In this economic environment, one would think that only the foolhardy would continue running and operating their businesses. After all, the market might not be at its most vibrant; people are not exactly in a spending mood. But what if you're already neck-deep in running your catering business? You can't just back out now and let your initial investment go to waste. The situation may be grim for now, but chances are it won't always be this dismal.

So what to do while the economy is in a downturn? You will have to scrimp and save a bit in order to weather the storm, but nothing too difficult for people who are willing to sacrifice in order to succeed. You shouldn't sacrifice quality; clients are quick to remember every performance, so make sure you don't end up doing a poor job just because you wanted to cut a few corners. It is prudent to save, but you'll lose a lot more if your poor quality performance turns your clients off.

Here are some ways to save money on your catering business, without sacrificing quality:

1. Prepare a "budget" menu. Since a lot of your clients will probably also be concerned with saving money, draw up a menu that costs less to prepare but does not actually feel cheap. This means you need dishes that do not feel or taste cheap, but use cheaper ingredients and alternatives. This allows your client to select a lower price point, and makes your service a more flexible and accommodating one.
2. Take note of food suppliers that offer good discounts. Most caterers already have a list of their go-to food suppliers. These are the people who supply them with meat, vegetables, and other fresh produce. Keep a list of your best suppliers and make sure you can actually rely on the quality of their products. Building a good relationship with these suppliers means you'll get better discounts in the long run. A steady symbiotic relationship is best for both parties, as you offer them steady business, while they give you substantial discounts.
3. Look for wholesale catering supplies. This may sound weird, but there are actually wholesale sellers who will offer you their wares for less. Wholesale catering supplies are sold in bulk, so you get to ask for a larger discount, particularly when compared to retail purchases. Since you'll need wholesale catering supplies and won't be purchasing your pots and pans one by one anyway, going to a reliable seller of wholesale catering supplies is actually a pretty sound decision.
4. Do things yourself. Of course, it would be physically impossible to handle everything on your own. However, if something can be personally done, go ahead and do it yourself. Planning, speaking to clients, preparing the menu, looking for wholesale catering suppliers, sourcing ingredients – these are all things you can handle on your own, especially if your business is a small or medium enterprise.
5. Keep a tight and loyal team. A good leader inspires confidence; don't drive your workers like a slave master. Instead, it's best to have a few people you can really rely on during crunch time. You don't need a big team, and hiring too many employees can really pull a number on your expenses.