A Business in Catering - Looking At The Financial Side
Owning your own business means more than just throwing open your doors and having the freedom and flexibility to follow your dreams
. It is a lot of hard work, and business owners need to wear a lot of hats especially in the beginning, and the catering business is no exception.The first big decision anyone can make when starting a business in catering is how to finance the business.
Will you look to banks for financing?
Will you finance the business on your own?
Will you look to private investors?
What will be your collateral for potential loans?
Banks won't simply hand you $100,000 without knowing how they can collect if your business should fail. For some owners, it is smarter to start out with a smaller business model and build upward. Other people want to go all in from day one.
However you view it, financing is a serious issue and one that should not be entered into lightly. It is important to have a plan for your money. And by all means, have savings built up before starting your business.
It can take new businesses up to five years before they post a profit, and as the business owner you are the one who has to go without a paycheck in order to get the bills paid and see that your employees are paid each week.
Following The Rules
All municipalities have regulations regarding business licensing and, and since your business is in catering, on food handling as well.
It is important to understand these regulations and to determine how many licenses and certifications you need before your doors can open.
Failing to comply with these regulations can mean suffering fines, and penalties. If faced with these issues, your opening may be delayed, or worse, your business could get shut down.
Some people choose to employ the services of a consultant to keep them abreast of these issues. Other people take the time to educate themselves. It's all a matter of personal preference, time management and budget.
Business owners are the face of the business, the money counter, the heavy lifter, the salesman, the bill collector, the secretary, and in the case of a business in catering, the chef! There are a lot of things to keep track of and many new business owners get overwhelmed by the amount of work they have to do in order to keep their business running.
As the business grows and more money comes in, it may be possible to hire an actual bookkeeper, an actual secretary, a couple of salespeople, etc.
In the beginning, however, odds are that the chef will be doing most all of the back office work. Your investment in excellent software to keep track of bills, invoices, inventory, and payroll can help keep your stress levels down.
Investing in a business in catering is more than just investing your dollars. It means investing your time in learning how to use software, paying bills, collecting bills, selling and marketing the business and keeping up with the ever-changing world of business regulations.
But for all of the hard work and investment that goes in to a business in catering, the rewards can be plentiful.
A Business in Catering - Looking At The Financial Side
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