A catering business can start as small as your home kitchen and grow into quite the lucrative enterprise. The start-up costs for this business are determined by the size of the events you wish to cater and what food and other supplies your business will provide guests. A small home business will obviously have smaller start-up costs than a commercial facility catering large events.
Kitchen Equipment
Food preparation equipment such as knives, mixers, ovens and food-grade counter tops are essential for any catering business. The initial costs of these items can vary according to the size of your catering enterprise. According to Power Home Biz's website, if you're starting a small catering business from your own kitchen, the start-up costs for equipment could run about $1,000, whereas setting up a commercial kitchen could cost as much as $80,000. You can also rent necessary kitchen items, such as portable walk-in freezers, to limit your start-up costs. And, depending on the nature of your business, you may also rent or buy items such as dishes, glasses and table linens.
Licenses and Fees
As the operator of a food service company, you are required to secure licenses for the safe preparation of edible goods with the Department of Health in the state in which your catering business intends to operate. You may also be required to secure a license to collect sales tax and obtain a business license from your state's Department of Commerce. These licenses run about $100 each, although if your catering company intends to serve alcohol, you'll need a license to purchase and distribute spirits, which can cost as much as $10,000, depending on your state.
Transportation
Whether you're preparing food in your own kitchen and transporting finished products to the venue or cooking at the venue itself, your catering company still requires a mode of transportation that can get you and the food there in one piece. A van is the logical choice as a start-up vehicle for your catering company. It is has room for storage and enough seating for you and a couple of employees. You can lease a van for a lower monthly fee than purchasing one, though it may make more sense to purchase the vehicle for the bigger tax deduction at the end of the year.
Advertisement
Word of mouth alone isn't enough to get the word out about your new business. Advertising start-up costs can be as small as advertisements in a local newspaper or Sunday church bulletin. You may also wish to create a profile for your catering business on several social networking sites. The accounts are free and they allow you to spread the word about your business through existing friends and business connections with the speed of the Internet.
Technology
A computer for bookkeeping, catering order management and general file keeping is a necessity. Incorporating a combo fax-printer and Internet connection can allow clients to send catering queries in real time, which can shorten the turnaround time for you to come back to them with a final price.
