How to Start a Funeral Management Business in UK USA (Business Plan)

Funeral Mangement business

Do you have these questions in your mind?

  • How profitable is the Funeral Management business?
  • How big is the Funeral Management business in UK & US?
  • How much profit should you make in a Funeral Management business?
  • How do I start a Funeral Management business?
 

In this article, you will find answers to all your questions. So please grab a cup of coffee, and let’s get started.

Table of Contents

What is the Funeral Management Business?

With the annual value of around $16 billion in the US and around £2 billion in the UK, the Funeral management business has become a growing and a trending industry in both the US & the UK. 

More than ever before, individuals are being aware of the importance and the difficulty of managing a funeral. And as death is one of the most certain things in life, we feel the chance of this industry dying is very difficult.

Funeral management businesses provides a range of services during the funeral planning and burial process. These include everything from coordinating funeral homes and cemeteries to assisting with the logistics of the funeral service itself. 

This business is a significant part of modern culture & is profitable; congratulations on your decision to start your own Funeral Management Business. 

Market Insight: In the US, the funeral management industry employs around 150,000 people, while in the UK, it’s around 30,000 people

Funeral Mangement business

Types of Funeral Management Businesses

There are different types of funeral management businesses you can choose from, such as:

 

1. Full-Service Funeral Home: 

Full-Service Funeral Home is dedicated to caring for deceased individuals from the time of death until burial. They provide services including bathing, dressing, refrigeration, and embalming and may host meals of condolence or catered receptions following services.

 

2. Independent Funeral Directors: 

Independent Funeral Directors are directors operating without direct control of their preparation and chapel facilities. They contract or outsource parts of the arrangement, coordination and burial preparation process. These directors must receive the same education and licenses and comply with the exact continuing education requirements as full-service funeral home directors.

 

3. Cemetery-Funeral Home Combinations: 

Cemetery-Funeral Home Combination are a popular options as they provide both funeral and cemetery burial services together in the same place. Cemetery-funeral home combinations may share staff, ownership and facilities, allowing an enhanced level of integrated care.

 

4. Funeral home–crematory combinations:

These homes allow an individual to be cared for and cremated within the same facility and under the supervision of the same funeral director and staff. A certified cremation operator is necessary when a funeral home adds a crematory.

 

5. Religious Funeral Providers:

In some communities, religious groups and orders may prefer to care for their own dead. Spiritual service providers must follow the specific jurisdiction’s secular rules, regulations and legalities. Religious service providers are frequently trained, licensed and certified funeral directors.

Funeral Mangement business

Pros and Cons of a Funeral Management Business 

Pros of a Funeral Management Business

  • Flexibility
  • Little startup costs required
  • Rewarding work
  • No overhead costs
  • Quick build time
  • Control of workload
  • Unlimited income potential
  • Higher likelihood of getting referrals
  • Simple business model
 

Cons of a Funeral Management Business

  • Crowded Space
  • Work can be inconsistent
  • Isolation
  • Taxes
  • High Management of staff
  • Stressful work
  • Time commitment
  • The job can be demanding. 

Investment required to start a Funeral Management Business

Starting a Funeral Management business in the US can cost anywhere between 150K – $200K. While in the UK, you can begin a new Funeral Management business anywhere from £70K –£100K on your own.

 

What you’ll need is as follows:

 

  • Embalming machine
  • Preparation room – refrigeration, lifts, and sanitation equipment
  • Inventory, like caskets and urns
  • Furniture and decorations
  • Hearse and funeral lead car for funeral processions
  • Building renovations and modifications
  • Working capital for the first three to six months of salary, utilities, internet, rent, etc.
  • Licensing – funeral home director
 

It would help if you had an additional $10K–$30K for other expenses. 

Market Insight : Service Corporation International (SCI), one of the largest Funeral Management companies in the world, has an annual revenue of over $4 billion.

Funeral Mangement business

How much does a Funeral Management Business make? 

While startup costs can be intimidating, it’s important to remember the financial upside of running a funeral home.

 

Funeral businesses typically service around 120 funerals annually, costing around $7K to $10K for families.

 

Based on that data, funeral homes generate anywhere from $1.5 million to $2 million in average annual revenue in the US. In the UK, it can be anywhere from around £500K to £700K.

 

When starting, revenue will be significantly low compared to other businesses, but the profits will be significant over time. 

How much can you charge customers?
The funeral costs around $6,000 to $7,000. The cost may also include embalming, cosmetics, viewing ,transportation expenses and professional charges. However there are many other charges that can be charged.

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Funeral Mangement business

Service List for Funeral Management Business:

As a Funeral Management business, you may need to provide different types of services to your clients, such as:

 

  • Funeral planning and coordination services include selecting a funeral home, cemetery, and other funeral service providers and coordinating with these providers to ensure the funeral runs smoothly.
  • Burial and cremation services like embalming, casketing, and transporting the body.
  • Grief counseling and support services to the family and friends of the deceased, as well as providing resources for coping with loss.
  • Pre-planning and pre-payment services should be discussed in advance, providing information about end-of-life planning options.
  • Death certificate registration and legal documentation.
  • Memorialization services like headstones, urns, etc.
  • Online and offline marketing and advertising services.
  • Coordinating with other service providers like a florist, musicians, etc.
  • Online funeral service streaming
  • Online obituary and death notice services.
 

Service Rate Card for a Funeral Management Business:

The cost of a funeral can vary widely depending on location, type of service, and the specific funeral service providers and products chosen. However, in general, a tentative standard funeral service card rate card for the UK and USA may include the following costs:

 

UK:

  • Basic funeral service costs: £1,500 – £3,000
  • Coffin: £200 – £800
  • Hearse: £250 – £500
  • Limousines: £150 – £300
  • Funeral flowers: £50 – £150
  • Service fee for the funeral director: £1,500 – £3,000
  • Cremation fee: £500 – £800
  • Burial plot: £500 – £2,000
  • Headstone: £500 – £3,000
 

USA:

  • Basic funeral service costs: $2,000 – $5,000
  • Coffin: $500 – $2,000
  • Hearse: $300 – $500
  • Limousines: $150 – $300
  • Funeral flowers: $100 – $300
  • Service fee for the funeral director: $1,500 – $3,000
  • Cremation fee: $500 – $1,000
  • Burial plot: $500 – $5,000
  • Headstone: $500 – $3,000
 

Note: These are rough estimates and prices can vary greatly depending on location, type of service, and the specific funeral service providers and products chosen. 

Funeral Mangement business

Equipments required in a Funeral Management Business

Essential equipment for a funeral management business may include:

 

  • A reliable vehicle for the transportation of funeral equipment and materials
  • A computer and software for managing customer and financial information
  • Funeral planning and arrangement materials, such as brochures and price lists
  • Professional attire and uniforms for staff
  • Embalming equipment and supplies
  • Transportation equipment such as hearses and limousines
  • Audio and visual equipment for funeral services
  • Casket and urn display equipment
  • Memorial products such as headstones, urns, and keepsakes
  • Office equipment such as phones, fax machines, and printers.

Market Insight: The holiday season is the busiest time for funeral management Business, as death rates are highest during the winters and, more specifically, during the season of holidays. As a Funeral home, you can offer additional services to cope with the additional demand during the winter months.

Funeral Mangement business

Employees needed for a Funeral Management Business 

The team or workforce required for a funeral management business may include the following:

 

1. Funeral directors and coordinators: 

They oversee the funeral planning and coordination process and manage the business’s day-to-day operations.

 

2. Administrative staff: 

These individuals handle the financial and administrative aspects of the business, such as accounting, marketing, and customer service.

 

3. Grief counselors and support staff: 

These individuals provide emotional support and counseling to the deceased’s families and assist with memorialization services.

 

4. Embalmers: 

This individual prepares the body for the funeral service.

 

5. Drivers: 

They are responsible for driving the hearse and other vehicles as required during the funeral service.

 

6. Apprentices and interns: 

They may assist with various administrative work, funeral preparations, and other day-to-day operations.

 

7. Sales and marketing staff

 

8. IT and technical support staff

 

9. Cleaning and maintenance staff

 

Note: The size of the team will depend on the size and scope of the business.

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Funeral Mangement business

Basic Steps of a Funeral Ceremony

The steps of a funeral, from start to finish, can vary depending on the customs and regulations of the funeral industry in a particular location. However, in general, the steps of a funeral in the USA and UK would include the following:

 

1. First call: 

The funeral director is notified of the death and will arrange for the removal of the deceased from the place of death to the funeral home.

 

2. Arrangement conference:

The family meets with a funeral director to arrange the funeral service.

Preparations of the deceased include washing and dressing the dead for the funeral service.

 

3. Visitation:

Family and friends can view the deceased before the funeral service.

 

4. Funeral service: 

The service can occur in a funeral home, church, or other location chosen by the family.

 

5. Interment or cremation: 

The body is either buried in a cemetery or cremated.

 

6. Memorial service: 

Service may be held later to remember the deceased.

 

Note: These are general overviews, and specific funeral customs and regulations may vary by region. Therefore, it’s always best to consult a funeral director for specific requirements.

 

Funeral Mangement business

Buy an existing business or franchise or start from scratch

Buying an existing Funeral Management Franchise of a recognized brand is a good idea; however, it is expensive also.


On the other hand, the franchisor will benefit you will all the existing brand image, customer loyalty, advertising, market research & strategies.


In addition, you will get guidance from the franchisor about training the workforce & ambiance of the premises.

 

Some of the top Funeral Management Franchises in the UK and USA 

USA:

  • Service Corporation International (SCI) 
  • Carriage Services, Inc. (CSV) 
  • Stewart Enterprises, Inc. (STEI)
 

UK:

  • Dignity plc
  • Co-op Funeralcare 
  • The Funeral Directors 

Training & Customer Service:

If you have taken a franchise, you will get a list of SOPs from the franchiser. These SOPs generally have a training manual in the contract.


A company with good customer service can only meet customers' expectations, so a Customer service SOP needs to be designed besides product preparation or kitchen training.

Funeral Mangement business

Take your Funeral Management Business to the next level!

With the advancement of time, funerals are also upgrading. Therefore, you can earn more profit from the Funeral Home Business by selling certain additional things. 

 

1. Personalized Items:

Give the funeral a personal touch. May it be the casket, tombstone, or urn to keep the animal customized. You may have to design according to your client’s demands, or you can fetch it from somewhere else if you cannot. 

 

2. Out-of-the-Box Ideas:

Innovative ideas like spreading the ashes in the mountains, sea, or holy rivers are plentiful. But, most of the time can be costly. 

 

3. Service of Remembrance:

Try to make the funeral or memorial service of the deceased person genuinely emotional and memorable. For example, use video clippings or photographs of the dead, light music, refreshments, and specially made audio-visual presentations to make the event much more than a memorial service.

 

4. Networking through Personal Contacts:

You are giving a personal touch to funeral management. As a funeral manager, you must satisfy the client, family, friends, and acquaintances. So, you need to know several people from your business personally.

 

5. Explore Digital Platforms:

It is essential to have a website that will spread your name and your services. Keep facilities for online booking and online payment. Share the links on Telegram, Facebook, or Twitter. 

 

6. Advertisement:

You can also have an advertisement in the print media, audio-visual, and hoardings or banners. 

 

7. Take Expert Advice:

Appoint marketing expert for Funeral Management. They will be able to know about the market and the pricing and marketing. In addition, they might suggest different methods for profit maximization. 

 

8. Cremation with Funeral:

In today’s world, more people prefer cremation due to its low cost. Therefore, the Funeral management can also offer the option of cremation if needed.

 

9. Eco-friendly Burials:

There are many campaigns about pollution, and mostly the focus is on biodegradable caskets. You can offer a biodegradable casket that can eventually mix up with the soil. 

 

10. Advance Contract:

You can let your client sign an advance contract for the funeral Business. This will fetch you a beforehand earning, which will help you to prepare ahead and more perfectly. 

Conclusion

A Funeral Management business is a good idea; the profits are rewarding. It is a significant part of modern culture & is profitable; congratulations on your decision to start a Funeral Management Business.

 

Remember, to operate a Funeral Management business, you must comply strictly with all relevant safety regulations and obtain the necessary licenses and permits.

 

Overall, the Funeral Industry is a significant and growing industry in the United States and the United Kingdom, so congratulations on your journey of starting this Business.

Want to Save Time in your Business Launch?

  • How to Create a Business Plan
  • What is Market Research, USP, Niche & Positioning
  • How to find a suitable name for your business
  • How to create your brand image (Logo + Branding)
  • How to Register Your Business
  • How to Register for Taxes
  • How to get Licenses / Permits
  • How to Open a Business Bank Account
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  • Buying an Old Business Vs Franchisee Vs Own Brand from Scratch

Handpicked inspirational Youtube videos for you

Startup Makes Funerals Affordable – YT Channel ‘Freethink’

Day In The Life – Funeral Director – YT Channel ‘Day in the Life’

A Day In The Life Of A Funeral Director and Planner – YT Channel ‘Tobin Brothers Funerals’ 

A. To start a funeral business, you may need a state funeral director’s license, and you may need to comply with state and federal laws regarding the operation of funeral homes and crematories.

A. The costs will depend on the services you offer, your location and the size of your facility. You may need to purchase equipment such as embalming tables and caskets, as well as pay for staff salaries and benefits.

A. Some of the trends & Challenges in the Funeral Management Industry:

Trends:

  • An attitude of adaptability
  • Finding more ways to virtually serve your families
  • Tech friendly aftercare
  • Buckle down on community support
 
Challenges:

  • High Labor workforce
  • Cremation Ceremony on the rise
  • Inflation in land cost

 

A. The costs may include the price of the equipment like cremation table, cremation system, hydraulic lifts, refrigerator storage, computer, printer, and filming system, etc. the Caskets and clothing can be the additional convenience items. The business may also require the labourers,insurance, operating system and a parking lot etc.

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