How To Start Food Business From Home – Can I start a catering business from home? Benefits of Catering Business from Home Catering Business Catering Business from Home Catering Marketing Food Business Start a Catering Business June 30, 2021
It seems like you have almost everything to create a successful food business – exceptional culinary skills, attention to detail, innovative recipes, people who support your passion. All that’s left to do is make it happen. But you have no idea how to start. So you start your research with this vital question – can I start a catering business from home?
How To Start Food Business From Home
To give you a short answer – yes. However, you should prepare yourself for a roller coaster ride because it is a little more complicated than you think. Starting a home catering business is a rewarding but challenging endeavor. But don’t worry, I’m here to break it all down for you.
How To Start A Food Business From Home
Despite our current industry situation, catering is among the many food businesses that continue to thrive. The reason is simple – people cannot live without food. We, as humans, crave interaction and great food. And that’s what catering is all about!
Indeed, catering is a great business to look into as it offers many benefits such as:
Working at your own pace and time is one of the most obvious benefits of being a caterer. Unlike the typical work day when you work from 9 to 5, catering allows you to manage your schedule freely. You don’t have to stick to certain work hours because guess what, you are your own boss! You can take a day off if you need to and then hustle all week.
Running a catering business gives you lifelong learning. In time, you will be surprised how good you are at cooking and all things creative. Because you are always on your feet – preparing and serving food, organizing large events, overseeing large groups, traveling from one place to another – you are constantly learning. As a result, you accumulate creative ideas, cooking techniques and catering hacks that greatly help you grow as an entrepreneur.
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Since you are not confined to a specific place and you are constantly moving around, you make a lot of connections. You’re likely to meet acquaintances and make new friends with every booking you make. Whether it’s a customer, vendor, staff, competitor, fellow food entrepreneur – there’s always another person to add to your network.
According to IBISWorld, the market size of the catering industry is likely to increase by 2% this year. These figures prove that there is growth and profit behind the catering business – it’s no wonder we have so many ambitious caterers across the country.
But you must remember that it is still your responsibility to maintain the profitability of your catering business. With that said, you need to regularly check your numbers to make sure your winnings don’t just disappear. Learn about the different ways you can improve your profitability, such as reducing your costs, redesigning your menu, empowering your sales team, and so on and so forth.
As I mentioned before, it really is possible to run a catering business from the comfort of your own home. It can be a bit of a struggle, but it is quite possible. You just need to consider the following legal considerations:
How Start Food Business From Home And Things To Keep In Mind
First of all, you need to decide on a specific business structure to register your business with the state. The following permits and licenses that you need to obtain in the future will be greatly affected by your business structure. So choose wisely. There are four main business structures that you can choose from. They include:
A sole proprietorship is the business structure that is automatically assigned to you if you conduct business transactions but do not register as any type of business. It is easy to set up and allows you to have full control over your business. This type of business is ideal for those caterers who still want to test the waters before moving on to a larger and more formal business.
This business structure is ideal for businesses with multiple owners. So if you are setting up your catering company with another person, perhaps a friend or family member, a partnership is the way to go.
The LLC is the most common and recommended business structure for small and medium catering businesses. Why? Because an LLC allows you to use both partnership and corporation structures! An LLC gives you the legal protection you need because it primarily protects you
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The costs of forming a corporation are much higher than other business structures. If you have just entered the catering industry and you have a tight budget, I advise you to pass this type of business now.
Food handling and preparation regulations vary from country to country. Therefore, the best thing to do is to contact your local health department and secretary of state to learn more about the paperwork that you need to complete before starting your home catering business. But in most cases, food businesses are required to have a general business license, zoning license and health permits.
Many states restrict the use of residential kitchens as dining establishments. And unfortunately, even if your state allows you to use your home kitchen to run your catering business, there’s still a lot of work to be done. Because now you will have to spend a huge chunk of your financial resources on kitchen renovations and new catering equipment to meet the regulatory standards set by your local health department.
But on a positive note, upgrading your space, tools and equipment is a big boost to the overall quality of your business. After all, a well-organized kitchen will lead to a better cooking experience and top-notch food.
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Now that you’ve basically answered your initial question, “Can I start a home catering business?” There is one more thing to think about – marketing your catering business. Because the fact is that you can have the most modern kitchen equipment and an impressive range of dishes, but your business will never grow if you receive several bookings from customers. That’s why your marketing strategy is just as important as your niche market and final menu. Effective marketing generates leads, customers and sales.
Here are some marketing ideas that can help you get ahead of the competition and attract more bookings:
Word-of-mouth, or WOM, is a timeless form of advertising that novice and seasoned caterers swear by. It’s easy and best of all, it’s free because people promote your products/services the way you want! But of course, first you have to do some things that will catch people’s interest. Which means you have to trigger noise. For example, you can post a creative, eye-catching photo of your catering setup from your last booking, or you can also share an impressive review that a customer left on your website. The goal is to make a striking impression among your audience.
Finally, you can reward people who refer others to your business. By doing this, you will be able to get more qualified leads and develop meaningful customer relationships.
How To Start A Catering Business From Home
I truly believe that every food business should create a website. Because in this age where most transactions are done online, not having a website is a huge missed opportunity.
A website with impeccable search engine optimization (SEO) allows you to reach a wider audience, better online visibility and ultimately an increased return on investment (ROI). So don’t worry about investing in SEO. This will undoubtedly help your business grow in the long run.
This is something I personally used to do when I was still running my own restaurant and catering business. I let people try some of our best selling menu items for free and return to them in a few days. And trust me when I tell you it works! Everyone. Not married. Time. I was able to capture many of our bookings back with this marketing strategy.
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So, if you are sure of the quality of the food you put on the table, never hesitate to organize a free tasting! Let your exceptional food speak for your brand.
Starting A Food Business From Home
Food businesses of all sizes use today’s leading SM platforms such as Facebook, Instagram, Twitter, LinkedIn, YouTube and Pinterest to promote their services. And you should too! The social media sites can give you quick progress when used.
To build a solid social media presence, you need to learn the benefits of each SM site. Facebook is where you will find most of your potential customers. And not to mention it offers some of the most accurate targeting in terms of paid advertising! No doubt why he is called the king of social media by Oberlo. On the other hand, IG is the perfect platform to showcase your delicious dishes and gain more customers. Exploring the world of SM is the key to expanding your brand into a more diverse market.
Networking is one of the best ways to establish valuable relationships with vendors and other local business owners while attracting new leads. Really, it’s like hitting two birds with one stone. Reaching the right connections can open countless doors of opportunity
