Okay, let me address some of the legal issues that you could possibly be getting yourself into. I'm in Tennessee, so all of these regulations are only guaranteed to apply here, but it's probably pretty similar in most other states.
In Tennessee, non-certified, non-licensed food manufacturers (ie. caterers) are allowed to sell non-hazardous products directly to consumers. You cannot sell through a third party (ie. sell your famous banana nut loaf to a local grocery store to re-sell to the public), and your products must have a label stating that they were produced in a private residence that is not inspected by the health department. The state of Tennessee's definition of non-hazardous food basically rules out anything with meat or seafood and anything that has temperature requirements; so you're basically limited to breads and cakes. If you produce food like this, it will be pretty much impossible to get insurance to cover any potential lawsuit, so it's not worth the risk from a business stand-point. This category was mainly created to address the legal issues surrounding things like school/church bake sales which often exist in a sort of purgatory between legal and illegal.
Secondly, you can (in Tennessee) run a more traditional catering business from your personal kitchen at home. However, it must be inspected by the health department, and all of the rules and regulations would apply which would make it impractical to do. For example, does the milk in your fridge have the date it was opened written on it? Does your home kitchen have a three-compartment sink? Is the bag of Dorito's in your kitchen cupboard in a sealed container with a date on it? Do you have pets? All of these things make it impractical to run a catering business from your home kitchen, and I doubt that you could get any type of insurance to cover potential legal liabilities should someone get sick/claim to get sick from your food. All it takes is one ambulance-chasing nitwit to sue for you to wind up on the street.
I hope that you seriously think about some of these issues before you go any further with this business venture.