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something delicious with your catering business plan!
KEY CONSIDERATION
As you well know, people love
to be waited on. And catered to. The opportunities for catered
affairs may face a bit of challenge in tough economic times, but
it doesn't disappear entirely. There are always weddings,
corporate events, and parties of all sorts. The trick is to
demonstrate that you are the chef to get the job.
STRONGEST ADVANTAGE
Whether it starts small, or
super sized, this is a business that has proved its value again
and again. There is a lot of history you can draw upon.
STRONGEST DISADVANTAGE
Because the catering business
is relatively easy to start, a lot of non-professionals get
involved with it. Your lender will know this too, and will
scrutinize your business plan to make sure you've got the
experience that it takes to succeed.
OVERCOMING THE DISADVANTAGE
WITH YOUR CATERING BUSINESS PLAN
Focus your efforts on a defined
geographic area.
No matter where your business
is located, it is imperative that you define who your clientele
will be. Look closely at demographic information to identify
- Number of people
- Income level
- Educational level
- Ethnic hubs nearby
- Family composition
- Number and location of
competing caterers
... and anything else you can
dig up.
Prove that you have the
marketing background and skill to make the catering business
successful.
Hit the decks running with a
full blown marketing plan ready. More than anything else, this
is what will demonstrate to the lender/investor that you have
what it takes to successfully operate your catering company.
Your lender may not especially enjoy Taiwanese cuisine, but she
will recognize a great marketing plan.
Devote a minimum of 5-8 pages of your catering business plan to
your specific marketing plan.
- Identify your core
clientele.
- Identify the number of your
core clientele in your immediate area.
- Have some initial ads or
promotions developed to demonstrate your skill in this area.
- If you have any celebrity
endorsements, flaunt it.
- Present menus that you have
developed, as well as photos.
- Detail how you will get free
publicity -- this will be essential for your success.
Base your projections on valid,
provable statistics. No pie in the sky here -- it just won't
fly.
OTHER PLUSSES FROM YOUR
CATERING BUSINESS PLAN
This is a business that demands
a broad spectrum of knowledge and experience, from health
department regulations to parking and advertising issues. There
is little on the job training. If you are going to successfully
operate a catering business of any size, know your stuff before
ever approaching a lender or investor.
A catering business plan can
provide the outline. But you need to dig for the local rules and
regs that will affect your business. Prove that you have done
so, and that your business plan takes these rules and regs into
consideration.
Put particular emphasis on how
you will promote yourself as a caterer. It's fine to say that
"word of mouth" will make your business soar, but in truth you
will need more. Print advertising can be devilish expensive, so
look to all the less expensive, and free, marketing tools that
you can find, like articles about your business, promotion at
local Chamber of Commerce events, business fair events, etc.
FOR ADDITIONAL INFORMATION
FOR YOUR CATERING BUSINESS PLAN AND YOUR MARKETING PLAN FOR YOUR
CATERING BUSINESS
For statistical information on
the catering industry for your marketing plan, go to
BizMiner.
At the home page, look for the
search box and enter "caterer". You will be taken to a page
where you can choose between an Industry Financials and Market
Research. You would do well to get both.
These two reports compile information from over 20,000 catering
businesses, providing you with industry averages for all size of
caterer.
Be sure to look in the left
hand column of that page for VIEW ALL REPORTS, then find LOCAL
MARKET VITALITY SERIES. You will find a wealth of information on
your area, with age, income level, housing type, educational
level, etc. -- everything you need to target your customer base
in your catering business plan.
YOUR LIKELY LENDER/INVESTOR
The
SBA
is usually your best bet.
If, however, you are planning
on regional or national expansion, or if this is NOT your first
restaurant, check out appropriate venture capital groups in your
area. And be sure to check out the newest development in venture
capital:
venture lending. For more adventuresome businesses, be sure
to check out
angel investors.
YOUR ONLINE PRESENCE
Odds are that you will want to
promote your business online. Potential guests, as well as
lenders/investors, want to see what you can do. So strut your
stuff. See the best web
host for more information on my preferred web host.
YOUR CATERING BUSINESS PLAN
Catering is too often seen as a
part time business for people with time on their hands. It is
your job to demonstrate that yours is a very serious business,
with very real potential for success.
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