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How to start your own highly profitable catering service


HOW TO START YOUR OWN HIGHLY 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 affluency, 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 to 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 a
    thousand or more 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 per 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 become 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 $500, with some
    big spenders capitalizing 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, organizing 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 client wants, 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
    newspapers.  This advertisement need not be much more than a simple
    announcement:  Creative Catering - Specializing in personal service
    - We can handle any party or special event from start to finish - no
    idea too small or too large - Your satisfaction is always
    guaranteed!  We can handle everything for you...  Call us, and let
    us make your parties worth remembering...

    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 honor 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 honoring 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/organize the event on paper.  This means you're going to have
    to have 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 party favors - 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 favors 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 will 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, organization, 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 alternate 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-percent 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, second interview
    for 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 even revealing a tentative price until you've had a 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 dollars per
    hour, plus expenses, and of course, depending on the type of event
    the customer wants.

    As for how much the average party costs, again tell him that it
    varies anywhere from 50 to 5,000 dollars.

    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 specialize in this kind of work or
    service just as a doctor specializes 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-of-mouth advertising
    - referrals - and thus, is a direct "freeway" 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 care 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 will probably get 40% of your inquiries
    from this source alone.  Generally speaking, radio and/or television
    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, bridal shops and the
    entertainment business in general, can bring in hundreds of
    referrals for you.  Rubbing shoulders with, and circulating as a
    part of your area's civic and service clubs, should also result in
    more business for you.

    Keep your eyes 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 favor.  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 emphasize 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 gets one of his business cards.

    Another gives each of his clients a stack of his business cards, and
    tells them he will 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 that 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 check.

    Another very successful caterer pays commissions to a group of
    housewives and college students who solicit - via their home phones
    - interviews for him with brides-to-be.  They get their leads from
    announcements, and pictures of 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 planned 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 definite 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 realization of your dreams, is the
    action it takes on your part to get started...


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