There are many people who cook exceptionally good food. For them cooking is an art form and they find the true joy when people really love their food. If you are also one of those kinds of people who cook really well, but you just cook for your family, then it is time to change. Do you anytime think that these cooking skills of yours can earn some extra income for your family? If you have never thought in that way, then give it a try. Starting a catering company is a good choice for housewives and for those women who do not like stepping out of the home to work.
In this article, you will learn about various points in catering business in details such as:-
- How to start catering business
- Catering business checklist
- License required for running a catering business in India
- Catering business plan and various ideas such as location selection for your business, investment required, etc.
- How to market your business
- Do’s and Don’t in catering business
How To Start Catering Business – Legal Formalities & License Required
At first you have to register your business in India. To register a catering business, you have 3 options which is given below:-
- Register As Private Limited Company – Registering your catering business as Pvt. Ltd. Company is recommended because in this type you don’t have to convert it into anything else in the future like LLP and One Person Company. If you have registered as one person company then you have to convert it into pvt. ltd. if annual turnover crosses INR 2 crores.
- Register As Limited Liability Partnership (LLP) – You can go with LLP registration if annual sale would be less than INR 40 lakhs.
- One Person Company – You can also register as one person company but you have to convert it to pvt. ltd. company if annual sales turnover is more than INR 2 crores.
License Required For Starting A Catering Business In India
For starting a catering business, food business operator license is required from FSSAI(Food Safety & Standard Authority Of India). You can apply for this food business license in local FSSAI office in your state. You have to submit your business registration or incorporation documents plus your address and identity proof documents. Please visit this link for more information.
Also Read : How To Start Restaurant In India
Know the items that you need for the catering business
You should first understand about what is the equipment that you already have and what is to be purchased. There are so many things that you will need when you start this business like the dishwashers, freezers and many other things. So, make a list of this that are really necessary for your business and then get those who you do not have with you. As a start up business plan something for a few people and get the items accordingly. Later you can accept the bulk orders and buy items for that.
For catering business in India, almost every thing is available on rental basis. You much check for required equipments on rental basis first, after that you can purchase your own if your budget allows you to do so.
Know about the niche in demand
You should know about the food that is in demand in your area, only then you will be able to serve the best way. You can also concentrate on something that you excel in and something that has been ignored by your competitors. That is how you will be able to make your own space in the market of catering. As there are so many people already in the business, you should show something that you excel in.
Know the menu that you can offer
You should first be able to know and understand what you will be able to offer to your customers. When you can plan what you can offer, then you will be able to offer those services perfectly. Make sure to price them in the right. Even if it is your signature dish, if it is priced too high or too low, then it can hardly make income for you. So, understand the market before you enter into it.
Know about your initial investment
For about another three to six months, you will have to spend a little from your pocket and you should be ready for this. So, have some estimate about it and plan it accordingly. You should not lose anything just because you cannot manage these six months in the start up.
Know about presentation
Catering is not all about cooking and serving. The way you are going to present the food is going to grab some orders for you. So, you will have to concentrate on presentation skills as well, which you did not bother about at your home. Always present the food in the right way.
At the initial stage, you may not be able to cater to a big fat wedding, but you can cater for a small get together party of 50 members, a small birthday party or something which needs food for 40 to 70 members. This is a good start for sure.
- Check your competitors menu and pricing
- Get attractive formal dress for your staff members
- Cook 15% extra food in every occasion
- Register your business and get license
- Clean the cooking area before and after party
- Market your business locally
- Use online marketing techniques and create your business website
- Don’t hire staff member on monthly basis
- Don’t overprice
- Don’t buy utensils when you can get in rental basis