Are you about starting a coffin manufacturing business? If YES, here is a complete sample coffin manufacturing business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a coffin manufacturing business. We also took it further by analyzing and drafting a sample coffin manufacturing marketing plan template backed up by actionable guerrilla marketing ideas for coffin manufacturing businesses. So let’s proceed to the business planning section.
When people die, it is natural for them to be buried, and one of the means of burying dead people is to put their remains in coffins and have them buried six feet down the ground. This goes to show that those who are into the manufacturing of coffins will never run out of business.
Although not many people are cut out for this type of business, but it is still a business that is open to anyone that can start it especially if you are a carpenter or you have under-studied someone who is into coffin making.
If you are sure this type of business is what you truly want to do after you must have conducted your feasibility studies and market research, then the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, sorting out tax and marketing your coffins amongst others.
The truth is that it is one thing to have a fantastic idea cum business plan, it is entirely another thing for the business to translate to profits, that is why it is important to assemble a team of dedicated workers if you want to be successful with your coffin manufacturing business.
Below is a sample coffin manufacturing business plan template that will help you successfully write yours without much stress.
A Sample Coffin Manufacturing Business Plan Template
1. Industry Overview
Coffin manufacturing business falls under the Coffin and Casket manufacturing industry and businesses in this industry generally manufactures burial caskets, cases and vaults intended to contain dead bodies during and after burial or until cremation.
Customers often purchase these items from funeral homes, but in some cases, they may also purchase them directly from the manufacturers.
A recent report published by IBISWorld shows that the Coffin and Casket manufacturing industry has struggled over the past five years with a sharp drop in demand for products and services related to burial. Industry manufacturers sell most of their products to funeral homes and cemeteries, who then resell them to consumers alongside related services such as embalming and internment.
However, due to steadily rising funeral costs, consumers have increasingly sought simpler funeral arrangements, including cremation.
As a result, industry sales have slid steadily in recent years. The reports also show that over the five years to 2016, industry revenue declined at an annualized rate of 5.4 percent to $625.1 million, including a projected 4.8 percent drop in 2016.
The Coffin and Casket Manufacturing industry is indeed a very large industry that thrives in all parts of the world. Statistics has it that in the united states of America alone, there are about 106 licensed and registered funeral homes responsible for employing about 3,625 employees and the industry rakes in a whopping sum of 625 million annually with an annual growth rate projected at -5.4 percent.
Hillenbrand and Matthews International are the market leaders in the Coffin and Casket Manufacturing industry in the United States.
Even though the number of annual deaths has increased as a result of an increasing population, the demand for coffins has continued to decline over the years. Circumstances are not expected to improve over the next five years, and consumer preferences will likely continue to favor cremations rather than traditional burial services.
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. However, the industry’s revenue is projected to grow slightly in the next five years.
As the population ages, 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 coffin and casket manufacturing industry.
If you are contemplating starting your own coffin manufacturing 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 coffin manufacturing company, then you are likely going to struggle to stay afloat.
2. Executive Summary
Hill Crest™ Coffins, Inc. is a registered coffin and casket manufacturing company that will be located in Cape May – New Jersey; in an ideal location highly suitable for the kind of business we want to establish. We have been able to lease a facility that is big enough (a 20 thousand square foot facility) to fit into the design of the kind of standard coffin manufacturing company that we intend launching.
Hill Crest™ Coffins, Inc. will engage in manufacturing metal burial caskets and coffins, wood burial caskets and coffins and cloth burial caskets and coffins. We are set to sell our products to a wide range of clientele in and around Cape May – New Jersey.
We are aware that there are several large and small coffins manufacturing companies all around Ohio, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors.
Hill Crest™ Coffins, Inc. will ensure that all our customers are given first class treatment whenever they visit our coffin manufacturing workshop. We have a CRM software that will enable us manage a one on one relationship with our customers especially funeral home operators.
Hill Crest™ Coffins, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs completely whenever they patronize our products.
Hill Crest™ Coffins, Inc. is a family business that is owned by Anderson Taylor and his immediate family members. Anderson Taylor has a Diploma in Furniture Making and a B.Sc. in Business Administration, with 7 years’ experience in the coffin and casket industry, working for some of the leading brands in the United States.
3. Our Products and Services
Hill Crest™ Coffins, Inc. is set to operate a standard coffin manufacturing business in Cape May – New Jersey. The fact that we want to become a force to reckon with in the coffin and casket manufacturing 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 friends.
We will manufacture products that that will make them want to come back as well as recommend our coffins to their friends, family members and business partners. Here are the products we will be manufacturing;
- Metal burial caskets and coffins
- Wood burial caskets and coffins
- Other burial caskets and coffins
4. Our Mission and Vision Statement
- Our vision is to establish a coffin manufacturing brand that will become the number one choice for residents 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 manufacture standard coffins and caskets that will meet international best practices in the casket and coffin manufacturing industry and to ensure that we work hard to grow our coffin manufacturing company to be listed amongst the top 10 coffin and casket manufacturing companies in the United States of America.
Our Business Structure
Although our coffin manufacturing company might not be as big as Hillenbrand and Matthews International et al, but we will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Workshop Manager
- Human Resources and Amin Manager
- Merchandize Manager
- Sales and Marketing Manager
- Carpenters/Coffin Makers
- Accountants/Cashiers
- Customer Services Executive
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.
- In control of 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
- Evaluates the success of the organization
- Reports to the board
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- 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
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities
Workshop Manager:
- Responsible for managing the daily activities in the workshop
- Ensures that proper records of coffins and caskets are kept and warehouse does not run out of finished coffins and caskets
- Ensure that the workshop is in tip top shape and easy to locate
- Interfaces with third – party suppliers of raw materials
- Controls coffin and casket distribution and supply inventory
- Supervises the workforce in the coffin manufacturing workshop
Merchandize Manager
- Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Responsible for the purchase of coffin and casket making raw material for the organizations
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- 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.
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
Coffins and Caskets Making Experts
- Responsible for the manufacturing metal burial caskets and coffins
- Responsible for the manufacturing wood burial caskets and coffins
- Responsible for the manufacturing cloth burial caskets and coffins
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
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Receives parcels/documents for the company
- Distributes mails in the organization
- Handles any other duties as assigned by the line manager.
6. SWOT Analysis
Hill Crest™ Coffins, Inc. 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 of 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 coffin manufacturing business, we will not have to struggle before attracting loyal clients and building our clientele 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 Hill Crest™ Coffins, Inc.;
- Strength:
Our core strength lies in the high quality of our finished coffins and caskets, the power of our team and our state of the art coffin making factory. We have a team of highly trained and experienced carpenters and support staff members that can go all the way to produce top notch coffins and caskets.
We are well positioned in the heart of Cape May – New Jersey and we know we will attract loads of clients from the first day we open our coffin manufacturing company for business.
- Weakness:
A major weakness that may count against us is the fact that we are a new coffin manufacturing company and we don’t have the financial capacity to compete with multi – billion dollars coffin manufacturing companies such as Hillenbrand and Matthews International when it comes to manufacturing coffins at a rock bottom prices.
So also, we may not have enough cash reserve to promote our coffin manufacturing company the way we would want to do.
- Opportunities:
The fact that we are going to be operating our coffin manufacturing company in one of Cape May – New Jersey provides us with unlimited opportunities to sell our coffins to a large number of individuals and corporate organizations.
We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our coffin manufacturing workshop; we are well positioned to take on the opportunities that will come our way.
- Threat:
The popularity of cremation has prevented the industry from leveraging the aging population for growth and rising burial costs are also anticipated to discourage consumers from purchasing coffins. Another threat that may likely confront us is the arrival of a new coffin manufacturing company in same location where ours is located. So also, unfavorable government policies may also pose a threat for businesses such as ours.
7. MARKET ANALYSIS
- Market Trends
A close watch on the coffin and casket manufacturing industry reveals that the industry was hit hard by the recent economic downturn and experienced a decline in revenue.
As part of marketing strategies, coffin manufacturing companies now ensure that they have showrooms at different locations where they display their coffins and caskets. As a matter of fact, it is even cheaper to purchase directly from showrooms established by coffin manufacturing companies as against purchasing from coffin retail stores.
It is a strategy that helps them increase sales and income for their business. In recent time, the coffin manufacturing landscape has seen tremendous changes in the last 20 years; it has grown from the smaller carpenter workshop to a more organized and far reaching massive coffin making factory.
This trend has benefited them in such a way that they can comfortably sell their coffins and caskets nationally and also export them to other countries of the world.
8. Our Target Market
It will be safe to say that the target market for coffin manufacturing companies cuts across people of all classes, race, religion, and culture as long as they value their deceased loved ones and would want to give them befitting burial. 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 coffins and caskets to;
- Insurance companies
- Owners of mortuaries and crematories
- Households
- Everyone who resides in our target locations
Our Competitive Advantage
The competitive edge of Hill Crest™ Coffins, Inc. is the excellent and customized service that we offer to all our guests irrespective of their status, religion, race or political affiliation.
We can boldly say that the location of our coffin manufacturing company is perfect for such business, our management team has robust experience in the coffin and casket manufacturing industry, our customer’s services is second to none in the whole of Cape May – New Jersey and our facility is top notch.
We are the only standard coffin and casket manufacturing company 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 casket and coffin manufacturing industry in United States and Canada. They are considered core professionals in their own right.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Hill Crest™ Coffins, Inc. is established with the aim of maximizing profits in the coffin and casket manufacturing industry and we are going to go all the way to ensure that we do all it takes to attract customers on a regular basis. Hill Crest™ Coffins, Inc. will generate income by manufacturing and retailing the following;
- Metal burial caskets and coffins
- Wood burial caskets and coffins
- Other burial caskets and coffins
10. Sales Forecast
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 months of operation and grow the business and our clientele base.
We have been able to critically examine the coffin manufacturing 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 projections are based on information gathered on the field and some assumptions that are peculiar to startups in Cape May – New Jersey.
- First Year: $250,000
- Second Year: $650,000
- Third Year: $950,000
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 manufacturing coffins and caskets 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
Perhaps it will our coffin manufacturing company to service the residents of Cape May – New Jersey. We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us.
We are quite aware that one of the ways to get people to patronize your products is to build good business relationship with owners of mortuaries. Having a good working relationship with people who run mortuaries and funeral homes will enable them refers people to you since their job is to preserve corpses and yours is to conduct a befitting burial.
We will 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 coffin manufacturing business;.
- Advertise our coffins in relevant magazines, national dailies, Satellite TV and Radio stations
- Promote our coffins online via our official website and all available social media platforms
- Hire the services of experts to make our brands the first choice for families and corporate organizations
- 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 showrooms and factories
- 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 and funeral homes
11. Publicity and Advertising Strategy
Hill Crest™ Coffins, Inc. is in the coffin and casket manufacturing industry to make profit and we can only make profit if we steadily increase our customer base. In order to remain relevant in the coffin and casket manufacturing industry, we will continue to create a hype around our business brand.
We will ensure that we leverage on all publicity and advertising techniques to promote our coffin brand. Here are the platforms we intend leveraging on to promote and advertise Hill Crest™ Coffins, Inc.;
- Encourage our loyal customers to help us use Word of Mouth referrals
- Advertise our coffins business in relevant magazines, national dailies, Satellite TV and Radio stations
- Promote our business online via our official website
- Leverage on the internet and social media platforms like Instagram, Facebook, twitter, et al to promote our brand
- Install our billboards in strategic locations
- 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 coffins/caskets) and we don’t intend to charge less than what our competitors are offering.
Be that as it may, we have put plans in place to discount our coffins once in a while and also to reward our loyal customers (corporate clients such as insurance companies, funeral homes operators and owners of mortuaries).
- Payment Options
The payment policy adopted by Hill Crest™ Coffins, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Hill Crest™ Coffins, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via mobile money
- Payment via Point of Sales Machines (POS Machines)
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for our coffins without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting/leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.
The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a coffin manufacturing business; it might differ in other countries due to the value of their money.
These are the key areas where we will spend our startup capital on;
- The total fee for registering the Business in the United States of America – $750
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300
- Marketing promotion expenses for the grand opening of Hill Crest™ Coffins, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580
- The total cost for hiring Business Consultant – $2,500
- The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400
- The total cost for long – term leasing of a standard warehouse and showroom – $250,000
- The total cost for remodeling the warehouse and showroom – $20,000
- The amount required for the purchase of coffin making machines and tools – $100,000
- Other start-up expenses including stationery ($500) and phone and utility deposits – ($2,500)
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The total cost for Start-up inventory (purchase of coffin making tools and equipment and the purchase of coffin making raw materials inclusive) – $250,000
- The total cost for counter area equipment – $9,500
- The total cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The total cost for the purchase and installation of CCTVs: $10,000
- The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000
- The total cost of launching a Website: $600
- The total cost for our opening party: $7,000
- Miscellaneous: $10,000
We would need an estimate of $650,000 to successfully set up our coffin manufacturing company in Cape May – New Jersey.
Generating Startup Capital for Hill Crest™ Coffins, Inc.
Hill Crest™ Coffins, Inc. is a family business that will be owned by Mr. Anderson Taylor and his immediate family members. They are the sole financial of the business which is why they decided to restrict the sourcing of the startup 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 $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have 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
The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of starting Hill Crest™ Coffins, Inc. 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 sell our coffins and caskets a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Hill Crest™ Coffins, Inc. 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.
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 Name Availability Check: Completed
- 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
- Leasing of facility and remodeling the factory: 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 Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Compilation of our list of products that will be available in our shop: Completed
- Establishing business relationship with vendors – suppliers of coffin making materials and accessories and related merchandize, funeral homes, mortuary operators and other stakeholders: In Progress