“But when we moved into our new location, at the Hall County Government Center, we opened up a café, coffee shop, and expanded the catering business at the same time. Eric Goldschein is the partnerships editor at JustBusiness and Fundera. I think definitely.”, Burnett notes that, for the catering industry, access to capital is especially important: “Most small businesses fail because they don’t have the capital to get them through the ebbs and flows. Thinking of starting a catering business from home (NY) - what licenses/permissions/permits do I need to start that? Bakeries are sometimes an exception. Here’s another place where having capital at the start comes in handy: If you’re hiring and training staff before they actually work an event, you need to set aside training dollars. If you will be serving alcohol at catering events you will need a liquor license. Despite making things work, she says luck took the place of capital and wouldn’t recommend that path to other future caterers. Just keep in mind that what works for you when you’re starting a catering business might not be what works once your business starts growing. The catering industry attracts a broad range of entrepreneurs. Once you have the type of catering business you want to start in mind, you can move on to choosing a name for your business and defining the entity for it as well. You will need to have … An alcohol license is also needed from the Indiana Alcohol and Tobacco Commission, if the catering business wants to serve wine and beer at catering events. Contact your state occupational licensing or health department to learn what permits you need and any laws you need to abide by. “At the first location, we brought on staff members one by one as we needed people. In addition, as a business, you will need a business license and a federal tax ID. Copyright 2020 JustBusiness.com All rights reserved, How to Start a Catering Business: 9 Steps to Starting a Catering Business. What other necessary actions/steps do I need to take? Step 1: Choose your business name and business entity type. If you want to change that, you might need a DBA or “doing business as” name. Here you’ve got a lot of options depending on a few things, including whether you want to go it alone or not. Skip Navigation Links. States often require training for management or staff who handle alcohol. Her background includes Six Sigma training, and an Information Development career with journalism and creative writing as her passion. Many businesses create price tiers that provide a certain level of service and amenities for various amounts. He has written for a number of outlets including Business Insider, HuffPost, Men’s Journal, BigCommerce, Volusion, Square, RetailNext, Zenefits, and Keap. There are stringent requirements for how your facility handles food. You need to obtain a business license from the state, as well as a food handling license. Since licensing and permit requirements for small businesses can vary among jurisdictions, it is critical that you contact your state and local government to determine the specific obligations of your new business. “At the beginning, you can rent anything you might ever want or need,” she says. You’ll want to register your business and its name with the state you plan to operate in. Step 5: Determine your pricing. Hiring and training staff is something that came organically for Burnett, but that might not be the case for you, so do whatever is best for your business is recommended here. Each offers different protections for the partners and the business. When you do make the plan, it should include quite a bit of research. In most states the Department of Health provides these licenses. In Minnesota, for example, bakeries are regulated by the Department of Agriculture. With a little help, you’ll be delighting guests at parties, events, and festivals in no time. Doing so will give your catering business a solid foundation from which to grow. Part of your business plan for how to start a catering business should also include the vendors and suppliers you plan to use. 1. Business incorporation documents-: Although it is possible to run your business as a sole proprietorship or as a partnership, incorporating your catering business would help to protect you in the event of litigations or law suits. First, you need to think of a business name. The estimated size of the catering industry is about 15,000-20,000 crores in India with an approximate annual growth of 25-30%. Your market research into the needs in your area can go a long way to helping you sustain your business. You need to obtain a business license from the state, as well as a food handling license. For a basic catering operation, you’ll need refrigerators to keep supplies fresh, cooking equipment (including an oven, hob, fryer, and maybe a grill) and food preparation equipment. Ensuring staff have the proper training for Food Certification is often mandatory as well. Look into sourcing all the supplies you need, including linens, utensils, china, even tables and chairs for some events, and of course the food. Step 4: Get all licenses and clearances needed to start a catering business. In this guide, we are going to take you step-by-step through everything you need to know about how to start a catering business. Before you begin catering to clients, you need to register your business with federal, state, and local agencies. Since we were going to have in-house staff as well as catering staff, we had to go through a much more extensive training period.”. 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