A catering company deals not only with ethereal sponge cakes and savory hors d'oeuvres, but the demands of running a business and reaching profit targets. To keep yourself on track, you'll need objectives that spell out your expectations. High hopes and dreams may be reserved for your mission statement, but objectives are down-to-earth must-do's geared explicitly for execution.
Objectives for a catering company should be tied into its overall strategic plan, encompassing its core values and mission statement. In turn, the objectives should be accompanied by strategies to realize each objective, as well as the specific steps needed to implement the strategy. For example, one objective may be to develop a marketing plan or write new menus every quarter. To achieve the objective, the strategy might be to see how your competition conducts its marketing. To implement the strategy, you would then specify action steps, such as reviewing competitor websites within 60 days.
Catering Business Objectives
Examples of a catering business's objectives are furnished by the business plan. Objectives can be short-term or long-term. For example, over a three-year period, a business might have general objectives such as exceeding customer expectations and becoming a sustainable business, and more specific objectives such as increasing the number of patrons served by 20 percent yearly, and generating enough cash flow to pay all salaries and grow the business.
A catering company, in addition to formulating objectives for the business as a whole, can also create objectives tailored to specific aspects of the business. For example, a business might have objectives to maintain steady growth in new customers converted to long-term clientele, and to decrease marketing costs as a percentage of total sales. Such objectives should be targeted to measurable outcomes -- for example, a decrease in marketing expenses relative to sales from 6 percent to 5 percent.
A catering company can develop financial objectives, such as reaching double-digit growth every year, reducing variable operating costs and increasing profit margins per catering job. Taking profit margins as an example, a business might shoot for incremental gains from negative digits in the first year to over 10 percent in Year 2, and over 12 percent in Year 3.
- athuristock/iStock/Getty Images