Do you want to know exactly how much it cost to start a catering business? If YES, here is a detailed cost analysis for starting a catering business and raising finance.
Having provided you with a:
- Catering Industry Overview
- Market Research and Feasibility
- Catering Business Plan
- Catering Service Marketing Plan
- Catering Name ideas
- Catering Licenses and Permits
- Cost of Starting a Catering Business
- Catering Marketing ideas
We will consider how much it cost to start a catering business from scratch including the operating costs.
How Much Does It Cost to Start a Catering Business?
Starting a business on a small scale is a good thing. You do not have to want to start big to make it big. As a matter of fact you may choose to start on a small scale, and before long with consistency and hard work, your business can scale into being a medium sized business. There are some things that should be considered they include the following;
- The Total Fee for Registering the Business in America: $750.
- The budget for Liability insurance, permits and license: $5,000
- The Amount needed to acquire a suitable Facility with storage space for 6 months in Chicago, Illinois (Re – Construction of the facility inclusive): $70,000 but could be higher when looking to run a medium to large scale catering business.
- The Cost for the purchase of furniture and gadgets (fridges, TVs, Sound System, tables and chairs et al): $15,000. This could definitely be more if you decided to run a medium to large scale catering business.
- The Cost for Catering Equipment (Standard commercial oven, Industrial Gas Cooker, Baking Sheets and Racks, Mixers, Work Tables, Sinks, Slicers, Scales, Cake decorating Tools, Ingredient Bins and kitchen utensils et al) : $15,000. Could be more with a medium or large scale business in view.
- The Cost of Launching a Website: $600
- The cost for our opening party: $5,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $5,000
Going by the report from our research and feasibility studies, you will need an average $50,000 to set a catering business in America on a medium scale, and $100 dollars on a large scale.
Financing your Catering Business
Since you are really determined to start a catering business, then part of what you must have figured out is the fact that you already have a reliable source for financing your business. There are different ways through which you can finance your business. They include;
- Family and Friends-: This option is very much a great way to raise funds to start a business. This means that y6ou may have family and friends who buy into your business and are willing to support your course financially.
- Loans-: These days more than ever before, there are banks who are all out to grant loans to those who wants to start a trade. Care must however be taken in seeing to it that you have all that the bank requires before you are granted a loan.
- Grants-: There are foundations and organizations through which you can be granted a startup. You have got to be well positioned and aware of this act before you can be a beneficiary.
- Angel investors-: There are investors who when moved or captured by the exactness and reality of a business plan invests greatly in it. This is why it is vital to have a compelling business plan.