Home-based food business is a great way to earn extra cash especially for stay-at-home moms and true-blue homemakers. Catering, aside from online food business like cupcake-making, is a good way example. Though the idea of home-based food business is less daunting than the actual franchise or commercial space type business, many considerations are needed to be contemplated on before giving yourself the actual go signal. Here are considerations before starting your own catering outfit:
1. Does your state actually allow commercial production of food in home kitchens? Currently, 31 states in America allow this, while six states are still pending in legislation. This law is the “Cottage Food Laws.” Some of the states that have this law are Alabama, Florida, Illinois, New York and Washington. Check your state for the Cottage Food Law before getting on the next step.
2. Do the math. As much as your creative juices are flowing, you cannot escape the other half of the foundation of a good business. Think and calculate your budget and estimate it with the start-up cost. The start-up cost consists of the health permit and business license, which are important to legalize your business. Do not forget adding up your raw ingredients and electricity or gas expenses when you are already making your first batch of food products. Lastly, since you are going to do a home-based business, your catering service will be reached through phone calls or emails. Make sure to allot a part of your budget for communication expenses.
3. Find your target market. Since your catering must focus on a specialty, find the potential customers and entice them with your menu/s. Present classic favorites on your menu and mix it with new dishes which only your catering service will offer to attract people to try it and make referrals on your services in the future. Build a good customer-owner relationship with your clientele to extend your network and make friends in the process.
4. Where will you sell the products? Since your business is home-based, finding an actual location is not the concern. Unlike food chains where they place a branch in a single location for people to go to, you will need “internet presence.” Find websites where you can market and promote the catering services you are going to offer. Announce the news to your friends and social network to help spread the world. Make social networking accounts for your catering business such Twitter, Multiply, WordPress and Facebook as they make good platforms to expose your catering business.
There are so many things to consider, and so many potential stumbling blocks when you start over that it is worthwhile talking to a company like Food Trade Consultants, who have helped so many outfits on their culinary businesses. Foodtradeconsultants will take you step-by-step. You don’t have to make the same mistakes so many others have starting out.