How To Start Your Own Profitable Catering Service



People with money seem to be on a binge to prove their status and
flaunt their wealth by staging large, catered parties.

As a matter of fact, in some circles of affluence, a party or
social get-together isn't considered an event of any significance
unless it's a catered affair.

With the same kind of reasoning, businesses of all sizes are using
catered lunches, cocktail parties and dinner meetings to build
their images and increase company sales.

It's a matter of keeping up with the competition in promoting a
company and/or product.

On a smaller, but just as busy marketing scale, more and more
working mothers are paying to have catered birthday and graduation
parties, as well as wedding receptions handled by caterers.

The reasons are simple to understand - if she's working outside
the home, today's mother just doesn't have the time or the energy
to do all the planning and staging of a memorable party.

Besides those reasons for turning everything over to a caterer,
working mothers feel a little guilty about the time away from
their children they lose because of their jobs.

Thus, they're ready and willing to make it all up to them by
paying for a lavish party the child will remember for years to
come.

Caterers handle everything from birthday parties for children, to
breakfast in bed, and intimate candlelight dinners for two, to
company dinner parties for 50, and wedding receptions involving
hundreds of guests.

This kind of entrepreneurial business is definitely growing and
becoming more popular with people of all income levels.

An imaginative caterer in a large metropolitan area can easily
gross $150,000 per year, while a small, part time caterer in a
small town can count on at least $10,000 to $15,000 per year.

One small, but very ambitious caterer, is reported to have grossed
$250,000 after only 2 years in business!

You don't need special education or training to be a successful
caterer.

You do need an affinity for people and a kind of intuition as to
what people enjoy in different environmental settings.

A quick survey of successful caterers across the nation shows that
many began with zero capital by working out of their homes.

The basic start-up investment would appear to be around $50, with
some big spenders capitalising their idea with as much as $15,000
in order to get off to a fast start.

This seems to be an ideal business for an ambitious couple to
start and operate with very little capital investment required.

One person can spend his time hustling up business while the other
would do the planning, organising and actual catering.

As with any business, your success will be directly related to the
soundness of your planning, and the working of that plan.

Understand exactly what your clients want, and give him what he
wants in the way of service that reflects upon the client in a
complimentary manner.

Basically, you can start with an advertisement in your local
newspaper.

This advertisement need not be much more than a simple
announcement:

Creative catering, specialising in a personal service.  We can
handle any party or special event from start to finish.  No idea
too small or too large.  Your satisfaction is guaranteed!  Call
us, and let us make your parties worth remembering ... (your name
and number).

Naturally, the first thing you want from anyone calling to ask
about your services, is that person's name, address, and phone
number.

Then, you want to know what kind of party or event they have in
mind.

As soon as you have this information, relax a little bit and
inquire to find out about the person or the company - the people -
sponsoring the party, and their ultimate goals or reasons for the
party.

If it's to celebrate a birthday, graduation, anniversary or a
wedding reception - finding out about the interests, background
and ambitions of the guest of honour will be of value to you in
your planning.

Taking a few minutes to learn everything you can about whoever the
party is for, and the people giving the party, will also make it
much easier to close the sale than any sales pitch or special
persuasive tactics.

People like to talk about themselves, and they especially like to
tell everyone why they're honouring someone, even when they
pretend to keep it a secret who initiated the idea.

So, it's important that you be a good listener, that you have the
ability to get people to talk about themselves, and that you take
notes on the things they tell you.

This same principle applies to business people, regardless of
who's talking to you or the purpose of the catered affair.

The more polished and adept you can become in getting your
prospects to talk about themselves, the more information relative
to their background you can elicit, and the more you listen, the
better your parties will be, and the greater success you'll attain
in the catering business.

You take the information you glean from this first interview and
plan/organise the event on paper.

This means you're going to have to have contacts or at least
working relationships with innumerable service businesses.

If your client wants to stage a birthday party for a 12 year old -
he or she greets the guests as they arrive, makes sure everybody
knows who he is - then what about presents - a soft drink and a
conversation leader until all the guests arrive - the opening of
presents - ice cream and cake - and games to play, a thank you
gift for coming, and a reason to end the party at a pre-determined
time.

Do you greet the guests, does the mother or father, or the little
boy or girl?

Where do you come up with party presents at less than regular
retail prices?

Where are you going to get the soft drinks - your cost - and the
glasses or paper cups to serve them in?

What about ice?

What kind of games to play?

Who'll be the conversation leader?

Will there be a clown or someone special to keep everything moving
according to plan?

Where do you get the ice cream and cake?

What games to play?

How to get everyone involved?

And finally, a feasible and polite reason for ending the party and
sending everyone home ...

All this takes planning, organisation, and if you're going to make
a profit, a definite awareness of cost control.

Get it all down on paper as a proposal to the people who want to
pay you to carry it off.

Figure out your costs, the time involved in putting it all
together, and then get back to your prospect.

Always leave room for changes in your proposal.

In fact, expect them - invite input and suggestions from the
client - and always have an alternative idea in your mind for each
of those on your written proposals.

Discuss your proposal with the client just as you would a script
for a television show, make the suggested changes and ask for a
50% advance deposit.

From there, it's just a matter of following your plan.

Regardless of size or type of party - whether your client is a
working mother or a giant corporation - the format is always the
same: initial inquiry, interview, your proposal, any changes,
agreement, deposit, staging the party itself, and your final
payment.

As mentioned earlier, success in this business comes from your
planning - having a lot of contacts - and working your plan.

An important word of caution:  Try not to get "boxed in" to
setting or revealing a tentative price until you've had the chance
to listen to what the prospect wants, to study your own
capabilities, and to make a formal written proposal.

If a customer wants to know how much you charge - and if you feel
it necessary in order to eventually close the sale - you can tell
him $50 to $100 pounds per hour, plus expenses, and of course,
depending on the type of event the customer wants.

As for how much the average party costs, tell him again that it
varies anywhere from $50 to $5,000!

Always keep in mind that you are a professional, and that if the
ordinary person had your knowledge, contacts and ambition to do it
himself, he wouldn't be calling you on the phone.

He needs your help for any number of reasons.

You specialise in this kind of work or service, just as a doctor
specialises in medicine, and a lawyer in legal matters.

Therefore, you should, and do, expect to be paid accordingly.

Something else - this business thrives on word-of-mouth
advertising - referrals - and thus, is a direct route to the kind
of customers where money is of no concern.

However, in order to gain access to this market, your business
emphasis has to be on service.

This means the capability of handling everything for the customer,
from having the invitations printed and sent out to cleaning up
after the last guest has left.

Businesses and people in the upper income brackets, like to pick
up the phone, tell someone that they want a party on a certain
date, and then forget about it, knowing everything will be taken
care of without further worry or time involvement from them.

Once you've developed your expertise and clientele to this level,
you'll have a business in the $200,000 to $250,000 per year range.

Definitely arrange for a display ad in the yellow pages of your
telephone directory.

You'll probably get 40% of your inquiries from this source alone.

Generally speaking, radio advertising will be too expensive when
compared with the immediate results.

However, it is recommended that you consider these media prior to
special holidays.

Working with restaurants, supper clubs, bridalshops and the
entertainment business in general, can bring in hundreds of
referrals for you.

Rubbing shoulders with, and circulating as part of your area's
civic and service clubs, should also result in more business for
you.

Keep your yes and ears on the alert.

Wherever you go, and with whomever you associate, always be ready
to promote and sell your services, if not on the spot, at least
make a note to follow up when conditions are more in your favour.

Promoting and selling your services will require at least half
your time, and that's why two people operating catering services
are so successful from the start.

The actual selling is quite simple so long as you emphasise the
service and time-saving aspects.

The more time consuming work you can handle for the client, the
easier it's going to be for you to close the sale.

Handing out business cards is one of the least expensive ways to
advertise, promote and sell your services.

One enterprising caterer makes arrangements with the sponsors of
all his parties, to see that each of the guests get one of his
business cards.

Another gives each of his clients a stack of his business cards,
and tells them he'll pay them $25 for each prospect they refer to
him.

He tells them to write their name on the back of the cards, and to
hand them out to their friends.

And then, whenever a person tells him that John or Jane suggested
he call, and he presents the card with John or Jane's name on the
back, this very successful caterer sends John or Jane a $25
cheque.

Another very successful caterer pays commissions to a group of
housewives and students who solicit - via their home phones -
interviews for him with brides-to-be.

They get their leads from announcements from brides to be in the
local papers.

Many caterers pay sales people a commission for letting them know
when they hear about a party or special event being planning by
one of their business customers.

The possibilities go on and on, and are seemingly unlimited.

Time is becoming more valuable to a lot more people every day,
which means there are more and more opportunities for great wealth
and personal independence as a professional caterer.

In reality, the success for just about any person entering this
field will be limited only by his or her own imagination and
energy.

There is definitely a good opportunity for great wealth within the
catering field.

Anyone with a sense of service to others can succeed.

Very little "ready cash" is needed to begin.

Therefore, the only thing standing between you and the realisation
of your dreams, is the action it takes on your part to get
started!

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