4. SETTING UP - Basics
The catering industry is regarded as quite labour-intensive and highly profitable – you have to work hard but it pays well.
Other barriers to entering the catering industry include initial start-up costs and licensing regulations and insurance.
It is much cheaper to start a small or home-based or medium-sized catering business. This will mean that you can only supply smaller businesses or private functions. But you will save greatly on equipment, supplies and staffing costs.
Starting small can help you learn where you can be most profitable in your business. You will learn how best to estimate the costs and time involved in supplying catering services, any problems encountered will usually be of a smaller scale, enabling you to iron out the bugs before they become insurmountable and it will give you the opportunity to demonstrate what you are good at - which can lead to further business through word-of-mouth recommendations.
Making it Work
Many new businesses fail in the first few years of operation because of poor planning and management.
No business reaches its potential without proper planning. Planning helps you identify what you can achieve and how best to get there. It can help you determine how much start-up cash and other resources you will need and how best to use them.
What are the entry barriers to starting your catering business and how do you plan to overcome them?
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