How Much Does It Cost to Start a Cemetery Business?

You should be ready to spend nothing less than $500,000 if you plan to start your cemetery in and around a populous city. Trust me, starting a cemetery business can be capital-intensive. 

In as much as you can start a cemetery business with about $500,000, it is important to note that there are certain factors that can influence how much it will cost you to start your cemetery business, and that is what we will discuss in this article.

Usually, cemeteries are owned and operated by the government at different levels, but there are privately owned and run cemeteries that are operated strictly on a business level.

In case that is the kind of business you want to start, then you may want to consider getting all the information you will need, and of course, the amount it will cost you to start and operate the business.

7 Factors That Influence the Cost of Starting a Cemetery Business

1. The Location of the Cemetery

If you plan to start a posh cemetery where your target is the elites, then you must be prepared to secure a landed property that is big enough in a prime location. Trust me, prime real estate in desirable areas can be very expensive to acquire.

Apart from that, the location of a business can influence the cost of land development, landscaping, and infrastructure such as roads, utilities, and drainage systems. These are factors that you should consider when searching for a location for your cemetery business.

2. Land Acquisition and Development Cost

Irrespective of the location where you intend to start your cemetery business, land acquisition, and development will take a large chunk of your budget.

Of course, once you acquire the land, you will also spend money on land development, and this includes clearing land, grading, creating burial plots, landscaping, and installing necessary infrastructure.

Note that the amount you are expected to spend in this regard will vary depending on the size and condition of the land.

3. Legal and Regulatory Compliance Cost

Cemeteries are generally subjected to various local, state, and federal regulations, including zoning, environmental, and burial laws.

If you plan to start a cemetery in the United States, you must apply and obtain a cemetery license, business entity formation, zoning and land use permits, environmental permits, burial permits, Federal Employer Identification Number (EIN), health and safety regulations, perpetual care fund, and preneed funeral contracts.

Please note that if your cemetery sells items such as headstones, burial plots, or related products, you may need to obtain a sales tax permit from your state’s Department of Revenue or equivalent agency.

Trust me, obtaining these licenses, and permits will cost you money, plus, compliance with these regulations often requires legal and consulting fees, and inspections, which will likely form a major part of your budget.

4. Infrastructure and Amenities Cost

If you plan to attract customers to use your cemetery to bury their loved ones, then you must be ready to spend money to provide a dignified burial experience.

For that reason, you should create a budget that will take care of needed infrastructure and amenities like roads, parking areas, fencing, gates, memorial structures, landscaping, and maintenance facilities.

Interestingly, there is no fixed amount as regards what you are expected to spend on infrastructure and amenities but the truth remains that the quality and scale of these features can significantly affect your costs.

5. Burial Equipment and Tools Cost

The amount you are expected to spend on burial equipment and tools will no doubt influence how much it will cost you to start a cemetery business. Of course, you know that you will need specialized equipment and tools for grave digging, burial, and maintenance.

Hence you should budget for a backhoe, grave shoring and shielding equipment, cemetery planks, grave markers, and headstones, hand tools (shovels, rakes, spades), grave lowering device, grave liners and vaults, cemetery maintenance equipment, lifting equipment (for heavy headstones), gurneys and casket lowering devices and maintenance vehicles.

These costs will likely take a reasonable portion of your startup capital especially if you plan to offer services like headstone installation and perpetual care.

6. Marketing and Promotion Cost

Without promoting and marketing your cemetery business, you may likely struggle to get customers. In essence, you need to create a budget for marketing and promotion for your cemetery business.

Please note that when we talk about marketing and outreach efforts, we are talking of all expenditures that cover advertising, website development, signage, and community engagement programs.

Note that the marketing expenses for a cemetery business are not fixed, hence it can vary based on your target market and competition. If there are few competitions in your location, you are likely going to spend less in this regard, especially if your cemetery is well-positioned in the community.

7. Ongoing Maintenance and Staffing Cost

Trust me, the nature of the cemetery makes the ongoing maintenance and staffing costs to be on the high side. For example, in order to keep your cemetery in top shape at all times, you will need to hire personnel for groundskeeping, grave digging, record-keeping, and customer service.

Apart from that, you may be required to hire casual laborers from time to time, plus, you will need to spend on ongoing maintenance materials to keep the cemetery in top shape.

Ground maintenance, equipment maintenance and repair, utilities (water, electricity, etc.), perpetual care fund contributions, administrative and office expenses, and transportation are part of what should form the ongoing expenses for your cemetery business.