# Getting loan to start up small home-based catering



## starbase89 (Mar 12, 2008)

Does anyone here know of a place where I could get a small small business loan, around $10k, to start up a home based catering company? I am 18 and am getting a good deal of advice from my father who, at one time, owned his own business, though that was a consulting company. I would want a year or two to pay it back. I have no idea what my credit is like. I have no credit cards. I figure I'd need around $4k for the kitchen setup, $4k for a used van to make deliveries, and $2k for other supplies and ingredients. Does this sound reasonable? For the kitchen, I plan on using a finished portion of my basement, getting a large, good quality stove and fridge, a dishwasher, a kitchenaid mixer or two, and a microwave, along with some other small electrics. For the Van, I figure $1500-$2000 for the van itself, and another $2000 for maintainance, fuel, and insurance.

Does this sound at least somewhat reasonable? Anyone know of a place to get that small a loan?

Thanks
Joe


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## nowiamone (Jan 23, 2005)

First you should call your local health/restaurant/commercial kitchen Inspection department and get the regulations so that your new facility will be in conformance so it can be licensed.

Check with zoning department to see if it will be allowable at that location, and check with the fire marshal's office for the appropriate regulations so that your equipment and it's installation will be in conformance; both of these maybe required before the health department can inspect and license your kitchen. After you review these requirements, you can estimate the cost to put everything into legal conformance, so you'll have a more accurate idea of the start up costs. 

You maybe required to have licenses, insurance, liability, workman's compensation, before you can open, so you will need to include these costs also. Your van will require commercial insurance, so that should be costed also. 

Once you have established the costs for equipment, legal installation and other start up requirements, you can write a business plan. 

With a viable, well thought out business plan, you will then be able to seek financing. 

No, what you have does not sound reasonable. 

Customers what to see experiance and knowledge to book a caterer; that is very hard to get with out working for someone for awhile.


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## pgr555 (Aug 3, 2007)

Starbase,
I don't want to dampen your spirits, but I think your expectations are not very realistic. The kitchen will cost WAY more than that, and any van you get for $2k will not be reliable enough for a catering business where if you breakdown it is not only time, but your reputation and MUCH money. Most states will not license a kitchen in a home either. As was already said, most customers want to see some experience. It this is the business you want to get into, try to find someone to work for, apprentice with or to just be your mentor. Where are you? Maybe someone here would be interested in helping in that way.


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## bloaner (Mar 14, 2008)

Well if you have new business or you need startup, we can get you financing! Startup business loans are offered to help you with financing. New and start up business financing available USA only. No time in business. We can help you to obtain financing you need to get your new business off to a great start.


Startupbusinessloans.com


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## starbase89 (Mar 12, 2008)

I am in Central New Jersey, in Ocean County


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## pgr555 (Aug 3, 2007)

For me... anyone else out there who wants to apprentice this ambitious young man?


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## boar_d_laze (Feb 13, 2008)

I'm really sorry to throw cold water on your dream. 

No credit or adult employment history? Any organization, business or person who'd lend you money to start a business in which you've no experience, without collateral at least equal to the amount you seek is either nuts or running a con. Most likely the latter. Regard them with utmost suspicion. 

Get a job and get some experience. Build up your personal credit. Save some money -- preferably more than you need so you don't have to start with a loan. 

Most people who cater start out of their homes. It's also possible to cater out of your clients' homes. Usually, it's a mix of both.

If you really think you're ready to plan, shop for, and cook meals, provide for the bar, the linens, tables, glasses, seats, tents and flowers, and all of the other things that go with catering ... see if you can handle a few jobs by cooking for your parents' friends with them carrying expenses only. You might be surprised at how little you know. 

If I asked you to cater my daughter's outdoor college graduation party for sixty people, $30/head, with a chicken and vegetarian choice, including beer and wine -- what would you suggest? Could you give me a price breakdown with that?

What are your ten best dishes?

Have you ever cooked for more than forty people? How often? 

If we had more of an idea about what type of cooking you planned doing, where you're located, etc., we'll be more helpful and specific. What are your culinary strengths? Are your skills strong enough for niche catering like Soul-Food, French, or ... (?) Does your skill set address a need in your community? Or, do you know of a nearby community who wants it? 

FWIW, given the current economic outlook this might not be the right time to start a business anyway. It's likely that as Lenny Bruce said, "You bettah off."

BDL


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## electricputa (Apr 6, 2008)

This is great, I'm 21 and have been seriously looking into the same thing! I just found this site in hope of clearing up some questions. 

first, Starbass in my first few months of planning i have found that i know way to little to be able to even be able to put together a time frame for opening but if your like me that will only inspire and excite you to work harder. 

second, my bigest question at the time for me and this my help starbase, is I haven't made it to a culinary school, besides working and cooking what is the best way to sharpen my skills and learn. I just talked to the chef i work for and she is going to bring me in some food theory books and stuff but thats as far as i can think to go at this point

third, creating a menu, I'm thinking Irish or German, or no theme just dishes i want and am good at? how many is appropriate to offer, I've done some research, and im not sure how these places came up with the options.

anything that could help us young-ens would be sweet!


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## shroomgirl (Aug 11, 2000)

visit different caterers websites to get an idea of what they are doing.....

Offsite catering is different than working in a restaurant.
Props....a huge part of catering involves props.
Operating procedures
Contracts 
Staffing

Personal cheffing is a good way to get a start, again different from catering and restaurants but there is very little overhead involved. You would need to do your homework.


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## johnbit (Apr 24, 2008)

Yeap, the fastest way to start a catering business is to work for someone in the catering business. Even a few months will be good enough for you to see how the business work. 

Forget about business plan now, you can't get it right without some experience anyway. Experience is the key to run a business, and cashflow is the king. 

Get into action, work for someone, once you know you can make it to the business; estimate how much you need to keep your business a float for few months, then loan it from friends and family.

But always make sure you can get a customer first before you start, before you dump all your money in.

Good luck.


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