1 Getting Started
Getting Started: The Possibilities and Legalities
No matter which option you choose, be sure to have adequate capital to ensure your success. Expenses are ongoing, and you should have a minimum of six months of operating expenses as backup. It may take some time to build up a consistent clientele. Creating a business plan is essential to predict costs and profits.
Three Startup Up Options
- Start From Scratch
- Purchasing an Existing Business
- Buy into an Existing Business as a Partner
Disadvantages vs. Advantages of Each
Start From Scratch
- Get known locally
- Start part-time or full-time
- Build a positive reputation
- Can be low overhead
- (if renting space) could rent a restaurant or other licensed facility when it is closed
Purchasing an Existing Business
- Money (need a down payment and operating costs)
- Long Hours
- What kind of reputation did they have? Sometimes they are hard to overcome if not positive.
- Usually cheaper than starting from scratch.
- It should come with a current client list.
- May be able to train with current owners, if desired.
- Check with lawyers
- Non-compete clause is a great idea
- Confirm items included in sale and list in contract
Buy in as a Partner
- Learn the business with a partner who may be more knowledgeable.
- Business partner compatibility is a must.
- One partner may lose interest, so it is important to have legal agreements in advance.
- It is VERY important to have a complete contract/legal understanding ahead of time when buying in with a partner.
On-site catering vs. Off-site catering
Off-site catering requires mostly mobile and portable equipment since the caterers are working in a location that typically lacks a full kitchen. This means bringing in items like portable ovens, hot boxes to keep food warm, insulated containers for cold items, and generators for power. Water supply may also need to be transported or sourced from tanks, and sanitation setups, like portable handwashing stations, are often necessary. Transport vehicles must be well-equipped to carry everything safely and efficiently. Often, food trucks are used for transport and for preparing or completing food on site. Planning for off-site catering must be complete so that all needed items are brought to the site.
In contrast, on-site catering takes place in a location with an existing kitchen or food prep area. Most of the necessary equipment—such as stoves, ovens, refrigeration, and dish washing facilities—is already available. This reduces the need for transportable gear and allows for more flexibility in preparing and serving food and making backups on demand.
