Only the brave can be entrepreneurs. Starting your own business is an incredibly daunting venture. It is probably one of the biggest risks a person can take. There are zero assurances that it will succeed. If it does, then a person can live out the rest of their days being the masters of their own destiny.
They do not have to deal with bosses, they make their own hours and they get to profit directly from the success of their business. On the other hand, if it fails then they lose everything. The chances are they put every single penny to their name into the venture and if it doesn’t work out then they will most likely be left destitute. How then, does one prevent this? Do they simply not try at all and remain a cog in a bigger system?
There are a few things that need to be considered and done before starting a business. One of the most important of these being research. If there is a gap in the market which an entrepreneur can fill, then the chances of success increase. If the desires spot is already saturated, then the competition may hinder success entirely.
The job market does not stagnate for long. Businesses which were profitable 20 or even 10 years ago, may not necessarily be the safest bet today and should be avoided at all costs. These are some businesses which currently would most likely be unsuccessful.
Everyone needs to eat, and no one will stop getting married or throwing celebratory parties. This is generally the rationale that a prospective caterer would adopt. It is not necessarily untrue. People do love events with food and even more so, they love gourmet food. Caterers are needed for weddings, engagement parties, birthday parties, anniversaries, graduation parties and corporate events. The list is literally endless. The people who hire caterers spend hours and a countless amount of money planning and deciding on the menu. These things considered, it is not unreasonable to think that catering is a good business opportunity. Or is it?
Firstly, start-up costs are substantial. Certificates need to be purchased or obtained, premises need to be rented, staff hired, and equipment bought. Once all this is done then a client list needs to be built up. The demand may be there, but so is the competition. Even if all of this is completed correctly if the events the business is hired for are not regular then staff becomes an active concern.
It is not easy to keep full-time staff if a catering business has time-lapses between events. Part-time workers can be hired, but this comes with its own set of problems. These are just a few of the internal obstacles which a caterer may face.
External factors which are influencing the success of catering companies are the availability of other options. This is not because of the existence of competing catering companies, but rather other types of catering options. Mini-burgers and cocktails sausages have become quite outdated. These days people have the option of hiring food trucks for example. These allow guests to choose from a menu of items which are both tasty and unique.