How to Use a Business Loan for Your Catering Business
In this post, we’re sharing some of the ways your catering business can benefit from a loan, so that you can start growing your business.
6 Ways to Use Your Catering Business Loan
1. Purchase Inventory
From table settings to cookware to serving pieces, the list of supplies you’ll need to run a successful catering business is extensive. The inventory you’ll need to buy, maintain, and replace will also be expensive. Luckily, your loan will allow you to buy supplies as needed, so you won’t need to worry about running out of necessary inventory.
2. Invest in Technology
Even if you have a team of talented professionals, it’s worth considering how technology can make your processes easier and more efficient. Using your loan, you can pay for automated technologies, such as an inventory system, cloud computing services, or scheduling software. Having these technologies will enable you to reduce administrative tasks that you or your staff have to manage, which will allow you to focus your attention on more pertinent responsibilities.
3. Hire Employees
If you’re taking out a loan with the intention of expanding your business, you’ll need to ensure that you have a staff that can handle an increased workload. Hiring talented employees with previous catering experience will help you properly serve more customers and provide them with the best possible service.
To build a strong staff, you can utilize your small business loan to give current employees extra hours or to hire additional employees. In addition, you can spend your loan on training and resources for your employees, which can include areas such as customer service, event planning, food and beverage management, and other applicable areas.
4. Lease or Purchase a Vehicle
When providing your catering services, you’ll need a vehicle to transfer equipment, food, and employees to your customers’ locations.. If you’re transporting food and supplies with a personal vehicle, it might be time to invest in a vehicle that will solely be used for your catering business. Consider whether you need multiple vans, built-in storage for food trays, or refrigeration for traveling with prepared food before making a purchase.
Using a business loan to purchase a new vehicle is a smart investment for your catering company. Having a reliable vehicle with the space and features you need means less risk of arriving late to events, not having enough room for your equipment and food, or arriving with food in less than perfect condition.
5. Pay for a Marketing Plan
Even with the resources to cater more events, your company can’t grow without attracting new customers. To do this, you’ll need to pay for marketing strategies that will help you find to find ideal customers and promote your business to them. You can use a loan to pay for marketing materials, or you might outsource projects to an experienced agency.
6. Expand into a Commercial Space
According to Forbes, 50 percent of all businesses are home based. Although many business owners can successfully operate from their homes, you should consider your catering business’s needs. Even if you operate from your home and travel to customer’s locations to provide them with your services, you could benefit from having a commercial space. Having a commercial kitchen will give you room to prepare for larger events, invest in larger cooking equipment, and store additional supplies.
In addition, having a physical address for your business can validate your business to potential customers. They’ll be confident that you have an official business location, and could be more likely to utilize your services.
Decide How to Use Your Catering Business Loan
When it comes to running a lucrative small business, sometimes you need to spend money to make money. Having access to a business loan will allow you to build your catering company, so you’ll always be prepared for new opportunities. Consider how you can improve your catering business, and use your loan for these areas. You might be surprised at how much more your business can accomplish once you receive a catering business loan!
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.