How to Start a Funeral Home – Business Plan

How to Start a Funeral Home

Learn How to Start a Funeral Home – funeral home business plan

Funeral homes are quite profitable businesses, as they are closely linked to the natural cycle of life . As we all die at some point, the services provided by these companies are necessary. In addition, the mourners are going through a very difficult time, so these services present not only a solution, but a relief for them.

On the other hand, most funeral homes are businesses that are open 24 hours a day, 365 days a year, so those who are thinking of starting a business like this should bear in mind that they will sacrifice a lot of free time, at least during the early years. In addition, it is a business that requires being quite understanding and knowing how to listen, since customers are at a very sensitive moment and you have to be tactful when dealing with them.

Why start a funeral business?

As we indicated previously, funeral homes are businesses that arise thanks to the need of people to give a dignified closure to the life cycle of a loved one. As we live in a society with legal and hygienic standards that must be met, it is necessary to resort to these services to give rest to the remains of the deceased without disturbing these measures.

In addition, today funeral homes offer complete services, which in addition to the preparation of the body, transfer to the cemetery or cremation , include the processing of bureaucratic paperwork that worries the family so much, so that solving these tasks is one of the main attractions and they make this business a highly demanded one.

How to Start a Funeral Home ? All Details

Step by step to set up a funeral home

If you want to start a business of this type, then we will tell you step by step what you should do. Take note!

  • Profile and legal framework.

The first thing you should do is self-evaluate and determine if you have the profile to set up this type of business. You cannot have civil or criminal penalties and without sufficient credit capacity.

On the other hand, you must present the documentation required by your municipality to open a funeral home. Get advice from a lawyer, as the Laws vary from one country to another, but in general, you must include registration with government entities, payment of taxes, labor, employer, retirement regulations and contracts with suppliers.

  • Business plan.

As in other businesses, funeral homes require a business plan to determine if it is a feasible and profitable idea within the context raised. This document must include strategies that show that it is a necessary project for the community, that it will have good receptivity, that it has the necessary investment and that the profit projections support its profitability.

  • Competence.

It is important to study the similar businesses that already exist in the area, for that it is necessary to do a SWOT analysis (weaknesses, opportunities, strengths and threats) of the funeral homes in the community. In this way you will know what to expect and what to include or improve in your business to make it competitive.

  • Investment.

The amount of capital can vary depending on how big your business is and what services you offer. However, at the very least, it should be enough to cover the following: legal procedures, structure, furniture, equipment, transportation, payment of personnel, implements, cleaning supplies, cafeteria service, etc.

  • Location.

The funeral home, which will include an administrative office, should be located in an easily accessible location, so that people can get there by various means of transportation. It is also important to bear in mind that the quieter the street where it is located, the better, because those who go to these places need to calm down to accept what they are going through and a scandalous environment is not of much help.

  • Structure.

The funeral home facilities should include a corpse preparation room (isolated area), casket and urns deposit, two or more vigil chapels (approximately 36 m2), men’s and women’s bathrooms, loading and unloading area, parking , a lobby or central hall, administrative offices, private rooms for the mourners and a cafeteria area.

On the other hand, if you are offering the embalming service, you will also need an insulated room with a waterproof ceiling, walls and floor, as well as hydraulic and electrical equipment.

  • Furniture and equipment.

It should include casket holders, candle holders, chairs, sofas and tables for the lobby, vases, pictures, religious images, hearses, caskets, urns, plaques, embalming equipment, crematorium oven, plates to fix the corpses, stretchers, etc.

  • Where to buy drawers or coffins

The drawers are the main element for those who want to work in this business. As in any business, it must be taken into account that the product must be well negotiated to obtain a good profit margin. It is not very practical to have a stock, as the product can be lost. The ideal is to have an average of five items .

To find casket providers, you can search on the Internet itself  or go to other cities where it is not a competition because it is from another region and the same customers do not attend, and talk with funeral home owners , who will surely pass you all the contact information of the vendors and other tips for setting up your funeral home.


For a funeral home to function properly, it must have a general manager, an accountant, staff who prepare the bodies (this can be one or two people), cleaning staff, and a receptionist.

  • Services.

In addition to the preparation of the bodies, you can offer services that are not covered by all funeral homes, such as 24-hour operation, wake-up calls at home, medical and thanatological services, legal procedures, financing in installments for funeral packages, hearse rental, sale of urns and coffins, burial, cremation, embalming, among others.

  • Corporate image.

Finally, choose a name that is related to the service you provide, that is easy to remember and encompasses the concept of the company. In addition, the place must be decorated and the employees dress according to a dress code that identifies the image that you want customers to perceive.

Tips for Success with a Funeral Home

  • The most important thing in this business is location. The ideal place should be the one that is close to or with a good route to hospitals, morgues and medical examiners’ institutes, since the transport will be carried out from these places.  Another good location is being close to cemeteries, and where there are also flower shops.
  • The ideal is to diversify your services with high and low prices, to reach different social layers and make a greater movement of cash.
  • Never forget that in case the collection is after the burial, make a contract.

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