You’ve decided to take the plunge and launch a catering business, be it within the private or corporate sector. Obviously, as with most business ventures, it will require money to startup.
In order to put together a business plan to obtain finance you will need to have an idea of the exact costs involved. The bank, or other lending institution, will want to see this information before handing out a business loan.
One of the biggest factors in determining setup costs is whether you will be working from home or from other business premises. Working from home is the cheaper option but its viability will depend on the layout and size of your kitchen and its general suitability as a working environment. Even if you do choose to work from home you will likely need to make some modifications to your kitchen, all of which will cost money.
Let’s assume we’ve got our catering premises accounted for, whether in the home or outside. Below is a list of the most basic items that you will need to run any type of catering business along with a rough approximation of prices:
One of the biggest factors in determining setup costs is whether you will be working from home or from other business premises. Working from home is the cheaper option but its viability will depend on the layout and size of your kitchen and its general suitability as a working environment. Even if you do choose to work from home you will likely need to make some modifications to your kitchen, all of which will cost money.
Let’s assume we’ve got our catering premises accounted for, whether in the home or outside. Below is a list of the most basic items that you will need to run any type of catering business along with a rough approximation of prices:
• Two fan assisted commercial ovens (£700 each)
• Commercial fridge/freezer (£1000)
• A vegetable preparation machine (£1200)
• Commercial microwave (£750)
• Cooking utensils such as saucepans, knives, plates etc (£1000)
• Chiller van for delivery (£13,000)
It’s also recommended that you have a plentiful amount of chinaware, glassware and cutlery to loan out to your clients. Let’s put a rough costing on this at £1000.
This gives a rough startup costing of £17650. Let’s call it £20,000, as there are always unforeseen extra expenses that are picked up along the way.
This gives a rough startup costing of £17650. Let’s call it £20,000, as there are always unforeseen extra expenses that are picked up along the way.
£20,000 isn’t a huge amount of money to fund a new business but remember that we’re only pricing up the basic catering equipment.
We’re assuming that you have already budgeted for any costs relating to work premises, whether that be leasing/buying business premises, or making the necessary modifications to your own kitchen to operate the business from home.