Home Business

2. Catering
Start a catering business out of your own home.

If you’re a whiz in the kitchen and you already love cooking for your friends, starting your own home-based catering service could be a great home business opportunity for you.

The demand for catered events has been steadily increasing, as these days more and more corporations as well as individuals are asking for catered dinners, company parties, weddings, children’s birthdays, and small private functions.

Successfully conducting a home-based catering operation takes excellent management and planning skills as well as culinary flair.  Solid organizational skills are a must, and you must be able to handle stressful situations and keep your wits about you in the “heat of battle” if a catering job becomes chaotic, as they frequently do.

You also need to exhibit flexibility and patience, as this is a business notorious for last-minute changes on the part of the client.

You’ll need to have a keen business sense as you will most likely be interacting directly with your clients on an ongoing basis. In this industry, you will live or die based on word-of-mouth reputation.

Catering can be physically and mentally taxing, often requiring long hours in the kitchen as well as constant pressure to meet deadlines. But it’s usually all worth it in the end when you see the smiling faces of the guests enjoying your delicious creations.

As a caterer, you need to evaluate what types of foods you will specialize in and what type of events to service. You need to have a strong eye for presentation so that foods appeal to the visual senses as well as the taste buds. 

You’ll need to come up with a menu selection and determine a good pricing structure.  Menus should reflect a certain theme yet present a good variety of foods that fit the occasion and the varied tastes of the guests. It’s best if you can put together a professional looking brochure that outlines your services and price list to offer to prospective customers.

Startup costs for a home catering business are relatively modest.  First things first, you may have to get licensed from the health department of your city or state, so check with your local ordinances.

If you plan to use your own home kitchen to do light-duty catering, you may be able to get away with spending as little as $2,000 to equip it adequately, or spend as much as $20,000 to bring it to professional standards. You can also consider renting kitchen facilities at nearby restaurants whenever the occasion demands.

Initially, you can also rent equipment, such as knives, pots and pans, utensils, dishware, tablecloths, and serving equipment, in order to cut down on costs. Later, you can buy more of your own equipment when you are bringing in steady revenue.

If you hire additional food preparers in order to assist you, it can be a significant additional expense. And always remember that the cooking skills of anyone you hire reflects directly on your business.

Finally, you’ll need to have a way to transport all your food in mass quanties, either by owning or renting the appropriate vehicles.

As a small home-based caterer who is just starting out, you’ll most likely reach the $30,000 range your first year.  Once you gather a steady clientele, you could potentially take that amount into the six figures as long as your reputation is superb. We’ll just leave you with one tip: remember to keep the hot foods hot and the cold foods cold. Good luck!