The demand for catering service businesses is now increased exponentially in big cities like Jakarta and Singapore. Besides providing a potentially decent profit, running this business is also suitable for those who have cooking hobbies.
But your business won’t be successful if you only have your cooking skill. There are many other things that you must prepare so that your catering service can make a decent profit. To help you start a successful catering business, we will summarize what you have to prepare in the following article.
Determine your target market
Increasing awareness of healthy food importance is one main reason for the catering services proliferation. People who want a menu to support their diet program, a special menu for vegetarians, or a menu for sportsmen. These three examples are just a few of various target market that you can choose.
By determining the target market, you will be easier to adjust how much capital fund you need to get your business started. For example, preparing food for office employees clearly costs more than preparing for students.
For beginners, especially if you don’t have a large capital fund, it never hurts to target a smaller market. When you already have your regular customers, you can try to expand and try to offer your business to offices and the likes.
Do some research
A lot of novice business owners neglecting this step. They don’t realize that research is the most important thing to do before running a business. This research includes monitoring competitors, finding suppliers, and monitoring market prices.
Ignoring competition will make it difficult for you to find customers. Not looking for suppliers before opening your business will make it difficult for you to meet customer demand. Carelessly determine your price will make you lose customers.
It is unwise to run a business with a little to no experience at all. Owning a catering service business not only requires you to have cooking skills, but you also must be knowledgeable with financial management, managing employees, and inventory management.
Therefore, it is strongly recommended to find experience by working in a similar business. This will make you experience firsthand the ins and outs of taking care of a catering business. Only then you apply the experience you have to your own catering service business.
Prepare capital and equipment
There is no business that can be built with no capital. You will need capital to rent a place, buy cookware, paying employee salaries, and buying ingredients when you run a catering business.
If you have previously set a target market, researched, and have the much-needed experience, then determining how much capital you need to start your business will be easier.
The previous preparations will also be useful if you plan to ask a loan from a bank. By describing your research and able to project your monthly profit, you can get your loan easily.
When starting your own catering service, maybe you can run your business by yourself or with the help of a family. But this is not the case if what you serve is offices or wedding ceremonies.
At this level, you need other people to help you meet your customer demands. Cooking, food packing, and deliveries will certainly be very tedious if you do it all by yourself.
Catering services are actually quite flexible in terms of employee recruitment. In essence, if you start to get overwhelmed in cooking, add more people to help you cook. If you do not have time to deliver food, add employees and the fleet to facilitate delivery.
Running a business that suits our passion is indeed fun. The catering service business is one of them. But that does not mean starting a business like this can be successful if you only have your passion.
Make the necessary preparations before you start the business that you desire. By making preparations, you not only channel your passion but also make it a potential business and profits.