HOW TO START YOUR OWN PROFITABLE CATERING SERVICE
People with money seem to be on a binge to
prove their status and flaunt their wealth by
staging large, catered parties.
As a matter of fact, in some circles of
affluence, a party or social get-together
isn't considered an event of any significance
unless it's a catered affair.
With the same kind of reasoning, 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 in promoting a company and/or
product.
On a smaller, but just as busy marketing
scale, more and more working mothers are
paying to have catered birthday and
graduation parties, as well as wedding
receptions handled by caterers.
The reasons are simple to understand - if
she's working outside the home, today's
mother just doesn't have the time or the
energy tm do all the planning and staging of
a memorable party.
Besides those reasons for turning everything
over to a caterer, working mothers feel a
little guilty about the time away from
their children they lose because of their
jobs.
Thus, they're ready and willing to make it
all up to them by paying for a lavish party
the child will remember for years to come.
Caterers handle everything from birthday
parties for children, to breakfast in bed,
and intimate candlelight dinners for two,
to company dinner parties for 50, and
wedding receptions involving hundreds of
guests.
This kind of entrepreneurial business is
definitely growing and becoming more popular
with people of all income levels.
An imaginative caterer in a large
metropolitan area can easily gross $300,000
rer year, while a small, part time caterer
in a small town can count on at least
$20,000 to $30,000 per year.
One small, but very ambitious caterer, is
reported to have grossed $500,000 after only
2 years in business! You don't need
special education or training to be a
successful caterer.
You do need an affinity for people and a
kind of intuition as to what people enjoy in
different environmental settings.
A quick survey of successful caterers across
the nation shows that many began with zero
capital by working out of their homes. The
basic start-up investment would appear to be
around $100, with some big spenders
capitalising their idea with as much as
$30,000 in order to get off to a fast start.
This seems to be an ideal business for an
ambitious couple to start and operate with
very little capital investment required.
One person can spend his time hustling up
business while the other would do the planning,
organising and actual catering.
As with any business, your success will be
directly related to the soundness of your
planning, and the working of that plan.
Understand exactly what your clients want,
and give him what he wants in the way of
service that reflects upon the client in a
complimentary manner.
Basically, you can start with an advertisement
in your local newspaper.
This advertisement"need not be much more than
a simple announcement:
Creative catering, specialising in a personal
service. We can handle any party or special
event from start to finish. No idea too
small or too large. Your satisfaction is
guaranteed! Call us, and let us make your
parties worth remembering ... (your name and
number).
Naturally, the first thing you want from
anyone calling to ask about your services, is
that person's name, address, and phone number.
Then, you want to know what kind of party or
event they have in mind.
As soon as you have this information, relax a
little bit and inquire to find out about the
person or the company - the people
sponsoring the party, and their ultimate
goals or reasons for the party.
If it's to celebrate a birthday, graduation,
anniversary or a wedding reception - finding
out about the interests, background and
ambitions of the guest of honour will be of
value to you in your planning.
Taking a few 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 any sales
pitch or special persuasive tactics.
People like to talk about themselves, and
they especially like to tell everyone why
they're honouring someone, even when they
pretend to keep it a secret who initiated
the idea.
So, it's important that you be a good
listener, that you have the ability to get
people to talk about themselves, and that
you take notes on the things they tell you.
This same principle applies to business
people, regardless of who's talking to you
or the purpose of the catered affair.
The more polished and adept you can become
in getting your prospects to talk about
themselves, the more information relative to
their background you can elicit, and the
more you listen, the better your parties
will be, and the greater success you'll
attain in the catering business.
You take the information you glean from this
first interview and plan/organise the event
on paper.
This means you're going to have to have
contacts or at least working relationships
with innumerable service businesses.
If your client wants to stage a birthday
party for a 12 year old he or she greets the
guests as they arrive, makes sure everybody
knows who he is - then what about presents -
a soft drink and a conversation leader until
all the guests arrive - the opening of
presents - ice cream and cake - and games to
play, a thank you gift for coming, and a
reason to end the party at a pre-determined
time.
Do you greet the guests, does the mother or
father, or the little boy or girl?
Where do you come up with party presents at
less than regular retail prices?
Where are you going to get the soft drinks -
your cost - and the glasses or paper cups to
serve them in?
What about ice?
What kind of games to play?
Who'll be the conversation leader?
Will there be a clown or someone special to
keep everything moving according to plan?
Where do you get the ice cream and cake?
What games to play?
How to get everyone involved?
And finally, a feasible and polite reason for
ending the party and sending everyone home ...
All this takes planning, organisation, and if
you're going to make a profit, a definite
awareness of cost control.
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 - and
always have an alternative idea in your mind
for each of those on your written proposals.
Discuss your proposal with the client just
as you would a script for a television show,
make the suggested changes and ask for a
50% 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, your
proposal, any changes, agreement, deposit,
staging the party itself, and your final
payment.
As mentioned earlier, success in this
business comes from your planning - having a
lot of contacts - and working your plan.
An important word of caution: Try not to
get "boxed in" to setting or revealing a
tentative price until you've had the 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 $100 to $200 dollars per hour,
plus expenses, and of course, depending on
the type of event the customer wants.
As for how much the average party costs, tell
him again that it varies anywhere from $100 to
$10,000!
Always keep in mind that you are a
professional, and that if the ordinary person
had your 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 specialise in this kind of work or
service, just as a doctor specialises in
medicine, and a lawyer in legal matters.
Therefore, you should, and do, expect to be
paid accordingly.
Something else - this business thrives on
word-of-mouth advertising - referrals - and
thus, is a direct route to the kind of
customers where money is of no concern.
However, in order to gain access to this
market, your business emphasis has to be on
service.
This means the capability of handling
everything for the customer, from having the
invitations printed and sent out to cleaning
up after the last guest has left.
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 time involvement from them.
Once you've developed your expertise and
clientele to this level, you'll have a
business in the $400,000 to $500,000 per
year range.
Definitely arrange for a display ad in the
yellow pages of your telephone directory.
You'll probably get 40% of your inquiries
from this source alone.
Generally speaking, radio advertising will
be too expensive when compared with the
immediate results.
However, it is recommended that you consider
these media prior to special holidays.
Working with restaurants, supper clubs,
bridalshops and the entertainment business
in general, can bring in hundreds of
referrals for you.
Rubbing shoulders with, and circulating as
part of your area's civic and service clubs,
should also result in more business for you.
Keep your yes and ears on the alert.
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 in your favor.
Promoting and selling your services will
require at least half your time, and that's
why two people operating catering services are
so successful from the start.
The actual selling is quite simple so long as
you emphasise the service and time-saving
aspects.
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 get one of his
business cards.
Another gives each of his clients a stack of
his business cards, and tells them he'll pay
them $50 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.
And then, whenever a person tells him that
John or Jane suggested he call, and he
presents the card with John or Jane's name on
the back, this very successful caterer sends
John or Jane a $50 check.
Another very successful caterer pays
commissions to a group of housewives and
students who solicit - via their home phones
interviews for him with brides-to-be.
They get their leads from announcements from
brides to be in the local papers.
Many caterers pay sales people a commission
for letting them know when they hear"about a
party or special event being planning by one
of their business customers.
The possibilities go on and on, and are
seemingly unlimited.
Time is becoming more valuable to a lot more
people every day, which means there are more
and more opportunities for great wealth and
personal independence as a professional
caterer.
In reality, the success for just about any
person entering this field will be limited
only by his or her own imagination and
energy.
There is definitely a good opportunity for
great wealth within the catering field.
Anyone with a sense of service to others can
succeed.
Very little "ready cash" is needed to begin.
Therefore, the only thing standing between
you and the realisation of your dreams, is
the action it takes on your part to get
started!
