business plan for opening a funeral home

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Funeral Home

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How to Start a Funeral Home in 13 Steps

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on June 7, 2022 Updated on July 3, 2024

Investment range

$151,550 - $289,100

Revenue potential

$624,000 - $1.95 million p.a.

Time to build

1 – 12 months

Profit potential

$62,000 - $195,000 p.a.

Industry trend

Here are a few things you should consider before starting your funeral home:

• Location — Choose a location that is accessible and appropriate for a funeral home. Consider factors such as parking availability, ease of access, and a peaceful environment.
• Licenses and permits — You will need a few licenses such as funeral director’s license and embalming license .
• Equipment — Invest in necessary equipment such as embalming tables, refrigeration units, hearses, and caskets. Ensure all equipment meets health and safety standards.
• Grants — Choose one of many grants to get started such as Funeral Service Foundation .
• Services — Decide on the range of services you will offer, such as traditional funerals, cremation services, memorial services, and pre-planning services.
• Hire professionals — Hire licensed funeral directors, embalmers, and support staff. Ensure they are compassionate, professional, and capable of handling sensitive situations.
• Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
• Legal business aspects — Register for taxes, open a business bank account, and get an EIN .
• Additional services — Consider offering grief counseling, obituary writing, and assistance with legal paperwork.

Interactive Checklist at your fingertips—begin your funeral home today!

You May Also Wonder:

How profitable is a funeral home?

Funeral homes can be very profitable. More importantly, though, funeral homes provide an essential service and comfort for people during difficult times.

Who is the largest funeral home business?

Service Corporation International (SCI) is currently the largest funeral home business in the United States, with over 1,800 locations across North America.

What makes a successful funeral home?

A successful funeral home should offer compassionate and personalized services to families during their time of need. This includes providing a range of funeral service options, such as traditional funeral services, cremation services, and memorial services.

What food do you serve at a funeral?

The type of food served at a funeral may vary depending on cultural and religious customs, personal preferences, and budget. Common options include finger foods, sandwiches, fruit trays, and desserts. 

What is the most common type of funeral?

The most common type of funeral in the United States is a traditional funeral service, which typically includes a visitation or wake, a funeral ceremony, and a graveside service. This type of funeral is often associated with religious or cultural traditions and may include elements such as prayers, hymns, and eulogies. 

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a funeral home has pros and cons to consider before deciding if it’s right for you.

• Provide Solace – Help people mourn and find closure
• Good Money – The average funeral costs $6,000 to $7,000
• Stable Industry – Economic fluctuations have little impact on funeral homes
• Investment Required – Costs to get started are high
• Emotionally Draining – Deal with the grieving every day

Funeral home industry trends

Industry size and growth.

• Industry size and past growth – The US funeral home industry is worth $18 billion in 2022 after expanding .6% annually the last five years.(( https://www.ibisworld.com/industry-statistics/market-size/funeral-homes-united-states/ ))
• Growth forecast – The US funeral home industry is projected to decline 1.8% in 2022. 
• Number of businesses – In 2022, 24,554 funeral home businesses are operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/funeral-homes-united-states/ )) 
• Number of people employed – In 1022, the US funeral home industry employs 119,167 people.(( https://www.ibisworld.com/industry-statistics/employment/funeral-homes-united-states/ )) 

Trends and challenges

Trends in the funeral home industry include:

• More and more people are pre-planning their funeral arrangements so their families don’t have to be concerned about the costs.
• Eco-friendly funeral products and services are trending, including bio-degradable caskets and space-saving burial techniques.

Challenges in the funeral home industry include:

• E-commerce is allowing people to purchase caskets online for less, reducing casket sales for funeral homes.
• The rising number of cremations is also reducing the merchandise sales for funeral homes. 

Demand hotspots

• Most popular states – The most popular states for funeral directors are Oregon, Arizona, and Pennsylvania.(( https://www.zippia.com/funeral-director-jobs/best-states/ ))
• Least popular states – The least popular states for funeral directors are Montana, South Carolina, and South Dakota.

What kind of people work in funeral homes?

• Gender – 35.3% of funeral directors are female, while 64.7% are male. (( https://www.zippia.com/funeral-director-jobs/demographics/ ))
• Average level of education – The average funeral director has an associate’s degree.
• Average age – The average funeral director in the US is 50 years old.

How much does it cost to start a funeral home business?

Startup costs for a funeral home range from $150,000 to $300,000. Costs include a down payment on a building, preparation of the space, equipment, a hearse, and an inventory of caskets and urns.

You’ll need to meet the funeral service education requirements of your state to become a licensed funeral director. According to the American Board of Funeral Services Education , most states require post-secondary education, the passage of the National Board Examination, and serving an internship for one or two years. 

Check with your state board for specific requirements. Educational resources and information are also available through the National Funeral Directors Association . 

You’ll need a handful of items to successfully launch your funeral home business, including: 

• Embalming tables
• Embalming machine
• Mortuary stretchers
• Body coolers
• Artery tubes
• Cavity injectors
• Drainage tubes
• Hydro aspirators
• Needle injectors
• Inventory of caskets
• Inventory of urns

How much can you earn from a funeral home business?

The average cost of a funeral is $6,500. The profit margin of a funeral home after all costs is about 10%. 

In your first year or two, you could hold eight funerals per month, bringing in $624,000 in annual revenue. This would mean $62,000 in profit, assuming that 10% margin. As your funeral brand gains recognition, you might hold 25 funerals per month. With annual revenue of $1,950,000, you’d make a healthy profit of $195,000.

What barriers to entry are there?

There are a few barriers to entry for a funeral home. Your biggest challenges will be:

• The high startup costs of the building, equipment, and inventory
• Meeting state licensing requirements to be a licensed funeral director

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Step 2: hone your idea.

Now that you know what’s involved in starting a funeral home, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape. 

Why? Identify an opportunity

Research funeral homes in your area to examine their products and services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a funeral parlour that sells biodegradable caskets, or a funeral establishment that offers cremation services.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as celebration of life services or eco-friendly funeral services.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine the services and products you will sell on-site

In addition to funeral services, you can sell caskets and urns. You can also offer cremation services, but that would add significantly to your startup costs. 

How much should you charge for funeral services?

The average cost of a funeral is $6,500. After all costs of the merchandise, labor, and overhead, your profit margin should be about 10%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market could be anyone, so you should spread out your marketing to include sites like TikTok, Instagram, Facebook, and even LinkedIn.

Where? Choose your funeral home location

Choosing the right location for your funeral home is crucial for ensuring its success. Look for a spot in a convenient and accessible location, such as a busy street or a residential area. Consider the size of the property and the facilities, ensuring that they can accommodate the needs of clients and staff.

Additionally, assess the local regulations and zoning laws to ensure compliance and obtain any necessary permits. Depending on the type of funeral services you plan to offer, you may also want to consider the proximity to cemeteries, crematoriums, and other related services.

By strategically choosing the right location, you can establish a reputable and successful funeral home that provides compassionate and personalized services to families.

It’s possible that you could find a location to rent for your funeral home instead of purchasing a building. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

Step 3: Brainstorm a Funeral Home Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “funeral home” or “funeral parlour”, boosts SEO
• Name should allow for expansion, for ex: “Eternal Rest Funeral Home” over “Veteran’s Funeral Home”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Discover over 200 unique funeral home name ideas here. If you want your business name to include specific keywords, you can also use our business name generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Funeral Home Business Plan

Here are the key components of a business plan:

• Executive Summary: A brief overview outlining the funeral home’s mission, goals, and key highlights, serving as a snapshot for potential investors or partners.
• Business Overview: A comprehensive description of the funeral home, its mission, values, and the specific funeral services offered, highlighting its unique selling points.
• Product and Services: Detailed information about the range of funeral services provided, including burial and cremation options, funeral planning, and any additional offerings like grief counseling.
• Market Analysis: Examination of the funeral industry market, identifying target demographics, trends, and potential challenges to ensure a solid understanding of the business’s environment.
• Competitive Analysis: Evaluation of other funeral homes in the area, assessing their strengths and weaknesses, to determine the funeral home’s competitive edge and strategic positioning.
• Sales and Marketing: Strategies for attracting and retaining clients, encompassing advertising, online presence, community engagement, and other methods to promote the funeral home’s services.
• Management Team: Profiles of key personnel, highlighting their expertise and roles in the funeral home’s operation, instilling confidence in investors and stakeholders.
• Operations Plan: Detailed information on the day-to-day operations of the funeral home, covering staffing, facilities, equipment, and logistics to ensure smooth service delivery.
• Financial Plan: A comprehensive financial overview, including startup costs, revenue projections, and profit margins, providing a clear picture of the funeral home’s financial viability.
• Appendix: Supplementary materials such as licenses, permits, resumes of key personnel, and additional documentation supporting and enhancing the information presented in the business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to funeral homes. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your funeral home will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a funeral home business. 

Step 8: Apply for Funeral Home Business Licenses and Permits

Starting a funeral home business requires obtaining a number of licenses and permits from local, state, and federal governments.

You’ll need a funeral director’s license from your state. Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your funeral home business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as passare , Osiris , or FrontRunner , to manage your processes, project coordination, inventory, invoices, and payments.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Website and SEO — Develop a website that clearly outlines your services, pricing, and support resources. Use SEO best practices to ensure high visibility for local searches on funeral services, cremation services, and memorial planning.
• Local SEO  — Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Professional Branding — Ensure your branding conveys empathy, professionalism, and respectfulness, represented through your logo, business cards, brochures, and the overall appearance of your funeral home.
• Community Outreach — Build strong relationships with local hospitals, hospices, and religious organizations. Participate in community events to foster a compassionate image.
• Content Marketing — Run an informative blog to help the community understand aspects of funeral planning, grief support, and remembrance options, positioning your funeral home as a supportive resource.
• Email Newsletters — Send out newsletters with grief support resources, information on pre-planning services, and updates about your facilities or services to keep your community informed.
• Experiential Marketing — Organize open house events to allow the public to tour your facilities and meet your staff, and host grief support workshops to assist those dealing with loss.
• Collaborations with Local Businesses — Partner with local florists, caterers, and religious centers to offer comprehensive services to families, enhancing the support you provide during sensitive times.
• Aftercare Services — Provide ongoing support services such as grief counseling referrals or assistance with thank-you cards, showing continued commitment to families even after the funeral service.
• Pre-Planning Services — Offer consultations for pre-planning funeral arrangements, helping individuals make informed and thoughtful decisions ahead of time.
• Local Advertising and Community Seminars — Advertise in local newspapers, church bulletins, and publications targeting senior communities. Host free seminars on estate planning, will writing, and funeral pre-planning to educate and engage with potential clients.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your funeral home meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your funeral home business could be: 

• Professional, caring services to celebrate your lost loved one
• Funeral services for less to ease your burden
• Save your family time and money with funeral pre-planning

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a funeral home business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in funeral homes for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in funeral homes. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

Potential positions for a funeral home business include:

• Embalmers – embalm bodies prior to the funeral and burial
• Assistants – assist with arranging funerals
• General Manager – scheduling, ordering, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Funeral Home – Start Making Money!

Funeral homes represent an $18 billion industry that fills an essential role in the mourning process. By starting your own funeral home, you’d have the opportunity to ease difficult times in people’s lives, provide a valuable service, and make a good living at the same time.

Now that you know what’s involved, it’s time to get to work and launch your successful funeral home. 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Funeral Home Name
• Create a Funeral Home Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Funeral Home Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Funeral Home - Start Making Money!

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Funeral Home Business Plan

Start your own funeral home business plan

Evergreen Life Memorial Center

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Ceremonial practices around death, as practiced by U.S. funeral homes, are leaving a growing segment of the population feeling poorly served. This plan outlines the strategy by which the Evergreen Life Memorial Center (the Center) will define and dominate a new category of funeral provider in AnyCounty, Oregon. It also details how the financing it acquires will be used toward this end.

The Center will be formed as an LLC in the Anytown metropolitan area. It will be solely owned by Stan Peters, an experienced funeral home director and embalmer, active in nonprofit and community activities.

Establishment of the Evergreen Life Memorial Center will provide Anytown and the surrounding area with a way for people to celebrate the life of the individual when it ends and for the living to gather social support to bring closure and move ahead with their lives.  Its cornerstone will be the use of a reception area for social gatherings after the funeral that will foster human connection and uplifting remembrance. This is the way the aging segment of Baby Boomers is showing it prefers. This facility will also be the basis of its strategy of community involvement to rapidly develop the reputation the Center needs to attract business in a way that benefits the charities it supports as well. Digitized photos will be used for the reception as well as on our website to extend the celebration of the individual’s life beyond the funeral.

Based on recent average prices nationwide, the Center has the potential of attaining its market share of $768,213 within four years. At the Center’s current prices, its market share is worth $841,412. The industry average gross margin for a funeral home is 62.5 percent. The funding of $225,000 requested in this plan is projected to result in an annual net profit of approximately $194,000 in the Center’s fourth year of operation, with subsequent increases annually due to inflation.

With the establishment of the Evergreen Life Memorial Center, those who lose someone to death will for the first time in our era be integrated into the community of life instead of stigmatized and marginalized. There will be a new center for community involvement. And for the first time, the Boomer generation will be able to go out the way it lived.

1.1 Objectives

The Evergreen Life Memorial Center provides celebration of an individual’s life and social support to bring closure and move ahead with living. The Center will develop by Year 4, a reputation as the uplifting place for locally prominent persons of the Baby Boom generation to celebrate their lives when they end.

In order to achieve this, the Center will create facilities that bring families and communities together in a way that celebrates the life of the deceased and renews bonds of social support.

Digitized photos and films of the deceased will be available in the reception room and on our website.

These facilities will be available free to a number of nonprofit organizations in which the owner, Stan Peters, will be involved. This will:

• Tie the Center into the community of the living and develop positive associations.
• Develop a strong reputation by creating community events in the Center which the local media will want to publicize.
• Serve the owner’s interest in helping others and improving the community.

Stan Peters will make himself available for a leadership position starting a local chapter of a nonprofit that helps children with life-threatening diseases, such as the Make-A-Wish Foundation.

The Center will provide a funeral planning guide for estate attorneys to give to their clients.

These efforts will be supported by a publicity campaign in order to be the first in people’s minds with this new category of funeral provider. Evergreen Life Memorial Center, “People remembering people.”

1.2 Mission

The mission of the Evergreen Life Memorial Center is to bring people together to celebrate life when it ends and to move on with living. The Center will have facilities that bring families and communities together to remember the life of the deceased and renew bonds of social support. The Center’s facilities will be a focus of nonprofit energies to make the community a better place to live.

1.3 Keys to Success

Since 71 percent of people choose a funeral home on the basis of reputation, the key to success is quickly establishing a reputation for this new category as the uplifting place for Baby Boomers to celebrate life when they die.

The Center’s cornerstone will be its reception facilities, which will promote uplifting interactions with people after the funeral and be used for nonprofit organizations. This will make the Center uplifting, connect it to the community, provide the basis for publicity, and make it a center for the living.

The reception room and website will feature digital photos and films of the persons whose lives are being celebrated. This web presence will increase the Center’s exposure by letting people participate in the celebration of life after the funeral and reception are over.

Providing the greatest choice of quality caskets will make the Center the place to celebrate the lives of locally prominent persons. This will foster publicity and further promote our reputation.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Evergreen Life Memorial Center will be a new type of funeral home provider. It will provide a celebration of life when an individual dies and gather social support for the living to bring closure and move on. This will be made possible by providing reception facilities after the funeral where people can gather for refreshments in an uplifting environment surrounded by digitized photos and films of the life being celebrated. The facilities will include intimate gathering areas for people who want to break off from the larger activities, and private meeting rooms with couches and chairs. These facilities will also be available for the use of nonprofits, further integrating the Center into the community.

This combination of life celebration and social support is the way people of the Baby Boom generation are demonstrating they want to go out. Boomers are currently directly involved in making choices about their parents’ funerals, and are in the leading edge of a demographic bulge that is beginning to experience more funerals itself. Funerals for Boomers are expected to increase dramatically until the annual number of funerals by 2040 will nearly double from its current levels.

The Center will be located in a former church building in central Eugene or in a small community closely adjoined to Eugene and unserved by funeral homes. The ideal facility will contain evergreen trees, helping the Center to live up to its name. 

2.1 Company Ownership

Evergreen Life Memorial Center will be a limited liability company (LLC) owned entirely by Stan Peters. Stan Peters is a professional funeral director and embalmer with 10 years experience and a B.S. in funeral science. He chose funeral science because he was interested in the biological sciences and wanted to make a difference to people in time of need. He has been active in a number of nonprofit organizations, including a California chapter of the Make-A-Wish Foundation.

2.2 Start-up Summary

The assets to be purchased with this funding include $27,000 of current assets and $80,000 of long-term assets.

Current assets are in the form of $20,000 for display caskets and a $7,000 for display urns, as well as embalming chemicals and supplies.

Long-term capital outlays for which funding is sought are:

A church structure will be sought for purchase in the Anytown area for an estimated price of $400,000. A down payment of $80,000 will be financed directly by the owner’s family and is not included in this business plan. Mortgage payments are included as operating expenses.

Detailed start-up expenses are included in the following table and chart.

Products and Services

Evergreen Life Memorial Center is a place to celebrate the life of the departed and to bolster support systems for those who must live without them. The Center will provide services that are demanded by the Baby Boom generation who wants to celebrate the life of the individual together, rather than endure a morbid and stilted experience. In order to accomplish this, the Center will offer facilities and services that are for the living and for the community, not marginalized from it.

The Center’s cornerstone product will be use of the Reception Facility. Funerals bring people together who haven’t seen each other in years, even decades. In traditional services, people meet for a few hours and then they’re gone. The Center will capture the opportunity to bring people together, to celebrate life and to re-form the lines of support for those who live. To accomplish this, the Center will offer:

• A reception hall where meals and refreshments may be catered.
• Electronic presentation and projection of photos and films of the deceased, also available on our website.
• Soft background music selected by the family, if requested.
• Discreet areas where small groups may form for intimate discussions.
• Two rooms with couches and chairs for private meetings.
• A children’s playroom, supervised if requested. 
• Easy wheelchair accessibility.

Use of the Chapel for funeral services.

Professional Services of the Director and staff. There will be one person who will guide the family through the entire process.

Caskets and Urns. The Center will offer the largest selection of caskets and urns of any funeral home in the area. Large funeral homes usually have corporate agreements with one of the top three casket companies:  Batesville, York or Aurora. Many other funeral homes are given incentives to sell only one line of casket, although federal law prohibits funeral homes from not accepting any casket the customer wants. The Center will offer the complete line of Batesville and York caskets, for people who want the industry standard caskets. Batesville alone accounts for 45 percent of caskets sold in the U.S. To differentiate the Center and to bolster its market position as the place for people who want a different kind of funeral, the Center will supplement its offerings with caskets more interesting and diverse than the mass-produced caskets generally offered, including:

• Legacy Custom Caskets. These are handcrafted caskets made with the finest materials that give an impressive appearance, for those funerals where only the best will do.
• Cowboy’s Last Ride. Generally an unfinished, pine casket with a denim or horse blanket liner. “A fitting end for someone who spent his life caring for God’s creatures and land.”
• Specialized metal and fiberglass caskets with emblems painted on the inside for people belonging to firefighting, police, military and fraternal organizations.
• Other specialty caskets with unique features that emphasize the individuality of the deceased.
• A selection of low-cost caskets by independent providers.

Remembrance Products, including paper and electronic products to celebrate the life of the deceased. Digital photographs and films will be used during the reception and posted on our website, if desired.

Transportation, including use of hearse. Limousines will be contracted, if desired.

Refrigeration is required for viewing of the body beyond 72 hours after death if there is no embalming. With the growing demand for cremation and increasing environmental sensitivity about the chemicals involved in embalming, we expect a greater use of refrigeration in the future.

Embalming services. Embalming has been a traditionally assumed service, but consumers are mandated by federal law to be advised that it’s not required, except in certain rare cases. Embalming allowed funerals with viewing to take place more than 72 hours after death without noticeable decomposition. It is still the industry standard, and will be available at the Center.

Cremation services. Cremation services are the fastest growing segment of the death care industry.

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Defining who the customer is for a funeral home is complicated. Relatively few people pre-arrange their funerals while they’re alive, leaving most of the decisions to surviving family members. This becomes a complicated decision made by the person’s surviving spouse, if there is one, and the children of the deceased over the age of 30.

We have segmented the market in terms of the four generations that are over age 30 who form the active decision-making market. The four generations are the GI Generation (age 79 or older as of 2003), the Silent Generation (age 58 to 78), the Baby Boomers (age 39-57) and the portion of Generation X (age 23-38) that is over 30.

A new funeral home that was like all the others could not compete effectively for the most active market, the Silent Generation, against the reputations of long-established funeral homes in the area. The Center will be the first to appeal specifically to the tastes of the huge Baby Boom Generation for funerals that are about celebrating life rather than feeling morbid about death.

Targeting this market with this unique offering will not only attract Baby Boomers for their own funerals and those that they choose for their parents, it will also attract a significant percentage of the Silent Generation that has shown a propensity to spend money on itself and that likes to think young. It will further poise the Center for tremendous growth as the mortality rate of Boomers increases over the next 35 years.

4.1 Market Segmentation

The market is divided according to those who make the purchasing decisions regarding funerals. The market segments for the Center are divided by the generations of decision-makers over age 30.

• The GI Generation (born 1901-1924)  This generation is age 79 or older as of 2003. This is the most active market. Its mortality rate is about 12 percent per year but it makes up only 3.9 percent of Lane County. Because the rate of dementia is high among this group, if funeral arrangements haven’t been pre-arranged, it’s likely their Baby Boomer children are making the arrangements.
• The Silent Generation (born 1925-1945). This is the age segment probably most marketed by existing funeral homes. It’s mortality rate is 2 percent per year, and it’s the generation that generally has the most money. It has been called the Silent Generation because it was sandwiched between the heroic GI Generation that fought World War II (now sometimes called “The Greatest Generation,” and the explosive Baby Boom Generation (also called the “Me Generation”). Many of the Silent Generation have been strongly influenced by the cultural revolution of the Baby Boom Generation. Widows are 67 percent of surviving spouses in this age group because their husbands generally die first. This relatively wealthy generation has always been financially conservative, but at this point, is more willing to splurge. It is currently driving the high-end motorhome market. This generation is 58 to 78 as of 2003 and composes 15.9 percent of the local population.
• Boomers   (The post World War II “baby boom generation” born 1946 through 1964.)   Members of this generation are increasingly involved in funeral decisions as their parents, spouses or children die. This age cohort is currently age 39-57, as of 2003, and comprises 27.2 percent of the Eugene-Springfield MSA, and over half of the demographic that makes funeral decisions. This is nearly twice the number of the Silent Generation cohort. Its mortality rate is currently only 0.3 percent, but is poised to grow rapidly over the next 35 years. It also makes many of the decisions for older and younger cohorts.
• Generation X (1965-1980) This is the youngest cohort to make funeral decisions, with only members of this generation age 30 or older included as a market segment. Generation X members over the age of 30 comprise only 7.9 percent of Lane County, its mortality rate is low and it probably has the least input into the decisions about funerals. This generation challenges authority, is environmentally and socially concerned and watches its health. It’s more interested in quality time and peace of mind than in materialism. The members of this cohort age 30 to 38 makes up 7.5 percent of the MSA.

4.2 Target Market Segment Strategy

The target market for the Center is the Baby Boom generation. It comprises over 50 percent of those of age to make funeral decisions in Lane County. The Silent Generation, for which more traditional funeral homes are competing, comprises 29 percent of the funeral decision makers. The GI Generation is over age 79 and its decisions are likely to be made by younger generations, including Boomers.

Baby Boomers, children of the post-war Baby Boom born 1946 through 1964, have changed business and culture from the time they were born. First the diaper business enjoyed the boom, then schools were rapidly built for them. In the years 1976 to 1980, the price of homes began to dramatically increase as this age cohort began to turn 30 and settled down. Now in middle age, Boomers are increasingly involved in making funeral choices for their elderly parents. As this generation approaches age 60, it is expected to dramatically increase the number of deaths over the next 35 years.

While the Baby Boom generation has been a boon for many businesses because of its numbers, it has also changed popular culture. It has been called the “Me generation” because it honors the individual. The trend toward more individualized funerals has already been widely noted in the industry.

The Baby Boom Generation is demonstrating a demand for more individualized funerals with more of a sense of celebration. Our strategy is to target this generation by appealing to its tastes. Just as Pepsi-Cola experienced in the 1960s when it targeted this generation, we believe we’ll draw more people from the Silent Generation who “think young” than we would by being just another traditional funeral home. The Silent Generation is showing a propensity to splurge, and we’ll offer greater opportunity to splurge on their funerals than more traditional providers.

Some 71 percent of people choose a funeral home by reputation. The Center would not be able to compete on the basis of reputation compared to funeral homes that have operated in the area for generations, or those that used to be run by families but have been bought by chains. In order to create a reputation rapidly, the Center will stimulate community involvement that brings people to the reception facility and generates publicity. It will draw the attention of those who want to celebrate life rather than host a morbid proceeding, and will create a new category of funeral provider which it will dominate.

Capturing this market will also put the Center in position for long-term growth as the Baby Boom Generation experiences mortality. The number of U.S. deaths is expected to increase at a rate of 11.3 percent over the first decade of the 21st century, reaching 2,634,000 deaths for the year 2010. The rate of deaths is projected to increase each subsequent decade until it peaks at 18.1 percent growth for the decade ending 2040. In that year, 4.1 million deaths are projected.

4.3 Service Business Analysis

When someone dies, there are relatively few alternatives available to people to take care of the remains and to bring closure.

• Funeral homes usually provide the following services:
• Funeral service, often with viewing because some people need to see the body to psychologically accept that the individual has died.
• Embalming is necessary if the funeral will take place more than 72 hours after death, especially if there is a viewing, unless it is refrigerated. 
• Preparation of the remains for viewing.
• Transportation of the body to the funeral home and to the gravesite.
• Funeral products, including caskets, urns and remembrance products.
• Immediate burial, performed without a service.
• Cremation, with or without a service.
• Cremation specialists, offering immediate cremation without a service that’s performed by a funeral director. If a service is desired, it may be performed in a church or other spiritual setting, or even outdoors, with or without clergy.

Some 75 percent of people nationwide choose burials that usually involve the services of a funeral home.

4.3.1 Competition and Buying Patterns

According to a 2002 survey by the National Funeral Directors Association, the most common reason for choosing a funeral home are location (78 percent of respondents), reputation (71 percent) and that it previously served the family (70 percent). Only 36 percent cited price, suggesting that for those who choose funeral services, price sensitivity is relatively moderate. Some 23 percent said they selected the funeral home because it was suggested by a friend, and seven percent by clergy, but only 11 percent said it was from advertising.

The survey underscores why the funeral industry is a very staid and conservative one. Location and reputation are everything for people choosing a funeral home. Some of the most successful funeral homes have been operated by the same family for generations. Some chain operations have bought up such funeral homes and have used the family reputation after it is no longer owned by the family. The power of reputation is such that many people appear unaware of the change of ownership, or their perception is unaffected by it.

In metropolitan Anytown, there are ten funeral homes, serving over two-thirds of the population of Lane County. There are four additional funeral homes serving small communities in the county.

There has been a steady growth in the market for cremation. In 1990, 17 percent of deaths resulted in cremations nationwide, according to the Cremation Association of North America. By 2000, the percentage had grown to 26.6 percent. This reflected a 71 percent increase in the number of cremations. In Anytown there are three providers specializing in immediate cremations

Strategy and Implementation Summary

Being staid and traditional has helped funeral homes in this area that have been in the same family for generations to develop solid reputations. The Center cannot compete on the basis of being just another staid, conservative funeral home. It will succeed by quickly developing a reputation for being unique, offering something that a largest segment of the decision-making market is beginning to demand and that traditional funeral homes are not positioned to provide.

Traditional funeral homes have not been structured to meet the need for social support the living need to move forward and to complete the process of grief by coming to acceptance. The Center will be structured around the need that Baby Boomers are expressing to gather social support and to celebrate life.

5.1 Competitive Edge

The Evergreen Life Memorial Center is the first of a new category of funeral providers in the Anytown area. The Center provides celebration of the individual and social support to bring closure and move ahead with life. It will be the place for the Boomer generation to celebrate life when it ends because it will be more uplifting and social than traditional funeral homes. It will thus live up to its slogan, “People remembering people.”

There are three purposes of a funeral:

• Bringing closure . Sociologists and anthropologists note that death rituals such as wakes, funerals and burials are important ways of of acknowledging that death has really occurred. This is necessary so people can move toward completing the grief process by coming to acceptance.  According to the Batesville Casket Company, “The funeral is about mental health and healing.” 
• Social support . Sociologists also say that these rituals help resolve guilt, anger and relationships. It’s common for people to have feelings of regrets for what they did or didn’t do during the deceased individual’s life. For those attending the funeral, and especially for those choosing the kind of funeral to have, it’s the last opportunity to do the right thing for the deceased. The funeral is also a time to gather social support for the survivors. Social support can reduce stress and solve practical problems. When someone dies, it leaves a whole in the fabric of a social system that needs to be filled.
• Celebration. While traditionally funerals have been considered somber affairs, people are increasingly demanding more of a sense of celebration for the life of the departed. The funeral is an acknowledgement that the individual is gone, and may have been all that was needed when families lived close together. Since family’s generally live far apart in modern society, a celebration is an opportunity for people who haven’t seen each other in years to interact. It’s a time for people to lightly reflect on the gift that person gave us by being among us. Refreshments lighten the mood and are a way of sharing. Pictures of the deceased help bring out memories and stories. There is laughter as well as tears, sometimes anger, so private spaces to meet in small groups are important.

Traditional funeral homes are somber and morbid places people are afraid to go to.  Funeral homes that are staid and conservative will not be preferred by the “Pepsi generation,” which laughed at parodies of such homes in the television series The Munsters. The Center will be a place of celebration actively involved in people’s lives that people will want to go to.

5.2 Marketing Strategy

Because reputation is the key to success of a funeral home, the focus of the Center will be to quickly establish a reputation as the place for celebrating life when it ends in the way baby boomers want to be remembered.

This will be accomplished by hosting nonprofit activities that gather wide publicity. Stan Peters, the owner, will take a leading position in forming a local chapter of an organization like the Make-A-Wish Foundation, which makes dreams come true for children with terminal illnesses. The death of a child is the hardest thing for nearly anyone to take, including funeral directors. The recreation and meeting rooms of the Center will be available for the free use of nonprofit organizations that the owner is personally excited about. A public relations firm will be used to orchestrate the maximum exposure for the Center, its activities and the charities it promotes. This will bring the Center into the life of the community and give it a reputation for caring and for celebrating life.

The choice of location will support this focus. The Center will be sited within the metropolitan area where over two-thirds of the Lane County population lives. The ideal location would be the purchase of a church with a chapel and recreation room, with a stand of Ponderosa pine or Douglas fir in the front and back to bolster its Evergreen brand.

5.3 Sales Strategy

Sales will be accomplished through implementing the sales process and the employment of a full-time sales professional in year three. During the first two years, the sales process will be implemented by the owner who will document procedures and training manuals.

The job of the sales professional will be to:

• Prospect and Qualify . The professional sales staff will be directly involved in networking the organization through a sales referral group, the Chamber of Commerce, and active participation in nonprofit causes that he or she is excited about. Pre-need business will be promoted though networking and through speech opportunities. Estate attorneys will be networked as well with a pamphlet we will present, How to Plan a Funeral that Celebrates Life. He or she will be a good listener, honing in on what the prospect really wants, including the price the prospect expects to pay.
• Presentation . How to Plan a Funeral that Celebrates Life will be our outside medium for presentation. Inside, the salesperson will begin the presentation by featuring our chapel and reception areas. Showing how the reception area works will be the most important selling point for letting us help celebrate the life of the deceased. The salesperson will make it clear that the Center is not the least expensive funeral home, but the most unique. The Center will have a room for displaying the most interesting collection of caskets in Oregon. Everything from a pine box with denim liner to top-of-the-line, handcrafted, glossy custom caskets suitable for a state funeral. The salesperson will narrow the choices for the prospect down to three, based on what the prospect indicated he or she wants.
• Proposal . The salesperson will write up a proposal according to the prospect’s choice that’s within his or her budget. The prospect will already be aware that the Center is not the price leader, and what the reasons are for paying more with us. 
• Close . The salesperson will give a soft close, gently asking for the business by saying something like, “Why don’t we just do this?” 

The sales professional will not be commissioned in order to avoid hard sells, but will be compensated with a base pay that would be considered moderate for salary plus commissions of a good salesperson in this market. In addition, he or she may receive profit sharing based on the overall growth of the business.

5.3.1 Sales Forecast

Sales forecasts are conservatively based on market share projections and the standard business growth curve.

There were 2,859 deaths in the Anytown MSA (closely equivalent to Lane County) in 2004. About 75 percent of deaths result in funerals nationwide. At the average 2003 price of $5,374, this means the funeral market in Lane County is worth  $11,523,200.

Since there are currently 14 funeral homes in Lane County, and there will be 15 when the Center opens, the average market share will be $768,213 in 2003 dollars. The average price of funerals at the Center will be a little higher. We project the average funeral at Evergreen Memorial Center will be $5,884, broken down as follows:

• Professional Services  $1249
• Staff  $140
• Use of Reception Room  $495
• Use of Chapel  $375
• Dressing & Grooming  $115
• Casket  $1590
• Burial Vault  $250
• Remembrance Products  $330
• Transportation  $915
• Total Avg. Funeral  $5884

The average market share measured in the number of funerals per year will be 143 funerals a year. Our total sales for the first year are projected at one-fifth of the average market share, or about 29 funerals at our average funeral price of $5,884. Businesses start slowly and, if they capture a niche, will then grow quickly. The sales projections are based on sales of one funeral for each of the first four months, followed by two funerals a month for two months. After that, one additional funeral is added each month for the first year. 

For the second year, sales grow to one-third market share with 48 funerals for the year. In year three, it becomes 3/5 of average market share at 86 funerals. In the fourth year, we acquire our full market share and our optimal level of sales with 143 funerals based on our current prices and death statistics. The 12 percent growth shown in FY 2010 merely shows revenues on optimal sales of 143 funerals catching up with inflation from the previous four-year period, assumed at three percent per year.

The Cost of Goods Sold percentage of 35 percent is based on industry averages according to trade literature.

Sales of Immediate Cremations are projected according to market share of Lane County deaths that do not result in funerals (25 percent) multiplied times our average price. Our average price of an immediate cremation is as follows:

• Cremation  $1250
• Remembrance Products  $370
• Bronze Urn  $155
• Total Cremation  $1775

In order to secure these goals, the Center will develop publicity that will draw Baby Boomers because of its leadership in nonprofit causes and its unique reception facilities, offering individualized celebration and social support. A public relations firm will be retained to promote the Center. The sales staff will network and become involved in the community to bring in business. Finally, the sales program will effectively capture the business these activities bring in.

5.4 Milestones

The following table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation. The most important programs are nonprofit activities to quickly establish our reputation as part of the community. These efforts were described in detail in previous sections.

Web Plan Summary

Our website will be an integral part of our market effort to the computer savvy Baby Boom generation. It will also help fulfill our mission in celebrating the life of the individual online as well as in person, and by promoting our nonprofit work that ties us into the life of the community. These uses of the website will bring more people to the site and increase its marketing potential.

6.1 Website Marketing Strategy

Our target market is active on the Internet, and this fact will be fully employed in the strategy to attract Baby Boomers. The Center’s website will be used in a number of ways that both add value to the client and the community and increase the number of people seeking the website. These are described in detail in the following section.

Digitized pictures and films of the life being celebrated will be offered on our website as well as in the reception room. This will allow people who are unable to attend the funeral to share in the remembrance and celebration of the individual’s life. The website will solicit memories about the individual to be added to the site. The use of the website will allow the social support gathered in person during the funeral and reception to carry on after the ceremonies are over and expanded to people who couldn’t come.

Our website will be a most effective marketing tool by also serving as an intrinsic part of the Center’s activities. The website will host photos and memories of people whose families use our facilities. The website will also host our nonprofit activities and copies of articles about the Center and an online newsletter produced by our public relations firm. This will give exposure, not only to the nonprofits we support, but also the Center itself.

6.2 Development Requirements

The Evergreen Life Memorial Center’s website will be initially developed and hosted by our public relations firm, which will host the site and provide the technical back end. The firm will then train the owner and staff in how to add content on a regular basis.

The website will be an integral part of the function of the Center. The Center’s competitive edge is celebration of life, and the use of digitized photos and films will be used in the reception room for this purpose. But these photos and films will also be available on our website if the family wishes. People will be asked to write their remembrances during the reception, and these may be posted on the website. The family will be given the free use of a portion of our website for a year. The family may also choose to make some or all of this part of the website available only to people with a code in order to maintain privacy.

Providing this capability on the website will allow the family to:

• Keep the remembrance celebration going beyond the funeral
• Allow people to participate who were unable to attend the funeral
• Allow people to download images they don’t have
• Allow people to continue to share remembrances by email
• Allow the family to continue to gather social support.

Providing this capability will also aid in marketing the Center because it will cause people to actively seek out our website.

The nonprofit causes that the Center supports will also be hosted on our website. In a later phase, a directory of websites of community nonprofit organizations will be maintained on the website as well. This will make the Center a virtual as well as actual charitable center of the community.

The website will show illustrations of our facility and will motivate people who come across the website, because of a funeral or a nonprofit purpose, to want to use the Center in time of need

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The Center’s management is comprised of an experienced funeral director and embalmer who has been active in the management of funeral homes for 10 years.

A policy manual and job descriptions have been developed and are ready for implementation. It is assumed that during the first two years of operation, sales will be low as the Center builds its reputation. The personnel plan calls for the owner to perform sales and administrative functions personally, with some help from family members who are also experienced in the funeral home industry. Staffing is ready to be implemented as soon as sales demand it.

This business is designed to be responsive to client’s needs while running lean and simply.

7.1 Personnel Plan

The personnel plan is as follows:

• The owner will be the funeral director,embalmer and cremator. During the first two years, he will also serve as salesperson and administrator. His needs are $60,000 per year. After the first fiscal year, all salaries will increase three percent per year.
• The salesperson will fulfill the marketing and sales plan and will be actively involved in nonprofit activities. Salary will begin at $31,830 in year three, increasing annually at three percent.
• The administrative assistant will work half-time beginning year three at $13.42 per hour, taking care of bookkeeping, invoicing, bill paying, payroll and other administrative matters. Beginning July 2007 these hours will double to a full-time position.
• Beginning with one half-time staff member July 2007 and expanding in July 2008 to two, the staff members will drive the hearse for pick-ups and for caravans to burial locations. They will assist in funerals and help the funeral director and clients as needed. The first staff position will begin half-time at $13,200 annually, increasing to full-time in July 2008 with at three percent annual raise. The second staff position will begin July 2008 at $25,750, increasing three percent per year.

Financial Plan investor-ready personnel plan .">

This financial plan is based on acquiring a loan for $225,000 secured by the owner’s home. The owner will provide $20,000 of start-up investment personally as well as $80,000 down payment for purchasing a church or similar building.

The Center will achieve profitability in just over two years and reach annual net profit of approximately $196,000 in the Center’s fourth year of operation, with subsequent increases annually due to inflation. These figures are conservative because they anticipate a slow market penetration as the Center builds its reputation and reaches full market share in year four.

8.1 Start-up Funding

Our start-up expenses of $19,700 and asset purchases of $197,000 are to be financed partially by the direct owner investment of $20,000 and financing in the amount of $225,000. The details are included in the following table and chart.

8.2 Important Assumptions

The financial plan assumes interest rates at eight percent raising to 10 percent by 2010. The key underlying assumptions are:

• The Baby Boom Generation will continue the trend of demanding more personalized funerals.
• The competition will begin offering more personalized services as they see our success, but by then we will have positioned ourselves as the personalized services market leader.

8.3 Break-even Analysis

For our break-even analysis, we assume first-year fixed expenses of $13,606 per month, which includes our full payroll, mortgage payments, utilities and an estimation of other running costs. Payroll alone, during the first year, is only $5,000 per month.

Industry standard margins of 65 percent are assumed.

The initial break-even point is realized in March of 2006 with sales of only four funerals a month.

8.4 Projected Profit and Loss

While profitability is realized in March 2006, the second fiscal year shows a slight profit margin because of the need to hire staff and train them ahead of the growth curve. When first hiring staff, it is anticipated that for the first few months, the time it takes to train each employee may exceed the amount of time it would take for the owner to just “do it himself.”  However, having staff in place and ready to make good on the promises of service we make in all our marketing efforts is critical to our growth strategy.

Month-by-month assumptions for profit and loss are included in the appendix.

8.5 Projected Cash Flow

A cash reserve is built into the plan to allow for unforeseen contingencies. Our minimum credit line available projected during this five-year period is over $45,000. 

The company’s estimated cash flow analysis is outlined in the following table.

8.6 Projected Balance Sheet

The table below presents the balance sheet for the Evergreen Life Memorial Center. This table reflects dramatic growth in net worth, reaching nearly $425,000 in FY 2010. Our Projected Balance Sheet shows we will not have any difficulty meeting our debt obligations so long as our revenue projections are met.

8.7 Business Ratios

This is a more profitably run business than average in its industry because of our value-added services, slightly higher prices and lean operation.

Sales expenses are constant throughout the five-year period. While they are a high percentage in the early years against lower sales, they are low after maturity because nonprofit activities will provide more than adequate publicity that will reduce advertising expenses.

The ratios for long-term liabilities do not reflect the loan for real estate purchase, which is not included as part of this plan.

The company’s projected business ratios are provided in the table below. The final column, Industry Profile, shows significant ratios for the funeral service industry for comparison.

8.8 Long-term Plan

The long-term plan is for the Evergreen Life Memorial Center to achieve market share and hold it. This will be an expanding market over the next 35 years as the Baby Boom generation nearly doubles mortality rates from 11 percent per decade to over 18 percent by 2040. Keeping up with this growth, plus population increases in the Lane County area, will provide plenty of business for the Center for generations to come.

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Your ultimate guide: how to start a funeral home business.

• Case Management
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Well-operated funeral homes don’t only play an impactful role in the lives of many families – they also play a big role in our economy. Research indicates that the U.S. funeral industry is expected to experience a $28 billion increase in market size by 2025.

Despite the hot debate between cremation and burials nowadays, society’s need for funeral services will never disappear. From 2010 to 2020, The U.S. population increased by 7% (roughly 20 million people). As more families begin to grow and mature, more funeral services are needed along the way.

If you’ve attended many funerals in your life or know someone who runs a funeral home, you’ve probably noticed – while these sacred events are meant to honor the lives of loved ones with dignity and grace, rarely do they go 100% to plan. Plainly put, we’ve all attended a funeral where we question the quality of the funeral services.

Because of those experiences, families are constantly searching for funeral homes that treat every single funeral service with the same level of importance. 

If you’re reading this, you may have similar experiences and are looking to take the matter into your own hands. Interested in learning how to start a funeral home business in your area? Read our quick guide and start making a difference in your community today.

Define Your Mission, Vision, and Values

As a new owner of a funeral home business, you must first identify your core mission, vision, and values when it comes to serving families and celebrating the lives of loved ones.

Oftentimes, it is discussed that there are two central reasons why funeral home businesses have failed in the past: funeral directors communicated poorly with client families, and they also failed to uncover exactly what the client family needed in those intimate moments during the services.

And it doesn’t end there. Several other elements and new client demands ( live streaming , personalization, preplanning, cremation, alternative services, green funerals) require funeral homes to be prepared and realize that every single situation is unique.

Before lining out your services, reflect internally and remember what inspired you to start your journey in the funeral services industry in the first place. Remember how sacred and fragile these moments are for families.

From there, create a business plan that solidifies the purpose of your funeral home and outlines how exactly you will bring that purpose to life for your community.

Complete Your New Business Checklist

As everyone knows, there are a few key steps that one must take when trying to start a business. Once you’ve created a business plan, consult the checklist below when learning how to start a funeral home business from the ground up:

Map Out Startup Costs and Business Financing

While startup costs can be intimidating, it’s important to remember the financial upside of running a funeral home. Funeral home businesses typically service around 120 funerals per year , with each of those funerals costing around $7,000 to $10,000 for families. Based on that data, funeral homes generate anywhere from $1.5 million to $2 million in average annual revenue.

Now that you know what cash inflow looks like, let’s talk about what cash outflow factors you should consider. Your funeral home business will require:

• A building or operating site
• A parking lot
• Equipment for cremation and embalming
• Funeral home software
• Cold storage

Keeping those startup and ongoing costs in mind, you can effectively map out exactly how much financing your business will require to get started.

Finalize Your Funeral Home’s Name and Business Entity Type

Once you feel confident in the startup costs, you will need to create a name for your funeral home. Complete a business entity search within your state to ensure that your name has not already been taken. Once you’ve selected a name, you will then decide on the type of business entity you would like to register as. Small business development consultants will generally recommend LLC formation because of the protection it offers small business owners against liability.

Register Your Business With The State

Once you’ve settled on your business name and entity, you will need to legally register your business with the state to obtain an employer identification number (EIN) and set up your business from a tax standpoint. Every state has a slightly different process, so consult with your state’s website or your state’s small business development center to help get this lined out for you.

Open a Business Credit Card and Bank Account

Whatever you do, make sure you keep your personal and business assets separate. The general rule of thumb for new business owners is to open up a separate bank account and credit card for the business. This will also help with accounting and filing for taxes in the long run as well.

Set Up Accounting and Acquire Business Insurance

Once you’ve successfully registered your business and opened up a business bank account, ensure that you either set up an accounting system or hire an accountant to help manage and oversee bookkeeping for your funeral home business.

Additionally, you will want to make sure that you acquire business insurance to help cover your funeral home against any liability as well.

Obtain Licenses and Permits Required to Run a Funeral Home

There aren’t licenses needed to run a funeral home business. However, some states do hold different license requirements for funeral directors and embalmers specifically, so ensure that your funeral directors and embalmers are properly licensed.

States and OSHA will audit funeral homes regularly to ensure that operations are up to code and are following rules, such as the Funeral Rule .

Some other permits and licenses that funeral homes should obtain include:

• Sales Tax Permit
• Certificate of Occupancy (depending on if you are leasing the building or buying it)

Funeral Service 101: Set Up Your Processes

Once you’ve successfully figured out how to start a funeral home business, you can now begin building out the services you provide to your community and also set up some of your funeral home’s processes:

Process #1: The Services Your Funeral Home Will Provide

There are generally four common services that are provided by most funeral homes:

• Full-Service Burial 
• Direct Burial
• Full-Service Cremation
• Direct Cremation

With full-service packages, viewings are included where funeral attendees can see loved ones a final time before their loved ones are buried. Oftentimes, the full-service packages are more expensive for families, but it allows for more intimate moments. These packages are generally for services with more exquisite caskets, eulogies, large families, music, and much more.

Direct burials and cremations serve as more cost-friendly options for families and friends who are unable to attend a full funeral service but would still like to honor their loved ones after a death.

Process #2: How You Will Market Your Funeral Home to People

There are several marketing action items that you will need to take to ensure that people in the community are able to find your funeral home. You will need to create a website to showcase your funeral home and the different services you provide. It is also recommended that you create a free Google listing and Yelp listing so that people can find your local business when searching on the internet.

Beyond those two key starting points, you can also market to your community using flyers, local radio and TV advertisements, social media, and above all else, follow up with past customers and clients and see how they’re doing every once in a while. Their word-of-mouth referrals can help bring in more new connections who are interested in your funeral home’s services.

Process #3: How You Will Handle Service Requests

Explore phone systems and decide on a winning system for your funeral home. Make sure that people are able to easily get in touch with your funeral home when inquiring about your services. The quicker that you are able to have someone get in touch with a new client about requested services, the more peace of mind that you’ll be able to provide for that family.

More importantly, families are looking for a genuine, authentic celebration of life for their loved ones. Ensure that you have creative processes in place to help provide a unique and intimate experience for every single family.

For example, say a family has requested particular music, decor, and lighting based on some of their loved one’s personal hobbies and interests. If you are unable to meet their needs for the funeral services based on those elements, the moments won’t be as special and heartfelt.

Set up a process or meeting for every funeral service where your team can review custom service requests from clients and plan the best experiences possible to celebrate their loved ones.

Invest in Funeral Home Software

Imagine you’ve been hired on to a funeral home business that already exists. You ask the funeral director if they are able to pull all of the attendees and activities for a particular funeral that is two weeks out so that you can put together a program.

Instead of having a slick, cloud-based software that visualizes the necessary data for you, the funeral director pulls out a worn-down, red notebook with several pages of chicken scratch handwriting that you are now required to decode. Sounds much more complicated than it needs to be, right?

Businesses in the funeral industry are now turning to funeral home software, also known as funeral home management software. This tool allows funeral homes to streamline client management and provide the best celebration of life possible to every single family.

Experts recommend that business owners who are new to the funeral home industry look into these software solutions. Advanced funeral home software helps funeral homes streamline client management, open up the door to new business, adapt to new client service requests, and provide an easier, more meaningful experience for everyone involved.

Learn How to Start a Funeral Home Business and Provide Better Experiences for Families With Gather

We know how passionate you are about providing the best possible funeral experience to families in your community, and we also know how intimidating it can be to undertake a new business venture.

Gather’s funeral home management software helps provide peace of mind to funeral directors and funeral homes in all areas of the nation by offering case management solutions, funeral home website builds, live streaming solutions, and much more.

Don’t let your families settle for average celebrations of life for their loved ones. Give them the best funeral experience you possibly can.

Learn how to start a funeral home business the right way. Schedule a free demo with Gather today and gain peace of mind knowing your funeral home is set up for continued success.

Chase Downs

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Funeral Home Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Service Industry » Funeral Home

Are you about starting a funeral arrangement company ? If YES, here is a complete sample funeral home business plan template & feasibility report you can use for FREE .

Death is one inevitable part in the equation of human existence, so the need to prepare for it cannot be overlooked. Some people go as far as buying insurance to take care of their own funeral when they die; whilst others state clearly in their ‘will’ the type of funeral they would prefer.

This goes to show that the funeral home business will always thrive as long as human exist. The basic things needed to be able to operate a funeral home could range from getting a license to even getting a certification. Some countries consider these as the basics, while in some other countries you could get a waiver for it.

In starting a funeral home, you will be expected to have a standard Casket Carts, Casket Lowering Devices and Accessories, Preparation Room, Embalming Chemicals, Cremation Supplies, Mausoleum, Urn Vaults, Vases, Burial Garments, Waste Containers, Lawn Boards, Straps and Slings and Chairs & Accessories.

If you are in doubt if this kind of business is worth investing in, just try and do a research on existing funeral homes in your area and you will be shocked to know the amount of money they make monthly.

It is important to know that this kind of business is not for everyone, it is for those who naturally can comfort and care for bereaved people whether money is involved or not. If you don’t have this basic quality, you might not succeed in this business.

A Sample Funeral Home Business Plan Template

1. industry overview.

A funeral home which can also be referred to as a funeral parlor or mortuary is a business that basically provides interment and funeral services for the dead and their families; these services may include a prepared wake and funeral, and the provision of a chapel for the funeral.

The funeral home industry includes companies that conduct funerals and prepare the deceased for burial or interment. Funeral homes are also involved in the transportation of the dead and the sale of caskets and other related funeral merchandise.

The Funeral Home industry comprises of funeral homes combined with crematories; on the other hand, businesses whose core business activities is to conduct cremation are not included in the Funeral Home industry; they are classified under the Cemetery Services industry

In the united states of America, most modern day funeral homes are run as family businesses. As a matter of fact a large percentage of trained morticians and undertakers et al work in small, independent family run funeral homes. The owners of these families run funeral homes usually hires two or three other morticians / undertakers as either full – time employees or part – time employees.

It is the practice for funeral homes to have one or more viewing rooms, a preparation room for embalming, a chapel, and of course a casket selection room. So also, funeral homes generally sell coffins and urns, they have a hearse for transportation of bodies, a flower car, and limousines et al.

The Funeral Home Services industry is indeed a very large industry and pretty much thriving in all parts of the world especially in developed countries such as United States of America, Canada, United Kingdom, Germany, France, Australia and Italy et al.

Statistics has it that in the United States of America alone, there are about 24,838 licensed and registered funeral homes responsible for employing about 121,936 employees and the industry rakes in a whooping sum of $16bn annually with an annual growth rate projected at 1.3 percent.

It is important to state that in the falling per capita income during the recession period and of course a rising number of low-priced cremations have hampered the revenue generated in the industry.

So also families that are not financially buoyant opt for discount retailers and manufacturers to purchase caskets, which negatively impact revenue generation for funeral home operators. However, the industry’s revenue is projected to grow slightly in the next five years.

No doubt, as the population ages, it is obvious that the number of deaths in the United States and all over the world is anticipated to increase and this will in turn create market for the funeral home industry. Nonetheless, continued competition from discount retailers and the ease of online ordering from casket manufacturers, as well as a rise in low-priced cremations, are expected to curtail prices for funeral home operators.

If you are contemplating starting your own funeral home business in the United States, you should ensure that you carry out a thorough market survey and feasibility studies. If you get some key factors wrong before starting your own funeral home services, then you are likely going to struggle to stay afloat.

2. Executive Summary

Clarion Call – Funeral Homes is a registered and licensed funeral home business that will be located in the heart of Cape May – New Jersey in a neatly renovated and secured housing facility; a facility that is specifically designed and equipped with the needed facility for a world – class funeral home services

Clarion Call – Funeral Homes is a family owned and managed business that believe in the passionate pursuit of excellence and financial success with uncompromising services and integrity which is why we have decided to venture into the funeral home services industry by establishing our own funeral home business.

We are certain that our values will help us drive the business to enviable heights and also help us attract the numbers of clients that will make our business breakeven within the shortest time frame possible. At Clarion Call – Funeral Homes we will arrange services in accordance with the wishes of surviving friends and family members of the deceased, whether immediate next of kin or an executor so named in a legal will.

We will take care of the necessary paperwork, permits, and other details, such as making arrangements with the cemetery, and providing obituaries to the news media. We will go as far as posting obituaries online and use materials submitted by families to create memorial websites

Our facility include; Wake room: for services and visitations; Preparation room: for embalming and restoration, Merchandise display: caskets and other merchandise that customers may purchase, Privacy room: for the family, Office: for mortician’s personal and administrative use, and Livery: a garage to keep funeral coaches and other vehicles.

We have the required staff strength and we will run a 24 hours a day and seven days a week services. We are going to be a customer-centric funeral home business with a service culture that will be deeply rooted in the fabric of our organizational structure and indeed at all levels of the organization.

With that, we know that we will be enables to consistently achieve our set business goals, increase our profitability and reinforce our positive long-term relationships with our clientele, partners (vendors), and all our employees as well.

Clarion Call – Funeral Homes is a family business that is owned and managed by Arthur Stamford and his family. Mr. Arthur has a College degree in Mortuary Science and a Master’s Degree in Business Administration. He has well over 15 years of experience working in the Funeral Homes Services industry both at state and national level.

3. Our Products and Services

Clarion Call – Funeral Homes is set to operate a standard funeral homes service in Cape May, New Jersey. The fact that we want to become a force to reckon with in the funeral home services industry means that we will go all the way out to give our clients a lasting and pleasant memory of their bereaved family members and friend.

We will render services that that will make them want to come back as well as recommend our funeral home services to their friends, family members and business partners. These are the services and amenities that will be made available to our clients;

• Providing funeral director services
• Providing embalming services
• Operating funeral homes combined with crematories
• Providing mortician services
• Providing visitation or viewing services
• Providing funeral services
• Providing graveside committal services
• Direct cremation services
• Selling funeral merchandise (e.g. caskets, flowers and obituary notices)
• Transporting the deceased

4. Our Mission and Vision Statement

• Our vision is to establish a funeral home brand that will become the number one choice for residence in the whole of Cape May – New Jersey and other cities in the United States.
• Our vision reflects our values: integrity, service, safety, excellence and teamwork.
• Our mission is to deliver reliable, genuinely, caring and excellent service superior to what our competition can offer in any location where our funeral home services will be situated and to ensure that we work hard to grow out funeral home services to be listed amongst the top 10 funeral homes in the United States of America.

Our Business Structure

It is very vital to build a structure to build on from the very outset. This is why we believe that the success of any business is to a larger extent dependent on the business structure of the organization and the people who occupy the available role.

Although Clarion Call – Funeral Homes is a family run business will still work with a business structure that will give room to the minimal employees (mostly part – time employees) to explore their creativity, feel belong and full integrate into the business philosophy.

We are aware that when recruiting for a funeral home, your aim should be to look for people who can handle grieving and bereaved people not just people looking for a job in other to be able to pay their bills and that is exactly what we will look out for.

We will only recruit people with good customers’ service skills, people with compassion, people who can empathize, who love this line of business and people who don’t have any problem handling dead bodies. We will not make the mistake of recruiting people with the wrong skill sets; because we know they can ruin our business before it even get started.

This is why we will make sure we recruit smartly and wisely; people with the right mindset to help us achieve our business goals and objectives in record time. We intend building Clarion Call – Funeral Homes on this structure;

• Chief Executive Officer
• Funeral Home Director
• Human Resources and Administrative Manager
• Accountants / Cashiers
• Mortician and Undertaker
• Marketing Officer (Contract Worker)
• Cleaners / Washer men (Full – Time Employee)
• Security Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Responsible for overseeing the smooth running of the magazine production and distribution process
• Evaluates the success of the organization

Funeral Home Director:

• Obtains information needed to complete legal documents, such as death certificates or burial permits.
• Oversees the preparation and care of the remains of people who have died.
• Consult with families or friends of the deceased to arrange funeral details, such as obituary notice wording, casket selection, or plans for services.
• Plans, schedules, or coordinates funerals, burials, or cremations, arranging details such as floral delivery or the time and place of services.
• Arranges for clergy members to perform needed services.
• Contacts cemeteries to schedule the opening and closing of graves.
• Provides information on funeral service options, products, or merchandise and maintain a casket display area.
• Informs survivors of benefits for which they may be eligible.
• Offers counsel and comfort to bereaved families or friends.
• Discusses and negotiates prearranged funerals with clients.
• Maintains financial records, order merchandise, or prepare accounts.
• Provides or arranges transportation between sites for the remains, mourners, pallbearers, clergy, or flowers.
• Plans placement of caskets at funeral sites or place or adjust lights, fixtures, or floral displays.
• Directs preparations and shipment of bodies for out-of-state burial.
• Manages funeral home operations, including the hiring, training, or supervision of embalmers, funeral attendants, or other staff.
• Arranges for pallbearers or inform pallbearers or honorary groups of their duties.
• Receives or ushers people to their seats for services.
• Participates in community activities for funeral home promotion or other purposes.
• Provides emotional support to the bereaved
• Arranges for removal of the deceased’s body
• Files death certificate and other legal documents
• Trains junior staffs

Morticians, undertakers

• Performs various tasks to arrange and direct funeral services, such as coordinating transportation of body to mortuary
• Handles the preparation and care of the remains of people who have died.
• Handles the removal of the deceased’s body
• Performs embalming duties as necessary
• Closes caskets and lead funeral corteges to churches or burial sites.
• Prepares the remains (body)
• Interviews family or other authorized person to arrange details, selecting pallbearers, aiding with the selection of officials for religious rites, and providing transportation for mourners.

Human Resources and Admin Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversees the smooth running of the daily office and shop activities.

Marketing and Sales Officer

• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writing winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, market surveys and feasibility studies for the business
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Cleaners / Washer man:

• Cleans funeral home facilities and grounds.
• Handles and move objects, such as glasses, dish and bottles, using hands and arms.
• Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
• Ensures that toiletries and supplies don’t run out of stock
• Responsible for handling laundry
• Handles any other duty as assigned by the restaurant manager,

Security Officer:

• Ensures that the facility is secured at all time
• Controls traffic and organize parking
• Gives security tips to staff members from time to time
• Patrols around the building on a 24 hours basis
• Submits security reports weekly
• Any other duty as assigned by the funeral home director.

6. SWOT Analysis

Clarion Call – Funeral Homes is fully aware that they are coming into an industry that can be highly competitive which is why they have decided to pay attention to the SWOT analysis for the organization.

We know that once we are able to identify our strength, our weakness, our threats and the opportunity that is available to us, we will be able to come up with good business strategies that will help us achieve all our business goals and objectives.

We know that if we get things right before starting our funeral home business, we will not have to struggle before attract loyal clients and building our membership base to a level where we can easily breakeven in record time.

We hired the services of Dr. Garry Larson, an HR and Business consultant with bias in business structuring to help us conduct SWOT analysis for our company and he did a pretty good job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Clarion Call – Funeral Homes Cape May, New Jersey;

Our area of strength cannot be farfetched; the location of our funeral home services is perfect for such business, our management team has robust experience in the funeral home services industry, our customer’s services is second to none in the whole of Cape May – NJ and our facility is top notch.

We critically looked into our Business model and we were able to identify two major weakness. One is the fact that we are a new business and the second is the fact that we may not have the financial resources required to match up with existing and leading funeral homes in Cape – May, New Jersey and also generating the needed hypes that can drive traffic towards our facility.

• Opportunities:

One thing is certain; our funeral home facility is well – located in busy hence there are loads of business opportunities for us. Besides we are the only funeral home services within a 45 miles radius where ours is located.

Some of the threats that we are likely going to face as a funeral home business operating in the United States are unfavorable government policies – the government, the arrival of a competitor within our location of operations and global economic downturn which usually affects purchasing / spending power.

There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

All over the globe people die every now and then and that is one of the reasons why the funeral business will continue to soar higher. It is trendy to find funeral homes in the United States of America and in most parts of the world operate a standard and full option services.

They usually have Wake room: for services and visitations; Preparation room: for embalming and restoration, Merchandise display: caskets and other merchandise that customers may purchase, Privacy room: for the family, Office: for mortician’s personal and administrative use, and Livery: a garage to keep funeral coaches and other vehicles.

We have the required staff strength and we will run a 24 hours a day and seven days a week services. Another trend in the funeral home services industry is that falling per capita income during the recession period and of course a rising number of low-priced cremations are seriously hampering the revenue generated in the industry.

So also, families that are not financially buoyant opt for discount retailers and manufacturers to purchase caskets, which negatively impact revenue generation for funeral home operators. However, the industry’s revenue is projected to grow slightly in the next five years.

Lastly, funeral homes in the United States of America are traditionally run by families except for few instances and there are various insurance companies that have funeral insurance policies for their clients. Building a good working relationship with them will position your funeral home to help them handle some of their policy holders.

You can also help them market their funeral insurance cover with the agreement that you will be the one to handle the funerals of the customers you bring to them. This is of course will be a win-win for both parties, and every business person would want to go into such agreement.

8. Our Target Market

We look forward to dealing with those that we plan to focus on in this trade. It will be safe to say that the target market for funeral home services cuts across people of all class, race, religion, and culture as long as they value their deceased loved ones and would want to give them befitting burial or cremation as required.

In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. These are the groups of people we intend marketing our funeral home services to;

• Insurance companies
• Owners of mortuaries
• Retirees and Pensioners
• Corporate Executives
• Government Officials
• Business People
• Celebrities
• Military Men and Women
• Sports Men and Women
• Everyone who resides in our target locations.

Our Competitive Advantage

There isn’t a business on this face of the earth that doesn’t encounter one form of competition of the other. However, it is the ability to be able to stand the test of time in the face of competition that will stand us out anytime anyway. The competitive edge of Clarion Call – Funeral Homes is the excellent and customized service that we offer to all our guest irrespective of their status, religion, race or political affiliation.

We can boldly say that the location of our funeral home services is perfect for such business, our management team has robust experience in the funeral home services industry, our customer’s services is second to none in the whole of Cape May – NJ and our facility is top notch. We are the only funeral home services within our location.

Another significant competitive advantage that we are bringing to the industry is the robust experience of our management team. We have a team that has a combination of 25 years of experience in the funeral home services industry in United States and Canada. They are considered core professionals in their own right.

9. SALES AND MARKETING STRATEGY

• Sources of Income

We believe that it is very vital to identify our sources of income from the very beginning, so that we will not run into problems. Clarion Call – Funeral Homes is established with the aim of maximizing profits in the funeral home services industry and we are going to go all the way to ensure that we do all it takes to attract guests on a regular basis and sign retainer – ship with most of our corporate clients.

Clarion Call – Funeral Homes will generate income by offering the following services for individuals, families and for corporate organizations;

10. Sales Forecast

We know that sitting on the table and forecasting the sales that we desire will help us draw up good goals for our funeral business.

That is why we are well positioned to take on the available market in Cape – May, New Jersey and beyond and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the funeral home market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Cape May – New Jersey.

Below is the sales projection for Clarion Call – Funeral Homes, it is based on the location of our business consulting firm and the wide range of consulting services that we will be offering;

• First Year-: $150,000
• Second Year-: $250,000
• Third Year-: $750,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

It is important to clearly state that in this dispensation, customers use the Internet to find funeral homes, to read reviews, to view facility available and the location of the funeral home; loads of processes have gone digital. Which is why most bed and breakfasts are increasingly adopting technology and the internet for marketing and advertising their business and we are not going to be left out.

We are quite aware that one of the ways to get people to patronize your funeral home is to build good business relationship with owners of mortuaries. Having a good working relationship with people who mortuaries will enable them refers people to you; since their job is to preserve corpses and yours is to conduct a befitting burial.

We will go all out to strike a deal with them that will ensure that they get a commission for any referral we get from them. These are some of the marketing ideas and strategies that are going to adopt for our bed and breakfasts business;

• Open our funeral home in a grand style with a party for all.
• Advertise our funeral home in relevant magazines, national dailies, Satellite TV stations and Radio station
• Promote our business online via our official website and all available social media platform
• Continuously Improving the performance of our brands
• Hire the services of experts to make our brands the first choice for families and corporate organizations
• Delivering consistent customer experiences to all our clients; making our first impression count positively
• Continuously Improving the efficiency of our funeral home services and operating processes
• Ensure that we put our market scale and knowledge to good use
• Building strong partnerships within our industry and with our stakeholders across the United States of America
• Make use of attractive hand bills to create awareness and also to give direction to our funeral home
• Position our signage / flexi banners at strategic places in and around Cape – May, New Jersey
• Create a loyalty plan that will enable us reward our corporate clients such as insurance companies and owners of mortuaries
• Engage on road shows within our neighborhood to create awareness for our funeral home business.

11. Publicity and Advertising Strategy

Advert and marketing is one of the backbone of all businesses. It is also the backbone of ours because we know that if we are able to get the right world’s pout there, people will come for us. Clarion Call – Funeral Homes is in the funeral home business to make profit and we can only make profit if we steadily increase our customer base.

No doubt, in order to remain relevant in the funeral home industry in Cape May – New Jersey, we will continue to create hype around our business brand.

We will ensure that we leverage on all conventional and non – conventional publicity and advertising technique to promote our bed and breakfast brand. Here are the platforms we intend leveraging on to promote and advertise Clarion Call – Funeral Homes;

• Encourage our loyal customers to help us use Word of Mouth (referrals)
• Advertise our funeral home business in relevant magazines, national dailies, Satellite TV stations and Radio station
• Promote our business online via our official website
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
• Install our Bill Boards on strategic locations
• Engage in road show from time to time
• Distribute our fliers and handbills in target areas

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in the United States of America.

Be that as it may, we have put plans in place to discount our products and services once in a while and also to reward our loyal customers (corporate clients such as insurance companies and owners of mortuaries.

• Payment Options

We want to make our payment mode as simple and free for all as possible. That is why at Clarion Call – Funeral Homes, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them.

Here are the payment options that will be available in every of our bed and breakfast lodge;

• Payment by cash
• Payment by check
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any difficulty.

13. Startup Expenditure (Budget)

When it comes to starting a funeral home business, loads of factors influences the amount that will be required to successful launch the business.

Factors like the location you intend starting the business, the size of the funeral home business you want to start i.e. the number of employees and facilities et al, and of course the state of the economy as at when you intend start the business. Here are the key areas where we intend spending our start – up capital;

• The Fee for registering the business in the United States -$725.
• The budget for legal fees, insurance, permits and license – $5,000
• The cost of leasing a facility – 100,000
• The amount needed to renovate our Facility (electrical, furnishings, plumbing, painting and landscaping) – $10,000.
• The Cost for the purchase of furniture and equipment – $10,000
• Other start-up expenses including stationery – $1000
• Phone and utility deposits – $3,500
• The Cost for initial inventories and supplies – $10,000.
• The Cost of Launching a Website – $600
• The cost opening party – $5,000 (optional)
• Cost for payment of salaries for the first 3 months of operations – $50,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $5,000

Going by the report from our research and feasibility studies, we will need an average of $200,000 to start a small scale but standard bed and breakfasts business in the United States of America.

Generating Funding / Startup Capital for Clarion Call – Funeral Homes

We at Clarion Call – Funeral Homes, will leave no stone unturned in generating our funds rightly. Our business is a family business that will be owned by Mr. Arthur Stamford and his family. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $50,000 (Personal savings $45,000 and soft loan from family members $5,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

We know that one of the marks of a successful business is the ability to expand far and wide. The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure.

If all of these factor are missing from a business (company), then it won’t be too long before the business close shop. One of our major goals of starting Clarion Call – Funeral Homes is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer nothing short of excellent services.

Clarion Call – Funeral Homes will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Remodeling our facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, mattress, bed sheets, pillows, duvets, electronic appliances, office appliances and kitchen utensils: In progress
• Creating Official Website for the Company: Completed
• Creating Awareness for the business both online and in the neighborhood: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – suppliers of all our needed food ingredient for breakfast and toiletries: In Progress.

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How to Start a Funeral Home in 14 Steps (In-Depth Guide)

Updated:   February 1, 2024

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The global funeral home market is growing every year and is currently on a trajectory to reach $39.3 billion in 2031 . This comes with a projected compound annual growth rate (CAGR) of 5.6% from 2023 to 2031.

Yet funeral homes that do get established stand to build strong community ties and local customer loyalty over time. Most aim to compassionately serve families during difficult times, not merely conduct transactions. With an aging national population and a timeless need for services that honor loved ones’ lives, the broader outlook remains positive.

This guide will walk you through how to start a funeral home. Topics include market research, competitive analysis, marketing, registering an EIN, forming a legal business entity, obtaining business insurance, and more.

1. Conduct Funeral Home Market Research

Market research is an important part of starting a funeral business. It offers valuable insight into your target market, trends in services and products, market saturation, and more.

Some details you’ll glean through market research include:

• The aging Baby Boomer generation drives much of the growth as 10,000 Americans turn 65 daily.
• The cremation rate also hit 56% in 2021, up from 28% in 2002 per the National Funeral Directors Association , leading to opportunities in that segment.
• Despite trends toward simpler, lower-cost services, traditional funerals remain prevalent with over 50% still choosing casket burials at cemeteries .
• Barriers to opening new funeral homes include substantial upfront capital for facilities, equipment like hearses and embalming rooms, and licensing fees that average $12,500.
• Many states also require funeral director education.
• Brand building in a delicate field also takes considerable marketing through placements in hospice brochures, community event sponsorships, and word-of-mouth networks.
• Established funeral homes enjoy reliable local demand paired with high customer retention and consistent repeat business streams.
• The very sensitive nature of the services offered establishes strong social ties and trust within communities that competitors struggle to break into.
• Profit margins remain high, averaging around 20% for successful funeral homes according to industry analysts.
• Cremation’s rise lowers some costs as well.
• These factors illustrate an attractive, sustainable market for new players to target once local licensing and regulations are navigated through proper research and certification processes.

The aging population and ubiquitous need for funeral services paint an optimistic outlook for the industry. Steady growth is projected from both traditional segments and emerging trends toward cremation and simpler memorials.

2. Analyze the Competition

Understanding the competitive landscape is crucial when entering the highly local funeral home industry. Begin by identifying direct brick-and-mortar competitors in your intended geographic area and determine their market share and reputation.

• Search online directories and death notice archives to tally local deaths over the past 1-3 years.
• Estimate what percentage of those cases each competitor handled based on notices referencing them.
• Search online reviews to gauge community perception and loyalty among families served.
• Consider reaching out to local hospitals, hospices, and elder care networks to inquire who they currently refer families to as well.
• Evaluating competitors’ digital presence and marketing tactics is equally important nowadays.
• Search their names on Google and note SEO elements like reviews, structured data, and visibility on maps/search platforms.
• Analyze their website content for trust signals, empathy, and localization. Check for Google Business Profile claimed and optimized.
• Then search their brand names on Facebook to see follower counts, engagement levels, ad spend if disclosed, and breadth of community connections.
• A weak online presence by incumbents may signal opportunities to stand out through modern branding and marketing.
• Also directly ask current players about capacity constraints as fast-growing target areas may welcome new entrants.
• Discover if poor site layouts, lack of crematory services, outdated facilities, or restrictive capacity during flu seasons open niches to exploit with updated offerings.
• Location opportunities could emerge as well if competitors sit far from key neighborhoods.

Analyzing this data illuminated whether consumer needs are truly being met or gaps exist for those establishing modern funeral homes with digital-first mindsets while respecting traditional regional preferences.

3. Costs to Start a Funeral Home Business

Starting a funeral home requires substantial upfront capital and ongoing investments to cover overhead in an extensively regulated industry. Key start-up costs typically include:

Start-up Costs

• Facilities – Purchasing or leasing a suitable property with appropriate zoning and space for services averages $65-$85 per square foot in most markets according to commercial real estate data.
• A minimum of 3,000 sq ft is recommended for garages, preparation rooms, chapels, and admin offices resulting in an initial $195,000 – $255,000 facilities investment.
• Equipment – Essential equipment like embalming tables ($3,000-$6,000), preparation room tools ($8,000), funeral coach vehicles ($70,000-$100,000 each), and other death care transport can total $125,000-$175,000 upfront.
• Display casket inventory averaging $100,000 is also a necessity.
• Licensing – State and local business permits, funeral director licenses, and regulatory fees often reach $10,000-$15,000 for initial licensing. Staff licenses and training add further costs as well.
• Insurance – General liability coverage is essential given industry risks, averaging $7,500/year for $1 million coverage.
• Specific policies like life insurance to fund prepaid funerals for clients are also +$3,000/year.
• Working capital – At least 6 months of operating capital is vital when opening a funeral home to withstand seasonal volume changes.
• With an average overhead of around $25,000/month as outlined below, $150,000 working capital should be secured.

All said, over $500,000 minimum start-up funding is reasonable when entering the death care industry before even accounting for inventory, marketing, or staff. Be prepared for extensive startup costs of well over $1 million for larger facilities.

Ongoing Costs

• Facilities fees and insurance = $5,000/month minimum
• Equipment maintenance + transport = $2,500
• Labor (initial 2-3 funeral directors + admin pros) = $12,500+
• General overhead like utilities and tech costs = $3,000+
• Ongoing Annual Costs:
• Facilities maintenance = $4,000+
• Recertifications & licensing = $1,500+ per licensed staff
• Marketing + community relationship building = $5,000

Overall, monthly costs can quickly sum to exceed $25,000 in overhead. The first 1-3 years also average over $30,000/year in various annual recertifications, replenishing working capital, equipment upgrades as needed and facilities improvements to better compete.

4. Form a Legal Business Entity

When structuring a funeral home business, owners must weigh options balancing legal liability, taxation, and ease of management. The four primary entities each have pros and cons to consider:

Sole Proprietorship

A sole proprietorship provides an easy setup with no formal registration needed beyond typical business licenses. However, the owner assumes unlimited personal liability for debts and claims which is dangerous in a mortuary service business. Pass-through taxation to the individual’s rate also typically means higher taxes than corporations. Still, this is a quick structure for very small operations.

Partnership

Forming a general or limited partnership spreads ownership and financial obligations across partners jointly operating the funeral home. The business itself pays no income taxes. However, similar to sole proprietors, partners assume unlimited personal liability including malpractice risks with mortuary services.

Limited Liability Company (LLC)

A limited liability company (LLC) balances pass-through taxation to owners without burdening them with personal liability. An LLC limits owner exposure to their capital contributions alone. The LLC status also imposes fewer record-keeping requirements than corporations.

Most small business experts recommend forming an LLC to safely operate higher-risk enterprises like funeral homes. Owners can layer insurance for added protection as well. This facilitates prudent expansion too as LLCs allow unlimited partners.

Corporation

A funeral home can be incorporated as a C or S corporation although this brings administrative complexity from extensive filing requirements and regulations in most states. These entities do limit liability exposure for shareholders. However, the corporate structure is usually excessive for most small funeral homes. The increased setup costs and tax/filing burdens often outweigh the marginal liability benefit of an LLC.

5. Register Your Business For Taxes

Part of your business plan as a funeral and cremation services director is obtaining an EIN. An Employer Identification Number, or EIN, serves as a business entity’s IRS tax ID similar to a Social Security Number for an individual. All funeral home businesses must acquire an EIN to handle federal tax obligations like payroll deductions or business income taxes.

An EIN is also required to open business bank accounts properly registered to the commercial entity. Applying online at the IRS website takes just minutes and avoids mailing delays:

• Navigate to the EIN Assistant and select “View Additional Types” to find the link for funeral homes under personal services businesses.
• Choose the appropriate federal tax classification for your business structure. Most funeral homes operate as limited liability companies (LLCs).
• Enter all required identification details like names, addresses, and ownership percentages to generate the EIN confirmation letter instantly.

There are no fees directly associated with obtaining a federal EIN. However, funeral homes must also complete state-level licensing and tax registration for the authority to operate and collect/remit sales taxes. State fees vary but often total a few hundred dollars for a standard funeral home license application.

At the state level, registering for required sales tax permits is also tied to the EIN status. This enables properly reporting transaction-based taxes each period. States levy varying sales tax rates and bases depending on jurisdictions so consulting regional experts is key.

Once the EIN is secured, notify all business partners and financial institutions. Add the tax ID to commercial insurance policies, vendor agreements, payroll systems, and other administrative documentation.

6. Setup Your Accounting

With significant start-up costs and ongoing overhead paired with intricate regulatory requirements, funeral home accounting warrants careful attention from day one. Mastering bookkeeping best practices independently or utilizing external accounting support establishes order amidst heavy financial workflows.

Accounting Software

Deploying small business accounting software like QuickBooks proves extremely useful for most funeral homes. Integrations with bank/credit card accounts enable automatic categorization of all transactions to simplify reconciliation and reporting. Dashboards and custom reporting provide real-time performance insights as well. Subscription plans start around $20/month.

Hire an Accountant

Outsourcing tasks to bookkeepers and CPAs also makes sense for many owners less familiar with accounting compliance. Typical monthly fees of $200-$500 for specialized bookkeeping and reconciliation assistance bring order to the accounting process. This frees up staff for client-facing activities.

Open a Business Bank Account

Maintaining separate personal and business accounts for your funeral home activities is also non-negotiable. Commingling assets invite IRS scrutiny if unable to prove earned income sources, especially as a pass-through LLC entity. Open dedicated small business bank accounts and credit cards solely for commercial transactions.

Apply for a Business Credit Card

Applying for credit cards like the Chase Ink Business cards considers both personal and business factors for limits. But keeping expenses isolated aids reporting. Carry small balances monthly, and pay in full to build a business credit history as well.

7. Obtain Licenses and Permits

Embarking on opening a funeral home requires proper research into federal, state, and local licenses plus permits to legally operate all facets of the sensitive business. Find federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state and city requirements.

At the federal level, funeral homes must register with the FDA for oversight relating to fluid preservation rules and handling of deceased with communicable diseases. No formal licensing occurs but instead notification and compliance with mortuary regulations.

All states mandate funeral home licenses for commercial deathcare services within their borders. For example, California charges over $300 initially for funeral establishment licenses after passing exams plus facility inspections while Illinois requires a $1,000 application fee.

Specialized local permits often come into play for funeral home projects too. For instance, cities enforce zoning regulations for commercial property usage or parking constraints. Renovating historic buildings may need approvals before altering layouts. Even signage displays likely need municipal site plan permits in many areas.

Several ancillary services common at funeral homes also mandate permissions like offering cremation or selling preneed funeral plans. These specialty offerings allow families to bundle arrangements but do impose other compliance rules to research within target states before promoting such expansion plans.

Transportation services through hearses require vehicle registrations, and commercial insurance, and may necessitate commercial driver licenses for staff. States also enroll funeral homes in programs like Workman’s Compensation for employee injury benefits. Staying atop the multitude of administrative license hurdles takes diligence.

While no business looks forward to red tape, due caution safeguards funeral home investors from preventable legal troubles or suspensions down the road. The sensitive nature of death care makes adherence to codes imperative.

8. Get Business Insurance

Given the sensitive services and high liability risks in death care, securing tailored business insurance protects funeral homeowners from financial ruin. Policies cover expenses if accidents, natural disasters, lawsuits, or other incidents damage properties or disrupt operations. Without proper coverage, a single event could permanently close doors.

For example, a fire could destroy a prep room and equipment worth hundreds of thousands in replacements. Slip and fall claims or trusted employee theft occurrences may drain Savings as well. Even cyber incidents around client data or service interruptions from floods may open the business up to massive legal and regulatory issues without insurance buffers.

Typically securing general liability, commercial property, business continuation, and other policies runs $550-$850 monthly but sustains operations through unpredictable events. Structuring the proper coverage mix requires an assessment of local risks, assets, and compliance obligations.

Connecting with a trusted, specialized agent guides tailoring policies. Expect to provide details on storage areas, commercial vehicles, staff certifications, premises layouts, and more. Securing protection for first call volumes without history uses estimates. Expect enhanced underwriting down the road based on actual funeral home performance.

The application process may take 4-6 weeks requiring detailed documentation. However, obtaining quotes from 5+ regional providers ensures affordable premiums. Don’t assume current personal insurance packages transfer – commercial policies need to be structured specifically around the funeral home’s services and risk landscape.

Failing to safeguard the business from the outset with insurance invites financial catastrophe if an incident disrupts a funeral home’s sensitive operations. Legal liabilities also often exceed early expectations in death care. Protect investments through informed coverage.

9. Create an Office Space

Opting to establish a dedicated office environment for administrative duties helps structure and grow a funeral home over time even if client meetings commonly remain onsite in chapels or private residences.

Home Office

Having a centralized base aids in coordinating time-sensitive logistics across potentially distributed partner locations, memorial event venues, crematories, and other third parties involved in standard deathcare operations. It also provides privacy for sensitive legal or accounting tasks plus scalable room for new hires overseeing expanding volumes beyond early day-to-day owner roles.

Coworking Office

At launch aiming for cost-effective solutions like WeWork coworking memberships allows focusing investments on client-serving resources first. For roughly $300 monthly per floating desk, small teams can leverage shared infrastructure from spaces conducive to focused work or quick meetings just steps from home if needed.

Commercial Office

A long-term lease on stand-alone commercial office space offers dedicated room to grow at roughly $20 per square foot in many markets, translating to $1000 monthly for an ample 500 sq ft base including utilities in some regions.

10. Source Your Equipment

Launching a licensed funeral home requires extensive specialized equipment from vehicles to facility furnishings and handling tools. New owners enjoy various acquisition options balancing costs, reliability, and convenience.

Purchasing current model offerings from leading funeral supply manufacturers like Pierce Chemicals or Mopec ensures the latest innovations and warranties but carries premium price tags before factoring in steep shipping on large goods. High-end caskets easily run $1,000 for instance. Buying entirely new carries a $75,000 price for properly outfitting a basic operation.

Seeking used goods through auction sites like eBay , industry forums or even local competitors retiring inventory offers significant cost savings. For example, well-maintained funeral coaches with 100,000+ miles easily serve another 5-7 years for half the cost of new.

Rentals allow access to funeral materials and transportation fleets without major upfront equity. Event-specific renting of extras like church trucks or limos for large memorials offers flexibility missing from owning outright. However, limited equipment like cremation furnaces or embalming equipment necessitates outright purchases for reliable in-house access.

Leasing agreements similarly spread costs over multi-year structures often packaged with servicing and upgrades from major equipment companies. This prevents sudden replacement costs down the road. Though total spending exceeds buying over long runs, leases help manage overhead during the risky launch phase.

11. Establish Your Brand Assets

Distinguishing a funeral home’s brand in the minds of local communities quickly proves essential to stand out from incumbent providers families rely on during emotional times. Though focused principally on compassionate care, foundations like consistent branding allow newcomers to convey trust and familiarity.

Get a Business Phone Number

Securing a personalized business phone line adds legitimacy and a local presence priceless for sensitive services. Top providers like RingCentral enable call routing, voicemail transcriptions, and mass notification services to refine responses. Number portability also aids continuity if addresses change.

Design a Logo

Creating a distinctive logo through online logo makers such as Looka provides visual continuity across marketing materials from website imagery to printed funeral programs. Given significant word-of-mouth referral chains in death care, visual familiarity builds awareness quickly at a low cost.

Print Business Cards

Simultaneously securing branded collateral like business cards through convenient printing services like Vistaprint makes professionally introducing the business to local hospitals, hospices, and religious centers effortless. These frequent exchanges market services to valuable referral partners.

Register a Funeral Service Domain Name

Registering a customized domain name for the funeral home’s forthcoming website prevents imitation, and showcases locality and branding. Sites like Namecheap make registering and managing domains easy alongside affordable hosting plans.

Design a Website

Build out pages using simple drag-and-drop solutions like Wix . For more advanced sites, specialized developers found via Fiverr craft customized online presences aligned to branded styles.

12. Join Associations and Groups

Joining regional industry associations, events and online communities accelerates market familiarity and training for newly opened funeral homes by tapping peers’ insights.

Local Associations

Longstanding groups like the California Funeral Directors Association and Illinois Funeral Directors Association offer new member onboarding guiding state regulatory nuances, pricing benchmarking, and community partnership opportunities.

Local conventions like the NFDA International Convention also feature vendor exhibits to find regional suppliers. Expect reasonable annual dues of around $400 plus convention registration fees.

Local Meetups

Attending regular regional trade events as listed on sites like Meetup encourages peer networking missing from solo launch planning. Swapping business development ideas with established funeral directors between seminars on industry trends customizes growth approaches to the local culture.

Facebook Groups

Peer knowledge sharing also continues online through industry groups like the Funeral Directors and Funeral Directors That Care . Best practices on balanced messaging cadences across digital and print mediums help newcomers refine community recognition. Ask anything from licensing questions to lifestyle realities as an owner.

13. How to Market a Funeral Home Business

Implementing an ongoing marketing strategy proves foundational for new funeral homes aiming to consistently grow volumes year-over-year within their regional community. While delivering compassionate services remains the priority, proactive outreach builds crucial awareness and trust for families during emotional times.

Personal Networking

Initially tapping personal and professional networks to share services launches word-of-mouth referrals. Providing customers referral cards at the time of service also incentivizes sharing preferred providers when friends or family face loss. Simple personal connections seed early interest.

Digital Marketing

As for paid digital marketing, Geo-targeted Google Ads showcase top rankings for critical search terms like “funeral homes” plus the region’s name and city. Reinforce messages on Facebook and Instagram through similar hyperlocal campaigns reaching those aged 45-65.

Posting empathetic video testimonials or FAQs on YouTube also improves SEO while conveying authenticity that many incumbents lack online. High production quality is secondary to compassionate messaging.

Additionally, blogging about supporting grieving families or memorial service best practices provides helpful advice driving organic traffic and links. Optimize blog content for keywords like “how to write a funeral speech” as well.

Traditional Marketing

For traditional options, direct mail brochures sent to local religious centers and regular door knocking in 55 and up retirement communities raise visibility. Sponsoring charity events or little league teams endorses community commitment further.

• Direct Mail Brochures
• Print Ads in Local Papers
• Chamber Event Sponsorships
• Baseball Team Jersey Sponsorships

While digital channels enable measurable lead generation, local print, and sponsorship visibility should not be ignored in a relationship-driven sector. New funeral homes combining data-driven and traditional techniques maximize reaching both aging and supporting demographics. Meet people where they are – digitally or personally.

14. Focus on the Customer

In an industry centered on compassion during turbulent times, new funeral home owners must make customer service a top priority right from launch. Some ways to improve customer focus in the funeral industry include:

For instance, proactively guiding loved ones through essential decisions around memorial styles, obituary drafting, and memento creation combines empathy and expertise to alleviate stress. Simply presenting options fails to uphold this responsibility. Instead, gently advising based on budgets, faiths, and preferences shows families their best interest matters most.

Likewise, funeral homes go beyond expectations by flawlessly orchestrating packed services honoring unique wishes for personalized programs, music, or readings. One poor sound system mishap or memorial video error damages hard-won reputations. Meticulously executed events backed by transparency builds confidence.

Post-service care also shines via check-ins on grief support group recommendations or ceremony keepsake deliveries. These small touches spread quickly within local communities, portraying the comforting environment families deserve when remembering loved ones.

In a few other industries compassion enables business growth. But within bereavement services, upholding exceptional customer service daily motivates glowing word-of-mouth referrals to friends and extended family amidst peak emotional moments. Take care of the competitive advantage from day one through retirement. Families deserve nothing less.

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How to Start a Funeral Home

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11 Steps to Start Your Own Funeral Home

How big is the funeral homes industry, what are the types of funeral homes, who are the key competitors in the funeral industry, what are the typical startup costs for a new funeral home, is owning a funeral home profitable, what are the keys to launching a new funeral home, how to start a funeral home faqs, other helpful business plan articles & templates.

Starting a funeral home business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching and running a successful Funeral Home.

Importantly, a critical step in starting a funeral home is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

There are 11 steps to starting a funeral home as follows.

Step 1: Do Your Research

The most important part of starting a funeral home is doing your research. 

If you’ve never run a funeral home before, start by reading industry magazines and websites to learn more about the industry. The more you know about the industry, the better you can design your business and the more prepared you will be to launch and grow your funeral home.

Step 2: Develop a Funeral Home Business Plan

A business plan is one of the most important steps in starting any business. Developing the funeral home business plan forces you to think through your business concept and other aspects to help you make your business a success including the following sections:

• Company Analysis – you will document the type of funeral home you plan to launch. 
• Marketing Plan – you will document your pricing and how you will attract new customers. 
• Management Team – you will detail your company’s staffing needs. 
• Financial Plan – you will identify key expenditures you need, staffing and other costs, and projected revenues. This will help in forecasting the future of your funeral home and in determining if you need to raise outside funding.

Step 3: Determine Your Location & Space Requirements

Before you start a funeral home, it is important to have a location in mind if  you are not purchasing an existing funeral home.

Your location doesn’t need to be one in which there is a lot of foot traffic (such locations are very expensive), but it can’t be inconvenient to get to either. Think about the services you’d like to offer in your funeral home when thinking about the size of the space you need.

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Step 4: Equipment Needed

To start a funeral home, there are many supplies and equipment that you will need. Below are the main supply and equipment categories to consider:

• Prep Room Equipment & Supplies
• Chapel, Selection Room Equipment & Furnishings
• Funeral Service Items
• Flower Equipment & Supplies
• Emergency Pouches & Body Bags
• Removal Equipment & Transport Supplies

Step 5: Licensing Requirements

In most states, you cannot start a funeral home without having the right licenses and permits in place. Be sure to check your state’s rules regarding starting a funeral home.

Finish Your Business Plan Today!

Step 6: business insurance.

Once all the above steps are completed, it is time for you to get insured. There are many insurance companies that offer different policies that can suit your needs including workers’ compensation and general liability. 

Step 7: Market Your Business

Once you get all the necessary approvals and licenses, it is time for you to market your funeral business. There are many marketing strategies you can employ such as referrals, partnerships, social media marketing, pay-per-click advertising and public relations among others. 

Step 8: Hire Employees

Depending on how busy your funeral home is, you probably need to hire additional staff including a licensed Funeral Director who will lead the final funeral arrangements. 

Here are some things to consider when hiring employees for your funeral home:

• look for people who are honest and have a good reputation in their work
• check how organized they are to make sure they won’t miss anything important
• make it clear whether you require permanent employees or on-call staff
• check the person’s work history and past employment references before hiring them

Treat your employees fairly and ensure that your business is a safe place to work and that there are no safety hazards.

Step 9: Set up a Business Bank Account

You must set up a bank account for your business and set up credit card processing so you can accept credit cards as a form of payment (along with cash and checks).

Step 10: Record-Keeping Requirements

With any kind of business, keeping proper records is very important because it will help with tax filing, budgeting, and other things. A funeral home is no different.

Step 11: Review & Adapt Your Business Plans

Once your funeral home is up and running, it is time to review operations and make changes where necessary. For instance, if the demand for funerals was higher than expected, consider hiring additional staff to meet client needs. You might also need to change or increase your equipment if the need arises.

According to IBIS World, the funeral homes industry in the US reached $16 billion in annual revenue and is anticipated to continue growing at a rate of 0.6%.

There are various types of funeral homes, but the most common ones include:

Traditional Funeral Home

This type of funeral home offers all types of services including funerals and wakes; traditional funerals, burial services, memorial services, cremation, and more.

Cremation Funeral Home

This is the type of business that focuses mainly on cremation services which are typically less expensive than traditional funeral homes. Cremations have become very popular lately since they are cheaper while still providing similar benefits to traditional funerals. It is important to note, however, that cremation services are usually provided by other types of funeral homes.

Religious Funeral Providers

This is a business that provides funeral services to people of the same religion. For example, it could be an Islamic funeral home or a Catholic funeral home. This type of funeral home only provides the services required by their religion.

While there are many funeral homes in the US, only a few of them are considered the biggest competitors. These competitors include:

Service Corporation International (SCI)

One of the oldest and largest providers of funeral, cremation, and cemetery services in North America, Service Corporation International (SCI) was founded in 1962 and is based in Houston. SCI has 16,503 employees and last reported $3.5 billion in total revenue.

Carriage Services Inc.

Carriage Services Inc. is a Houston-based firm that was formed in 1991. The business went public in 1996, and current operates 178 funeral homes in 26 states as well as 32 cemeteries in 12 states.

StoneMor Partners LP

StoneMor is based in Pennsylvania and is the nation’s second-largest cemetery owner, with operations in 27 states and Puerto Rico.

There may be other locally-owned funeral homes in your target market. It is important to conduct research on how big they are and how people view them before you start your own funeral home.

The typical startup costs for a funeral home will depend on how much money the owner has to spend. It can probably land somewhere between $150,000 and $300,000.

If funeral homes want a luxurious set-up that includes all of the latest technologies, then they will have to spend more money in order to acquire these resources.

The common startup business expenses for a funeral home include:

• Equipment & Furnishings – This category includes all of the necessary equipment that funeral homes use during embalming, like disinfectants and chemicals. They will also need to pay for furniture like caskets, chairs, sofas, etc., as well as office supplies and items for everyday life.
• Marketing & Advertising – Funeral homes will have to spread the word about their business, so they will need to pay for marketing strategies. They should also invest in a website and other online platforms that can help them reach a wider customer base.
• Insurance – There are going to be insurance premiums that funeral homes have to pay on a monthly basis. This is necessary for legal requirements and it will take up a chunk of the startup costs.
• Licenses – There are some licenses that funeral homes will need to acquire, which can also take up a lot of money during the startup phase. This includes operational permits and those that relate to the industry as a whole.
• Hiring and Onboarding –  New funeral homes will have to hire new staff members and they will also need help from employees during the startup phase. This will obviously take up some of their funds, but it can be beneficial because once other businesses see how great your business is, they may want to invest in you themselves.
• Rent – It is recommended to own a funeral home building rather than renting one. This is a better option because funeral homes will receive tax benefits if they own the building, but they will also have more flexibility when it comes to adapting their funeral home as the industry changes.

Yes, funeral homes can be highly profitable businesses if they have a lot of customers and loyal employees. While there are a few challenges funeral homes need to face when it comes to making a profit, once these issues are resolved, they will definitely see some return on investment.

The average funeral home in the United States makes a profit of $80,000 to $120,000 per year.

In order to launch a successful funeral home and make it profitable, you need to keep in mind the following:

Build Loyalty

This is one of the most important factors when trying to make a profit with your funeral home. You want customers who are willing to come back again and again, whether they be family members of the deceased, or people who are planning to eventually pass away themselves.

Offer Competitive Prices

Funeral homes need to offer lower prices than other funeral homes in order to attract customers. They should also offer customized services and packages that will help them save money as well as give the customer what they want.

Market Your Business Online

This is one of the best ways to market your funeral home today. You should definitely invest in social media platforms like Facebook. It would also be beneficial to set up a website where customers can receive information about your business as well as look at price lists and other necessary materials.

Additional Resources

Funeral Mavericks

How to Finish Your Ultimate Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your funeral home business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

What are the necessary permits for starting a funeral home?

To start a funeral home you need to acquire the necessary permits and licenses. You will not only need to get a business license but also special licenses/certifications depending on your state laws.

For instance:

• If you live in California you will need to acquire a license from the Board of Funeral Directors and Embalmers
• If you live in New York you will need a funeral home license from the Department of Health, and so forth.

How do you market a funeral home?

Marketing a funeral home needs to be done with care, as this is one of the steps that can determine if your business will succeed or fail. Marketing a funeral home usually includes advertising in local newspapers and magazines, building a website, creating business cards and brochures, and networking with funeral service providers in your area.

However, among those advertising options, building a website is the one that will definitely help your business grow. Since almost everything is operated online these days, it is important to have a website that clearly presents your business and the services you offer.

What equipment and supplies do I need to get a funeral business off the ground?

The first thing you will need to start a funeral home is to rent or purchase office space if it's available. If not, make sure to check for possible spaces that are fit for starting your funeral business.

Equipment and supplies such as caskets, urns, clothing, and automobiles will also need to be bought so you can offer the needed services for clients that need them.

How do I grow my customer base once the funeral home is open?

One of the most important steps in growing your funeral home business is to offer quality services.

Offering quality service can make or break your funeral home business, so make sure to only hire the best personnel available. Once you have trained them well, they will be able to serve clients with utmost care and respect which is what all customers want in the end.

Keeping your customers happy will eventually result in them increasing word-of-mouth recommendations to family and friends, which can help grow your base of customers.

Having an online presence is another way to increase the customer base by using social media platforms to promote your business. You can also use websites like Yelp or Google Places to attract local customers.

• Business plans

Funeral Home Business Plan

Used 4,891 times

A Funeral Home Business Plan covers detailed data on the courtesies offered by the company, market analysis, administration strategies, personnel procedures, budget and financing plans, and other applicable topics.

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Business Plan

​ [Sender.Company] ​

Contact Information

Name of owner: [Sender.FirstName] ​ [Sender.LastName] ​

Phone Number: [Sender.Phone] ​

Email: [Sender.Email] ​

Address: [Sender.StreetAddress] ​ [Sender.City] ​ [Sender.State] ​ [Sender.PostalCode] ​ [Sender.Country] ​

Website: (insert website)

At [Sender.Company] , we provide services to honor and remember those who have passed away. We specialize in funerals, cremations, and tribute services (insert type of tribute service, e.g., celebration of life, memorial services, etc.) , and we are committed to helping families navigate the challenges of saying goodbye to a loved one.

Information provided in this business plan is confidential and may not be disclosed to any third parties without the express written consent of the [Sender.Company] team.

Executive Summary

Background information, company overview & description, products & services offered, target market analysis, marketing plan, management team, financial plan.

At [Sender.Company] , we are committed to providing the highest quality funerals, cremations, and tribute services to families in our local community. We understand the complex emotional and financial challenges that can arise at this difficult time, and we are committed to offering compassionate support and expert guidance every step of the way.

​ [Sender.Company] has been providing funeral and cremation services to local families since (insert year) . We have a long history of creating meaningful funeral services while keeping costs affordable. Throughout these (insert number) years, our team has developed a reputation for being caring and compassionate in difficult times.

​ [Sender.Company] is a funeral home located in [Sender.StreetAddress] [Sender.City] [Sender.State] [Sender.PostalCode] . We provide the highest level of care and respect for all your needs, both large and small. Our staff has over (insert number) years of combined experience serving families in our community. At [Sender.Company] , we believe each person is unique and treat each family with dignity and compassion, no matter their circumstances.

We offer a wide range of products and services to support you and your family through every step of the funeral process. Some of our most popular offerings include (insert services such as:)

Traditional funeral services

Cremation services

Funeral pre-planning and arrangements

Bereavement counseling and support programs

Memorial and celebration of life events

Personalized funeral merchandise, such as caskets, urns, and keepsakes

Our target market consists of individuals and families in our local area who need funerals, cremations, and tribute services. Our ideal customers recognize the importance of honoring a loved one's life uniquely while respecting their budget constraints.

Some key demographic characteristics of our target market include:

Our marketing plan focuses on increasing our brand awareness and customer base in the local area. We aim to reach potential customers through a combination of online and offline channels, including (insert list example given below). Our goal is to create an experience that exceeds their expectations while providing an affordable solution.

Specific strategies include:

Developing relationships with local organizations and businesses. (insert list, e.g., religious organizations, civic groups, etc.)

Utilizing social media platforms to share up-to-date information on our services and specials. (insert list, e.g., Facebook, Instagram, etc.)

Creating targeted marketing campaigns to reach potential customers in our local area. (insert list, e.g., radio, print ads, etc.)

Hosting community events such as open houses and information seminars. (insert list, e.g., funeral planning seminars, grief workshops, etc.)

The team comprises experienced professionals from various backgrounds, each bringing their unique set of skills and strengths to the table.

Our team includes:

We also have an advisory board of industry experts (insert name and qualifications/certifications) who provide valuable advice on market trends and new opportunities. They help us stay abreast of industry developments and make well-informed decisions based on the latest information.

We understand that our success depends on our ability to manage our finances responsibly and efficiently. The financial plan outlines the steps we will take to ensure that all financial operations are executed professionally, ethically, and with respect for confidentiality.

Specifically, our financial plan includes: (insert bullet points detailing budgeting and forecasting, cost analysis, cash flow management, financial reporting, and record-keeping, etc.).

We also understand the importance of customer satisfaction when it comes to our financial operations, and we are committed to providing transparent billing practices and clear communication about pricing and fees.

​ [Client.FirstName] [Client.LastName] ​

​ [Sender.FirstName] [Sender.LastName] ​

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Useful resources

• Featured templates
• Sales proposals

How To Open a Funeral Home

Opening a funeral home can be a lucrative business opportunity, but it is essential to understand the step-by-step process. This article will provide entrepreneurs with the information they need to get started.

Here are the ten steps you can take to start building your own funeral home .

Download the Ultimate Business Plan Template

Ten steps to launching a new funeral home, 1. choose your type of funeral home.

The first step in launching a funeral home is to identify the type of business you want to launch. You might choose from the following types among others:

A traditional funeral home

This type of funeral home offers the full range of funeral services, from embalming and burial to cremation.

A cremation-only funeral home

As the name suggests, this type of funeral home only offers cremation services.

A green funeral home

Green funeral homes are becoming increasingly popular, as they offer more environmentally-friendly funeral options.

2. Name Your Funeral Home  

Give your funeral home an identity so people will think of it as a well-known and respected brand. You can take the name of your funeral home business from your industry, focus on a geographical location, or use your own name among other options.

The main goal for naming your funeral home business is to make it sound appealing and trustworthy so that families will want to use your services.

3. Determine Your Funeral Home Business Model

There are several possible types of business models for a funeral home business, including:

• A family-owned funeral home : In this type of business model, the funeral home is owned by one or more family members.
• A publicly traded funeral home : In this type of business model, the funeral home is owned by shareholders who have invested in the company.
• A cooperative funeral home: In this type of business model, the funeral home is owned by a group of people who have come together to share resources and expertise. 

No matter which model you choose, make sure that it aligns with your business goals and the products and services you offer.

4. Choose a Legal Form for Your Business

By incorporating your funeral home business, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.

The business structure you choose for your funeral home business will determine the amount of taxes you pay and which state or federal tax forms you need to file.

Read our article comparing the most common funeral home business structures .

5. Write a Funeral Home Business Plan

All funeral home business owners should develop a business plan. 

A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team among other things.

Read our article about how to write a funeral home business plan .

6. Apply for the Necessary Permits and Licenses

There may be required licenses and permits you need to obtain before launching your funeral home .

For example, you may need to obtain a license to operate as a funeral director in your state. Additionally, you may need to obtain a license to transport human remains.

You must also register your funeral home business as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.

Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website, if you plan to hire employees.

Read our article about obtaining the proper funeral home business licenses .

7. Determine Your Budget & Apply for Funding as Needed

In developing your funeral home business plan, you will figure out how much funding you need to start and grow your business.

If you have your own funds to invest in your funeral home , you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your funeral home include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.

Read our article about the costs associated with starting a funeral home to help you determine if funding is needed. 

8. Get the Technology & Software Needed to Run Your Business Efficiently

When you start your funeral home , it’s essential to have the right technology in place to maximize efficiency. You need a computer with Internet access, and accounting software for tracking expenses and revenues. 

You may also want to invest in funeral home software, which can automate tasks like customer relationship management (CRM), online funeral arrangements, and appointment scheduling.

Some of the most popular funeral home software programs on the market today include FuneralWizard, myFuneral Home, and OFreezer.

9. Market Your Funeral Home to Potential Customers

Before you start selling your products and services , you must let the world know you exist. The first step is to create a website so people can learn more about your products and services and how they benefit them.

After you launch your website, start promoting it through social media channels like Facebook, LinkedIn, and Twitter. Also consider networking with other people in the funeral home industry through social media and blogs so they can help share your business. 

You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. Funeral home businesses should consider the following promotional strategies for which you should start getting prepared: 

• Develop a marketing plan and budget
• Create an advertising campaign
• Direct mail campaigns
• PR and media relations

Read our article about how to market your funeral home for more tips.

10. Get New Customers & Grow Your Business

When you promote your products and services , you’ll start to get interest from potential customers . 

Make sure you’re ready to serve these customers . Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your funeral home .

Read our article about how to effectively grow your funeral home to learn more.

Starting a Funeral Home FAQs

Why start a funeral home.

The funeral home industry is expected to grow at a rate of 1.4% from 2019 to 2029.

There are several reasons why you should start a funeral home business:

• There is always a demand for funeral services.
• You can offer a needed service to your community.
• You can be your own boss and set your own hours.
• You can make a good living in the funeral home industry.

What are Some Tips for Starting a Funeral Home?

Here are some tips for starting a funeral home business:

• Plan your business carefully.
• Choose the right location.
• Get the necessary licenses and permits.
• Invest in the right technology and software.
• Promote your business effectively.

Where Can I Find a Simple Checklist for Starting a Funeral Home 

A simple checklist to use when starting a funeral home is as follows:

• Choose Your Type of Funeral Home Company : This should be based on what you are best at and how much experience you have. Remember to keep your interests, skills, and experience in mind at all times.
• Name Your Funeral Home : This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
• Choose a Legal Form for Your Business : Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
• Determine Your Funeral Home Business Model : Determine how your business will make money. Will you sell products, services, or a combination of both?
• Write a Funeral Home Business Plan : Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow .
• Apply for the Necessary Permits and Licenses : In most locations you will be required to apply for a business license and/or permits before you can begin operations.
• Determine Your Budget & Apply for Funding as Needed : You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
• Get the Technology & Software Needed to Run Your Business Efficiently : You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
• Market Your Funeral Home Business to Potential Customers : A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the products and services they truly need. 
• Get Customers & Grow Your Business : Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your products and services .

Open a Funeral Home

Opening a funeral home can be a great business opportunity, but it is important to complete a few steps. Make sure you have a business plan in place and get the necessary licenses and permits. Then, find the right location for your business and invest in the technology and software you need to run it efficiently. 

Promote your funeral home business effectively to attract the right customers. With the right planning and execution, your funeral home business can be a great success!

Other Helpful Articles

Funeral Home Business Ideas For Starting Your Own

How To Start a Cremation Business

How To Start a Funeral Program Business

Starting Funeral Home Business Plan (PDF)

Death is a natural part of life, and as such, funeral homes are a necessity for families and communities. While it may seem daunting to enter into such a sensitive industry, starting a funeral home business can be a fulfilling and profitable business venture. People dying necessitate the need for funeral services. It may sound morbid to say that a funeral home business is a profitable venture. However, it is a matter of necessity and inevitability. A funeral home, also known as a funeral parlour, is an establishment where the dead are prepared for burial or cremation. The funeral services industry is a stable and growing market, with an increasing demand for services as the population ages. A funeral home business can offer a unique opportunity to serve families during one of the most difficult times in their lives and to provide a meaningful and personalized experience. This article will outline how to start a funeral parlour business, and the funeral home business plan (PDF, Word & Excel).

Market Research

It’s important for you to carry out market research before you venture into the funeral home business. You must seek to familiarize yourself with how the funeral parlour industry works first. Then you research into existing funeral home businesses in your target area. You have to find the type of services and products that they offer. Find out their customer segments and how big their market share or reach is. Study their business and pricing models.

Market research will help you identify market gaps, including underserved or unserved locations, as well as weaknesses of the existing funeral parlours. The information and insights you gather from your market research will help you build a successful funeral home business. Your target market, services to offer, and marketing strategies will be determined by the information you get from the market research. Therefore, it is imperative that you take the time to conduct thorough research before starting a funeral home business.

Location And Premises

There are several factors you should take into consideration when selecting a location for your funeral home business. Consider the demographics of the area. The ideal location for a funeral parlour is in an area that has a significant population of old adults, as aged people may require funeral services in the near future. Also consider the income levels of the people in the area, an area with a higher income demographic is more likely to utilise premium funeral services. The funeral home should be located in an easily accessible area with enough space for parking. It should be close to major highways and public transportation – this ensures that families can easily access the funeral parlour.

The premises for a funeral home play an important role in ensuring the success of the business. The funeral parlour premises should provide a comfortable, safe, and peaceful environment for families to grieve and pay their respects to their loved ones. You will need a building to operate from. Typically you will need a building with multiple rooms. Rooms needed for a funeral home include a reception, preparation room, mortuary room and offices. The funeral home business plan should include the costs of purchasing or leasing the premises.

Vehicles And Equipment

A funeral home requires a variety of  vehicles and specialized equipment to provide professional services to its clients. Vehicles are an essential requirement for funeral parlours, as they enable the transportation of the deceased, family members, and funeral staff. Hearses are the most commonly used vehicles by funeral homes, their primary purpose is to transport caskets containing the deceased. Some funeral parlours can also have limousines and buses for transporting mourners. Other equipment required by funeral parlours include mortuary refrigerators, embalming tables, embalming equipment, mortuary stretchers & trolleys, scissor lifts, furniture etc. The funeral parlour business plan should include the costs of acquiring the vehicles and equipment.

Products And Services

A funeral home provides a range of services to assist families in arranging and conducting funeral services for their loved ones. Some of the common services offered by funeral parlours include embalming and preparation of the deceased, casket and urn selection, coordination of funeral and burial services, provision of transportation, and assistance with legal paperwork such as death certificates and insurance claims. In addition to facilitating the traditional burial services, funeral parlours can also offer cremation services. Funeral homes can also provide other extra services such as grief counselling.

While funeral parlours primarily offer services, they can also sell products to facilitate the funeral arrangements. One of the primary products offered by funeral homes are coffins and caskets, which can come in a variety of materials and styles to suit different preferences and budgets. Other products offered by funeral homes include urns for cremation, stationary  such as memorial programs and thank-you cards, floral arrangements, and memorial tribute videos. Your funeral parlour business plan should clearly outline the products and services that your business will offer.

Management And Staff

A funeral home requires a team of dedicated employees so as to provide high quality services to families during their time of need. The employees required by a funeral parlour business include funeral directors/undertakers, funeral assistants, embalmers, drivers as well as administrative staff. Large funeral homes can also employ grief counselors or social workers to offer emotional support and guidance to families. The employees of a funeral parlour must possess a range of qualities to ensure that they can provide the necessary support and assistance to grieving families. Compassion is perhaps the most essential quality, as it is vital that the staff empathise with families and offer them comfort and understanding. In addition to being compassionate, employees should be professional, respectful, and attentive to detail. Good communication skills are also necessary to ensure that funeral arrangements are executed smoothly and that families feel supported throughout the whole process. Thus it is important for all your employees to undergo training to ensure that they provide high quality services to clients. The salaries of all your staff should be included in the funeral home business plan.

The market for funeral services is always there as people are always dying every day. However you need to understand your local market and trends. For example, in some countries cremation is now mostly more preferable than traditional burials. While the demand for funeral services is relatively constant, the market for funeral homes is also impacted by factors such as the local population, demographics, and cultural traditions. As such, funeral homes must be responsive to the unique needs of their local market and be able to offer personalized and culturally appropriate services to their clients. Word of mouth is one of the most important marketing methods for funeral parlours, thus it is important to provide high quality services so as to encourage positive word of mouth referrals. Funeral homes that offer compassionate and professional services, and go above and beyond to meet the needs of their clients, are more likely to receive positive recommendations from satisfied customers. The funeral parlour business plan should also include other marketing strategies that you can use for your funeral home business.

Pre-Written Funeral Home Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the funeral home business, we encourage you to purchase our well-researched and comprehensive funeral home business plan. We introduced the business plans after discovering that many were venturing into the funeral parlour business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global funeral parlour business plan will make it easier for you to launch and run your funeral home business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. This is a complete business plan for a funeral home business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the funeral parlour business.

Uses of the Funeral Parlour Business Plan (PDF, Word And Excel)

The funeral home business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your funeral parlor business
• As a funeral home business proposal
• Assessing profitability of the funeral parlour business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Funeral Home Business Plan (PDF, Word And Excel)

The business plan for a funeral home includes, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Industry Analysis
• Market Analysis
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some people in the funeral home business fail, so that you can avoid their mistakes
• Ways to raise capital to start your funeral parlour business

The funeral home business plan package consists of 4 files

• Funeral Home Business Plan – PDF file (Comprehensive Version – 89 Pages)
• Funeral Home Business Plan – Editable Word File (Comprehensive Version – 89 Pages)
• Funeral Home Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 48 pages)
• Funeral Home Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the costs, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

Click below to download the Contents Page of the Funeral Home Business Plan (PDF)

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Funeral Home Business Plan Template [Updated 2024]

Funeral Home Business Plan Template

If you want to start a Funeral Home or expand your current Funeral Home business, you need a business plan.

The following Funeral Home business plan template gives you the key elements for starting a funeral home business plan.

You can download our business plan template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of your Funeral Home business plan:

Funeral Home Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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The financial plan for a funeral home business.

Running a compassionate and dignified funeral home is not only about providing a respectful farewell to loved ones; it's also about managing the business with financial wisdom.

In this post, we'll explore the critical elements of developing a financial strategy that ensures your funeral home can serve the community sustainably.

From grasping the initial investment costs to handling day-to-day financial operations and anticipating market changes, we're here to assist you in navigating each aspect.

Let's embark on the journey to ensure your funeral home is not only a pillar of support for those grieving but also a financially stable establishment.

And if you wish to obtain a comprehensive 3-year financial analysis for your funeral home without delving into complex calculations yourself, please download our specialized financial plan designed for funeral homes.

What is a financial plan and how to make one for your funeral home business?

A financial plan for a funeral home business is a critical tool that guides you through the financial aspects of running your funeral services.

Think of it as charting the course for a solemn journey: You need to understand the resources at your disposal, the services you wish to offer, and the costs involved in providing dignified and respectful funeral arrangements. This plan is essential when starting a new funeral home, as it helps turn your dedication to providing compassionate care into a structured and sustainable business.

So, why create a financial plan?

Imagine you're about to open a funeral home. Your financial plan will help you grasp the costs involved - such as purchasing or leasing a facility, acquiring funeral vehicles, caskets, and other necessary equipment, initial staffing expenses, and marketing. It's like assessing your resources and budget before embarking on a sensitive and important service.

But it's more than just adding up costs.

A financial plan can provide crucial insights similar to learning a vital aspect of funeral care. For example, it might show that offering extravagant casket options is cost-prohibitive, leading you to focus on high-quality, yet affordable alternatives. Or, it could reveal that a large staff is not needed initially, saving on labor costs.

These insights help you avoid overspending and overstaffing.

Financial plans also serve as a forecasting tool to identify potential risks. Suppose your plan suggests that achieving your break-even point – where your income equals your expenses – is only feasible if you conduct a certain number of services each month. This highlights a risk: What if the demand is lower than expected? It encourages you to consider alternative services, like pre-planned funerals or memorial services, to supplement income.

How does this differ for funeral homes compared to other businesses? The main difference lies in the nature of the costs and the revenue pattern.

That’s why the financial plan our team has developed is specifically designed for the funeral home industry . It can't be applied universally to all types of businesses.

Funeral homes have unique expenses such as mortuary equipment, special facilities for viewing and ceremonies, and compliance with specific health and funeral service regulations. Their revenue may also vary - consider how local demographics and cultural practices might influence demand. This contrasts with, say, a tech store, where products don't have such specific usage constraints and sales trends could be more predictable.

Clearly, our financial plan takes into account all these unique aspects when it has been formulated. This enables you to create accurate financial projections tailored to your new funeral home venture.

What financial tables and metrics include in the financial plan for a funeral home business?

Creating a financial plan for a new funeral home is an essential step in ensuring the success and sustainability of your business.

Understand that your future funeral home's financial plan is more than just numbers on paper; it's a roadmap that guides you through the initial stages and helps in maintaining the business over time.

Let's begin with the most fundamental component: the startup costs. This includes everything you need to open your funeral home for the first time.

Consider the costs of purchasing or leasing a facility, acquiring funeral vehicles, caskets, and other essential equipment, interior furnishings, and even signage. These costs give you a clear picture of the initial investment required. We have already outlined them in our financial plan , so you don’t need to search elsewhere.

Next, think about your operating expenses. These are ongoing costs that will occur regularly, such as employee salaries, utility bills, maintenance of facilities and vehicles, and day-to-day operational costs. It’s crucial to have a good estimate of these expenses to understand how much your funeral home needs to earn to be profitable.

In our financial plan, we've filled in all these values, so you'll have a good idea of what they should represent for a funeral home. Naturally, these can be adjusted in the 'assumptions' tab of our financial plan.

One of the most important tables in your financial plan is the cash flow statement (included in our financial plan). This table shows how cash is expected to flow in and out of your business.

It’s a monthly (and annual) breakdown that includes your projected revenue (how much money you expect to make from funeral services) and your projected expenses (the costs of operating the funeral home). This statement is crucial for anticipating periods when you might need additional cash reserves or when you can plan for upgrades or expansions.

Another key table is the profit and loss statement, also known as the income statement, which is also included in our financial plan.

This official financial table gives you an idea of how profitable your funeral home is over a certain period. It lists your revenues and subtracts the expenses, showing whether you're making a profit or a loss. This statement is particularly important for understanding the financial health of your funeral home over time.

Lastly, consider the break-even analysis (also included, of course). This calculation tells you how much revenue your funeral home needs to generate to cover all of its costs, both initial and ongoing. Knowing your break-even point is crucial as it gives you a clear sales target to aim for.

We've also included additional financial tables and metrics in our financial plan (provisional balance sheet, financing plan, working capital requirement, ratios, charts, etc.), providing you with a comprehensive and detailed financial analysis of your future funeral home.

Can you make a financial plan for your funeral home business by yourself?

Yes, you certainly can!

As highlighted earlier, we have developed a user-friendly financial plan specifically tailored for funeral home business models .

This plan includes financial projections for the first three years of your funeral home's operation.

Within the plan, you'll find an 'Assumptions' tab that contains pre-filled data, covering revenue assumptions, a comprehensive list of potential expenses relevant to funeral homes, and a staffing plan. These figures are designed to be easily customizable to match your specific business needs.

Our thorough financial plan incorporates all the critical financial tables and ratios necessary for a funeral home, including the income statement, cash flow statement, break-even analysis, and a provisional balance sheet. It's designed to be compatible with loan applications and is user-friendly for entrepreneurs at all levels, including those with no previous financial experience.

The process is automated to avoid the need for manual calculations or complex Excel formulas. Simply enter your data into the designated fields and choose from the provided options. We have made the process straightforward and accessible, even for those not accustomed to financial planning tools.

If you encounter any issues, please feel free to contact our team. We commit to responding within 24 hours to assist with any difficulties. In addition, we offer a complimentary review and correction service for your financial plan after you have completed all your assumptions.

What are the most important financial metrics for a funeral home business?

Succeeding in the funeral home business requires a blend of compassionate service and astute financial management.

For a funeral home, certain financial metrics are especially crucial. These include your revenue, cost of services (COS), gross profit margin, and net profit margin.

Your revenue encompasses all income from funeral services and related offerings, providing a clear view of the market's response to your services. COS, which includes the cost of caskets, cremation, labor, and other direct service costs, is vital for understanding the direct costs linked to your services.

The gross profit margin, calculated as (Revenue - COS) / Revenue, indicates the efficiency of your service provision, while the net profit margin, the percentage of revenue remaining after all expenses, reflects your overall financial health.

Projecting sales, costs, and profits for the first year involves detailed analysis. Begin by examining the local market and your target demographics. Estimate your sales based on factors like community needs, local competition, and pricing strategies.

Costs should be categorized into fixed costs (like facility lease and utilities) and variable costs (like supplies and hourly labor). Be cautious in your estimates, and account for variations in demand and costs throughout the year.

Creating a realistic budget for a new funeral home is vital.

This budget should cover all anticipated expenses, including facility lease, utilities, equipment, initial inventory of caskets or urns, labor, marketing, and an emergency fund. It's also crucial to set aside funds for unforeseen expenses. Keep your budget flexible and review it frequently, adjusting based on actual performance.

In financial planning for a funeral home, key metrics include your break-even point, cash flow, and inventory management.

The break-even point helps determine how many services you need to provide to cover your costs. Positive cash flow is essential for day-to-day operations, while efficient inventory management is key to avoiding oversupply or shortages.

Financial planning can vary greatly among different types of funeral homes.

For instance, a funeral home focusing on budget services might prioritize low-cost supplies and high-volume services. In contrast, a premium funeral home might have higher costs for luxury caskets and personalized services, focusing on higher pricing and customer experience.

Recognizing signs that your financial plan might need adjustment is crucial. We have listed these indicators in the “Checks” tab of our financial model. This provides you with guidelines to quickly correct and adapt your financial plan to ensure accurate metrics.

Red flags include consistently missing revenue targets, rapidly depleting cash reserves, or inventory issues, such as stock shortages or excessive unsold items. If your actual numbers consistently diverge from your projections, it's a clear sign that your financial plan requires revision.

Lastly, the key indicators of financial health in a funeral home's financial plan include a stable or increasing profit margin, a healthy cash flow that comfortably covers all expenses, and consistently meeting or exceeding service provision targets.

Don't worry, all these indicators are included in our financial plan , and you can adjust them as needed to align with your funeral home's performance and objectives.

You can also read our articles about: - the business plan for a funeral home business - the profitability of a a funeral home business

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How to Start a Funeral Home Business [Business Plan]

A funeral home which can also be referred to as a funeral parlor is a business that provides interment and funeral services for the dead. These services may include a prepared wake and funeral, and the provision of a chapel for the funeral.

The funeral home industry includes companies that conduct funerals and prepare the deceased for burial or interment. Funeral homes are also involved in the transportation of the dead and the sale of caskets and other related funeral merchandise.

Statistics have it that in the United States of America, the market size of funeral homes was estimated at 18 billion U.S. dollars, a slight increase from 15.9 billion U.S. dollars in the previous year.

Steps on How to Start a Funeral Home Business

Conduct market research.

The first step in the market research process for your funeral home business is to develop market-based research questions in line with your overall business goal and objective. Please note that market research helps businesses measure their brand reputation in the market among their target audience over some time.

It is a great way to measure progress for your business as well as compare your status to your competitors to see where you are trailing or where you have an advantage and what you need to do to stay competitive.

a. Who is the Target Market for a Funeral Home Business?

• Insurance companies
• Owners of mortuaries
• Retirees and Pensioners
• Government Agencies

b. Is Funeral Home Business a Profitable Business?

Yes, the funeral home business can be very profitable. This can be supported by the fact that the U.S funeral market is currently worth around $20 billion annually, with over 2.4 million funerals taking place each year.

c. Are There Existing Niches in the Industry?

Yes, there are niche ideas in the funeral home business. Here are some of them;

• Funeral Homes Services
• Operating Funeral Homes Combined with Crematories
• Pet Funeral & Cremation

d. Who are the Major Competitors?

• Service Corporation International (SCI)
• Loewen Group Inc.
• Stewart Enterprises Inc.
• Hillenbrand Inc.
• Carriage Services, Inc.
• Nirvana Asia Group
• Legacy Center Funeral Home
• Matthews International
• Co-operative Group Limited
• Dignity Plc
• StoneMor Partners L.P.
• Fu Shou Yuan International
• Stark Funeral Home
• Casper Funeral & Cremation Services
• Keefe Funeral Homes
• Rogers Funeral Home
• McHoul Family Funeral Home
• Mount Auburn Cemetery
• DeVito Funeral Home

e. Are There County or State Regulations or Zoning Laws for Funeral Home Business

Yes, there are county or state regulations and zoning laws for funeral home businesses, and players in this industry are expected to work with the existing regulations governing such business in the county or state where the business is domiciled.

Please note that most states in the U.S have upheld zoning ordinances that limit funeral homes to less than 5% of the town’s acreage, preventing new funeral homes from being built even in areas zoned for commercial use that already have other funeral homes, and using property definitions that expressly expand residential use to include public and semi-public buildings but carve-out funeral homes so that they cannot be established in residential areas.

f. Is There a Franchise for the Funeral Home Business?

Yes, there are franchise opportunities for the funeral home business. Here are some of them;

• America’s First Funeral Home Franchise
• Legacy Center Funeral Home Franchise

g. What Do You Need to Start a Funeral Home Business?

• A Feasibility Report
• Business and Marketing Plans
• Business Licenses and Permits
• A Good facility
• Computers, Laptops, and Servers
• EIN (Employer Identification Number)/Federal Tax ID Number.
• A Corporate Bank Account
• Equipment and Tools
• Startup Capital

Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.

Some of the catchy business name ideas suitable for a funeral home business are;

Creative Funeral Home Business Name ideas

• Still Alive© Funeral Home, Inc.
• Broad Street® Funeral Home, LLC
• Glorious Transition© Funeral Home, Inc.
• Star Pros® Funeral Home, Inc.
• Home Call™ Funeral Home, Inc.
• Becky and Co™ Funeral Home, LLC.
• Houston House© Funeral Home, LLC
• Room 101® Funeral Home, Inc.
• Care Pros© Funeral Home, Inc.
• Green Zone© Funeral Home, Inc.
• Fam Zone® Funeral Home, Inc.
• Stella Martins® Funeral Home, LLC
• Othniel Jabez® Funeral Home, Inc.
• White Block® Funeral Home, Inc.
• Glass House® Funeral Home, LLC.
• Sherry Grace® Funeral Home, Inc.
• Beyond the Cloud® Funeral Home, LLC
• Roll Call® Funeral Home, LLC
• Open Heavens® Funeral Home, LLC
• Pearly Gate® Funeral Home, LLC.

Register Your Business

A. what type of business structure is best for funeral home business.

Even though there are several options when it comes to the business structure for a funeral home business, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.

Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Funeral Home Business?

• A Funeral Director/Embalmer’s License
• General Business License
• Health and Safety Permit
• Zonal Permits (Applicable in some cities)
• Signage Permit
• Operational State Facility Inspections

d. What Type of Certification is Needed to Open a Funeral Home Business?

In the United States of America and most countries of the world, you do not need any special certification to own and operate a funeral home.

e. What Documents are Needed to Open a Funeral Home Business?

• Business and liability insurance
• Federal Tax Payer’s ID
• State Permit and Building Approval
• Certificate of Incorporation
• Business License
• Business Plan
• Employment Agreement (offer letters)
• Operating Agreement for LLCs
• Insurance Policy
• Online Terms of Use
• Online Privacy Policy Document
• Contract Document
• Company Bylaws
• Memorandum of Understanding (MoU)

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting a funeral home business, usually you may not have any need to file for intellectual property protection or trademark.

Cost Analysis and Budgeting

A. how much does it cost to start a funeral home business.

When it comes to starting a funeral home business, the startup costs could range from $150,000 to over $200,000 depending on how much equipment the business owner decides to purchase and the facility leased. Please note that this amount includes the salaries of all staff for the first month of operation.

b. What are the Costs Involved in Starting a Funeral Home Business?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $7,300.
• Marketing, Branding and Promotions – $5,000.
• Business Consultant Fee – $7,500.
• Insurance – $5,400.
• Rent/lease – $85,000
• Other start-up expenses like commercial satellite TV subscriptions, and phone and utility deposits ($2,800).
• Operational Cost (salaries of employees, payments of bills et al) – $60,000
• Start-up inventory – $25,000
• Store Equipment (cash register, security, ventilation, signage) – $14,750
• Website: $1,500
• Miscellaneous: $5,000

c. What Factors Determine the Cost of Opening a Funeral Home Business?

• The size of the funeral home business
• The choice of location
• The required licenses and permits
• The type of facility
• The additional services offerings
• The cost for branding, promotion, and marketing of the funeral home business
• The cost of furnishing and equipping the facility
• The cost of insurance
• The cost of registering the business
• Source of your supplies and ongoing expenses
• Cost of recruiting and training your staff
• The cost for the purchase and customizing of uniforms
• The cost of the grand opening of the funeral home business

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not compulsory to build a new facility for your funeral home business, but if you have the required finance (anything from $120,000), it will pay you to build your own facility. The truth is that building or reconstructing a facility will help you come up with a facility that will perfectly fit into your overall business goals and vision.

e. What are the Ongoing Expenses of a Funeral Home Business?

• Supplies (embalming chemicals, cremation supplies, mausoleum, urn vaults, vases, burial garments, flowers and caskets et al)
• Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
• Equipment maintenance
• Salaries of employees

f. What is the Average Salary of your Staff?

• Chief Funeral Director (President) – $55,000 Per Year
• Funeral Director (Mortician) – $38,000 Per Year
• Sales and Marketing Executive – $32,500 Per Year
• Accountant – $32,000 Per Year
• Client Service Executive (Help Desk Office) -$28,000 Per Year
• Mortician Assistant – $26,000 Per Year
• Ambulance Driver – $25,000 Per Year

g. How Do You Get Funding to Start a Funeral Home Business?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Source for soft loans from your family members and friends.

Write a Business Plan

A. executive summary.

Broad Street® Funeral Home, LLC is a standard, licensed, and government-approved funeral home service provider that will be located in the heart of Miami Beach, Florida – United States of America. We have been able to acquire a standard corner–piece facility that is highly suitable for the kind of deathcare practice we want to operate.

Broad Street® Funeral Home, LLC will operate 24 hours 7 days a week. Our funeral home will be opened round the clock to attend to clients. We have a standard call center that is manned by trained health workers. Our employees are going to be well trained to operate within the framework of our organization’s corporate culture.

b. Products and Service

• Providing funeral director services
• Providing embalming services
• Operating funeral homes combined with crematories
• Providing mortician services
• Providing visitation or viewing services
• Providing funeral services
• Providing graveside committal services
• Direct cremation services
• Selling funeral merchandise (e.g., caskets, flowers, and obituary notices)
• Transporting the deceased.

c. Mission Statement

Our mission is to establish a world-class funeral home business that will be known for healthy, safe, and highly reliable funeral practices.

Vision Statement

Our vision is to become the number one choice when it comes to funeral home services in the whole of Florida.

d. Goals and Objectives

The goals and objectives of the funeral home business are to provide interment and funeral services for the dead; these services may include a prepared wake and funeral, and the provision of a chapel for the funeral.

e. Organizational Structure

• Chief Funeral Director (President)
• Funeral Director (Mortician)
• Sales and Marketing Executive
• Client Service Executive (Help Desk Office)
• Mortician Assistant
• Ambulance Driver

Marketing Plan

A. swot analysis.

The strength of the funeral home business is that we have well-experienced and certified professionals under our payroll and our chief executive owner is one of them. So also, we operate in a location where we can easily collaborate with other key stakeholders in the healthcare industry.

As a new funeral home business, it might take some time for our organization to break into the market and gain acceptance, especially from top profile clients in the fast-growing and highly competitive death care industry; that is perhaps our major weakness.

Opportunities:

The rising elderly population will drive demand for funeral home practice services, bolstering industry revenue.

One of the major threats that we are likely going to face is an economic downturn and unfavorable government policies. Another threat that may likely confront us is the arrival of a new funeral home business in the same location where ours is located and where our target market exists.

b. How Do Funeral Home Businesses Make Money?

Funeral home businesses make money by;

c. Payment Options

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

d. Sales & Advertising Strategies

• Introduce your funeral home business by sending introductory letters alongside your brochure to residents, hospitals, and key stakeholders
• Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
• Create a basic website for your business to give your business an online presence
• Directly market your services.
• Join local funeral home business associations for industry trends and tips
• Advertise our business in community-based newspapers, local TV and radio stations
• List your business on yellow pages ads (local directories)
• Encourage the use of word-of-mouth marketing (referrals)

Financial Projection

A. how much should you charge for your product/service.

The average funeral costs between $7,000 and $12,000. The viewing, burial, service fees, transport, casket, embalming, and other preps are included in this cost.

b. How Much Profit Do Funeral Home Business Owners Make a Year?

It depends, but the available report shows that the average earning is $89,868 a year and $43 an hour in the United States. The average salary range for a funeral home is between $63,631 and $111,263.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the funeral home business
• The types of customized services and products offerings
• The location the funeral home business is covering
• The management style of the funeral home business
• The business approach of the funeral home
• The advertising and marketing strategies adopted by the funeral home
• The number of years the funeral home is in business

d. What is the Profit Margin of a Funeral Home Business Product/Service?

The profit margin of a funeral home is not fixed. It will depend on some factors that are unique to your location and the type of services offered.

e. What is the Sales Forecast?

Below is the sales forecast for a funeral home business. It is based on the location of the business and other factors as it relates to such startups in the United States;

First Fiscal Year:

• $200,000 (From Self – Pay Clients)
• $350,000 (From Insurance Covers)

Second Fiscal Year

• $250,000 (From Self – Pay Clients)
• $400,000 (From Insurance Covers)
• $300,000 (From Self – Pay Clients)
• $550,000 (From Insurance Cover)

Set Up your Office

A. how do you choose a perfect location for funeral home business.

• The demography of the location especially as it relates to old people who are regulars when it comes to health issues
• The demand for the services and products offered by funeral home businesses in the location
• The purchasing power of businesses and the residents of the location
• Accessibility of the location
• The number of funeral home businesses in the location
• The local laws and regulations in the community/state
• Traffic, parking and security et al

b. What State and City is Best to Open a Funeral Home Business?

• Birmingham, Alabama.
• Nashville, Tennessee.
• Reston, Virginia.
• Houston, Texas
• West Palm Beach, Florida.
• Fort Worth, Texas
• Tarrytown, New York.
• Los Angeles, California.
• Green Bay, Wisconsin.

c. What Equipment is Needed to Operate a Funeral Home Business?

In starting a funeral home, you will be expected to have standard Casket Carts, Casket Lowering Devices and Accessories, Preparation Room, Embalming Chemicals, Cremation Supplies, Mausoleum, Urn Vaults, Vases, Burial Garments, Waste Containers, Lawn Boards, Straps and Slings and Chairs & Accessories.

Hire Employees

When it comes to hiring employees for a standard funeral home business, you should make plans to hire a competent Chief Funeral Director (President), Funeral Director (Mortician), Sales and Marketing Executive, Accountant, Client Service Executive (Help Desk Office), Mortician Assistant and Ambulance Driver.

Launch the Business Proper

A funeral home business is usually a very solemn business, so you may not be required to do an opening party to launch the business. What you need to concentrate more on at this point is giving enough publicity to the business.

a. What Makes a Funeral Home Business Successful?

• Choose a good location and facility to launch the business
• Hire only competent, hardworking, and trustworthy staff
• Be deliberate with equipping and furnishing your facility
• Encourage the use of word of mouth to promote your funeral home business
• Leverage all available online and offline platforms to promote your funeral home business

b. What Happens During a Typical Day at a Funeral Home Business?

• The funeral home is open for the day’s work
• Walk-in customers are attended to depending on the type of services requested
• Account reconciliation
• Administrative work
• The business is closed for the day.

c. What Skills and Experience Do You Need to Build a Funeral Home Business?

• Excellent death care skills
• Excellent customer service skills
• Good managerial and human development skills
• Visionary Leadership
• Team-building & Interpersonal Skills.
• Excellent communication and negotiation skills.
• Organizational skills.
• A strong understanding of human psychology and physiology
• Attention to detail and the ability to concentrate for long periods
• Good Supervisory skills
• Work experience in a funeral home
• Experience in managing people
• Experience in business administration
• Experience in handling dead bodies and bereaved families.

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Pet cremation and memorial business to move to new space, open 3 'Rainbow Bridge' rooms

Pets at peace is now based in part at harris funeral home in irondequoit..

In 2009, Paul W. Harris Funeral Home at 570 Kings Highway in Irondequoit launched Pets at Peace, a cremation and memorial service for companion animals.

By the end of this year, it will operate out of its own 4,000-square-foot building at 1401 Empire Blvd. in Penfield.

“It’s a big move,” Rick Harris, a funeral director for his family’s 78-year-old business since 2000 and the president and CEO of Pets at Peace, said at the Aug. 5 groundbreaking. “We’ve just grown so much in 15 years we need to be a little more efficient in what we’re doing.”

Harris didn’t have precise numbers at his fingertips, so he couldn’t say how many clients Pets at Peace has served so far but estimated it to be in the tens of thousands.

Demand for services has grown not just here but worldwide as people have come to regard their pets as integral family members.

“I’ve grown up with pets my whole life,” Harris said. “I lost a pet early when we were getting this started and coming from the background of being a funeral director, you just realize that what was out there was not to the level it should be. People just really love their pets. They want nothing but the best for them in life and then for the aftercare, the same thing, which is no different than we do for ourselves as humans.”

Pets at Peace, which has partnerships with more than two dozen area veterinary practices, promises to get a pet’s cremains back to the owner, if so desired, within 72 hours and uses a tracking system to ensure the correct ones are returned. The cost ranges from $55 to $395. Other services include paw print impressions, fur clippings and memorial candles.

Currently, the Pets at Peace business office is at Harris Funeral Home. The pet aftercare facility, including a “Rainbow Bridge” room where owners can say goodbye to their deceased pets, and a pet crematory, is at 50 Dubelbeiss Lane in Irondequoit.

The entire operation, including the 25,000-pound cremation machine, will be moved to the Empire Boulevard building, which will have three “Rainbow Bridge” rooms, Harris said.

“We don’t do a ton of actual memorial services,” he said. “It’s not like calling hours that we are used to at the funeral home. It’s more like families coming together so they can say goodbye to their pet, just like you would do for your loved one in a hospice setting or at the hospital.”

Pets at Peace has 12 employees, and on any given day, four to five will be working at the new center.

Asked about the cost of the project, Harris left it at, “very expensive. But we’re at the point where so many people a year request our services, and we just want to continue to deliver on a high level.”

Reporter Marcia Greenwood covers general assignments. Send story tips to [email protected]. Follow her on Twitter  @MarciaGreenwood .

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KB Home Announces the Grand Opening of Its Newest Community Within the Desirable Crossroads West Master Plan in Riverbank, California

Enclave at Crossroads West offers personalized, spacious, new homes and family friendly amenities close to local schools, priced from the low $500,000s.

KB Home (NYSE: KBH) today announced the grand opening of its newest community, Enclave, situated within the highly desirable Crossroads West master plan in Riverbank, California. The new homes at Enclave at Crossroads West are designed for the way people live today, with popular interior features like modern kitchens overlooking large great rooms, bedroom suites with walk-in closets, and ample storage space. The one- and two-story floor plans offer up to five bedrooms and three-and-a-half baths. Homeowners will appreciate the community amenities, which include parks, walking and biking paths, a playground and planned sports complex. Enclave at Crossroads West is also close to local schools.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240816275721/en/

KB Home announces the grand opening of its newest community, Enclave, situated within the highly desirable Crossroads West master plan in Riverbank, California. (Photo: Business Wire)

What sets KB Home apart is the company’s focus on building strong, personal relationships with every customer, so they have a real partner in the homebuying process. Every KB home is uniquely built for each customer, so no two KB homes are the same. Homebuyers have the ability to personalize their new home, from floor plans to exterior styles to where they live in the community. Their home comes to life in the KB Home Design Studio, a one-of-a-kind experience where customers get both expert advice and the opportunity to select from a wide range of design choices that fit their style and their budget. Reflecting the company's commitment to creating an exceptional homebuying experience, KB Home is the #1 customer-ranked national homebuilder based on homebuyer satisfaction surveys from a leading third-party review site.

“We are pleased to offer Northern California homebuyers spacious, new, one- and two-story homes within a beautiful master plan in the charming town of Riverbank,” said Oren Hershkovich, Regional General Manager of KB Home. “Enclave at Crossroads West hosts several on-site amenities, including parks, walking and biking trails, a playground and planned sports complex. Homeowners will also appreciate living minutes away from local schools. At KB Home, we’re here to help you achieve your dream with a personalized new home built uniquely for you and your life.”

Innovative design plays an essential role in every home KB builds. The company’s floor plans inspire contemporary living, with a focus on roomy, light-filled spaces. KB homes are engineered to be highly energy and water efficient and include features that support healthier indoor environments. They are also designed to be ENERGY STAR ® certified — a standard that fewer than 10% of new homes nationwide meet — offering greater comfort, well-being and utility cost savings than new homes without certification.

Enclave at Crossroads West is situated in a commuter-friendly location that offers homebuyers an exceptional lifestyle. The new community is located at the corner of Oakdale Road and Westgate Drive, close to Highways 99 and 108, providing access to the Central Valley’s major job centers. Enclave at Crossroads West is convenient to shopping, dining and entertainment at Crossroads West Shopping Center. The new neighborhood is also minutes to Riverbank Sports Complex, which features soccer and football fields, and a short drive to the Sierra Nevada Mountains and Yosemite National Park, which offer year-round outdoor recreation and world-class resorts.

The Enclave at Crossroads West sales office and model homes are open for walk-in visits and private in-person tours by appointment. Homebuyers also have the flexibility to arrange a live video tour with a sales counselor. Pricing begins from the low $500,000s.

For more information on KB Home, call 888-KB-HOMES or visit kbhome.com .

About KB Home

KB Home is one of the largest and most trusted homebuilders in the United States. We operate in 47 markets, have built over 680,000 quality homes in our more than 65-year history, and are honored to be the #1 customer-ranked national homebuilder based on third-party buyer surveys. What sets KB Home apart is building strong, personal relationships with every customer and creating an exceptional experience that offers our homebuyers the ability to personalize their home based on what they value at a price they can afford. As the industry leader in sustainability, KB Home has achieved one of the highest residential energy-efficiency ratings and delivered more ENERGY STAR ® certified homes than any other builder, helping to lower the total cost of homeownership. For more information, visit kbhome.com.

Craig LeMessurier, KB Home 925-580-1583 [email protected]

View source version on businesswire.com: https://www.businesswire.com/news/home/20240816275721/en/

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GOP critics say Tim Walz 'let Minnesota burn' in 2020 protests. Here's what happened

Tim Walz joining the Democratic Party’s presidential ticket has prompted renewed scrutiny of how the Minnesota governor handled the protests following George Floyd's death.

Opponents of the pick by Vice President Kamala Harris wasted no time bringing up the demonstrations that began in Walz’s state and grew increasingly violent during the week that followed Floyd’s killing at the hands of a Minneapolis police officer in 2020.

Four years later, the images of Minneapolis in May 2020 remain striking. Flames bursting from the city’s 3rd Precinct police headquarters and raging inside a looted AutoZone store. A protester illuminated by fire carrying an upside-down U.S. flag , a sign of distress, down a burning street.

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Those snapshots were referenced in a post on X, formerly Twitter, by Florida Gov. Ron DeSantis, who said Walz “ sat by and let Minneapolis burn .” Similarly, Ohio Rep. Jim Jordan posted that Walz “ let rioters and looters burn a police station to the ground in 20 20 ," and Minnesota Republican Party chair David Hann said Walz “did nothing ” to stop the riots.

Follow-up interviews with these critics showed a focus on how and when Walz activated the National Guard, an authority reserved for the governor of each state.

In an email to USA TODAY, Hann said Walz "waited three days before activating the National Guard" and claimed the governor was reluctant to oppose Democrats' characterization of the protests as peaceful. Jordan spokesperson Russell Dye referenced a New York Post article detailing an October 2020 report from a Republican-controlled Minnesota Senate committee that states Walz "failed to act" during the riots and specifically criticized the speed of the National Guard deployment. USA TODAY reached out to spokespeople for DeSantis and for Walz's gubernatorial office and the Harris-Walz campaign but did not immediately receive responses.

Let’s look back at the chain of events during that tumultuous week in May 2020.

Fact check : Gov. Walz does not need to resign after VP selection

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Protests began after video of Floyd death went viral

It started on May 25, 2020 – Memorial Day, a Monday – when the Minneapolis Police Department received a call that someone spent a possible counterfeit $20 bill on cigarettes at a convenience store.

Responding officers came across a 46-year-old Black man, later identified as Floyd, and handcuffed him. He was placed on the ground, and Officer Derek Chauvin proceeded to hold his knee on Floyd's neck for more than eight minutes while ignoring Floyd's protests that he couldn't breathe. Floyd was declared dead shortly thereafter.

A bystander shared a video of his killing on social media – sparking the first of the protests .

“By the time we get to Tuesday, we’re already seeing some emergent conflicts between protesters and the police, but they’re relatively small-scale,” said Michelle Phelps , a sociology professor at the University of Minnesota and the author of a book about policing in Minneapolis that examines the protests.

But by that Wednesday, things changed. The demonstrations became more violent, with officers firing noise devices and projectiles toward crowds of protesters and fires breaking out at the AutoZone and other locations.

“Wednesday is when things really started picking up,” said Rachel Moran , an associate professor of law at St. Thomas University and an expert on police accountability. “And then Thursday morning, he calls in the National Guard. … It actually happened relatively quickly. It was just, the protests were massive, and Wednesday … I think that’s when everyone in Minneapolis, they’re realizing, ‘OK, this is going to be bigger than what we’ve seen.’”

That prompted Jacob Frey, the Democratic mayor of Minneapolis, to call Walz on Wednesday and discuss activating National Guard troops. The governor – not then-President Donald Trump, as some have wrongly claimed – activated the Guard that Thursday.

But with only 90 troops on the ground in the Twin Cities later that night , The Star Tribune reported, protesters set fire to the 3rd Precinct station. That led Trump to call protesters “thugs” and vow that “ when the looting starts, the shooting starts " in an X post the following day. Walz mobilized the full Guard that Saturday – its first full mobilization since World War II – and conceded his administration underestimated the size of the crowds of protesters. By Sunday, even as protests spread across the U.S., the violence in Minneapolis had calmed.

Walz activated Guard after written request, not mayor’s phone call

One of the most powerful tools at a governor's disposal is the National Guard , and it's largely up to him to decide when and to what degree to use it . Experts say the rhetoric aimed at Walz's National Guard activation oversimplifies a chaotic and complicated moment.

“I don’t think city officials or the governor knew exactly what to do,” Moran said. “But that’s very different than saying he stood by and let it burn. I absolutely wouldn’t agree with that."

John Harrington , the state's public safety commissioner at the time, told MinnPost in 2023 that officials in Minneapolis typically do not request state assistance for protests "because most of the time, Minneapolis handles their own business." So when state help became necessary, the parties involved weren't well-versed in how to make that happen.

The question of who to blame for the speed of the National Guard response, then, hinges on a bit of bureaucracy: Walz couldn't activate the guard until Frey formally asked him to do so, an expert said, and the two leaders disagree on when that request was made.

"There's some back and forth between the mayor and the governor. So, the mayor had to formally request the National Guard activation, because until that point, it was the city that was responsible for managing the unrest," said Phelps, the sociology professor.

Frey said his call to the governor that Wednesday evening qualified as a formal request and claimed Walz was "hesitating." Minneapolis Police Chief Medaria Arradondo asked for Guard troops in an email sent that night to Harrington, the Star Tribune of Minneapolis reported.

But National Guard mobilization guidelines reference a request from a mayor, not a police chief. And Walz's office has countered that the mayor misunderstood the requirements of a formal request, saying Walz recognized the written letter he received a day later as that request. The Guard was activated that afternoon.

Harrington characterized Frey’s phone call as vague, and an outside firm that reviewed the response largely agreed . A request for Guard assistance must include specific details typically found in an operations plan or an incident action plan that the firm said in its 2022 report “we did not receive and that we determined through interviews did not exist.”

In its report released three weeks before Election Day in 2020 and criticized by Democrats as the product of " one-sided hearings ," the GOP-led state Senate Joint Transportation and Judiciary and Public Safety Committee blamed Walz for poor decision-making and said he wanted to "wait for assignments " from the city before mobilizing the Guard. The document paraphrases Harrington as saying during a hearing that officials should have been "quicker to bring people in " and that the state could have been more "successful " had it mobilized the right personnel and used the right tactics – without specifying what those should have been.

"There were a lot of imperfect attempts to figure out how to respond," Moran said. "Part of the city did burn, for sure. I don't disagree with the actual results. But it wasn't a matter of people standing by."

Additionally, increasing the police presence prematurely ran the risk of introducing a different set of problems. Moran noted, "These were protests about the police, and so the presence of law enforcement was, in a way, antagonizing."

Experts also said attacking Walz over the timing of the Guard's activation oversimplifies the logistical challenge of transporting them and providing them with a mission. Gen. Jon Jensen, the Guard’s former adjutant general, later testified that only 700 of the state’s 13,000 troops had riot training .

“It takes a while to get all of those troops on the ground,” Phelps said.

That delay was illustrated Thursday, when more than 500 soldiers were activated but reports indicated fewer than 100 troops were on the ground . That number on the ground grew to 700 on Friday and swelled to 4,500 by Saturday , as Walz activated the full Guard for the first time since WWII . More than 7,000 were on duty by Sunday as the violence eased.

“To say that he let Minnesota or Minneapolis burn is just a wild misconstruing of the facts," Phelps said. “It was a response to a really unusual set of circumstances, and I think they responded as fast as was reasonably possible, given the scale of the operation."

Thank you for supporting our journalism. You can subscribe to our print edition, ad-free app or e-newspaper here .

USA TODAY is a verified signatory of the International Fact-Checking Network, which requires a demonstrated commitment to nonpartisanship, fairness and transparency. Our fact-check work is supported in part by a grant from Meta .

Ukraine war latest: Safety 'deteriorating' at Zaporizhzhia nuclear power plant after drone strike

Zaporizhzhia is the largest nuclear facility in Europe and has been occupied by Russian soldiers since the early stages of its war with Ukraine.

Sunday 18 August 2024 00:45, UK

• Drone strike on Ukrainian nuclear power plant sees safety deteriorate
• Zelenskyy says Ukraine inflicting 'maximum damage' on Russian forces in Kursk
• Kyiv refutes 'insane Russian propaganda' campaign warning of Ukrainian dirty bomb
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• Putin's forces capture territory in Donetsk - amid Ukrainian strikes on region
• 'We could lose': Russian state TV commentators gloomy over Kursk
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• Michael Clarke : Pokrovsk in real trouble as Russian troops advance
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Ukrainian President Volodymyr Zelenskyy has praised the UK's "true leadership" in its support of Ukraine - but warned "the situation has slowed down recently" as it pushes into Russian territory.

In his nightly video address, he stressed it is "crucial that our partners remove barriers that hinder us from weakening Russian positions in the way this war demands".

He promised to "intensify our diplomatic efforts" amid the Kursk incursion, naming the UK,  US, and France as key targets.

It comes amid speculation Germany is planning to halve its Ukrainian aid budget next year.

Mr Zelenskyy finished his X post by saying: "Throughout this war, we've seen the UK demonstrate true leadership—in arms, politics, and support for Ukrainian society. 

"This has saved thousands of lives, reflecting the strength of the UK."

But he added: "Unfortunately, the situation has slowed down recently. 

"We will discuss how to fix this because long-range capabilities are vital for us. The whole world sees how effective Ukrainians are—how our entire nation defends its independence."

In a Sunday Express interview, Defence Secretary John Healey endorsed Ukraine using British weapons inside Russia - as long as it keeps within international law.

The UK "should be proud" British weapons are being used by Ukraine – including inside Russia, the defence secretary has said.

John Healey told the Sunday Express that he is happy for weapons to be used over the Russian border, providing international law is maintained.

He told the newspaper: "Let me be very clear: under Article 51 of the UN Charter, Ukraine has a clear right of self-defence against Russia's illegal attacks.

"Providing international law is followed, that does not rule out operations inside Russia."

He added: "We should be proud of Britain's support for Ukraine's struggle.

"We should be proud that British-donated equipment, in the hands of brave Ukrainians on the front line, is helping them to defend their country and push back Putin."

Ukrainian troops crossed into the Russian border region of Kursk on 6 August in a bid to divert the Kremlin's military focus away from the frontline in Ukraine.

On Thursday, Ukrainian forces claimed to have seized the town of Sudzha, six miles from the border.

The UK is one of Ukraine's leading military donors, providing lethal and non-lethal weaponry, including tanks, air defence systems, and long-range precision strike missiles.

Safety at Ukraine's occupied Zaporizhzhia Nuclear Power Plant is deteriorating after a drone strike on the road surrounding it, the International Atomic Energy Agency (IAEA) said on Saturday.

Earlier today, the IAEA Support and Assistance Mission to Zaporizhzhia (ISAMZ) team was informed that an explosive carried by a drone detonated just outside the plant's protected area.

A visit by the team found no casualties and no damage to nuclear equipment - but the surrounding road and gates were impacted.

The impact site was close to the essential cooling water sprinkler ponds and about 100m from the Dniprovska power line, the only remaining 750-kilovolt line providing a power supply to the plant, the team said.

IAEA Director General Grossi commented: "Yet again we see an escalation of the nuclear safety and security dangers facing the Zaporizhzhia Nuclear Power Plant.

"I remain extremely concerned and reiterate my call for maximum restraint from all sides and for strict observance of the five concrete principles established for the protection of the plant."

The ISAMZ team has reported heightened military activity in the area over the past week.

Germany plans to halve its military aid to Ukraine in 2025, according to a parliamentary source.

Chancellor Olaf Scholz is instead planning to use money generated from frozen Russian assets in Germany to support Ukraine's war against Russia, the source told AFP on Saturday.

It is not planning "any additional aid" to the $4.4bn (£3.4bn) already set aside in next year’s budget, the source added.

But Germany's foreign ministry denied the claims on X on Saturday.

"Rumours that Germany stops its support to #Ukraine are wrong," a post read.

"We stand with Ukraine & will support Ukraine as long as it takes.

"Since the beginning of Russia's war of aggression, Germany has supported Ukraine with €34 billion. 

"This year, we will provide military aid north of €7 billion."

Germany is Ukraine's second biggest military donor, providing £6.8bn in aid this year.

The leader of Russia's Chechnya region has appeared in a video threatening to send a Telsa into Ukraine – while praising Elon Musk.

Ramzan Kadyrov, who is known for extravagant publicity stunts, posted the video of himself on Telegram.

It shows him driving a Tesla Cybertruck, seemingly with a machine gun strapped to the roof.

He says he will send the vehicle into the Ukrainian conflict zone, before praising the company's chief executive Elon Musk.

Mr Kadyrov describes Musk as the "strongest genius of modern times", inviting him to Chechnya.

"We... await your future products that will help us finish the special military operation," referring to the Kremlin’s term for the Ukraine war.

Two Italian journalists who angered Moscow with a TV report from Ukrainian-controlled parts of Kursk will return to Italy for their own safety, according to Italian state broadcaster RAI.

Russia's foreign ministry summoned Italy's ambassador yesterday over what it called an "illegal border crossing" by the RAI crew.

The interior ministry was planning to open criminal cases against the two journalists, posted Baza, a Telegram channel close to Russian law enforcement.

"The company decided to make journalist Stefania Battistini and cameraman Simone Traini return temporarily to Italy, solely to ensure personal safety and security," RAI said. 

"Journalism is not a crime. The Moscow authorities' possibility of putting Stefania Battistini and Simone Traini on trial is unacceptable. Reporting is not done with prior authorisations," RAI union Usigrai and Italy's national press union FNSI said in a joint statement. 

A four-person RAI crew, working under Ukrainian military escort, produced the first foreign media report from the war-damaged Russian town of Sudzha last week.

Italy's foreign ministry said its ambassador Cecilia Piccioni had explained to the Russian authorities that RAI and its news teams acted independently and autonomously. 

The two reporters are scheduled to fly back to the northern Italian city of Milan tomorrow.

Security and defence correspondent Deborah Haynes was at the site of a missile strike in Sumy city this morning.

Residents described being awoken by a huge explosion.

One said the blinds across her window saved her from glass shattering as a result of the blast.

Watch more below...

Washington appears to be effectively blocking the UK from permitting Kyiv to fire Storm Shadow missiles inside Russia, The Times reports.

The UK has been waiting for US approval for over a month, a government source said.

The British government wants Ukraine to use the weapons as they wish, but consensus is required between the US, France and another unnamed NATO country.

A government source stressed to The Times that the UK was not blaming the US for any delay.

Britain was the first country to publicly supply Kyiv with long-range cruise missiles.

While it has permitted the use of British tanks and other weapons on Russian soil, restrictions remain on the missiles.

A British source previously said Ukrainian troops are thought to have used British Challenger 2 tanks inside Kursk.

Ukraine's success in Kursk has shown the West it does not need to take an incremental approach to Russia, says Ukrainian MP Oleksiy Goncharenko.

Kyiv's allies need to approve the use of Western weapons to strike deep inside its territory, he said.

He added the incremental style of Western support has only drawn out the war.

"Watch the Russian reaction. For more than one week, for the first time since the Second World War, Russian territory is occupied. And what is the reaction? Just some mumbling from Putin," said Mr Goncharenko.

"I hope that this will help us to convince our allies that Ukraine is capable of big successes and to win this war, so finally our hands will be untied," he said, adding Ukraine needs permission to use the UK's Storm Shadow missiles deep into Russian territory.

"I think this incremental style is very, very bad."

He continued: "Russia only understands one language, the language of force, and Ukraine has shown it now."

Kyiv has dismissed "insane Russian propaganda" alleging that Ukraine plans to carry out nuclear attacks.

Moscow has accused Ukraine - without providing any evidence - of gearing up to attack Kursk nuclear power plant and developing a "dirty bomb"; an explosive used to scatter radioactive waste.

The Russian defence ministry said Ukraine would blame Moscow and that it would respond harshly in the event of such an attack.

The allegations were "dangerous lies" and Ukraine officially denies them, said Ukrainian foreign office spokesperson Heorhii Tykhyi.

"We are witnessing another surge of insane Russian propaganda."

He continued: "Ukraine has neither the intention nor the ability to carry out any such actions. Russia must stop spreading dangerous lies.

"Ukraine has always been and remains a loyal member of the NPT (Non-proliferation treaty).

"We do not have any 'dirty bombs' and do not plan to acquire them."

Vladimir Putin made similar allegations shortly before launching the invasion of Ukraine in February 2022. Then, in March the same year, Moscow alleged Ukraine was going to use a dirty bomb. Neither claims were borne out.

Russia also alleged a Ukrainian drone dropped an explosive charge on a road outside the Zaporizhzhia nuclear power plant in Ukraine this morning.

Its Russian management posted an image to Telegram showing several men in IAEA jackets surrounding a dent in the road the width and depth of a pothole.

Both Russia and Ukraine have accused eachother of close calls with drones and rockets at the power plant since Russia occupied it.

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