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If you’ll be running a solo operation, you’ll need to register as a sole trader — take a look at the government’s guide to setting up as a sole trader to find out how. If you’ll have employees straight off the bat, you’ll have to incorporate as a limited company instead, which you can do on the government website. If you’ve found a gap in the market, it’s important to do one last bit of research before you jump in. You need to decide whether the niche is big enough to give you a steady stream of clients. For example, if there are no corporate caterers in your area, that may be because there aren’t enough companies hosting conferences and meetings to sustain a business.
You may also need to update your homeowner’s insurance since you’re running your business out of your home. It’s not all about how many events you can do—it’s about how many you want to do. Flexibility is part of the appeal of this business model, so it’s up to you to decide what you want your business to look like. Precise cuts that leave flat surfaces make it easier to wrap your cheese in the most effective manner.
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If you are already trading and have not registered, you need to do so as soon as possible. State cottage laws determine where you can sell your homemade food — typically, at farmers' markets, roadside stands, and to individuals. You can make your life easier by having a set list of items from which clients can mix and match to create their event menu. Catering businesses require a great deal of organization and planning skills, plus a commitment to being on time. You can't not show up if you plan to have a successful business.
Be prepared to upgrade your kitchen if you plan on cooking from home. If you’re set on working out of your own kitchen rather than renting a commercial space, it’s important to be certain that you have all the necessary tools at your disposal prior to taking on your first gig. In some cases, this may require you to buy new equipment that can handle the increased output.
Catering and home-based food establishments
However, these laws limit the types of food that home-based entrepreneurs can sell. They also prohibit the amount of money that people can make; entrepreneurs who achieve financial success from their efforts may be required to submit to the same requirements as commercial food businesses. Cottage food laws vary among the states, and those interested in selling food from home should consult their local laws before launching their businesses. Many a food entrepreneur, including Martha Stewart, Debbie Fields – the famous Mrs. Fields – and Paul Newman began their food empires in their home kitchens.
For people skilled in cooking and baking, starting businesses in their home kitchens might sound easy enough, since they already have the equipment and ingredients needed to launch. However, owning a home-based food business has its challenges, including legal requirements and costs, which make some entrepreneurs wonder whether selling food from home is worth it. If you have a passion for feeding people, starting your own catering business from home might seem like a pipe dream.
Which food is most profitable?
If you have a little money to spend, pay for a sponsored ad space to reach more potential clients. Be sure to mention the types of food and events you specialize in, if any. If you try to get fancy or work too far outside of your comfort zone, you run the risk of serving food that’s just so-so, which is a cardinal sin for a caterer. Interview each applicant yourself either in person or over the phone to get a better sense of their character. That way, you can ensure that you’re only hiring professional, trustworthy people. The cost of a liquor license can range from $12,000 to $40,000, depending on the size of your business and intended clientele.
In a crowded market, the more targeted your niche, the more successful you’re likely to be. If there are already a handful of wedding caterers in your area, you could specialise in either formal or casual weddings. In metropolitan areas with lots of competition, you could even specialise in a particular cuisine.
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She has expertise in finance, investing, real estate, and world history. Kirsten is also the founder and director of Your Best Edit; find her on LinkedIn and Facebook. But if you start with small events, you should be able to open your business for less. The field plan review is usually conducted by the investigator assigned to the facility, but occasionally may be completed by senior inspectors or other staff as needed. As you establish a reputation and continue growing your business, you can start lining up bigger and bigger gigs, such as corporate parties, festivals, and music and sporting events.
A cottage industry is a small-scale manufacturing business owned and operated by an individual or a family and often based in a home. Sellers must label products clearly, stating that they were made at home and have not been inspected. Sellers can't offer anything that requires refrigeration, due to the risk of food-borne illness. Will you cook on the client's premises or cook at home and deliver the meal? This could mean buying special equipment to keep the food warm or cold during transport.
If you are delivering food orders, all food must be delivered to consumers in a way that ensures that it does not become unsafe or unfit to eat. There are also rules you must follow when importing and exporting food, and storing or using personal information. HMRC has further guidance on working for yourself and how to check if you should set up as a limited company instead. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.
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As most home-based caterers are just starting out, you probably don't want to have a menu that is full of the most expensive ingredients. Catering clients will expect the markup because they know of all the operational costs a catering business has. By the same token, if you’ve never been to a wedding before, it’s probably not a good idea to go into the wedding catering business.
A field plan review is the process in which the Health Department determines the suitability of the commissary kitchen for the permit approval process. Refrigeration, sinks, layout, and all equipment must meet the standards of the Washington State Retail Food Code. Our trained team of editors and researchers validate articles for accuracy and comprehensiveness.
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When sourcing ingredients, only purchase food from reputable suppliers. Ensure that you are fully aware of where the food has come from. If you deliver food orders, it is important to select appropriate food-grade packaging.
However, it’s totally doable, with one small catch—you may not actually be cooking in your own kitchen. Since the laws in most places prohibit caterers from operating out of a private residence, chances are you’ll need to find a commercial kitchen where you can actually prepare your food. You can then use your home as your headquarters to handle the business end of things, including advertising, order taking, and bookkeeping. Your kitchen will be inspected by the health department twice yearly for food safety, sanitation, and cleanliness. You must pass the inspection to continue operating your catering business. A good score on your health inspection reassures your clients and is often published in the newspaper.
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