How Much Does It Cost to Start a Funeral Home?

You need an estimate of $450,000 to start a medium-scale funeral home business in the United States of America. Note that this amount includes the salaries of all the staff for the first 3 months of operation.

Death is one inevitable part in the equation of human existence, so the need to prepare for it cannot be overlooked. Some people go as far as buying insurance to take care of their own funeral when they die; whilst others state clearly in their ‘will’ the type of funeral they would prefer. This goes to show that the funeral home business will always thrive as long as human beings exist.

The cost analysis as it relates to starting a standard funeral home business in the united states of America, Canada, United Kingdom, and Australia can be said to be almost the same except for few variations.

For example, the basic things needed to be able to operate a funeral home could range from getting a license to even getting a certification. Some countries consider these as the basics, while in some other countries you could get a waiver for it.

In starting a funeral home, you will be expected to have standard Casket Carts, Casket Lowering Devices and Accessories, Preparation Room, Embalming Chemicals, Cremation Supplies, Mausoleum, Urn Vaults, Vases, Burial Garments, Waste Containers, Lawn Boards, Straps and Slings and Chairs & Accessories et al and they are same prices in any of the country listed above, especially when benchmarked against the US Dollars.

Other factors that may be slightly different in terms of costing when it comes to starting a standard funeral home business in any of the countries listed above are cost of labor, cost of transportation and logistics, local tax, insurance policies, branding and promotion, business incorporation fee, permits and license, rent/leasing amongst other factors.

Over and above, when it comes to starting a medium scale funeral home business, you should be prepared to either rent or lease a standard facility designated for such business close to a mortuary, hospital or a public cemetery. This is going to be one of the areas where you are expected to spend the bulk of your start–up capital.

Other areas are; the amount required in purchasing standard Casket Carts, Casket Lowering Devices and Accessories, Preparation Room, Embalming Chemicals, Cremation Supplies, Mausoleum, Urn Vaults, Vases, Burial Garments, Waste Containers, Lawn Boards, Straps and Slings, Chairs & Accessories et al, and also in paying your employees at least for the first three months of starting the business.

How Much Does It Cost to Open a Funeral Home?

These are the key expenses you are expected to make when starting a medium scale but standard funeral home business in the United States of America;

1. The total fee for registering the business in the United States of America – $750.
2. Legal expenses for obtaining licenses and permits (Health department license and business license)and permits (Fire department permit, Air and water pollution control permit, and Sign permit et al) as well as accounting services (CRM software, Payroll software, P.O.S machines and other software) – $15,300.
3. Marketing promotion expenses for the grand opening of the funeral home 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.
4. The cost for hiring a business consultant (including writing business plan) – $2,500.
5. The cost for insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $30,400.
6. The cost for leasing a standard facility in a good and centralize location – $150,000
7. The cost for remodeling the facility – $50,000.
8. Other start-up expenses including stationery ($500) and phone and utility(gas, sewer, water and electric) deposits ($6,500).
9. The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
10. The cost for start-up inventory and equipment (Standard Casket Carts, Casket Lowering Devices and Accessories, Preparation Room, Embalming Chemicals, Cremation Supplies, Mausoleum, Urn Vaults, Vases, Burial Garments, Waste Containers, Lawn Boards, Straps and Slings, Chairs & Accessories, Hearse for transportation of bodies, a flower car, racks and hooks/hangers et al) – $150,000
11. The cost for store equipment (cash register, security, ventilation, signage) – $13,750
12. The cost for the purchase of furniture and gadgets (Telephone, fax machine, printing machines, computers, flat screen TV, tables and chairs et al): $14,000.
13. The cost for building and hosting a website: $600
14. The cost for opening party: $8,000
15. Miscellaneous: $10,000

You will need an estimate of four hundred and fifty thousand dollars ($450,000) to successfully set up a medium scale but standard funeral home business in the United States of America. Please note that this amount includes the salaries of all the staff for the first 3 months of operation. It is a business with the potential of owning more than one facility in key locations within same city.

Starting a small–scale but standard funeral home business that can only service a handful of clients per–time in just one location in the United States of America will cost from one hundred and fifty thousand dollars to three hundred thousand dollars ($150,000 to $300,000).

When it comes to starting a standard and large-scale funeral home business with several outlets in key cities in the United States of America, a funeral home that can accommodate over fifteen clients per-time and a funeral home that has the intention of selling franchise and also offering complimentary services, then you should look towards budgeting well over two million, five hundred thousand dollars ($2.5 million).

Factors That Influence the Cost of Opening a Funeral Home

There are numerous factors that will influence the cost of opening a funeral home. Howbeit, to run a funeral home, you will need to purchase equipment for embalming and cremation.

You will need a cremation table, cremation system, hydraulic lifts, refrigerated storage, computer, printer as well as a filing system. Don’t also forget that this business needs workers, adequate insurance, business facility, coupled with a parking lot. The viewing area also needs tables, couches, and other things.

A funeral home business takes care of funeral services for people who have died. These businesses tend to take charge of burial, cremation, and memorial services.

They also play a very significant role in ensuring that the families of the deceased get the necessary closure. Most often, these businesses generate revenue from selling items like caskets, cremation services, funeral services, flowers, urns, and other items/services related to death.

There are indeed numerous factors that will dictate how much you need to start a funeral home in the United States. These factors include;

1. Location

It is important to reiterate that the amount you spend to open your funeral home will majorly depend on your location. Your rent can cost between $700 and a few thousand dollars per month, although this will vary depending on the building’s size and location. You can reach out to a real estate agent to help with locating an affordable building to rent.

2. Building and Renovations

While the expenses associated with purchasing or leasing an appropriate building for a funeral home can be massive, don’t neglect the issue of renovation and modifications.

Note that there might be a need to make certain renovations and modifications to the building to ensure it meets the precise requirements expected of a funeral home. Most often, these might include chapels, viewing rooms, preparation facilities, and administrative spaces.

3. Licensing and Permits

It is not possible to just start your funeral home without meeting certain regulatory requirements. You need to understand that businesses in this industry are expected to comply with various licensing and permit requirements. These requirements can vary from one state to another; however, they mostly involve application fees, inspections, and ongoing compliance costs. It’s very important to research and understand the precise requirements in your jurisdiction.

4. Equipment and Supplies

Funeral homes need certain equipment and supplies, including embalming equipment, caskets, urns, transportation vehicles, chapel furniture, and office supplies.

Have in mind that one embalming machine costs $3,000 and above. Don’t forget the costs of hydraulic lifts, refrigerated storage, an embalming table, embalming fluid, caskets, makeup, clothing, and urns. You will have to fork out around $5,000 to $10,000 per year for equipment.

5. Staffing

The number and the qualification of staff members you need will impact your business startup cost. A well-experienced funeral home business manager will require a salary of between $35,000 and $65,000 per year. An advertising expert will necessitate a yearly income of $35,000 to $55,000.

You might as want an accountant who will need a salary in the range of $35,000 to $75,000. In addition, you might also have to pay your funeral home receptionist between $10 to $12 per hour.

6. Professional Services

It is very important you start your funeral home the right way to ensure you don’t have to deal with legal issues in the future.

Owing to that, it might become necessary to leverage the expertise of various professionals, such as lawyers, accountants, marketing consultants, and IT specialists, to guarantee legal compliance, financial management, promotion, and technology infrastructure. Ideally, all of these tend to have their own costs.

7. Marketing and Advertising

Same as with every other business, your funeral home will need a properly tailored advertising strategy to ensure that those who require your services will know where to find you. Note that developing viable brand awareness and drawing in clientele require marketing and advertising efforts.

Expenses could very much vary and will depend on the strategies you choose, such as print media, online advertising, website development, social media management, and community outreach initiatives.

8. Insurance

Note that possessing the right insurance coverage is a must if you want to protect yourself and your business from potential risks and liabilities. Have it in mind that the expenses that come with obtaining general liability insurance, professional liability insurance, workers’ compensation insurance, and property insurance will impact your startup expenses.

9. Business Overhead

Same as with other businesses, there are necessary expenses that come with managing a funeral home business. These expenses will include things like utilities, maintenance costs, taxes, legal fees, accounting services, and ongoing operational expenses.

Don’t also forget that your business will be expected to stay in line with numerous industry-related regulations and standards, which would include health and safety requirements, environmental regulations, and ethical guidelines. All these will ultimately impact your startup cost.

Indeed, there are numerous factors that will dictate how much you need to start your funeral home. Nevertheless, starting a small-scale funeral home will cost between $150,000 and $300,000, while a large-scale funeral home with more than one location and franchise potential will necessitate around $2 million.