Are you looking for a profitable business that will be a service to your community? A funeral home business may be the ideal choice for you due to its potential for ongoing income. However, there is a great deal more to this business than simply building a funeral home. In this article, we’ll walk you through the 6 steps to strategically starting a funeral home business.
1. Choose Your Funeral Home Business Model
Before starting your funeral home business, carefully research your options and decide which type of funeral home suits your business goals. Each type of funeral home requires different maintenance, offers different levels of profit potential, and is suitable for different markets. To better understand your options, here are the common types of funeral homes:
* Traditional, full-service funeral homes: This service includes the preparation of the body, selection of casket, funeral service details, and full implementation of the funeral and committal services. A full-service funeral home plans and presents every detail of the funeral and burying processes. It is a popular option for clients who want professional oversight of all the processes involved.
* Independent funeral homes: These funeral homes operate on a stand-alone basis, offering full funeral services or any portion of those services. They are not part of a larger corporation or franchise operation. They do not provide cemetery services.
* Funeral home with cemetery: The type of service offers a funeral home on-site in a cemetery and the facilities are linked together in a business plan. If you do not have a plan, use this business plan template for guidance. The funeral home and cemetery staff work in tandem to provide all services, which creates a seamless experience.
* Funeral homes with crematory: Similar to a funeral home with a cemetery, these funeral homes are in business with a crematory, although the crematorium is not typically on-site with the funeral home. All services are planned together, which creates the same seamless experience.
2. Develop a Business Plan
The next step to start a funeral home business is to create a business plan to help establish clear goals and the strategies for achieving them. In addition to the type of funeral home you will start, include in your plan your mission and goals, financial projections, marketing strategies, and operational plans. For a detailed, strategic plan, use this business plan for a funeral home template.
3. Secure Financing
While it is possible to start your funeral home business with your own funds, financing may be necessary if you are looking to start on a larger scale or invest in more expensive furnishings or equipment. You’ll want to approach lenders or investors with your completed business plan to present the opportunity and apply liquid funds into your new business.
4. Choose a Location
Another critical step to starting a funeral home business is to choose a visible and accessible location. As the location of your funeral home will produce an occasional high-quantity number of cars, and special funeral-related vehicles, you’ll want to consider how to best inform neighbors of any roadblocks or other inconveniences. Additionally, take into account the presence of competing funeral homes to avoid any confusing intersectionality for consumers.
5. Develop a Product Line
Now that you’ve chosen the ideal location for your funeral home, you’ll want to select the casket product lines and accessories to sell in your funeral home. Consider the caskets and accessories, including memorabilia, that your customers may want and need. Carry a product mix that is tailored to your chosen location and customer demographics, as well as a variety of products to appeal to different tastes and preferences. Additionally, choose products that have a long shelf life, are easy to maintain, and have a high-profit margin. To maximize profit, regularly monitor sales and customer feedback to determine which products are most popular and adjust your product mix accordingly.
6. Purchase and Install Equipment and Furnishings
After you’ve chosen your location and the products to sell, you’re now ready to purchase and install your equipment, supplies and furnishings. When choosing the right furnishings, consider the difficulty of the situations and the comfort that will be appreciated by customers.
Starting a funeral home business, even with the sizable initial investment, can be a lucrative opportunity. From choosing the right type of funeral home to purchasing and installing the equipment and furnishings, follow these 6 steps while serving your community to get started on the road to long-term growth.