selling proposition)?
What are your chances of encountering problems?
This plan can be used to guide the business and also serve as the document you present to potential investors. These people, be they banks or private investors, need to believe that you have thought of everything. Prospective business owners often leave out potential problems in their business plans. This shows you are aware of the potential challenges and how you will overcome them. Investors will be more concerned about ignoring potential problems than if they are included in your business plan. This is where a business plan consultant can help you.
One example of the questions you should answer is: How do you transport food/equipment? Are you able to drive your vehicle or do you require CVG truck rentals? What budget will you use to cover these costs?
Think About Your Motivation
You need to be mindful of your motivation, even if the business appears feasible. If you lack the motivation to succeed in the business, you will soon give up and move on to the next thing. Make sure you are up for the fight before making any irreversible investments or decisions. You are ready to implement your plan.
Start the Business
You should have surveyed potential suppliers during the planning stage and considered how you would raise funds. This is the right time to put everything in motion. It is time to use your market research, apply for funding, set up social media pages and make your mark on the world. Word of mouth is key in the catering industry. If you do well for one client, they will refer you to others. Register your business as required and comply with all tax rules. You can always reach out to professionals if you have any questions. Your amazing customer service and mouth-watering food will make people smile.