Starting a funeral home business might not be on everyone's list of dream jobs, but the fact remains that there is always a demand for funeral services. According to a report by IBIS World, the death care services industry in the US alone has grown steadily over the past five years and is expected to continue doing so over the next few years.

The death care services industry includes funeral homes, crematoriums, and cemeteries. With an aging population, the demand for funeral services is expected to increase in the coming years. So, if you are interested in starting a funeral home business, now is a good time to do so.

But before you jump in, there are certain steps you need to take to ensure you are on the right track. In this blog post, we will provide you with a 10-step checklist to help you open/start/launch your very own funeral home business.

Starting a business can be daunting, but with the right strategy in place, you will be on your way to success in no time. Keep reading to find out how you can get started.

Before we dive into the steps, let's look at a few quick facts about the death care services industry:

  • The industry is worth $20 billion in the US alone.
  • The industry saw a growth of 3.6% between 2015-2020.
  • The industry is highly fragmented, with the top four players accounting for just 10.6% of the market share.
  • The cremation rate in the US is expected to reach 62.4% by 2024.

With these statistics, it is clear that there is a demand for funeral services, and with the right business plan in place, you can tap into this growing market.

Now, let's get started with the checklist.

1. Research & Analyze The Industry

Before starting a funeral home business, it’s essential to research and analyze the industry. Understanding the market, competition, and industry trends will help you make informed decisions that can contribute to the success of your business. Here are some steps to help you research and analyze the industry:

  • Identify the target market: Determine your target market by analyzing demographics, such as age, income, and cultural background. This will help you identify key factors that can influence your business decisions, such as the types of funeral services you offer and the prices you charge.
  • Assess competition: Identify your competitors and analyze their strengths and weaknesses. Look for gaps in the market that your business can fill and consider ways to differentiate yourself from your competitors.
  • Analyze industry trends: Stay up-to-date with the latest industry trends by attending trade shows, reading industry publications, and networking with industry professionals. This will help you identify new opportunities and potential threats to your business.


  • Consider hiring a market research firm to conduct a comprehensive market analysis
  • Use online resources, such as industry reports and research studies, to supplement your research
  • Join industry associations, such as the National Funeral Directors Association, to stay informed about industry news and trends

By researching and analyzing the funeral home industry, you can gain a better understanding of the key factors that can contribute to the success of your business. This knowledge will help you make informed decisions and create a solid business plan that can guide you through the startup process and beyond.

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2. Create Business Plan

Creating a business plan is an essential step in starting any business, including a funeral home. It helps you define your goals, set objectives, and establish a roadmap to achieve your desired outcomes. Here are some essential chapters that you should include in your funeral home business plan:

  • Executive Summary: This is a brief overview of your funeral home business and should highlight your company's mission, services, and goals.
  • Company Description: This chapter should provide an in-depth description of your funeral home business and the services you plan to offer. You should include your business structure, location, and any unique selling points.
  • Market Analysis: This chapter should provide an analysis of the funeral home industry in your area and your potential competitors. You should also include your target market, their needs and preferences, and how you plan to fulfill them.
  • Services and Pricing: In this chapter, you should outline the funeral services you plan to offer and the associated pricing. You should also highlight any value-added services that you plan to offer your customers.
  • Marketing Plan: This chapter should outline your marketing strategy, including your target audience and how you plan to reach them. You should include any specific tactics, such as advertising, promotions, and events, that you plan to use.
  • Operations and Management: In this chapter, you should outline your business operations, including staffing, inventory, and logistics. You should also include your organizational structure and the roles and responsibilities of each team member.
  • Financial Plan: This chapter should include pro forma financial statements, such as income statements, balance sheets, and cash flow statements. This information will help you understand your financial needs and how you will finance your business.

Tips & Tricks:

  • Do thorough research, gather information and data about the industry and market demand to identify opportunities and threats.
  • Be realistic about your financial projections and don't underestimate the startup and operational costs.
  • Seek professional advice from lawyers, accountants, or business consultants who can help you identify risks and opportunities and advise you on the legal and regulatory requirements.

Creating a business plan may seem like a daunting task, but it can pay big dividends in the long run. It is a roadmap that will guide you through each stage of your business and help ensure your success. Don't skip this essential step in launching your funeral home business.

3. Create Financial Model

Developing a thorough financial model is critical for any business, including a funeral home. It helps you understand the financial feasibility of your business, evaluate your current financial standing, and plan for the future. Here are some key steps to creating a financial model for your funeral home:

  • Identify your revenue streams: Funeral homes generate revenue from a variety of sources, including funeral services, merchandise, and pre-planning services. It's important to understand where your revenue is coming from to make informed financial decisions.
  • Estimate your start-up costs: Start-up costs can include everything from rent and utilities to equipment and supplies. Be sure to include all expenses to get an accurate picture of your financial needs.
  • Project your expenses: Estimate your monthly expenses for the first few years of operation. Expenses can include staff salaries, marketing expenses, and ongoing maintenance and repairs.
  • Understand your cash flow: Cash flow is the lifeblood of any business, and it's especially important for a funeral home. Develop a cash flow statement to see how much money you'll have coming in and going out each month.
  • Create a profit and loss statement: A profit and loss statement shows your revenue and expenses and helps you understand your profitability over a given period. Use this information to make informed decisions about pricing and expenses.
  • Get professional help: Creating a thorough financial model can be complex, and it's not something you want to get wrong. Consider working with an accountant or financial advisor to ensure accuracy.

Tips & Tricks:

  • Be conservative: When in doubt, overestimate your expenses and underestimate your revenue.
  • Regularly review your financial model: As your business grows and changes, so should your financial model.
  • Use benchmarking data: Look at the financial performance of similar funeral homes to get a better understanding of what to expect.

Creating a financial model can be a time-consuming and complex process, but it's a critical step in starting a successful funeral home business. By following these steps and seeking professional help when necessary, you can be confident in your financial standing and plan for a profitable future.

4. Seek Out Funding

One of the most important aspects of starting a funeral home business is securing funds to get the business up and running. Here are some steps you can take to seek out funding:

  • Research different funding options: There are many different ways to get funds for your business, from traditional loans to grants and crowdfunding. Take some time to research the options available to you.
  • Prepare a business plan: Your business plan will be a crucial document for securing funding. It should outline your goals, financial projections, and marketing strategy.
  • Consider a loan: If you have good credit and a solid business plan, you may be able to secure a loan from a bank or other lending institution.
  • Look into grants: There are many grants available for small businesses, particularly those in certain industries like healthcare. See if there are any grants that your funeral home business may qualify for.
  • Try crowdfunding: Crowdfunding is a relatively new and popular way to raise funds for a business. Consider launching a crowdfunding campaign to get your business off the ground.
  • Investigate local programs: Check to see if your city or state has any programs in place to support small businesses. You may be eligible for financial assistance or tax credits.

Tips & Tricks:

  • Be prepared to prove to potential investors or lenders that you have a solid business plan and potential for growth.
  • Consider reaching out to people in your personal and professional networks for funding or referrals to investors.
  • Make sure you have a clear understanding of the terms and conditions of any loan or investment before accepting the funds.

Remember, securing funding can be a time-consuming and challenging process, but it is essential to getting your funeral home business up and running. Take the time to explore all your options and create a strong business plan to give yourself the best chance of success.

5. Find Suitable Location

The location of your funeral home business is crucial to its success. A poor location can result in low foot traffic and limited sales, while an excellent location can attract more customers and increase revenue. So, it's crucial to find a suitable location for your funeral home business. Here are the steps to follow:

  • Do market research: Start by researching your target market and their needs to determine the best location for your business. Consider factors such as the age, income, and cultural background of your target market.
  • Choose the right type of location: Funeral homes can be located in commercial or residential areas. Consider the nature of your business and the zoning laws of your area when selecting your location. A residential area may not be the best place for a funeral home due to zoning laws.
  • Consider proximity: Location is important, but proximity to hospitals, churches, cemeteries, and other important facilities for your business is crucial. This will make it easier for your customers and staff to access these facilities.
  • Think about accessibility: Your funeral home should be accessible to everyone, including people with disabilities. Consider accessibility factors such as parking, wheelchair ramps, and door widths when choosing your location.
  • Consider the competition: Look at the competition in your area and determine their strengths and weaknesses. Choose a location that complements, rather than competes with, your competitors.
  • Check the building: Before signing a lease or purchasing a property, inspect the building for any structural or environmental issues. You don't want to be liable for any damages or hazards, so ensure the building is in good condition and meets all safety codes.

Tips & Tricks:

  • Consider the traffic flow in the area and choose a location that's easy to access and visible to potential customers.
  • Get advice from local authorities, zoning boards, and real estate agents to find the ideal location for your funeral home.
  • Choose a location that has a serene and peaceful environment to offer comfort to grieving families.

Once you have found a suitable location for your funeral home, it's time to move on to the next step: creating a business plan.

6. Create A Brand

In a competitive industry such as funeral home business, differentiating your brand is integral to your success. Your brand should be distinct enough to stand out from other funeral homes in your area. Here are some tips to help you create a strong brand:

  • Define Your Brand Identity: Start by defining what your brand stands for. Think about the values you want to represent and how you want your customers to perceive you.
  • Create A Logo: Your logo is the face of your brand and one of the first things customers will see. Make sure it's professional and reflects your brand's personality.
  • Develop A Brand Voice: The voice of your brand is how you communicate with customers. Establish a tone that aligns with your brand's personality and values. Use this tone consistently across all platforms, from your website to your social media channels.
  • Choose Brand Colors: Colors can evoke emotions and help customers remember your brand. Choose a color palette that aligns with your brand personality and use it consistently in all your marketing materials.
  • Brand Messaging: Your brand messaging should capture the essence of your funeral home. It should be concise, clear, and consistent. Use messaging that resonates with your customers.
  • Build Your Online Presence: Your website and social media channels are important components of your brand identity. They should be visually appealing and reflect your brand's personality.

Branding Tips & Tricks:

  • Use storytelling in your branding to create an emotional connection with your customers.
  • Find ways to add value to your brand, such as offering grief support resources or educational seminars.
  • Make sure your brand is consistent across all platforms, from your logo to your social media profiles.

Creating a strong brand takes time and effort, but it's well worth the investment. A well-crafted and differentiated brand not only helps you stand out in a crowded market but also helps you build trust and loyalty with your customers.

7. Obtain Necessary Permits & Licenses

In order to operate a funeral home business, it is crucial to have the necessary permits and licenses. These are essential legal documents that allow you to provide funeral services and sell funeral merchandise. Without them, you may face legal issues and your business may be shut down. Here are some steps to follow to obtain the necessary permits and licenses:

  • Research the requirements in your state: Each state has different requirements when it comes to obtaining permits and licenses for funeral home businesses. It is important to research the regulations specific to your state to ensure you are meeting all requirements.
  • Meet with a funeral home consultant: A funeral home consultant can help you understand the requirements necessary to obtain the necessary permits and licenses. They can also guide you through the process of obtaining these documents.
  • Contact your local government: Get in touch with the local government in your area to learn about the permits and licenses necessary for a funeral home business. They can provide you with the necessary applications and instructions on how to fill them out.
  • Get approval from regulatory agencies: You may be required to get approval from various regulatory agencies before you can obtain the necessary permits and licenses. This may include the state board of funeral services and the health department.
  • Submit your application and pay fees: Once you have completed all necessary requirements, submit your application and pay any fees associated with obtaining the necessary permits and licenses.
  • Wait for approval: The approval process can take some time, so be patient. While waiting for approval, you can start planning your business and preparing for your grand opening.
  • Display your permits and licenses: Once you have received the necessary permits and licenses, display them in a visible location in your funeral home. This will show your customers that you are a legitimate business and are in compliance with all regulations.

Tips & Tricks

  • Consider reaching out to other funeral home owners in your area to gain insights into the permit and licensing process.
  • Do your research on the regulations in your state beforehand to avoid any misunderstandings and problems in the future.
  • Ensure that you have all necessary documents and fees ready before submitting your application.

8. Advertise & Promote

So, you’ve decided to start a funeral home business. Your business plan is finalized, the legalities are taken care of, and you’re ready to launch your business. Now comes the most important part – advertising and promotion.

Below are the steps you need to follow to ensure your funeral home business gets the recognition it deserves.

  • Create Your Brand – The first step in advertising and promoting your funeral home business is to create your brand identity. Choose a name and a logo that represents your business and create a tagline that sets you apart from your competitors. Your brand should be consistent across all platforms, including social media, website, and printed materials.
  • Build Your Website – Your website is the first point of contact between you and your potential customers. Ensure your website is responsive, easy to navigate, and contains all relevant information about your services and products. Hire a professional content writer to create compelling content that will engage your visitors.
  • Invest in Search Engine Optimization (SEO) – SEO is vital for your website’s visibility on search engines. Hire an SEO expert to optimize your website for specific keywords related to funeral services. A well-optimized website will rank higher on search engines, getting you more leads and, in turn, business.
  • Create Your Social Media Presence – Social media provides an opportunity to connect with potential customers, showcase your services, and build brand awareness. Create social media accounts on platforms like Facebook, Twitter, LinkedIn, and Instagram. Post regularly, engage with your followers, and run targeted ads to reach more people.
  • Attend Networking Events – Networking events can help you build relationships with other professionals in the industry, including funeral directors, pastors, and hospice workers. Attend local events and market your services to potential partners.
  • Partner with Related Businesses – Partnering with complementary businesses like casket manufacturers, florists, and caterers can help you cross-promote your services. Consider offering discounts to their customers for referrals.
  • Run Promotions and Special Offers – Running promotions and special offers is an excellent way to attract new customers. You can run discounts on specific services or products or offer free consultations.
  • Get Listed in Directories – Listing your business in online directories increases your visibility and helps potential customers find you easily. Get listed in directories like Yelp, Google My Business, and Yellow Pages.
  • Invest in Paid Advertising – Paid advertising on platforms like Google Ads, Facebook Ads, and LinkedIn Ads can help you reach a broader audience and generate leads quickly. Hire a professional marketing agency to manage your campaigns, ensuring a high return on investment (ROI).
  • Request Reviews and Testimonials – Reviews and testimonials from satisfied customers can significantly impact your business's reputation. Request your customers to leave reviews on your website or business listings. Use these testimonials on your website and social media platforms to build trust with potential customers.

Tips & Tricks:

  • Tip #1: Create compelling content that educates and empowers your visitors. Use storytelling to showcase how your services can help people during their times of grief.
  • Tip #2: Respond to all customer inquiries promptly and professionally. Excellent customer service will make you stand out from your competitors.
  • Tip #3: Attend local community events and sponsor charitable organizations that align with your business's values. Doing so will show your commitment to the community and build valuable relationships.

By following the steps outlined above and incorporating the tips and tricks provided, you can successfully advertise and promote your funeral home business. Remember, investing in advertising and promotion is an ongoing process, and you need to evaluate your marketing efforts regularly.

9. Organize Staff & Operations

One of the most important aspects of running a successful funeral home business is to ensure efficient and organized operations. This involves managing your staff effectively, streamlining processes and ensuring that your funeral home is meeting industry standards and regulations. Here are some crucial steps to consider:

Tips & Tricks:

  • Clearly define roles and responsibilities for each staff member
  • Invest in software that can help manage everything from client databases to booking and scheduling
  • Regularly review and improve your processes to ensure efficiency and effectiveness

1. Hire the Right Staff

  • Recruiting the right staff is crucial to the success of your funeral home. Look for people who are compassionate, empathetic and professional.
  • Ensure that your staff is trained to handle different situations, including dealing with bereaved families and arranging funeral services.
  • Consider hiring licensed funeral directors who can assist in meeting industry regulations and standards.
  • Offer ongoing training and support to keep your staff up-to-date with industry trends, regulations and best practices.

2. Streamline Your Processes

  • Make sure that your funeral home has a clear process for managing everything from client intake to funeral service planning and post-funeral follow-up.
  • Invest in software that can help automate and streamline your processes, for example, by sending out client surveys and feedback forms automatically after each service.
  • Consider implementing a CRM (Customer Relationship Management) system to track client interactions and manage your book of business.
  • Ensure that your staff is trained in the processes you have in place and that there is a clear chain of command in case of any issues or emergencies.

3. Meet Industry Standards and Regulations

  • It's crucial to familiarize yourself with industry standards and regulations to ensure that your funeral home is operating within legal and ethical boundaries.
  • Some regulations you may need to consider include the Funeral Rule, the FTC Rule on Pre-Need Funeral Contracts and the OSHA Hazard Communication Standard.
  • Regularly review your operations to ensure that you are meeting all regulations and standards related to health and safety, environmental concerns and more.
  • Consider joining industry organizations such as the National Funeral Directors Association to stay updated on industry developments and best practices.

10. Monitor Progress & Adjust

Opening a funeral home business is not an easy task. After completing all the previous nine steps, it is very important to keep an eye on the progress of your business and make necessary adjustments to ensure the success of your business. Monitoring progress and adjusting are the keys to success in any business.

Here are some steps you could take to monitor progress and make adjustments where necessary:

  • Track your financials - Monitor your financials on a regular basis. Keep tabs on your income and expenses, balance sheet, and cash flow. This will help you understand where you stand financially, and whether you need to make any adjustments to your business model.
  • Stay up-to-date with industry trends - Stay current with the trends, laws, and regulations in the funeral home industry. Attend trade shows, conferences, and other events to keep a pulse on the latest developments. This will help you stay ahead of the competition and make necessary adjustments to your business model.
  • Solicit feedback from customers and employees - Encourage your customers and employees to provide feedback on your services. This will help you identify areas where you may be falling short, and make adjustments to improve your business.
  • Use technology to your advantage - Technology can help you monitor your progress more efficiently. Use software to track your financials, customer data, and employee schedules.
  • Regularly assess and adjust your business model - Conduct regular assessments of your business model and make necessary adjustments to ensure the success of your business. This could include adjusting your pricing, adding new services, or even pivoting your business model entirely.

Monitor Online Reviews

  • Monitor online reviews on platforms like Yelp and Google Reviews to understand what your customers are saying about your business.
  • Use feedback from these reviews to improve your services. Negative feedback can help you identify areas of improvement, and positive feedback can help you understand what you're doing well.
  • Make sure to respond to reviews and address any concerns that customers may have. This will show that you value their business and are committed to providing quality service.

By taking these steps to monitor progress and adjust your business model, you'll be well on your way to running a successful funeral home business. Remember to stay patient, stay committed, and stay focused on providing the best possible service to your customers.

In conclusion, starting a funeral home business requires careful planning and research. However, with the right strategy and execution, it can be a successful and fulfilling venture. The death care services industry is worth $20 billion in the US alone and has seen steady growth in recent years. By following our 10-step checklist, you can create a solid foundation for your business, from conducting market research and creating a business plan to obtaining permits, hiring staff, and monitoring progress. Keep in mind that the industry is highly fragmented, so creating a strong brand and advertising your services is essential. With the aging population and the expected increase in demand for funeral services, now is the perfect time to enter this growing market. Good luck with your new venture.

Excel financial model

Funeral Home Financial Model
  • 5-Year Financial Projection
  • 40+ Charts & Metrics
  • DCF & Multiple Valuation
  • Free Email Support