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Evergreen Life Memorial Center

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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.

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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

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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.

Market Analysis Summary how to do a market analysis for your business plan.">

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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Funeral Home Business Plan Template

Written by Dave Lavinsky

Funeral Home Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their funeral home companies. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a funeral home business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Funeral Home Business Plan?

A business plan provides a snapshot of your funeral home business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Funeral Home

If you’re looking to start a funeral home business or grow your existing funeral home company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your funeral home business to improve your chances of success. Your funeral home business plan is a living document that should be updated annually as your company grows and changes.

Funding Sources for Funeral Home Businesses

With regards to funding, the main sources of funding for a funeral home business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for funeral home companies.

Finish Your Business Plan Today!

How to write a business plan for a funeral home business.

If you want to start a funeral home business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your funeral home business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of funeral home business you are running and the status. For example, are you a startup, do you have a funeral home business that you would like to grow, or are you operating a chain of funeral home businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the funeral home industry.
• Discuss the type of funeral home business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of funeral home business you are operating.

For example, you might specialize in one of the following types of funeral home businesses:

• Traditional or full-service funeral home : Includes the preparation of the body, selection of casket, funeral service details, and full implementation of the funeral and committal service. A full-service funeral home plans and presents every detail of the funeral and burying processes.
• Independent funeral home: This type of funeral home works as a stand-alone business, offering full funeral services or any portion of those services.
• Funeral home and cemetery: A traditional funeral home that is on-site at a cemetery and works in tandem with the cemetery to provide all needed services.
• Funeral home and crematory: A traditional funeral home that contains a crematorium on-site and works in conjunction with the funeral home.

In addition to explaining the type of funeral home business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of gravesites sold, the number of families served,, reaching X number of pre-need funeral packages sold, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the funeral home industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the funeral home industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your funeral home business plan:

• How big is the funeral home industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your funeral home business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your funeral home business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, families, and religious organizations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of funeral home business you operate. Clearly, individuals would respond to different marketing promotions than religious organizations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other funeral home businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes private memorial service providers, “scattering of the ashes” ceremony providers, and “celebration of life” event planners. You need to mention direct competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of clients and families do they serve?
• What type of funeral home business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide options for the requests of the families?
• Will you offer funeral services that your competition doesn’t?
• Will you provide floral arrangements as part of your service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a funeral home business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of funeral home company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide funeral services with either a cemetery burial or a crematory service and memorial service?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your funeral home company. Document where your company is situated and mention how the site will impact your success. For example, is your funeral home and cemetery business located near a forest, lake or park setting? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your funeral home marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in magazines and newsletters targeted to nurses and caregivers
• Reach out to hospice services
• Create a website utilizing large font sizes to clearly and simply describe services offered
• Engage in pre-need marketing via radio and television

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your funeral home business, including answering calls, planning and providing funeral services, invoicing and giving tours for families, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth funeral service, or when you hope to reach $X in revenue. It could also be when you expect to expand your funeral home business to a new city.

Management Team

To demonstrate your funeral home business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing funeral home businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a funeral home business or successfully running a hospice center.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you increase your funeral services to 10 per day, and/or offer premium family gravesite memorial areas? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your funeral home business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a funeral home business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your funeral home ownership documentation, or a list of funeral and burial insurance plans you accept.

  Summary Writing a business plan for your funeral home business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the funeral home industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful funeral home business.

Funeral Home Business Plan FAQs

What is the easiest way to complete my funeral home business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your funeral home business plan.

How Do You Start a Funeral Home Business?

Starting a Funeral Home business is easy with these 14 steps:

• Choose the Name for Your Funeral Home Business
• Create Your Funeral Home Business Plan
• Choose the Legal Structure for Your Funeral Home Business
• Secure Startup Funding for Your Funeral Home Business (If Needed)
• Secure a Location for Your Business
• Register Your Funeral Home Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Funeral Home Business
• Buy or Lease the Right Funeral Home Business Equipment
• Develop Your Funeral Home Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Funeral Home Business
• Open for Business

Learn more about how to start your own funeral home business .

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

  OR, Let Us Develop Your Plan For You Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s business planning advisors can create your business plan for you.

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Funeral Home Business Plan Sample

OCT.03, 2013

Starting Funeral home business plan

Are you looking for how to open funeral home? A funeral home business mortician and burial services for the deceased. The services may include funeral planning, body preparation, transportation, burial, or cremation.

Funeral homes have been in demand from always. However, these days the demand for funeral services has increased due to the sudden rise in death rate because of coronavirus.

While it’s true that the funeral home business is profitable, it’s also correct that running such a business is not easy. You will have to procure protective kits, chemicals, and a lot of other mortuary items on daily basis. Moreover, you will need to ensure that strict protocols and safety rules are being followed throughout the process.

To ensure the successful running of your business, it is essential to first create a business plan. If you don’t know the components of a comprehensive business plan, you can take help from this business plan for a funeral home startup, James Funeral Home.

Executive Summary

2.1 the business.

James Funeral Home will be a licensed and registered funeral home based in San Antonio. The business will aim at performing all the funeral rituals including bathing and enshrouding, burial, cremation, etc. Moreover, the business will also provide catering services and transportation.

2.2 Management of Funeral home

Opening a funeral home is a relatively difficult venture. The funeral process needs to be carried out with great care and attention. Therefore, there must be efficient management and supervision to ensure that all of the sensitive tasks are taken care of properly.

Before exploring how to start a funeral home business you should keep in mind that it is a tough business. Running a funeral home means you have to be on call 365 days a year. Whether it’s Christmas or your wedding anniversary, you’ll have to arrange for the presence at the funeral home. In this sample plan on how to set up a funeral business we will be listing the details of how James Funeral Home will be managed and administered.

2.3 Customers of Funeral home

In your startup business plan for a funeral home, you should identify your customers. So that you can design your services accordingly. The customers of a funeral home are usually families of the deceased. However, in some cases, alive people also plan their funerals before dying.

2.4 Business Target

Our target is to become the number one choice of people of our city whenever they need funeral services. Moreover, we aim at boosting our net profit margin to $24k per month by the end of the three years.

Company Summary

3.1 company owner.

James Ben will be the owner of James Funeral Home. James holds a BS in Mortuary Science from Cincinnati College of Mortuary Science. He has also worked as an embalmer for two years.

3.2 Why the funeral home is being started

After working as an embalmer for two years, James decided to start a funeral home of his own. He entered the business world as he wanted to use his potential to the fullest. And to earn large profits while serving people on a wider scale.

3.3 How the funeral home will be started

Step1: Make Your Business Plan

James had good management skills. However, he didn’t possess the skill set required to make a crematorium business plan. He studied several funeral home business plan examples but eventually decided to hire a professional for it. The marketing analysis, sales strategy, and financial planning done by his business consultant are given in this sample funeral home business plan.

Step2: Get Identified 

The next step is to establish a physical basis for your business and define your business’ services and aims. After this, your customers will start recognizing your presence and the distinct features of yours as compared to your competitors.

Step3: Recruitments

The hiring process is actually a part of the step in which you set up your physical presence. In this phase, you have to organize tests and interviews to find the most skillful and responsible employees for your business.

Step4: A Strong Web Presence

Along with other operations of your funeral home business , it is really important to focus on web development too. Through a website, you will be able to reach a wider audience and leave a positive image of yourself before even interacting with people.

Before owning a funeral home, it is essential to decide your services. Through this practice, you can make arrangements for equipment and space accordingly. In this business plan template for funeral home, we’re listing the services that James Funeral Home will provide.

• Funeral Planning

Our primary service will be providing funeral plans. These days, many people have started to purchase funeral plans. So that their families don’t have to stress over their funeral charges after their death. In this service, we’ll also be responsible for informing all the friends/ relatives of the deceased about the death.

• Body Preparation

We will prepare the dead body to be buried or cremated. This service will include all the relevant tasks such as bathing the deceased, enshrouding, etc. The paperwork required for burial will also be completed by us.

• Burial/ Cremation

We will provide space for performing eulogies and brief prayers for the dead. Moreover, we’ll also be responsible for burying the dead body. Since in some religions, there is a ritual of cremating the deceased. Thus we’ll be offering cremation services too.

• Transportation

We’ll also transport dead bodies from one place to another in specialized refrigerated vehicles.

• Catered Meal

We’ll offer plated dinner to the mourners in a location other than our funeral home. Since funeral homes are generally prohibited to offer food in the same building, we decided to offer it in another building located nearby.

Marketing Analysis of Funeral Home

Accurate marketing analysis is the key to get prominent in the market as soon as you get launched. For doing so it is essential to know the market, direct and indirect competitors, stakeholders, and market fluctuations. An accurate market analysis will enable you

• To recognize the potential customers
• To identify the needs and expectations of your target customers
• To decide a pricing strategy for the business plan that would allow you to meet financial goals while drawing more customers than your competitors

James studied several funeral home business plans to identify potential customers and market trends. However, he ended up realizing that hiring a professional market analyst would be better for him. As that will make him achieve a greater level of accuracy.

5.1 Market Trends

Funeral homes are high in demand especially after the surge in deaths due to coronavirus. According to IBISWorld, there are more than 28k funeral homes running in the United States. Moreover, Statista predicts that the cremation rate in the U.S. would rise to 79.1 percent by 2035 – resulting in a need for more funeral homes.

Thus, it is evident that opening a funeral home will not run you into a loss. You only need to do efficient planning before starting funeral home to ensure success for your business.

5.2 Marketing Segmentation

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Families of Deceased

Our primary customers will be the families of late. We expect them to avail of our body preparation, burial, and catering services. In San Antonio, the population is quite large and so the death rate. Therefore, we expect to get a considerable number of customers.

Our business values are based on customer care. We totally empathize with the families of the deceased. And therefore, to help the grievers in their misery we are offering body preparation and burial services at relatively lower prices.

5.2.2 Funeral Planners

Our second group of target customers will comprise alive people who purchase funeral planners before they die. These days, many adults and seniors have started to buy funeral plans so that their families and friends do not have to arrange money for their funerals.

5.2.3 Old Homes for Elder Orphans

The third category of our target customers will include the organizations that shelter elder orphans. Elder orphans are the senior people who do not have any friends or family to look after them. The funeral charges of such people are often paid by shelter homes. Thus, we expect them to contact us for our services too.

5.3 Business Target

Setting financial and customers’ related goals before starting a business is a good practice. It allows the business owners to direct the energy and resources towards the company’s goals.

And it is important because how much do funeral home owners make is entirely dependent on how well they could manage their assets.

Our business targets are:

• To earn a profit margin of $24k per month by the end of the third year
• To maintain a CSAT score of above 85%

excellent work

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5.4 Product Pricing

The prices of our funeral plans and catered foods are a little higher as compared to our competitors. However, our other services could be availed at lower rates than those of our competitors.

Marketing Strategy

Sales strategy is another component that can decide the future of your business. This part enables you to reach out to your target customers and increase your sales on a monthly and yearly basis.

In this marketing plan for funeral home, we’re providing the sales strategy of James Funeral Home.

6.1 Competitive Analysis

James studied several funeral business ideas to find out the areas where his competitors were lacking. After that analysis, he decided to come up with the following competitive aspects:

• James Funeral Home will have a user-friendly app so that people can connect to it remotely and conveniently.
• Secondly, it’s the only funeral home in the whole city that is providing catering meals to the mourners in a separate location.
• Third, it has extremely responsible employees who’ll always adhere to SOPs and strict protocols.

6.2 Sales Strategy

• We’ll promote our startup through Google Local ads and local magazines
• We’ll offer a 50% discount to the first 100 purchasers of our funeral plans
• We’ll offer a 30% discount on our transport and catered meal services for the first two months of our launch

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

Before starting a funeral parlor business you should make a list of employees you will need along with their job descriptions.

7.1 Company Staff

James will be the CEO himself. However, he’ll hire the following staff

• 2 Supervisors to help manage the operations
• 1 Accountant to maintain financial records
• 1 Front Desk Officer
• 8 Morticians to perform funerals
• 3 Cooks to prepare food
• 2 Waiters to serve food
• 8 Cleaners to maintain the facilities
• 3 General Assistants for routine tasks and paperwork
• 1 Sales Executive to promote the company
• 1 Web developer/ App Developer to manage the company’s website and app
• 2 Drivers to transport dead bodies

7.2 Average Salary of Employees

Financial plan.

Financial planning for a funeral home business is a little complicated. Firstly, because you’ll need to buy and discard certain materials and protective kits off and on. And secondly due to the complexity involved in setting prices of funeral plans. When you sell a funeral plan to a person you don’t know the inflation rate that will prevail at the time of their death. The period may be shorter or longer – resulting in unpredictable losses or profits.

However, there are still many areas through which you can control the financial trajectory of your business. In this build a funeral home business plan, we’re providing the financial plan developed for James Funeral Home. So that you can have an idea of the cash flows, gross margins, and business ratios for this business.

8.1 Important Assumptions

8.2 brake-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Funeral Home Business Plan Sample in pdf

OGS capital writers specialize in business plan themes such as convenience store business plan , business plan for e-commerce , retail business plan , corner store business plan , book store business plan , retail discount store business plan and many others business plans.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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How To Write a Winning Funeral Home Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for funeral home s wanting to improve their strategy or raise funding.

A well-crafted business plan not only outlines the vision for your company but also documents a step-by-step roadmap of how you will accomplish it. To create an effective business plan, you must first understand the components essential to its success.

This article provides an overview of the key elements that every funeral home owner should include in their business plan.

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What is a funeral home business plan.

A funeral home business plan is a formal written document describing your company’s business strategy and feasibility. It documents the reasons you will be successful, and your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Funeral Home Business Plan?

A funeral home business plan is required for banks and investors. The document is a clear and concise guide to your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Funeral Home Business Plan

The following are the key components of a successful funeral home business plan:

Executive Summary

The executive summary of a funeral home business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your funeral home company
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast, among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started and provide a timeline of milestones your company has achieved.

If you are just starting your funeral home , you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your funeral home firm, mention this.

You will also include information about your chosen funeral home business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a funeral home business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the funeral home industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a funeral home business’ customers may include families who have recently lost a loved one, individuals who are making funeral arrangements in advance, and businesses that contract with funeral homes to provide services for their employees.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or funeral home services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. You might also consider promoting your funeral home business via PR or word-of-mouth marketing.

Operations Plan

This part of your funeral home business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will outline the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters and then each year for the following four years. Examples of milestones for a funeral home include reaching $X in sales. Other examples include adding new locations, launching new products/services, and hiring additional staff.

Management Team

List your team members here, including their names and titles, as well as their expertise and experience relevant to your industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Funeral Home

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Funeral Home

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup funeral home .

Sample Cash Flow Statement for a Startup Funeral Home

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your funeral home . It not only outlines your business vision but also provides a step-by-step process of how you will accomplish it.

Now that you have read about the key components of a funeral home business plan, it’s time to get started on your own. If you are seeking funding, be sure to include detailed financial projections in your appendix section. 

Remember to be clear and concise when writing your business plan and make sure to highlight your team’s expertise and experience. Finally, always keep in mind that your business plan is a living document and should be updated as your business grows and changes.  

Finish Your Funeral Home Business Plan in 1 Day!

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Business Plan Template for Funeral Home Business

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Starting a funeral home business is no easy task, but with the right planning and strategy, it can be a rewarding and successful venture. ClickUp's Business Plan Template for Funeral Home Business provides entrepreneurs with a comprehensive roadmap to outline their vision and secure the necessary funding.

With this template, you'll be able to:

• Create detailed financial projections, including revenue forecasts and expense budgets, to attract potential investors.
• Conduct a thorough market analysis to understand the competitive landscape and identify unique opportunities for your funeral home business.
• Develop effective competitive strategies to differentiate your services and stand out in the market.
• Outline operational details, such as staffing, facilities, and service offerings, to ensure a smooth and efficient operation.

Don't let the complexities of starting a funeral home business overwhelm you. Use ClickUp's Business Plan Template to lay the foundation for your success and secure the funding you need.

Business Plan Template for Funeral Home Business Benefits

Attracting investors and securing funding for your funeral home business is crucial, and a business plan template can help you do just that by:

• Providing a clear roadmap for your business, outlining your financial projections, market analysis, competitive strategies, and operational details
• Demonstrating to potential investors that you have a solid understanding of the funeral home industry and its market dynamics
• Helping you identify and mitigate potential risks and challenges that may arise in your business
• Allowing you to showcase your unique value proposition and differentiate yourself from competitors in the market.

Main Elements of Funeral Home Business Business Plan Template

When starting a funeral home business, it's crucial to have a comprehensive business plan in place. ClickUp's Business Plan Template for Funeral Home Business provides the essential elements you need to create a solid plan:

• Custom Statuses: Track the progress of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do, ensuring that every aspect of your plan is accounted for and managed effectively.
• Custom Fields: Utilize custom fields such as Reference, Approved, and Section to add specific details to your business plan template, making it tailored to your funeral home business needs and allowing for easy organization and filtering of information.
• Custom Views: Access different views like Topics, Status, Timeline, Business Plan, and Getting Started Guide to gain a comprehensive overview of your business plan, track the status of each section, create a timeline for implementation, and refer to a step-by-step guide to assist you along the way.

With ClickUp's Business Plan Template for Funeral Home Business, you can confidently present your ideas to investors and secure funding for your funeral home venture.

How To Use Business Plan Template for Funeral Home Business

If you're starting a funeral home business and need to create a comprehensive business plan, follow these six steps using the Business Plan Template in ClickUp:

1. Executive Summary

Begin your business plan with an executive summary that provides an overview of your funeral home business. Include key details such as your mission statement, business goals, target market, and competitive advantage. This section should give readers a clear understanding of your business and its potential.

Use the Docs feature in ClickUp to easily write and format your executive summary.

2. Company Description

Next, provide a detailed description of your funeral home business. Explain the services you'll offer, your pricing structure, and any unique features that set your funeral home apart from competitors. Additionally, outline your business structure, ownership, and legal requirements.

Create custom fields in ClickUp to keep track of important information about your company, such as registration numbers and licenses.

3. Market Analysis

Conduct a thorough market analysis to understand the funeral home industry and your target market. Identify the demographic and psychographic characteristics of your ideal customers, as well as the size and growth potential of the funeral industry in your area.

Use the Table view in ClickUp to organize market research data, such as market size, competition analysis, and customer profiles.

4. Marketing and Sales Strategy

Develop a marketing and sales strategy to attract customers and promote your funeral home business. Outline your pricing strategy, advertising and promotional activities, and any partnerships or collaborations you plan to pursue. Additionally, define your sales process and customer acquisition channels.

Create tasks in ClickUp to assign specific marketing and sales activities to team members and track their progress.

5. Operations and Management

Detail the operational aspects of your funeral home business, including your facility, equipment, staffing requirements, and day-to-day processes. Explain how you'll manage operations, maintain quality standards, and ensure customer satisfaction. Additionally, provide an organizational chart that highlights key roles and responsibilities.

Use the Gantt chart feature in ClickUp to create a visual timeline for setting up your facility, hiring staff, and launching your funeral home business.

6. Financial Projections

Finally, include financial projections in your business plan to demonstrate the potential profitability and sustainability of your funeral home business. This should include a sales forecast, projected expenses, cash flow statement, and break-even analysis. Additionally, outline your funding requirements and any financial arrangements you've made.

Use the Dashboards feature in ClickUp to track and analyze your financial data, including revenue, expenses, and profitability.

By following these six steps and utilizing the Business Plan Template in ClickUp, you can create a comprehensive and well-structured business plan for your funeral home business.

Get Started with ClickUp’s Business Plan Template for Funeral Home Business

Entrepreneurs looking to start a funeral home business can use the ClickUp Business Plan Template to create a comprehensive plan that covers all aspects of their business.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a solid business plan:

• Use the Topics View to organize your plan into different sections such as financial projections, market analysis, competitive strategies, and operational details
• The Status View will help you track the progress of each section, whether it's complete, in progress, needs revision, or still to do
• The Timeline View will provide a visual representation of your business plan's milestones and deadlines
• The Business Plan View will give you a comprehensive overview of your entire plan in one place
• The Getting Started Guide View will provide step-by-step instructions on how to use the template effectively
• Customize the template by adding custom fields such as Reference, Approved, and Section to provide additional information and track important details
• Update statuses and custom fields as you work on each section to keep team members informed of progress
• Monitor and analyze your business plan to ensure it meets your goals and attracts investors.
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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 write a business plan for a funeral home?

Writing a business plan for a funeral home can be an intimidating task, especially for those just starting.

This in-depth guide is designed to help entrepreneurs like you understand how to create a comprehensive business plan so that you can approach the exercise with method and confidence.

We'll cover: why writing a funeral home business plan is so important - both when starting up, and when running and growing the business - what information you need to include in your plan, how it should be structured, and what tools you can use to get the job done efficiently.

Let's get started!

In this guide:

Why write a business plan for a funeral home?

• What information is needed to create a business plan for a funeral home?
• What goes in the financial forecast for a funeral home?
• What goes in the written part of a funeral home business plan?
• What tool can I use to write my funeral home business plan?

Understanding the document's scope and goals will help you easily grasp its structure and content. Before diving into the specifics of the plan, let's take a moment to explore the key reasons why having a funeral home business plan is so crucial.

To have a clear roadmap to grow the business

It's rarely business as usual for small businesses. The economy follows cycles where years of growth are followed by recessions, and the business environment is always changing with new technologies, new regulations, new competitors, and new consumer behaviours appearing all the time...

In this context, running a business without a clear roadmap is like driving blindfolded: it's dangerous at best. That's why writing a business plan for a funeral home is essential to create successful and sustainable businesses.

To write an effective business plan, you will need to take stock of where you are (if you are already in business) and where you want the business to go in the next three to five years.

Once you know where you want your funeral home to be, you'll have to identify:

• what resources (human, equipment, and capital) are needed to get there,
• at what pace the business needs to progress to get there in time,
• and what risks you'll face along the way.

Going through this process regularly is beneficial, both for startups and existing companies, as it helps make informed decisions about how best to allocate resources to ensure the long-term success of the business.

To maintain visibility on future cash flows

Businesses can go for years without making a profit, but they go bust as soon as they run out of cash. That's why "cash is king", and maintaining visibility on your funeral home's future cash flows is critical.

How do I do that? That's simple: you need an up-to-date financial forecast.

The good news is that your funeral home business plan already contains a financial forecast (more on that later in this guide), so all you have to do is to keep it up-to-date.

To do this, you need to regularly compare the actual financial performance of your business to what was planned in your financial forecast, and adjust the forecast based on the current trajectory of your business.

Monitoring your funeral home's financial health will enable you to identify potential financial problems (such as an unexpected cash shortfall) early and to put in place corrective measures. It will also allow you to detect and capitalize on potential growth opportunities (higher demand from a given segment of customers for example).

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your funeral home.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your funeral home and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your funeral home's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your funeral home, let's explore what information is required to create a compelling plan.

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Information needed to create a business plan for a funeral home

Drafting a funeral home business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for a funeral home

As you consider writing your business plan for a funeral home, conducting market research becomes a vital step to ensure accurate and realistic financial projections.

Market research provides valuable insights into your target customer base, competitors, pricing strategies, and other key factors that can significantly impact the commercial success of your business.

Through this research, you may uncover trends that could influence your funeral home.

You may find that more people are choosing cremation over burial for their loved ones; this could be due to affordability or environmental concerns. Additionally, you might discover that people are increasingly interested in hosting unique, personalized ceremonies for their deceased family members; they may involve music, readings, or other activities that reflect the life of the deceased.

Such market trends play a significant role in forecasting revenue, as they offer valuable data about potential customers' spending habits and preferences.

By incorporating these findings into your financial projections, you can present investors with more accurate information, helping them make informed decisions about investing in your funeral home.

Developing the sales and marketing plan for a funeral home

Budgeting sales and marketing expenses is essential before creating a funeral home business plan.

A comprehensive sales and marketing plan should provide an accurate projection of what actions need to be implemented to acquire and retain customers, how many people are needed to carry out these initiatives, and how much needs to be spent on promotions, advertising, and other aspects.

This helps ensure that the right amount of resources is allocated to these activities in order to hit the sales and growth objectives forecasted in your business plan.

The staffing and capital expenditure requirements of a funeral home

Whether you are starting or expanding a funeral home, it is important to have a clear plan for recruitment and capital expenditures (investment in equipment and real estate) in order to ensure the success of the business.

Both the recruitment and investment plans need to be coherent with the timing and level of growth planned in your forecast, and require appropriate funding.

A funeral home might incur staffing costs such as salaries for funeral directors, embalmers, and administrative staff. In addition, they may need to hire additional help for large funeral services or special events. They could also incur costs for equipment such as caskets, hearses, embalming supplies, and other necessary tools.

In order to create a realistic financial forecast, you will also need to consider the other operating expenses associated with running the business on a day-to-day basis (insurance, bookkeeping, etc.). 

Once you have all the necessary information to create a business plan for your funeral home, it is time to start creating your financial forecast.

What goes into your funeral home's financial forecast?

The financial forecast of your funeral home's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.

The four key outputs of a financial forecast for a funeral home are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

Your funeral home forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

Ideally, your reader will want to see:

• Growth above the inflation level
• Expanding profit margins
• Positive net profit throughout the plan

Expectations for an established funeral home will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The projected balance sheet of your funeral home

The balance sheet for a funeral home is a financial document that provides a snapshot of your business’s financial health at a given point in time.

It shows three main components: assets, liabilities and equity:

• Assets: are resources owned by the business, such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors and other entities, such as accounts payable (money owed to suppliers) and loans.
• Equity: includes the sums invested by the shareholders or business owners and the cumulative profits and losses of the business to date (called retained earnings). It is a proxy for the value of the owner's stake in the business.

Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your funeral home's liquidity and solvency:

• Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
• Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.

Looking at the balance sheet can also provide insights into your funeral home's investment and financing policies.

In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).

The cash flow forecast

A projected cash flow statement for a funeral home is used to show how much cash the business is generating or consuming.

The cash flow forecast is usually organized by nature to show three key metrics:

• The operating cash flow: do the core business activities generate or consume cash?
• The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
• The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your funeral home business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the funeral home is appropriately funded.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting a funeral home.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

This table helps size the investment required to set up the funeral home, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your funeral home business plan, let's have a look at the written part of the plan.

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The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

The written part of a funeral home business plan

The written part of a funeral home business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of a funeral home business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

In your funeral home's business plan, the first section is the executive summary — a captivating overview of your plan that aims to pique the reader's interest and leave them eager to learn more about your business.

When crafting the executive summary, start with an introduction to your business, including its name, concept, location, how long it has been running, and what sets it apart. Briefly mention the products and services you plan to offer and your target customer profile.

Following that, provide an overview of the addressable market for your funeral home, current trends, and potential growth opportunities.

Next, include a summary of key financial figures like projected revenues, profits, and cash flows.

Finally, in the "ask" section, detail any funding requirements you may have.

2. The presentation of the company

As you build your funeral home business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.

Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.

When describing the location of your funeral home to a third party financier, you could emphasize its potential to draw a large customer base due to its convenient access from the surrounding area or aging population. You may highlight the fact that the location is in a densely populated area, with ample parking and access to public transportation.

Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.

It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of the offerings that your company provides to its customers. 

For example, your funeral home might offer services such as funeral planning, pre-arranged funerals, and memorial services. Funeral planning ensures that a family's final wishes are met, pre-arranged funerals allow individuals to plan ahead and make their wishes known, and memorial services are a way to honor the deceased and remember their life.

When drafting this section, you should be precise about the categories of products or services you sell, the types of customers you are targeting and how customers can buy them.

4. The market analysis

When you present your market analysis in your funeral home business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your funeral home, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your funeral home aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include young families who are recently bereaved. This segment may be interested in comprehensive funeral services that provide support during a difficult time. They may also be interested in memorial services that can be customized to honor the deceased in a meaningful way.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your funeral home.

5. The strategy section

When crafting the strategy section of your business plan for your funeral home, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your funeral home faces numerous risks every day. You could face risks that may be related to customer satisfaction, such as a customer not being happy with the services they received. You could also face risks related to the financial security of the business, such as not having enough funds to cover a large funeral service. These are only two examples of risks your funeral home may face.

6. The operations section

The operations of your funeral home must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your funeral home - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You could have access to key assets such as vehicles for transporting the deceased, and facilities for holding memorial services. Additionally, you might have intellectual property related to funeral home processes and services, such as a customized system for creating memorial services and coordinating funeral planning.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a funeral home business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my funeral home's business plan?

In this section, we will be reviewing the two main solutions for creating a funeral home business plan:

• Using specialized online business plan software,
• Outsourcing the plan to the business plan writer.

Using an online business plan software for your funeral home's business plan

Using online business planning software is the most efficient and modern way to write a funeral home business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Hiring a business plan writer to write your funeral home's business plan

Outsourcing your funeral home business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the funeral home business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your funeral home's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a funeral home business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my funeral home business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a funeral home business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your funeral home and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your funeral home business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a funeral home? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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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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Here's how you open a profitable funeral home business.

Starting a funeral home is a profound venture that serves a vital role in any community, providing support and solace to families during their most difficult times.

Whether you're a seasoned funeral director aiming to establish your own business or an entrepreneur drawn to this dignified industry, launching a funeral home requires meticulous preparation and a deep sense of empathy.

In this blog post, we'll navigate you through the crucial steps of opening a funeral home, from the foundational planning to the solemn inauguration.

How you should prepare to open a funeral home business

Market research and concept, choose a concept.

Choosing a concept is one of the first steps in opening a funeral home because it will define the services you offer, the atmosphere of your establishment, and the clientele you attract.

This decision will influence your business strategy, including the location, interior design, service offerings, pricing, and marketing approach. A well-defined concept can help your funeral home stand out and resonate with the community you serve.

In essence, selecting the right concept is like determining the ethos and character of your funeral home before you begin shaping the experience and crafting the services.

To assist you in making an informed choice, we have summarized the most common concepts for a funeral home in the table below.

Pick an audience

When opening a funeral home, it's crucial to understand the audience you intend to serve, as this will shape the entire concept of your business.

For instance, if you aim to serve families who value tradition, your funeral home might focus on offering classic funeral services with a high level of formality. You would likely choose a location that is easily accessible to the community you're targeting, perhaps in a residential area known for its long-standing families.

Conversely, if you're looking to cater to a more modern, eco-conscious clientele, your funeral home might offer green burial options and eco-friendly services. The design of your funeral home might be more contemporary, and you could consider a location near natural settings or in progressive neighborhoods.

Choosing your audience first is essential because it affects every aspect of your funeral home - from the services you provide to the ambiance of your facilities and even your marketing strategies. It's akin to tailoring a suit; you customize it based on the measurements and preferences of the person who will wear it to ensure a perfect fit.

Additionally, understanding your audience enables you to communicate with them more effectively. If you know who you're aiming to attract, you can determine the best methods to inform them about your funeral home. For example, if you're targeting eco-conscious individuals, you might advertise in sustainability-focused publications or online platforms.

In our business plan for a funeral home , we have outlined different customer segments that could be relevant for your business.

To provide you with a clearer picture of potential audiences for your funeral home, we've compiled a few typical examples below.

Get familiar with the industry trends

When opening a funeral home, it's crucial to stay informed about the emerging trends in the industry and integrate them into your services.

Trends indicate the evolving needs and preferences of the public. By aligning with these trends, you can attract families looking for modern and personalized ways to honor their loved ones. Additionally, offering services that are in line with current trends helps differentiate your funeral home from others that may offer more conventional options.

Actually, we update our business plan for a funeral home twice a year with the new emerging trends. We believe it will help you build a more successful and responsive funeral service business.

For instance, there's a growing interest in eco-friendly funerals, including biodegradable caskets and natural burials. Funeral homes that provide such options are appealing to environmentally conscious consumers.

Moreover, we've observed that personalization is becoming increasingly important, with families seeking to celebrate the unique life of their loved one through customized services and memorials.

Technology is also playing a larger role, with live-streaming services for mourners who cannot attend in person and digital memorials where friends and family can share memories and condolences.

Furthermore, the rise of "celebration of life" events, as opposed to traditional somber funerals, is a trend that is gaining traction, reflecting a cultural shift towards more uplifting and personalized remembrances.

We have listed more trends in the table below.

However, there are also some declining trends.

As society becomes more environmentally aware, there's a decline in the popularity of traditional burials that use non-biodegradable materials and embalming fluids.

Also, the standard, one-size-fits-all funeral services are becoming less appealing compared to more personalized and meaningful experiences.

Finally, with the rise of digital communication, the use of paper for funeral announcements and guestbooks is decreasing in favor of online alternatives.

Choosing the right location

Selecting the right location for your funeral home is essential for its success, and it requires careful consideration of several factors.

Understanding the local demographics is key. A community with an older population may have a higher demand for funeral services. Consider the cultural and religious composition of the area as well, to ensure that you can provide appropriate services and facilities.

Visibility and accessibility are crucial. A location that is easy to find and reach by car or public transport can be comforting for grieving families. Look for areas that are peaceful and respectful, possibly with less traffic and noise.

Accessibility also means ample parking and being within a reasonable distance from hospitals, churches, and cemeteries, which can be important for logistics during funeral services.

Competition should be assessed carefully. While you don't want to be too close to another funeral home, a certain level of competition indicates a need for such services in the area.

Identifying a niche or a gap in the market, such as offering specialized services or unique memorial options, can provide a competitive advantage. Proximity to hospices or retirement homes can also be beneficial.

The cost of property or rent is a critical factor. Prime locations may have higher costs, so you should ensure that the price is sustainable based on your projected income. A balance must be struck between a dignified location and manageable expenses.

Negotiating favorable lease terms or purchase agreements can significantly impact your funeral home's financial health. This might include long-term leases with fixed rates or options to buy the property.

Consider the potential for growth in the area. Is the community stable or growing? The ability to expand your facilities in the future without relocating can be a valuable asset as your business develops.

Market research and demographic analysis tools can provide insights into the best areas to open your funeral home. These tools can help identify neighborhoods with the right customer base for your services.

The decision between a more secluded, residential area and a central location depends on your target market and business model. Central locations may be more accessible, but they often come with higher costs and may not offer the serene environment that families seek during a time of loss.

Being near hospitals, elder care facilities, or places of worship can provide a steady flow of potential clients, particularly if your funeral home offers services that cater to the specific needs of these communities.

Understanding local zoning laws, health regulations, and other legal requirements is crucial to ensure that your chosen location is feasible for a funeral home. Compliance with these regulations from the start can save you time and money in the long run.

Finally, evaluating the long-term potential of a location is essential. Consider future area developments that could affect your business, either positively by increasing the local population or negatively by changing the character of the neighborhood or increasing property costs.

Startup budget and expenses

Calculate how much you need to start.

On average, the initial capital needed to open a funeral home can vary significantly, ranging from $150,000 to $300,000 for a modest operation to $450,000 to over $1,000,000 for a more comprehensive establishment with high-quality facilities and services .

If you want to know the exact budget you will need for your own funeral home and also get a full detailed list of expenses, you can use the financial plan we have made, tailored to funeral homes . This excel file is designed to be user-friendly and will provide you with an instant and detailed analysis of your future project.

The budget can vary the most due to the location of the funeral home. Prime locations in areas with higher demand for funeral services tend to have higher property and operational costs, which can significantly impact startup expenses.

The size of the funeral home also plays a crucial role in determining the initial investment. A larger facility not only increases property costs but also requires more staff, a larger inventory of caskets and urns, and potentially more vehicles, leading to higher operational costs.

The quality of facilities and services offered is another significant factor. Offering high-end services and maintaining elegant facilities can be expensive but may attract a clientele willing to pay for premium services. Conversely, starting with a more modest facility and services can reduce initial costs but may limit the customer base and revenue potential.

If the available capital is limited, it's still possible to open a funeral home, but careful planning and prioritization are crucial. The very minimum budget could be around $150,000 to $200,000 if you choose a low-cost location, minimize the size of your operation, buy used equipment, and manage much of the work yourself. This approach requires a hands-on strategy, focusing on essential services to reduce complexity and costs.

To make the most of a limited budget, consider the following tips.

Identify all your expenses

The expenses when starting a funeral home include facility acquisition or leasing, embalming and preparation room equipment, vehicles, licensing and permits, insurance, marketing and advertising, technology and software, staff training, casket and urn inventory, and a reserve for unexpected expenses.

Acquiring or leasing a facility suitable for a funeral home is a significant expense. Costs can vary greatly depending on location and size, but you might spend between $100,000 to $900,000 for purchasing or $2,000 to $10,000 per month for leasing. This includes the chapel, viewing rooms, offices, and preparation areas.

Embalming and preparation room equipment are essential for body preparation. This includes embalming machines, tables, instruments, and refrigeration units. The cost for these can range from $15,000 to $50,000, depending on the quality and quantity of equipment purchased.

Vehicles such as hearses and service cars are necessary for transporting the deceased. The cost for a new hearse can range from $60,000 to $100,000, while used vehicles may be less expensive. Additional service vehicles may cost between $20,000 to $40,000 each.

Licenses and permits are critical for legal operation. Costs vary by location but typically range from a few hundred to several thousand dollars. This includes funeral establishment licenses, health department permits, and possibly a crematory license if you offer cremation services.

Insurance is non-negotiable to protect your business against liability, property damage, and other potential risks. Essential policies include general liability, property insurance, professional liability, and workers' compensation if you have employees. Annual premiums can range from $3,000 to $10,000 or more, depending on your coverage levels and funeral home size.

Allocating funds for marketing and advertising is crucial for attracting clients. Initially, you might spend between $2,000 to $10,000 on marketing efforts, including social media advertising, traditional advertising, and creating a website. The amount can vary based on your strategy and the competitiveness of your market.

Investing in technology and software for management systems, scheduling, and accounting software is important. Costs can range from $1,000 to $15,000, depending on the sophistication of the systems you choose. Subscription-based services may have ongoing monthly fees.

There are also training costs for staff and professional development. Setting aside $1,000 to $5,000 for initial training and ongoing professional development can help ensure high-quality service. This also includes any costs for obtaining or maintaining personal certifications.

Inventory for caskets, urns, and other funeral merchandise is an ongoing expense that can fluctuate based on market prices and your funeral home's volume. Initial inventory setup can cost between $5,000 to $50,000. Developing relationships with reliable suppliers and considering bulk purchases can help manage costs.

Finally, setting aside a reserve for unexpected expenses or emergencies is crucial. A good rule of thumb is to have at least six months' worth of operating expenses saved. This can cover unforeseen repairs, equipment failures, or shortfalls in cash flow.

Here is a summary table to make it easier to digest. For a full breakdown of expenses, please check our financial plan for funeral homes .

Business plan and financing

Make a solid business plan.

You may already be aware, but it's worth emphasizing that writing a business plan when opening a funeral home is indispensable.

Why is this the case? A business plan acts as a strategic guide for your venture, detailing your objectives, the methods you'll employ to achieve them, and the potential obstacles you may encounter. A meticulously prepared business plan is not only instrumental in keeping you organized and on track but is also crucial when seeking financial backing from investors or banks, as it showcases the feasibility and prospective profitability of your enterprise.

The essential elements of a funeral home business plan encompass market analysis, financial planning, and operational strategy, among other components. Market analysis is vital to comprehend your target clientele, their needs, and the competitive environment. This involves investigating trends in the funeral services industry, pinpointing your primary competitors, and discovering a niche or unique value proposition that differentiates your funeral home.

Financial planning is another pivotal section. It should detail your anticipated revenue, cost of services (including caskets, cremation, embalming services, etc.), labor costs, and additional operational expenses. It must also feature forecasts for profit and loss, cash flow, and a break-even analysis. Financial planning offers a transparent view of your funeral home's fiscal health and expansion prospects to both you and potential financiers. You will find all this information in our financial plan for a funeral home .

While a funeral home business plan shares commonalities with other business plans, the focus on certain areas may vary.

For instance, a funeral home will emphasize service development (providing a range of funeral services), supply chain details (securing quality products for funeral services), and location analysis (ensuring accessibility and privacy for grieving families). Additionally, showing adherence to health and safety regulations specific to funeral services is crucial.

To thrive and create a persuasive funeral home business plan, it's critical to conduct exhaustive research and maintain realism in your financial estimates and capabilities. Engage with potential clients to grasp their needs, preferences, and willingness to pay for your services. Also, consider the scalability of your business model and how you might broaden or modify your services in the future.

In the context of a funeral home, special attention should be given to establishing a strong brand identity and marketing strategy that connects with your target audience. Emphasizing the compassion, dignity, and personalized care you offer can set your funeral home apart in a sensitive market.

Success depends not only on the quality of your funeral services but also on meticulous planning, understanding your market, managing finances prudently, and implementing your operational strategy with precision.

Keep in mind, a business plan is not a static document but a dynamic one that should be reviewed and refined as your funeral home grows and adapts.

Get financed

Concerned about how to finance your funeral home? There are several options available to help you get started.

Financing for a funeral home can come from various sources, including raising capital from investors, securing loans from banks or financial institutions, and applying for grants or subsidies.

Each financing method has its own set of benefits and things to consider.

Raising capital means finding investors who will provide funds in exchange for equity in your funeral home. This is beneficial because it doesn't require immediate repayment like a loan does.

However, it also means you'll be sharing ownership and may have to compromise on some business decisions. For a funeral home, this could be a viable option if you're looking to quickly establish a strong market presence or need substantial capital for state-of-the-art facilities or a strategic location. To attract investors, you'll need a solid business plan that shows potential for growth, profitability, and a deep understanding of the funeral services industry.

Another option is to take out a business loan.

This route allows you to maintain full ownership of your funeral home but requires you to pay back the borrowed amount with interest. Loans can be used for a variety of purposes, such as acquiring hearses, renovating the funeral home, or covering initial operating costs.

Banks usually ask for a down payment or collateral, which can range from 15% to 35% of the loan amount. It's crucial to consider how much of your budget will come from loans to avoid overwhelming your business with debt. Ideally, your funeral home's projected cash flow should be able to handle loan repayments while still allowing for operational costs and business growth.

Grants and subsidies are less common but can be a valuable resource.

These funds are typically provided by government agencies or non-profit organizations to support small businesses, particularly in areas that provide essential community services. Grants do not need to be repaid, but they are competitive and often have specific requirements.

For a funeral home, grants may not be the primary source of funding but could support other financing methods for particular projects or needs, such as eco-friendly initiatives or community outreach programs.

To effectively secure financing from lenders or investors for your funeral home, it's essential to prove the viability and profitability of your business idea.

This means creating a comprehensive business plan that includes market analysis, a clear identification of your target market, detailed financial projections, and an effective marketing strategy. Your business plan should showcase what makes your funeral home unique, such as specialized services, a compassionate approach, or a convenient location.

Lenders and investors will judge your funeral home based on several factors, including your creditworthiness, industry experience, available collateral, and the robustness of your business plan.

They will examine the financial projections of your funeral home to determine if you can generate sufficient revenue to cover operating costs, repay debts, and turn a profit. A thorough understanding of the funeral services market, including trends, customer needs, and competitive analysis, will also strengthen your case.

Below is a summary table of the various financing options mentioned for opening a funeral home, along with their advantages, considerations, and potential uses.

Legal and administrative setup

Permits and licenses.

Opening and operating a funeral home involves meticulous planning and compliance with various regulations and requirements to ensure the dignity, respect, and care for the deceased and their families, as well as to safeguard your business.

The specific permits, licenses, health department regulations, inspection schedules, consequences of non-compliance, and insurance policies you'll need will differ depending on your location, but there are common standards that are applicable in many areas.

First, you'll need to secure the necessary business permits and licenses.

This typically includes a business license from your city or county, and possibly a state-issued funeral director and/or embalmer license, depending on the services you offer. If you plan to provide pre-need contracts for funeral services, additional permits or licenses related to pre-need sales may be required.

It's imperative to consult with your local and state government to understand the specific requirements for your area.

Regarding health department regulations, funeral homes must comply with standards related to the handling, storage, and disposal of human remains to prevent public health risks.

This includes proper embalming, refrigeration, and sanitation practices, ensuring the cleanliness of the facility, and regular training for employees on health and safety protocols. Health department inspections are conducted to ensure adherence to these regulations. The frequency of inspections can vary, but they typically occur at least once a year or more often if there are complaints or previous issues. Some jurisdictions may also require a pre-operational inspection before the funeral home can open.

Non-compliance with health department regulations can lead to consequences such as fines, temporary suspension of services, or even revocation of licenses. In extreme cases, non-compliance can result in permanent closure or legal action. It's crucial to take these regulations seriously and ensure your funeral home complies with all health and safety standards.

Insurance is another essential aspect of protecting your funeral home business. At a minimum, you'll need general liability insurance to cover accidents or injuries that occur on your premises.

Professional liability insurance is also important to protect against claims of negligence or misconduct related to the services provided. Property insurance is necessary to protect the funeral home's physical assets from damage or theft. If you have employees, workers' compensation insurance will likely be required by law to cover injuries or illnesses that occur as a result of their work.

Additionally, considering specialized insurance policies that cover the unique aspects of funeral service, such as hearse and other funeral vehicle insurance, and insurance for any merchandise like caskets and urns, might be prudent.

Business Structure

The three common structures for opening a funeral home are LLC (Limited Liability Company), partnership, and sole proprietorship. Each has their unique features and implications for your business.

Please note that we are not legal experts (we specialize in business and financial planning) and that your choice should be based on how much risk you're willing to accept, how you prefer to handle taxes, and your plans for growing and possibly selling your funeral home.

In simple terms, a sole proprietorship is simple and straightforward but carries personal liability. A partnership allows for shared responsibility but requires clear agreements to manage risks. An LLC offers a balance of protection and flexibility, making it a strong option for many businesses looking to scale.

Consider your long-term goals, and consult with a financial advisor or attorney to make the best choice for your funeral home.

We’ll make it easier for you, here is a summary table.

Getting started to open a funeral home business

Offer development, design and lay out.

Designing and laying out your funeral home for operational efficiency and a compassionate customer experience requires thoughtful consideration and sensitivity.

Let's explore how you can achieve this, focusing on visitor flow, balancing equipment needs with budget, and ensuring privacy and comfort.

Firstly, envisioning visitor flow is crucial.

Your funeral home's design should guide visitors seamlessly from the entrance to the reception area, through to the viewing rooms, and finally to the service or ceremony space. This flow should be intuitive, minimizing stress and confusion during a difficult time. Place your most serene and comforting spaces near the entrance to immediately provide a sense of calm and respect.

This setup not only creates a peaceful environment but also helps visitors navigate the space during a time when they may be emotionally overwhelmed.

Regarding the design to facilitate this flow, consider the layout's privacy and accessibility.

Quiet corridors, discreet signage, and a logical arrangement of the space promote easy movement and tranquility. The reception area should be clearly marked and separate from the viewing rooms to maintain privacy and decorum. If your funeral home includes a space for gatherings or receptions, ensure it's comfortably distanced from the ceremony area to allow for a private and reflective atmosphere.

Balancing the need for high-quality equipment with budget constraints is a challenge many face.

Start by prioritizing essential equipment that directly impacts the services you offer, such as embalming machines and refrigeration units. These are worth investing in because they are crucial to your funeral home's operations. For other items, consider buying gently used or refurbished equipment from reputable suppliers to save money without significantly compromising quality.

Additionally, plan for equipment that offers versatility and efficiency, like multi-purpose service carts or adjustable casket stands, to get the most value for your investment.

Privacy and comfort in the funeral home layout are non-negotiable. Your design must incorporate spaces designated for different services to ensure discretion. For example, separate areas for preparation, viewing, and services ensure that each step of the process is dignified and respectful. Install private consultation rooms at key points, especially near the reception area, to provide a space for families to discuss arrangements in confidence.

Specific protocols for handling remains, visitation, and services are crucial for privacy and compliance. Implement a system that ensures all facilities are maintained with the utmost respect and care, with preparation areas kept separate from public spaces.

Train your staff thoroughly in privacy practices, emphasizing the importance of discretion, empathy, and the personal touch that is so vital in the funeral service industry.

Regularly review and update these protocols to comply with local regulations and best practices, ensuring that your funeral home remains a place of solace and professionalism.

Craft your offer

Your services and the care you provide will be the reason why your funeral home is successful (or why it is failing).

To start, identify the preferences and needs of your target market through direct engagement, such as in-person consultations, community outreach, and social media interactions, as well as indirect research, like observing trends in your area and reviewing what successful competitors are offering.

Once you have a clear picture of your target market's preferences, you can begin to craft service packages that not only meet their needs but also stand out.

Incorporating personalized and culturally sensitive options into your funeral home services is a fantastic way to enhance appeal and provide comfort. This approach not only respects the diverse backgrounds of the families you serve but also ensures that your offerings are compassionate and of high quality. Make connections with local clergy, musicians, and other service providers to understand what unique services you can offer throughout the year. This knowledge allows you to plan your services thoughtfully, offering special touches that can attract families looking for a memorable and respectful farewell for their loved ones.

To ensure your funeral home services stand out in a competitive market, focus on personalization and quality.

This can be achieved by offering specialty services that are hard to find elsewhere, such as eco-friendly or green funerals, or catering to specific cultural or religious needs. Telling the story behind your services, such as the history of your funeral home or the inspiration behind your care options, can also add a unique appeal.

Ensuring consistency and quality in your services involves establishing rigorous standards and processes.

This can include detailed planning checklists, thorough training for your staff, and regular service quality checks. Consistency is key to building trust with the families you serve, as they will know exactly what to expect during a difficult time. Invest in high-quality materials and facilities, and don’t shy away from refining your services until you're confident they meet your standards.

Also, utilizing family feedback is essential for continuous improvement and refinement of your funeral home offerings. Create channels for feedback, such as follow-up calls, online surveys, and social media engagement, to understand what families appreciate and where there might be room for improvement.

Be open to constructive criticism and willing to make changes based on family input. This not only helps in refining your services but also shows the families that you value their opinions, fostering trust and the potential for recommendations.

Determinate the right pricing

When opening a funeral home, it's crucial to establish a pricing strategy that balances profitability with compassion and respect for your clients during their time of need. Here's how you can approach this sensitive subject.

Firstly, you must understand all your costs, which include services, caskets, urns, facilities, labor, overhead, and any other expenses related to providing funeral services.

This ensures your prices not only cover costs but also contribute to the sustainability of your business.

Next, research your competition and the broader market to understand the price range for similar funeral services. While you don't need to match these prices, it provides a reference point.

Understanding the financial constraints and preferences of your target market is essential. You can gather insights through conversations, community feedback, or by observing how pricing changes affect service choices. This helps identify price points that your clients are comfortable with, ensuring they don't feel financially burdened during a difficult time.

Psychological pricing strategies can be applied with sensitivity.

Charm pricing, such as $4995 instead of $5000, can make a difference in perception, but you should use this strategy with care to maintain the dignity and seriousness of your services.

Perceived value is critical in pricing funeral services.

Enhancing this perception can be achieved by providing exceptional service, dignified facilities, and personalized care. These elements can justify higher prices because clients perceive they are receiving greater value and support during their bereavement.

Package pricing strategies can simplify decision-making for families by bundling services and products at a reduced rate compared to purchasing each item individually.

For example, offering a complete service package that includes a casket, viewing, and memorial service can provide convenience and cost savings, which can be appealing to families looking to make arrangements with ease.

When introducing new services, consider introductory pricing strategies, such as value-added services or bundled deals, to encourage families to consider these options. Once these services are established, you can adjust pricing based on demand and cost considerations.

For pre-need sales versus at-need sales, consider the different emotional states and planning stages of your clients. Pre-need pricing might include incentives for planning ahead, while at-need services require immediate attention to detail and compassionate guidance.

Lastly, the psychological impact of discounting funeral services must be handled with the utmost care. While promotions can provide options for families with budget constraints, excessive discounting can undermine the perceived value and respectability of your services. Use discounts judiciously, perhaps in the form of a veterans' discount or a special rate for low-income families, without compromising the integrity of your funeral home.

Manage relationships with your suppliers

Poor relationships with suppliers could have a detrimental impact on your funeral home business in no time.

On the contrary, nurturing strong partnerships with suppliers ensures the consistent availability of high-quality funeral products and services.

Regular communication, prompt payments, and showing gratitude for their products and services can build loyalty and dependability. Be clear about your expectations and requirements, and whenever possible, visit their facilities. This deepens your understanding of their offerings and constraints, allowing for more effective collaboration.

Additionally, consider long-term contracts for essential items such as caskets, urns, and memorial products to secure better pricing and guarantee availability. However, it's also wise to maintain relationships with alternate suppliers to mitigate the risks of any potential shortages.

For managing inventory, techniques such as First-In, First-Out (FIFO) are crucial. This method ensures that older merchandise is used or offered before newer items, reducing the chance of unsellable stock due to trends or wear. Regularly monitor inventory levels to adjust orders based on demand, avoiding overstocking and minimizing the risk of having outdated products. Implementing a just-in-time (JIT) inventory system can also be beneficial, where products are ordered and received as needed for services, though this requires accurate forecasting of client needs.

Technology can significantly enhance inventory management and reduce overstock in a funeral home.

Implementing an inventory management system that integrates with point-of-sale (POS) systems allows for real-time tracking of stock levels and sales data. This technology can help predict client needs more accurately, streamline ordering processes, and identify trends that can inform service development and promotional strategies.

Additionally, digital tools can improve communication with suppliers, enabling more efficient order adjustments and collaboration.

Expanding funeral home services presents challenges such as maintaining service quality, managing increased costs, and ensuring client satisfaction. Address these challenges by standardizing service packages, training staff thoroughly, and investing in facilities that can increase efficiency without compromising the dignity and quality expected by clients.

Scaling up also means more merchandise and services, so negotiate pricing with suppliers for bulk purchases without sacrificing the quality of goods or services. Quality control becomes even more critical as your business grows, requiring strict adherence to professional standards and more frequent reviews of client feedback.

Implementing effective cost control measures involves scrutinizing every aspect of sourcing and using funeral home products and services. Regularly review and negotiate with suppliers to ensure you're getting the best prices without compromising on quality or service.

Also, consider alternative products that may offer cost savings or unique selling points. Utilize technology to track and analyze costs, inventory levels, and client preferences to identify areas for improvement. Reducing excess inventory not only cuts costs but also aligns with ethical practices, appealing to clients who value responsible business operations.

Hire the right people

When opening a funeral home, you should carefully consider the staff you need to provide compassionate and professional services. Initially, you may not need a large team, but there are key roles that must be filled to ensure smooth operations.

At the heart of a funeral home are the funeral directors and embalmers. Funeral directors are responsible for coordinating the funeral services and providing support to the bereaved families. They need to be empathetic, detail-oriented, and have excellent communication skills. Embalmers, on the other hand, are tasked with preparing the deceased for services, requiring technical skills and a respectful approach to the care of the deceased.

Support staff, such as funeral assistants or attendants, are essential for the day-to-day tasks, including setting up for services, transporting the deceased, and maintaining the facilities. Administrative staff will handle paperwork, appointments, and customer inquiries, ensuring that the business runs efficiently.

As your funeral home grows, you may consider hiring additional specialized staff, such as grief counselors or pre-need sales consultants. Outsourcing can also be a strategic option for roles like accounting, marketing, and maintenance services.

When hiring, prioritize candidates with a mix of technical skills, experience, and a compassionate demeanor. Funeral directors should have formal training in mortuary science and be licensed. For support and administrative roles, look for individuals with experience in customer service, strong organizational skills, and the ability to work with a team under emotionally challenging circumstances.

To ensure a good fit with your funeral home's ethos and the sensitive nature of the services provided, you might include role-playing scenarios in your hiring process to assess candidates' responses to typical situations they might encounter.

Finding the right candidates can be challenging. Utilize mortuary science programs, funeral service associations, and social media platforms to reach potential candidates. Networking within the funeral service community and attending industry conferences can also be effective strategies. Consider offering internships to students from mortuary science programs to attract new talent.

Here is a summary table of the different job positions for your funeral home, and the average gross salary in USD.

Running the operations of your funeral home business

Daily operations.

Running a funeral home requires a delicate balance of compassion and efficiency. By implementing thoughtful strategies, you can ensure that your services are both respectful and streamlined.

Firstly, a specialized Funeral Home Management System (FHMS) can greatly enhance your daily operations. Look for an FHMS that integrates case management, financial tracking, and client relations. This integration allows you to manage each funeral service with dignity and precision, keep accurate financial records, and maintain a database of client needs and preferences.

Many modern FHMS platforms also include digital memorial services, which can provide families with the option to honor their loved ones online, a feature increasingly appreciated in today's connected world.

For inventory management, you need software that can track your caskets, urns, and other funeral supplies. The best systems enable you to set alerts for low stock levels and generate reports on usage trends, helping you make informed purchasing decisions. This is crucial for avoiding shortages and ensuring that you have the appropriate items available for each service.

Some inventory management systems also offer features like serial number tracking, which is important for managing your high-value items and ensuring their availability when needed.

As mentioned earlier in this article, maintaining good relationships with suppliers is key to a funeral home's success.

Establish clear communication channels and set expectations early on regarding delivery schedules, product quality, and payment terms. A strong relationship can lead to better terms and reliability. It's also prudent to have a backup plan and maintain relationships with multiple suppliers to ensure you can always meet the needs of the families you serve.

Keeping your team compassionate and professional is about creating a supportive work environment and fostering a culture of empathy and growth.

Regular training sessions, clear communication of goals and expectations, and constructive feedback are essential. Recognizing and rewarding dedication and achievements also go a long way in maintaining a committed team. Ensure that work schedules are fair and considerate of your employees' well-being.

Ensuring that every family has a respectful and comforting experience starts with the atmosphere of your funeral home, the quality of your services, and the empathy provided by your team.

Train your staff to be understanding, respectful, and efficient. Encourage them to remember details about the deceased and the family, making the service feel personal and honoring the memory of the loved one.

Maintaining a serene and clean funeral home, with clear signage and a layout that accommodates the needs of grieving families, also contributes to a supportive experience.

Effective client service policies for a funeral home might include a satisfaction guarantee, clear pricing and payment policies, and a mechanism for gathering and acting on client feedback.

Make it easy for families to provide feedback, whether in person, through your website, or via email. Respond to feedback promptly and with sensitivity, showing that you value their input and are committed to providing comfort and support.

Handling client feedback and concerns with grace is crucial. Always listen to the family's concerns fully before responding. Apologize where necessary and offer a solution or accommodation, such as a different service option or a gesture of condolence.

Use feedback as an opportunity to improve your operations, services, or client relations. Turning a challenging situation into a comforting one can often help families during their time of need and build the reputation of your funeral home.

Revenues and Margins

Know how much you can make.

Understanding the financial dynamics of a funeral home is crucial for successful management and growth.

We have a comprehensive guide on the profitability of funeral homes that delves into the specifics. Below, we provide a summary of key points.

One important metric to consider is the average cost of services per client. This figure represents the typical amount spent by a family for a funeral service.

The average cost can vary widely depending on the type of services provided. For traditional funeral homes that offer full-service funerals, including viewings, ceremonies, and burials, the average cost might range from $7,000 to $10,000 .

For funeral homes that specialize in cremation services, the average cost per client may be lower, perhaps $3,000 to $5,000 , reflecting the generally lower cost of cremation compared to burial.

Direct-disposal funeral homes, which provide no-frills immediate burial or cremation without a ceremony, might have the lowest average cost per client, in the range of $1,000 to $2,000 .

When it comes to revenue, the numbers can also vary significantly. A funeral home's revenue can be estimated with precision using our specialized financial plan for funeral homes .

Urban funeral homes may see monthly revenues ranging from $20,000 to over $200,000 , which translates to annual revenues from around $240,000 to over $2.4 million .

Rural funeral homes, facing a smaller local population, might expect annual revenues on the lower end of the spectrum, typically between $100,000 and $1 million .

Newly established funeral homes may experience lower revenues initially as they work to establish their reputation and attract clients. Monthly revenues during the startup phase might not exceed $15,000.

Conversely, well-established funeral homes can benefit from a strong reputation and community ties, leading to higher and more consistent revenues.

High-end funeral homes offering premium services may have revenue limitations due to a smaller target market but can still achieve annual revenues exceeding $1 million if they cater to affluent clients.

Funeral homes that offer a range of services, including pre-planned funerals, may see higher revenues due to the comprehensive nature of their offerings, potentially generating $500,000 to $1.5 million in annual revenue .

Funeral homes don't just earn money from direct service fees. They have multiple revenue streams that can be leveraged for financial stability and growth.

If you're looking for inspiration, here's a table that outlines various potential revenue streams for a funeral home.

Understand your margins

While it may not be the first industry that comes to mind when thinking about profit margins, the funeral home business is one that requires careful financial planning and management. Just like any other business, funeral homes must balance revenue with expenses to determine their profitability.

Let's delve into the gross and net margins for funeral homes, which are key indicators of their financial health.

To calculate your own margins and get a precise figure for your potential profit, consider adjusting the assumptions in our financial model designed for funeral homes .

The typical range of gross margins for funeral homes can vary, often falling between 60% to 75%.

Gross margin is calculated by subtracting the cost of goods sold (COGS), which includes the direct costs associated with the services provided by the funeral home, such as caskets, embalming, and staff for services, from the revenue generated from funeral services, then dividing this number by the revenue, and finally, multiplying by 100 to get a percentage.

Net margins, however, factor in not just the COGS but also all other expenses a funeral home incurs, such as facility maintenance, utilities, administrative expenses, marketing, and taxes. This figure is obtained by subtracting all operating expenses from the gross profit.

Net margins offer a more complete view of a funeral home's profitability and are typically lower than gross margins, with averages often ranging from 15% to 25% across the industry, reflecting the tighter profitability after all costs are considered.

Different types of funeral homes—traditional, direct cremation, and luxury—can have varying profit margins due to differences in their service models, scale of operations, and target markets. Here is a table to illustrate these differences.

As you might expect, the margins of a funeral home are significantly influenced by factors such as service offerings, pricing strategy, and scale of operations.

A diverse service offering can cater to a wider range of preferences but may also increase operational complexity and costs.

Pricing strategy is critical; services must be priced to cover costs and generate profit while remaining sensitive to the market and competition. Scale of operations can impact cost efficiencies, with larger funeral homes often benefiting from lower per-unit costs due to higher volume.

Ongoing expenses that impact funeral home margins include casket and urn costs, labor for services, facility upkeep, and utilities. Costs for caskets and urns can vary based on quality and supplier, affecting gross margins. Labor is a significant expense, especially for services that require specialized staff. Facility costs can differ greatly by location, and utilities can be substantial, particularly for funeral homes with crematoriums.

Funeral homes that focus on niche markets, such as green burials or culturally specific services, may experience different margin dynamics compared to those offering a broad range of services.

While niche funeral homes can charge premium prices, they also face higher operational costs and potentially limited market size, which can impact overall margins.

External factors such as demographic trends, cultural shifts, and legal regulations also play a crucial role in funeral home margins. Changes in population age distribution can affect the demand for funeral services, while cultural shifts towards cremation over traditional burial can impact service offerings and pricing. Adhering to legal regulations is essential and can involve additional costs.

The challenge of maintaining healthy margins in the face of rising operational costs and changing market preferences is significant. Funeral homes can address these challenges through efficient cost management, strategic pricing, optimizing operations for energy efficiency, and investing in technology for productivity improvements.

Regularly tracking and analyzing financial performance, including gross and net margins, is vital for ensuring the financial health and sustainability of a funeral home. This is where our financial model tailored to funeral homes can be an invaluable tool.

Implement a strong marketing strategy

Marketing for a funeral home need not be as daunting as it may initially appear. We understand that you'll be dedicating your time to providing a compassionate service and may not have extensive resources for promotion. Therefore, we'll focus on a straightforward and dignified marketing strategy, as detailed in our business plan for a funeral home .

Branding for your funeral home is not only important; it's essential.

Your brand is the way families remember and trust you during their time of need. It encompasses more than just your logo or the colors of your establishment; it's about the compassionate service, respectful atmosphere, and the values you uphold, such as empathy, professionalism, and care. A strong brand will differentiate your funeral home in the community and help build a reputation for thoughtful service.

When developing your marketing plan, begin by identifying your target audience. Who are the families you aim to serve? What are their needs and preferences? Do they value traditional services, eco-friendly options, or perhaps personalized memorials? Understanding your audience is key to tailoring your branding and promotional efforts.

In terms of promotion, social media and digital marketing can be respectful and effective channels for funeral homes. Platforms like Facebook can be used to convey your message of care and support, share information about your services, and provide helpful resources for grieving families.

Content that can resonate with your audience includes educational articles on the process of planning a funeral, testimonials from families you've served, and information on grief support. This content should be shared with sensitivity and respect for the subject matter.

Community involvement is also a powerful marketing tool for funeral homes. Hosting or sponsoring local events, such as memorial services or grief support groups, can demonstrate your commitment to the community and provide a service beyond the funeral itself.

However, not all marketing techniques will be appropriate for your funeral home. For instance, if your services are primarily for a specific community, broad advertising may not be as effective as targeted outreach. Similarly, if your funeral home specializes in green burials, promoting traditional casket options may not align with your brand.

Even with a modest budget, there are strategies you can employ to reach out to families.

First, consider building relationships with local hospices, hospitals, and elder care facilities. These partnerships can help families become aware of your services in a supportive and non-intrusive way.

Offering educational workshops on end-of-life planning can also provide value to the community while raising awareness of your funeral home.

Collaborating with local clergy or bereavement groups can extend your network and provide a holistic service to those in mourning.

Implementing a referral program can encourage families to share their positive experiences with others, which can be especially impactful in this industry where trust is paramount.

Lastly, never underestimate the power of word-of-mouth. Encouraging families to share their experiences through testimonials can be one of the most authentic and effective forms of marketing for a funeral home.

Grow and expand

We want you to be successful with your funeral home. We hope the explanations provided above will assist you in achieving that.

Now, let’s consider you’re actually successful and running a funeral home with dignified services, generating significant cash flow. Then, it’s time to think of how you can scale and expand your business.

There's always room for more success, and we're here to guide you on how to achieve it.

Also, please know that there is a 5-year development plan tailored for a funeral home in our business plan template .

First, you have to know that successful funeral home directors often share qualities such as empathy, professionalism, a deep understanding of their services, and the ability to connect with and support their clients during difficult times. These traits are crucial as they navigate the complex process of growing their business.

Before expanding a funeral home's service offerings, consider the existing market demand, the compatibility of new services with your current offerings, and how these additions will affect your operations.

Market research plays a vital role in this decision-making process. By analyzing client needs, current industry trends, and the success of similar services in the market, you can make informed decisions that align with your funeral home's capabilities and client expectations.

Evaluating the success of current operations involves looking at service trends, client feedback, and operational efficiency. If your funeral home consistently meets or exceeds service targets, receives positive feedback, and operates efficiently, it may be time to consider expansion.

Opening additional locations should be based on solid evidence of demand, a thorough understanding of the target market, and the financial health of your current operation.

Franchising offers a way to expand with lower capital risk, leveraging the entrepreneurial spirit of franchisees.

However, it requires a strong brand, proven operational systems, and the ability to support franchisees. Opening owned branches provides more control over operations and client experience but requires more capital and direct management. Each model has its benefits and challenges, and the choice depends on your business goals, resources, and how you prefer to grow.

Digital channels, including online memorial services and digital guestbooks, can significantly boost a funeral home's reach and service offerings. Establishing an online presence allows you to cater to clients beyond your immediate geographic location, adapting to the increasing demand for digital memorials and convenience.

This strategy requires an understanding of digital marketing, logistics for remote services, and maintaining the dignity and quality of services during digital interactions.

Branding is crucial as it differentiates your funeral home in a competitive market. A strong, consistent brand identity across all locations and platforms can enhance client trust and attract new business. Strengthen your brand by ensuring that every client touchpoint reflects your funeral home's values, professionalism, and quality.

Maintaining consistency across multiple locations is challenging but essential. This can be achieved through detailed operational manuals, training programs, and quality control systems.

Regular visits and audits, along with fostering a strong, shared culture, help ensure each location upholds the standards that contributed to your original site's success.

Financial metrics and business benchmarks indicating readiness for expansion include consistent profitability, a strong cash flow, and meeting or exceeding service projections over a significant period.

Additionally, having a scalable business model and the operational capacity to support growth is crucial.

Partnerships with other businesses, such as florists and cemeteries, and participation in community events can introduce your funeral home to new clients and markets. These opportunities allow for compassionate collaboration, community engagement, and brand visibility, contributing to your funeral home's growth.

Scaling services to meet increased demand involves logistical considerations such as facility upgrades, efficient inventory management, and possibly expanding your physical space. Ensuring that your supply chain can handle the increased volume without sacrificing the quality and dignity of services is key.

Finally, it's essential that your expansion efforts stay true to your funeral home's core values and long-term goals. Growth should not come at the expense of the compassionate service that made your funeral home successful in the first place.

Regularly revisiting your business plan and values can help ensure that your expansion strategies align with your vision and mission, sustaining the heart of your funeral home as it grows.

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Funeral Home Business Plan

Through management and development strategies found in this free, printable business plan, morgues and funeral homes can gain a competitive edge in the mortuary market.

Sample text from Funeral Home Business Plan:

1.0 Executive Summary

[COMPANY NAME], located in [CITY], [STATE], provides the community and surrounding areas personalized and professional funeral services. The primary concern of [COMPANY NAME] is to assure the families the dignified service their loved ones deserve at the lowest possible price.

[COMPANY NAME] is the succession of a family business that began in 1917. The owners, [NAME], take pride in their business and continue look for ways to enhance the services they provide to their customers. The company seeks to improve its funeral home, add an additional funeral vehicle, increase marketing, and reduce debt. Additionally, [COMPANY NAME] is focused on reducing prices while at the same time upgrading the services provided. Therefore, grant funding in the amount of $410,000 is being sought by [COMPANY NAME] to achieve its goals and continue to provide a superior service for its customers.

1.1 Objectives

• Decrease existing debt by at least 20% over the next three years

• Begin building maintenance and expand parking area by the end of 2010 and complete by end of 2011

• Increase sales revenue by 5% each year or the next three years while stabilizing operating costs

• Increase market share by 10% over the next three years by implementing an aggressive marketing and pricing strategy

1.2 Mission

[COMPANY NAME] mission is to assure its families the dignified funeral service their loved ones deserve at the lowest possible price.

1.2 Keys to Success

The keys to success of [COMPANY NAME] are:

• Implementing knowledge passed down from three generations of ancestors in the funeral home business

• Providing clients with a dignified service their loved ones deserve

• Implementing an aggressive marketing strategy that increases market share in surrounding regions

• Providing high-quality service at the lowest possible price

2.0 Company Summary

[NAME] is located in [CITY], [STATE] of [COUNTY] County and provides it services to [COUNTIES] Counties. The [COMPANY NAME] name has been in the funeral home business since 1917 and is recognized throughout the community and surrounding counties.

2.1 Company Ownership

[COMPANY NAME] is a privately held S corporation owned equally by [NAME].

2.2 Company History

[COMPANY NAME] was established in 1998. The owners, [NAME], collectively have over 63 years of experience in the business. They implemented their experience along with the knowledge provided from their ancestors to start their own funeral home that carries on the family name.

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HOPE LIFE FUNERAL SERVICES BUSINESS PLAN

Hope Life Funeral Services is located in Burgersfort in the valley of the Spekboom River at the edge of the Bushveld complex in the Greater Tubutse municipality, near the border from Mpumalanga to Limpopo, based corporation that will provide casket/cremation receptacle sales, funeral services, cremation services, community support(CSI) and pre-funeral care services customers in its targeted market. The Hope Life has formed as a funeral cover to solve funeral problem in all homes in Burgersfort and other South African areas. It solely owned by Ramaite Seroka, Mothapo Mary, Muofhe Mulalo, Lewele Mapule, Mushaya Ndamulelo Phillip, Kwapa Joas and Kopa Clearance.

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