Table of Content

    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.

    Start your Business Plan Now
    Start My Business Plan

    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.

    3 Years Profit Forecast - Funeral Home Business Plan

    Landlord business plan
    Helps commercial tenants get landlord approval.

    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.

    Startup Cost - Funeral Home Business Plan

    Start-up Expenses  
    Legal $252,400
    Consultants $0
    Insurance $32,000
    Rent $35,000
    Research and Development $25,000
    Expensed Equipment $53,000
    Signs $4,000
    Start-up Assets $311,900
    Cash Required $339,000
    Start-up Inventory $48,000
    Other Current Assets $218,000
    Long-term Assets $238,000
    TOTAL ASSETS $1,154,900
    Total Requirements $1,556,300
    Start-up Expenses to Fund $401,400
    Start-up Assets to Fund $1,154,900
    Non-cash Assets from Start-up $1,514,800
    Cash Requirements from Start-up $356,000
    Additional Cash Raised $47,800
    Cash Balance on Starting Date $31,000
    TOTAL ASSETS $1,949,600
    Liabilities and Capital
    Liabilities $26,000
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $43,000
    Other Current Liabilities (interest-free) $0
    Planned Investment $1,556,300
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    Loss at Start-up (Start-up Expenses) $324,300
    TOTAL CAPITAL $1,880,600
    Total Funding $1,556,300
    Any questions? Get in Touch!


    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.

    Business Plan for Investors

    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:

    Marketing Segmentation - Funeral Home Business Plan

    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.

    Any questions? Get in Touch

    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.

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Families of Deceased 49% 51,000 53,000 56,000 60,000 63,000 9.00%
    Funeral Planners 35% 39,000 42,000 43,000 44,000 47,000 10.00%
    Old Homes for Elder Orphans 16% 16,000 17,000 18,000 19,000 21,000 10.00%
    Total 100% 106,000 112,000 117,000 123,000 131,000 10%

    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%
    Valentin Marinov

    excellent work

    excellent work, competent advice.
    Alex is very friendly, great communication.
    100% I recommend CGS capital.
    Thank you so much for your hard work!

    ∙ Valentin Marinov

    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

    Sales Monthly - Funeral Home Business Plan

    6.4 Sales Yearly

    Sales Yearly - Funeral Home Business Plan

    6.5 Sales Forecast

    Funeral Home Business Plan Sample - Unit Sales

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Funeral Planning 32,000 33,920 35,955
    Body Preparation/ Transportation 46,000 48,760 51,686
    Burial/ Cremation 40,000 42,400 44,944
    Catered Meal 24,000 25,440 26,966
    TOTAL UNIT SALES 142,000 150,520 159,551
    Unit Prices Year 1 Year 2 Year 3
    Funeral Planning $56.00 $64.96 $75.35
    Body Preparation/ Transportation $47.00 $54.52 $63.24
    Burial/ Cremation $51.00 $59.16 $68.63
    Catered Meal $40.00 $46.40 $53.82
    Funeral Planning $1,792,000.00 $2,203,443.20 $2,709,353.76
    Body Preparation/ Transportation $2,162,000.00 $2,658,395.20 $3,268,762.74
    Burial/ Cremation $2,040,000.00 $2,508,384.00 $3,084,308.97
    Catered Meal $960,000.00 $1,180,416.00 $1,451,439.51
    TOTAL SALES $6,954,000.00 $8,550,638.40 $10,513,864.98
    Direct Unit Costs Year 1 Year 2 Year 3
    Funeral Planning $52.00 $58.00 $67.00
    Body Preparation/ Transportation $46.00 $51.00 $60.00
    Burial/ Cremation $48.00 $56.00 $64.00
    Catered Meal $37.00 $42.00 $48.00
    Direct Cost of Sales
    Funeral Planning $1,664,000.00 $1,967,360.00 $2,408,998.40
    Body Preparation/ Transportation $2,116,000.00 $2,486,760.00 $3,101,136.00
    Burial/ Cremation $1,920,000.00 $2,374,400.00 $2,876,416.00
    Catered Meal $888,000.00 $1,068,480.00 $1,294,387.20
    Subtotal Direct Cost of Sales $6,588,000.00 $7,897,000.00 $9,680,937.60

    Personnel plan

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

    Any questions? Get in Touch!

    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

     Personnel Plan      
    Year 1 Year 2 Year 3
    Supervisors $20,000 $22,000 $24,200
    Accountant $9,000 $9,900 $10,890
    Morticians $55,000 $60,500 $66,550
    Cooks $24,000 $26,400 $29,040
    Waiters $14,000 $15,400 $16,940
    Cleaners $49,000 $53,900 $59,290
    General Assistants $21,000 $23,100 $25,410
    Sales Executive $8,000 $8,800 $9,680
    Drivers $14,000 $15,400 $16,940
    Front Desk Officer $6,500 $7,150 $7,865
    Web Developer $13,000 $14,300 $15,730
    Total Salaries $233,500 $256,850 $282,535

    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

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.01% 8.09% 8.13%
    Long-term Interest Rate 8.17% 8.24% 8.29%
    Tax Rate 23.98% 24.03% 24.11%
    Other 0 0 0

    8.2 Brake-even Analysis

    Brake-even Analysis - Funeral Home Business Plan

     Brake-Even Analysis  
    Monthly Units Break-even 5403
    Monthly Revenue Break-even $136,750
    Average Per-Unit Revenue $232.00
    Average Per-Unit Variable Cost $0.65
    Estimated Monthly Fixed Cost $162,000

    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss      
    Year 1 Year 2 Year 3
    Sales $6,954,000 $8,550,638 $10,513,865
    Direct Cost of Sales $6,588,000 $7,897,000 $9,680,938
    Other $0 $0 $0
    TOTAL COST OF SALES $6,588,000 $7,897,000 $9,680,938
    Gross Margin $366,000 $653,638 $832,927
    Gross Margin % 5.26% 7.64% 7.92%
    Payroll $233,500 $256,850 $282,535
    Sales and Marketing and Other Expenses $125,000 $128,000 $133,000
    Depreciation $2,100 $2,180 $2,260
    Leased Equipment $0 $0 $0
    Utilities $2,700 $2,900 $3,200
    Insurance $2,000 $2,100 $2,195
    Rent $3,400 $3,500 $3,600
    Payroll Taxes $36,000 $38,000 $40,000
    Other $0 $0 $0
    Total Operating Expenses $404,700 $433,530 $466,790
    Profit Before Interest and Taxes ($38,700) $220,108 $366,137
    EBITDA ($38,700) $220,108 $366,137
    Interest Expense $0 $0 $0
    Taxes Incurred ($7,740) $44,022 $73,227
    Net Profit ($30,960) $176,087 $292,910
    Net Profit/Sales -0.45% 2.06% 2.79%

    8.3.1 Profit Monthly

    Profit Monthly - Funeral Home Business Plan

    8.3.2 Profit Yearly

    Profit Yearly - Funeral Home Business Plan

    8.3.3 Gross Margin Monthly

    Funeral Home Business Plan Sample - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Gross Margin Yearly - Funeral Home Business Plan

    8.4 Projected Cash Flow

    Projected Cash Flow - Funeral Home Business Plan

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $53,000 $57,240 $61,819
    Cash from Receivables $15,400 $16,632 $17,963
    SUBTOTAL CASH FROM OPERATIONS $69,000 $75,210 $81,227
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received $0 $0 $0
    New Current Borrowing $0 $0 $0
    New Other Liabilities (interest-free) $0 $0 $0
    New Long-term Liabilities $0 $0 $0
    Sales of Other Current Assets $0 $0 $0
    Sales of Long-term Assets $0 $0 $0
    New Investment Received $0 $0 $0
    SUBTOTAL CASH RECEIVED $70,000 $76,000 $82,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $31,000 $34,000 $37,000
    Bill Payments $21,000 $22,000 $23,000
    SUBTOTAL SPENT ON OPERATIONS $52,000 $56,000 $60,000
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
    Principal Repayment of Current Borrowing $0 $0 $0
    Other Liabilities Principal Repayment $0 $0 $0
    Long-term Liabilities Principal Repayment $0 $0 $0
    Purchase Other Current Assets $0 $0 $0
    Purchase Long-term Assets $0 $0 $0
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $52,600 $56,808 $61,353
    Net Cash Flow $15,300 $16,400 $17,200
    Cash Balance $24,000 $25,900 $27,300

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet      
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $278,000 $311,360 $342,496
    Accounts Receivable $25,200 $28,224 $31,724
    Inventory $5,000 $5,600 $6,294
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $291,000 $325,920 $366,334
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $16,940 $18,973 $21,344
    TOTAL LONG-TERM ASSETS $20,800 $23,296 $26,208
    TOTAL ASSETS $296,000 $331,520 $372,960
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $17,500 $19,600 $22,030
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $14,800 $16,576 $18,631
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $15,000 $16,800 $18,883
    Paid-in Capital $30,000 $30,000 $30,000
    Retained Earnings $54,800 $59,732 $65,705
    Earnings $202,600 $220,834 $242,917
    TOTAL CAPITAL $272,200 $296,698 $326,368
    TOTAL LIABILITIES AND CAPITAL $287,200 $331,520 $372,960
    Net Worth $272,200 $296,698 $326,368

    8.6 Business Ratios

     Ratio Analysis        
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.39% 8.19% 9.07% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.31% 10.32% 11.43% 9.80%
    Inventory 5.44% 6.03% 6.68% 9.90%
    Other Current Assets 2.16% 2.39% 2.65% 2.40%
    Total Current Assets 151.00% 151.00% 152.00% 158.00%
    Long-term Assets 11.61% 11.70% 11.82% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.65% 4.69% 4.73% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.22% 7.28% 7.34% 7.38%
    NET WORTH 100.10% 100.90% 101.83% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.87% 97.43% 100.16% 99.00%
    Selling, General & Administrative Expenses 92.94% 95.45% 98.12% 97.80%
    Advertising Expenses 1.53% 1.57% 1.62% 1.40%
    Profit Before Interest and Taxes 40.98% 42.09% 43.26% 33.90%
    Main Ratios
    Current 37 37.9 38.5 32
    Quick 33 35 35.875 33
    Total Debt to Total Assets 0.18% 0.19% 0.18% 0.40%
    Pre-tax Return on Net Worth 74.66% 75.30% 76.50% 75.00%
    Pre-tax Return on Assets 95.20% 99.96% 104.96% 112.00%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 31.40% 32.37% 33.38% N.A.
    Return on Equity 55.70% 57.43% 59.21% N.A.
    Activity Ratios
    Accounts Receivable Turnover 7.8 7.8 7.9 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 33 34.65 35 N.A.
    Accounts Payable Turnover 16.3 16.9 17.5 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.5 2.6 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.03 -0.04 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $228,700 $241,507 $255,032 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.86 0.87 0.89 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 28.01 28.5 28.93 N.A.
    Sales/Net Worth 2.1 2.1 2.1 N.A.
    Dividend Payout 0 0 0 N.A.

    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.