Catering Contract - Using catering experience to open a restaurant

Hungry for the restaurant of your dreams but can't raise the capital? Some entrepreneurs are opting for a catering service. "But you still need to plan and do the research, because there are various markets you can go into," says Pamela Moore, owner of the award-winning Somerset Catering Co. in Fort Worth, Texas. Moore began her business with her husband, Maurice, in 1994 and specializes in weddings, receptions, party planning and business meetings. She also runs a Southwestern Bell corporate cafeteria and three concession stands at the Texas Motor Speedway.

Like any other business, a catering service has to be carefully marketed, advises Peter Rainsford and David H. Bangs, Jr., authors of The Restaurant Start-Up Guide: A 12-Month Plan for Successfully Starting a Restaurant, 2nd Edition (Dearborn Trade). They offer these tips on developing your business:

* Determine who can use your catering service, then learn who your competitors are and how they market their services.

* Decide what will make you stand out. Prices alone won't do it.

* When discussing your services with a potential customer, include menu samples in your presentation.

* Network constantly. Ask customers for referrals and endorsements. Give them brochures, business cards and pictures of events you successfully catered. And don't forget the handwritten thank-you note.

* Use ads, direct mail, fliers, the Yellow Pages and the Internet to spread the word.

* Show customers why the per-person cost is $15 or $50 or $150.

* Repond promptly to a potential client's inquiry. It demonstrates your proficiency.

Women-owned businesses get fewer than 10 percent of institutional investment deals. They generally obtain equity capital from "angel" investors, family members or friends, says The National Foundation for Women Business Owners (nfwbo.org or [202] 638-3060).