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 £150,000 rer year, while a small, part time caterer in a
small town can count on at least £10,000 to £15,000 per year.
One small, but very ambitious caterer, is reported to have
grossed £250,000 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 £50,
with some big spenders capitalising their idea with as much as
$15,000 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 hav% 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 £50 to £100 pounds 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 $50 to $5,000!
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-/f-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
cape 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 £200,000 to £250,000 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
favour.
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 £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.
And then, whenever a person tells him thit 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 $25 cheque.
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! t route to the
kind of customers where money is of no concern.
