Start & Run a Catering Business. George Erdosh
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Название: Start & Run a Catering Business

Автор: George Erdosh

Издательство: Ingram

Жанр: Экономика

Серия: Start & Run Business Series

isbn: 9781770407244

isbn:

СКАЧАТЬ for little or no compensation and the value of your time applies to your equity in the business at a predetermined rate. This is not easy unless you also have an income-producing job and the effort you put into the catering business is part time. It is also hard to work for something that gives no immediate return. What if you have worked 1,000 hours over a year (averaging 20 hours a week), which earned $10,000 equity in the business (at a rate of $10 per hour) and all of a sudden business drops off significantly because of an unexpected economic downturn? Since you have not earned enough equity yet, you have no control. You may see your equity slowly lose its value as the business suffers from neglect. At this point your best option is to borrow the money to buy the business outright in order to save the equity you have already built up.

      Look out for diminishing personal interest in the business by the current owner. Once the end is in sight, enthusiasm weakens, and you may find yourself taking the brunt of the responsibility, worries, and workload while the owner takes much of the profit.

      However you approach buying into an existing business, you must be sure that there is a crystal clear understanding between you and the owner. Everything must be on paper and legally binding. The help of a lawyer familiar with partnerships is essential.

      Resolve critical issues before a partnership deal is finalized. For instance, define contributions to the partnership (cash, expertise, property) and the percentage of ownership granted to each partner at the inception of the deal. Arrange for a method of obtaining additional funds in the event of operating cash deficits. Define the responsibilities and remuneration for each partner. Also define when and in what order of priority cash will be distributed. Finally, make sure there are adequate provisions for buying out or removing a partner in the event of unexpected problems, if a partner wishes to terminate the venture, or if a partner dies.

      Before making the decision to get involved in a business, here are some sobering statistics to consider:

      • According to the National Federation of Independent Business (NFIB), owners who have worked with the same products or services in prior jobs have a 10 percent better chance of surviving over owners who have not.

      • Another study conducted by the NFIB and American Express states that 80 percent of small-business people who worked between 60 and 69 hours a week remained in business after three years.

      • The same study found that companies emphasizing good service had a higher survival rate than those offering low prices to promote business.

      • Of the firms surveyed, 84 percent that started with $50,000 or more investment had a 10 percent better chance of making it than those that started with less than $20,000.

      • A survey by the US Small Business Administration found that 65 percent of all new businesses fail within the first five years.

      No doubt, the first year or two are going to be critical. There are many government websites, both in the US and Canada, and small-business oriented websites that feature information on starting a business. Here is a list of good places to start your research:

      • The United States Small Business Administration: www.sba.gov/smallbusinessplanner/index.html

      • Welcome Business USA: www.welcomebusiness.com

      • Canada Business, services for entrepreneurs: www.canadabusiness.ca/eng/125

      • Business Development Bank of Canada: www.bdc.ca

      • Small Business Information: http://sbinformation.about.com

      3

      Personal Ingredients

      1. Essential Skills and Knowledge

      As briefly discussed in Chapter 1, certain essential skills are a must for running a catering service. You are starting small and you must be able to run the business without help from time to time: when your helper is sick, when no one is available on such short notice, or when a small-business luncheon is only profitable if you do it yourself. Whatever the reason, you don’t want the extra worry of not being able to execute every part of the event competently.

      Here are the essential skills and knowledge you must have:

      • Competency in cooking and food preparation

      • The highest degree of planning and organizational skill

      • A high degree of efficiency

      • Ability to work well under pressure

      • Skills in problem solving and crisis management

      • An artistic touch in food presentation

      • Ability to deal with clients confidently and successfully

      Let’s discuss each of these essentials individually.

      1.1 Cooking and food preparation

      A high degree of skill in cooking, as well as ease, efficiency, and speed in food preparation are by far the most important prerequisites for a successful small caterer. Many would-be caterers start as good home cooks with a moderate-sized repertoire and better-than-average food preparation skills. Some are knowledgeable about cookery, its chemistry and physics, while others have done a lot of food research and experimentation. Still others are formally trained food professionals, such as chefs who are tired of working for someone else with low pay, long hours, and difficult conditions in tiny, poorly equipped, inefficient, overcrowded, and hellishly hot kitchens.

      Your cooking skill should be far better than that of a good gourmet cook, and you should have a sizable repertoire of well-tried recipes. Also, you need to be well versed in preparing all kinds of dishes, including hors d’oeuvres, entrées, side dishes, salads, desserts, breads, and beverages. You not only have to know how to prepare all these items, but you must also be able to present them in an appetizing, appealing way.

      How are you going to acquire all that cooking skill and knowledge? Practice, more practice, courses, and plenty of reading, research, and Internet surfing. The information is available, but you must find it. The place to practice is your own kitchen with readily available and eager testers — your family and friends — sitting at your table daily.

      If you haven’t had any formal culinary training, get some. It can be done, and you can have a great deal of pleasure and fun doing it. You don’t need the entire curriculum of a cooking school, or even the majority of it. A small fraction will be quite sufficient for your catering business; which fraction will depend on what type of catering you choose. It is hardly necessary to learn dozens of French sauces when you have no intention of using any more than a few basic ones (many are out of date anyway). If a demanding client insists on having boulettes of beef with sauce financière, don’t worry. Just look it up in your extensive reference collection and prepare it. If it is a complicated sauce, you may not get it right on the first try. Do it again — well before the event, of course. With a basic cooking background and some experimenting, you will come up with the perfect dish in no time at all. And you will also have a satisfied, amazed, and impressed client.

      1.1a Classes, seminars, and cookbooks

      Cooking СКАЧАТЬ