Moving your home based catering business from your house into a small food preparation unit will probably be one of the most important business decisions you make.
Timing is the key to success if, you make the move to quickly your business is doomed. But if you make the move at the right time the world could be your oyster!
When to consider expanding into catering premises
1) Current sales generate enough gross profit to pay management a full wage with surplus funds to meet the future cost of rent, rates and other operating costs associated with the rental of a food production premises.
2) A minimum of 35% of monthly sales are repeat orders.
3) The business is currently holdings enough funds to meet the new increased cash flow requirements for a minimum period of three months.
4) Current and twelve months forecasted market condition will facilitate increased sales.
5) The operational set up of your catering business allows management to deploy at least 30% of their time & resources towards sales and marketing.
If you answered yes to all five questions then your catering business has a clean bill of health and you should consider moving into an affordable food production premises.