The question that sparks most curiosity in a new business is, how much will it cost to start? One of the advantages of catering is that you can actually contain the related costs. It means that the initial costs can be minimal. Most experts agree that you can even start with as little as $5000. Yes, this is a very realistic idea. Part-time caterers in small towns and villages are prime examples. Although, a preliminary cost depends on how much you are willing to spend.
A simple answer to this complex question is anywhere from $5000 to $100000, depending on what type of presence you prefer. If you decide to open your catering business in your house kitchen, you will not incur extra charges. Yet, if it is a high profile establishment with high advertising budget, it may cost you around ten grand. What are the essential components, this cost will cover? Mostly it is buying kitchen equipment, delivery vehicle and licensing costs.
Did you consider how you plan to deliver? A van or a small pick-up truck will do the trick. It is better, if you have your own transportation. If you don’t have one of these delivery trucks, than it can add to your initial costs. Experts recommend that the best idea is to trade your vehicle and buy something that you can deliver on. Trading your car will save you a lot, on costs. It might even cut down on your expenses. How? If you own a new car, it can be traded with a pre-owned truck or a pickup which costs less. Another idea is to hire a vehicle for delivery. There are many rental outlets that will provide you an extra discount on multiple hire. One or two months into the business, you can get your own truck.
You can either use your own kitchen for gourmet catering or you may want to rent a kitchen from a restaurant. Many restaurants will provide their facilities for hire on off-peak hours. Talk to a catering association in your locality and they can guide you to a shared kitchen facility, used by other caterers. Apart from the kitchen, delivery and serving equipment, you should not incur any large expenses. Of course, computers and office equipment can be added on at a later stage.
The costs of establishing a successful catering business can vary depending upon how you want to approach the field. Some business owner includes human capital and insurance coverage costs while other excludes certain variable costs. Whatever the case may be, a rule of thumb should dictate an initial cost for a smaller set up to be around two hundred to three hundred dollars, a day.
