Are You a Home Chef? Fulfil Your Entrepreneurial Dreams!

Are you an entrepreneur looking for some business ideas with low capital investment? If you like to cook and like to entertain, starting a catering business might be the right choice for you. It can easily be operated out of your home. While there are no sure-fire recipes for success, a strong determination apart from your culinary skills can make your enterprise take off.

Many food businesses have started because of Covid-19 because a lot of people are finding themselves at home, or potentially out of work. Many are working out of their home, doing everything from baking, taking orders, packaging, and finally delivering themselves. Catering is not affected by the downturn in the economy. People love to eat, whether the times are good or bad!

There are many success stories in India of visionary business leaders who have turned their home-based catering businesses into a national enterprise. Mrs Bectors, a Ludhiana-based company, went from a home-kitchen to being a household name. There are many other examples of entrepreneurs who have started small, maybe a tiffin service, and grown tremendously over the years.

Your catering business ideas from home can provide for the following events:

1. Parties for rich clients.

2. Providing business lunches at company meetings.

3. Birthday parties.

4. Wedding receptions.

5. Picnics.

And more.

As a caterer, you will plan interesting menus with visually appealing presentations. You can start small by catering to a few events using one or two helpers, and test the ground. You have to cook the food, deliver it to the event, serve it, and clean up after the event. There are a number of things that you need to consider before you get your catering business off the ground.

1. Get Some Experience

Do you have any experience hosting parties, or are you the one who just enjoys an outdoor event? Catering is more than just cooking. It involves many functions like managing people, logistics, etc.

You will need a lot of organisational, record-keeping, and time-management skills.  If you don’t have any experience in the catering business, you would do well to work with an established caterer and gain knowledge about this trade.

2. Make a business plan

Having a business plan is the key to any business. To begin with think about your target audience and the size of your business. If you want to start in a small way, you should aim at catering for events that have less than 50 people. It is a good idea to form a joint-venture with other chefs, or with people in the same line of business.

Your business model should cover all your investment costs and expenses for the first few months. Only after identifying your potential customers should you think about starting a business. Also, be sure that your home has enough storage facilities.

3. Know about the business regulations and licenses

Apply for a business license if your state requires it, and find out about the necessary laws and permits. You have to apply to your state’s licensing board for a food preparation and service permit. If you plan to serve alcoholic beverages, you must take permission from your state’s excise department. It will be a good idea to take insurance coverage; it will protect you from any liabilities in case of any incident.

4. What types of food can you sell?

Decide what type of food you would like to prepare and choose those that will fit the market. You can focus on a niche food for certain kinds of events so that you can do targeted advertising and also keep your overheads low. Good choices include chicken or fish dishes, and baked goods like cakes or cookies. Get authentic feedback from clients, and work on the negative ones.

Some lucrative events include business parties, family reunions, and weddings. Your food inventory will be easy to control, because in most cases, you will know well in advance, how many people you would be cooking for.

5. Costs

Your start-up costs will depend on how big you want your business to be, and what equipment you already own to help you get started. You have to invest in one large van for the transportation of your catered goods. If your business grows larger, and you have to supply desserts or ice-creams at say, weddings, you may need a refrigerated truck. It can also increase the area of your business because now you can drive further, and reach more customers.

If you are confident of starting the catering business on a large scale, you will have to arrange the necessary capital and distribute it well.

6. Kitchen Equipment

Your start-up equipment includes utensils and kitchen equipment. You would need the right equipment to offer your client excellent service. You can keep your initial costs low and save money, by renting equipment instead of buying. You can also purchase used equipment, and delay your spending until you get your first contract. Your must-haves include bowls, pots, pans, utensils, knives, ovens, gas cylinders with burners, warmers, etc. Dishes and bowls will also find a place in your purchase list.

7. Presentation

Do you have the ability to make the food look fancy? Making the food look drool-worthy is very important in this line of business. You should keep abreast of the latest trends in food and party ideas.

You should have presentable serving dishes and trays to use at events.

8. Learn how to advertise your business

In this line of business, if you don’t advertise, you will struggle to get your venture off the ground. The most effective method of advertising is word-of-mouth. Catering depends on one hundred per cent on customer satisfaction. Word-of-mouth is where most catering businesses succeed or fail. If you make an event successful, that will surely bring you more future business.

There are a variety of other ways to advertise, including using your local newspaper, going online, and advertise through various social networks. You can also build a website for your catering business. The website can provide ways for your potential clients to contact you, such as, by giving your phone number or email address. There are many home-food distribution apps out there in which you can register. You can get a lot of orders from within your community.

Your client can be a group of people with something to celebrate. So, make sure that you plan something interesting, to make that day memorable.

9. Create your own brand

Give a catchy name to your business. Your brand should reflect the type of food or service you offer.  Create an Instagram account, and take and post photographs of everything that comes out of your hands. Make sure that the lighting is spot-on.

10. Safety First!

Customers show more confidence in home establishments with hygiene and safety factors in place. In the backdrop of the pandemic, you and your staff should follow all safety protocols. Wearing masks and gloves, and a touch-less service will help you gain the trust of your clients.

Pros and Cons of a Home Catering Service Business

Pros

• It provides the opportunity to market your business very easily. Because your potential customers are eating your food!
• It is the best job for amateur chefs.
• There is enough room for small operators.
• It gives you the flexibility of scaling up at your own convenience.

Cons

• This business is definitely not for those who don’t know the first thing about cooking or preparing food.
• You have to be creative to present the food in a fancy way.
• Those groups of people who are not honest, reliable, or trustworthy, will not be successful in this business.

There is a growing market for healthy, tasty, and well-prepared food, cooked at homes. A huge demand-and-supply gap exists in India, especially in Tier-2 cities like Lucknow and Nagpur. A catering business is one of the few business ideas that you can execute right from the comfort of your home-and earn handsome profits in the process!

Also read:

1) How to Open a Restaurant? 10 easy steps to help you open a Restaurant of your own!
2) Top 10 Businessmen in the Industry & What You Can Learn From Them
3) Top-5 markets in India every businessperson should visit
4) Where to Get a Small Business License?
5) OkCredit: Simple, Paperless & Secure solution for businesses

FAQs

Q. Do you have to register your business?

Ans. Depending on the turnover of your business, you might have to register with the Food Safety and Standards Authority of India (FSSAI).

Q. Can I gain a bank loan for my home catering business?

Ans. If you get your business registered, it will be easy for you to get a loan for small businesses.

Q. Can I get training from any institute about catering?

Ans. There are a number of hotel management institutes that will give you the necessary training about food production.