I’m planning to start a catering business; It will be a small business as a start, I will rent a small place and supply it with the equipment and tools necessary to produce few kinds of food, the business will include an outlet to sell the product, in addition, I will use my car as a start to distribute the products to different supermarkets and shops.
Also will use the media networking (like Internet, Blackberry, What’s up...etc) to make an advertisement to the business and will offer free delivery to individuals, and the payment will be cash at delivery point.
The fixed cost will include:
- Lease payment of the business.
- Equipment and cooking tools and machines.
- Annual insurance.
- Fees to get the approval and other payments to set the business.
- Business taxes.
The variable costs:
- Wages to the employees.
- Food raw materials.
Implicit costs:
- Using my private car.
- I’ll loos my job, which I get paid for it recently.
- The opportunity cost of my budget.
- I’m expert in cooking, so I will bake and cook myself and hire assistants only, so cost of my payment will be considered as implicit cost.
My goal is to make my business a “brand” and to be known in the local markets. The plan is to keep the small business for two years and if the demand for the products will increase and the profit gained will be above the normal profits, I will think of taking a loan from my bank and expand the business and open a small factory with line productions of the most demanded products in the markets.
I could not find in the Internet any similar ideas, sure there are much similar ideas but I could not find one listing the answers to the requested question.
On the other hand, I found many websites help starting successful catering businesses, below are a couple of such websites
They include so many details and costs that I did not think about it in my study especially for the long run cost, Catering supplies and other expenses.
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