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HOW TO START YOUR OWN HIGHLY PROFITABLE CATERING SERVICEMany wealthy people like to prove their status and flaunt their wealth by staging large, catered parties. As a matter of fact, in some circles a party or social get-together isn't considered an event of any significance unless it's a catered affair. Having an event catered removes a great deal of pressure from the host or hostess, allowing him or her to focus their attention on the business being discussed or upon entertaining their guests. For the same reasons, 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 and promoting a company or product to the fullest. On a smaller, but just as busy scale, more and more working mothers are paying to have catered birthday and graduation parties, wedding receptions, seasonal parties, and large family gatherings handled by caterers. The reason is simple--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 necessary to create a memorable party. Also, some working mothers feel a little guilty about the time away from their family they lose because of work. Thus, they're ready and willing to make it all up to them by paying for a lavish party the family will remember for years to come. A good caterer should be prepared to handle every type of event imaginable. From a
child's birthday party, breakfast in bed, a small, private dinner party, an intimate
candlelight dinner for two, company dinner parties for fifty or more, to wedding
receptions involving a hundred or more guests, the caterer should be able to design and
successfully execute any style or size meal desired. From formal down to the most casual
of events, the caterer must have a flair for making the presentation of everything from
hors d'oeuvres to the dessert inviting and exciting. The use of such catering businesses
is continuing to grow in popularity with people of all income levels. A survey of successful caterers across the nation has shown that many began with little or no capital by working out of their homes. Their basic startup investment was around $500, with some big spenders capitalizing their idea with as much as $15,000 in order to get off to a fast start. This is an ideal business for an ambitious couple to start and operate with a modest capital investment. One person can spend the time developing new business while the other does the planning, organizing, and shopping. Both can share the work at the event to be catered. As with any business, your success will be directly related to the depth of your planning and the following of that plan. You must determine exactly what your client wants, and fulfill that desire in a manner that reflects upon the client in a complimentary fashion. Begin with an advertisement in your local newspapers. This ad need not be much more
than a simple announcement like the one below: Creative Catering Let us handle everything for you, while you The first thing you want from anyone calling to ask about your services is that person's name, address, and phone number. Next, find out what kind of party or event they have in mind. Birthday? Dinner party? Reception? As soon as you have this information, relax a little and inquire about the person or the company sponsoring the party and their reasons for hosting it. If it's to celebrate a birthday, graduation, anniversary or a wedding reception, asking a few questions relative to the background of the guest of honor will be of value to you in your planning. Taking several 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 would any sales pitch or special persuasive tactics. People like to talk about themselves--especially when describing why they're honoring someone--even when they pretend to keep a secret of who initiated the idea. Thus, it's important that you be a good listener and that you develop the ability to get people to talk about themselves. Also, take ample notes on the things they tell you. The same principle applies to all people you come in contact with in the course of your business, regardless of who's talking to you or the purpose of their conversation. The more polished and adept you can become in getting people to talk about themselves, the more background information you can elicit. The more you listen, the better your parties will be and the greater success you'll attain in the catering business. Take the information you glean from the first interview and organize the event on paper. On your list determine what you will serve, what quantities you will need, approximate cost, additional serving or preparation personnel, decorations, materials you will need to purchase, etc. Consider all the possible expenses you might incur. Total the costs and then add your profit. Consider a hypothetical birthday party for a 12-year old. Write out a proposed plan for the event like the following: 1) Guests greeted by the honoree as they arrive Following the development of a basic outline for the event, make a detailed analysis of each step and how you will accomplish it. Will there be enough seating for everyone, or will you need to arrange for the rental of chairs and tables? Who will pick these things up and get them set up at the event site? Where are you going to get the cake? Will you bake it or have it made elsewhere? What will your cost be? Will you serve on disposable plates or a washable setting provided by your service? Plastic utensils or flatware? What will the costs be of disposable materials? Glass or disposable cups? Cost? If in winter, will you serve a hot beverage with the cold, or cold alone? What about ice? Who will direct the games? Where can you hang the pinata? Will the magician be present the entire time to help keep everything moving according to plan? What will his fee be? Where do you get the ice cream? Where do you come up with party favors at less than regular retail prices? How will you get everyone involved? And finally, how long will you need to clean up after the event and who will help? Prepare the information in a presentable manner, typed on a single sheet with the estimated costs to the client listed beside each item. All planning requires foresight, attention to detail, a definite awareness of cost control, and careful organization if you're going to make a profit. You're going to need to have contacts or a relationships with numerous service businesses who will be able to help you meet whatever needs arise in the planning of a each event. 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. Always have an alternate idea in your mind for each of those on your written proposals. Discuss your proposal with the client and hone your plan just as a writer does a script for a television show by developing the basic outline and making the suggested changes in consultation with the director and producers. After settling on a plan, require a fifty percent 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, development of proposal, second interview and changes to plan, agreement, deposit, staging the party, and your final payment. As mentioned earlier, success in this business comes from your planning and having enough contacts to bring your plan to reality. An important word of caution: Try not to get "boxed in" to setting or even revealing a tentative price until you've had a 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 dollars per hour plus expenses, depending on the type of event the customer is holding. As for the average cost of a party, again tell him 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 the 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 specialize in this kind of work or service just as a doctor specializes in medicine or a lawyer in legal matters. Therefore, you should expect to be paid accordingly. Remember that this business thrives on word-of-mouth advertising. These referrals are a direct path to the customers to whom money is of no concern. However, in order to gain access to this market, your business emphasis has to be on service. You must assure the client that you have the capability of handling everything for him-- from having the invitations printed and sent out to cleaning up after the last guest has departed. 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 involvement by 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. Arrange for a display ad in the yellow pages of your area telephone directory. You'll probably get 40% of your inquiries from this source. Generally speaking, radio and television advertising will be too expensive when compared to the immediate results. However, it is recommended that you consider these media prior to special holidays. Working with restaurants, supper clubs, bridal shops, and the entertainment business in general can bring in hundreds of referrals for you. Working as a part of your area's civic and service clubs should also result in more business for you. Remember to keep your eyes and ears open at all times. 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 favorable. Promoting and selling your services will require at least half your time, and that's why having at least two people operating your catering service will help you get started quickly. The actual selling of your catering service to prospects is quite simple so long as you emphasize the service and time-saving aspects of your business. 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 got one of his business cards. Another gives each of his clients a stack of his cards and tells them he'll pay $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. Whenever a person tells him that John or Jane suggested he call and presents the card with John or Jane's name on the back, this very successful caterer sends John or Jane a $25 check. There are many other methods for promoting your business. Another successful caterer pays commissions to a group of housewives and college students who solicit interviews for him with brides-to-be via their home phones. They get their leads from announcements, and pictures of future brides in the local papers. Many caterers pay sales people from other companies a commission for letting them know when they hear about a party or special event being planned by one of their business customers. The possibilities are unlimited. Time is becoming more valuable to people every day. This means there are more
opportunities for the professional caterer to aid these folks in the successful hosting of
a wide range of social events. There is the definite opportunity for great wealth within
the catering field. The success potential for any one person entering the catering field
is limited only by his or her own imagination and energy. Anyone with a sense of service
to others can succeed. Very little "ready cash" is needed to begin. The only
thing standing between you and the realization of your dreams, is the action it takes on
your part to get started. Take that first step today! |
