how much does the average catering business cost
I am a 17 year old junior in high school and I really enjoy baking and cooking and I want to start my own catering business but I don't know how much money I should save to start said business #high-school
Very good question. First, I would recommend you prepare a business plan that has projections for your costs and growth over a period of time, six months, one year, 18 months, etc., (sample business plans are available online). The plan should include if you will work from your own kitchen or commercial kitchen or a separate location, such as an empty store front. Also, include what you estimate your costs to be, i.e., equipment, monthly rent, business insurance, the amount of capital you need (money available to purchase supplies, food, equipment, business cards, flyers, attorney, accountant, banker, etc. ) I would recommend you start by speaking with an attorney who can advise you as to the legal requirements are for food preparation/food safety you need to be aware. The attorney can also draw up a contract you would have potential clients sign and incudes a breakdown of what is included in your services. The accountant can give you a good idea of the expenses, etc., you need to keep track of. The banker can review your business plan and offer input on other items to consider. Do you need to be licensed or have permits for the state you live in.
Assuming you want to start out small, i.e., catering small events for family and friends to get your feet wet and see what is needed in terms of planning, budgeting for food/decorations, etc., that you will need to use. Create forms and checklist to use. Keep track of all of your costs so you have a better idea of what you may want to charge for your services. You need to cover your costs, but also have money to live on and money to put back into the business so you can grow and expand. If you start out small, you may be able to work from home if you have a large kitchen area and plenty of storage and refrigerator space. If you work from your own kitchen, you could have start-up costs of say $1,000 and of course more, if you plan to have your own free standing location, the costs can vary.
Definitely do your research so you do not have surprises along the way. Good luck.
If you're thinking of starting small, I identified some good starting steps below. I've often thought about starting my own baking business but I don't have the dedication. I admire your enthusiasm and wish you all the best!
Miranda N. recommends the following next steps: