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Starting a Funeral Home Business – How Much Does It Cost?

Do you want to know exactly how much it cost to start a funeral home business? If YES, here is a detailed cost analysis for starting a funeral home business and raising finance.

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.

If you are in need of a business that will always provide services that would never go into extinction, then delving into the funeral home business should be a business you need to consider. Having provided you with a:

  1. Industry Overview
  2. Market Research and Feasibility
  3. Funeral Home Business Plan
  4. Funeral Home Name ideas
  5. Licenses and Permits
  6. Funeral Home Marketing Plan
  7. Cost of Starting a Funeral Home
  8. Marketing ideas & Strategies

We will consider how much it cost to start a funeral home from scratch including the operating costs.

  • Industry Overview

A funeral home which can also be referred to as a funeral parlor or mortuary, is a business that basically provides interment and funeral services for the dead and their families. These services may include a prepared wake and funeral, and the provision of a chapel for the funeral.

The funeral home industry includes companies that conduct funerals and prepare the deceased for burial or interment. Funeral homes are also involved in the transportation of the dead and the sale of caskets and other related funeral merchandise.

The Funeral Home industry comprises of funeral homes combined with crematories; but on the other hand, businesses whose core business activities is to conduct cremation are not included in the Funeral Home industry; they are classified under the Cemetery Services industry

In the United States of America, most modern day funeral homes are run as family businesses. As a matter of fact, a large percentage of trained morticians and undertakers work in small, independent family run funeral homes. The owners of these family run funeral homes usually hire two or three other morticians/undertakers as either full–time employees or part–time employees.

It is the practice for funeral homes to have one or more viewing rooms, a preparation room for embalming, a chapel, and of course a casket selection room. So also, funeral homes generally sell coffins and urns, they have a hearse for transportation of bodies, a flower car, limousines et al.

Over and above, any aspiring entrepreneur can comfortably start his or her own funeral home business by acquiring an existing funeral home and then refurbish it to meet the expected standard or start the business from the scratch by constructing a new funeral home and then equipping it with the needed equipment and accessories.

Lastly, one of the many reasons why aspiring entrepreneurs struggle to start a business of their choice can be attributed to lack of start–up capital or not knowing the estimated amount needed to launch the business either on a small scale, medium scale or large scale. This article will give you an idea of how much it will cost you to start your own funeral home business in the United States of America, Canada, United Kingdom and Australia.

How Much Does It Cost to Start a Funeral Home Business?

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 bench marked against the US Dollars.

So also, if you choose to have an online presence for your funeral home, you can get that done with same price no matter the part of the world you live in. This is because with the internet (world wide web), the world has become a global village and if you live in Canada, you can contract your web designing and hosting contract to a web designer and hosting company in the United States of America. It means that you will pay same price with someone in the United States of America

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 Start a Funeral Home Business in the United States?

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;

  • The total fee for registering the business in the United States of America – $750.
  • 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.
  • 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.
  • The cost for hiring a business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $30,400.
  • The cost for leasing a standard facility in a good and centralize location – $150,000
  • The cost for remodeling the facility – $50,000.
  • Other start-up expenses including stationery ($500) and phone and utility(gas, sewer, water and electric) deposits ($6,500).
  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • 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
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • 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.
  • The cost for building and hosting a website: $600
  • The cost for opening party: $8,000
  • 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).

How Much Does It Cost to Start a Funeral Home Business in the UK?

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

  • In the United Kingdom, online applications are usually registered within 24 hours and cost £12 (paid by debit or credit card or PayPal). Postal applications take 8 to 10 days and cost £40 (paid by check made out to ‘Companies House’). There’s a same day service costing £100.
  • 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) – £13,300
  • 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.
  • The cost for hiring a business consultant (including writing business plan) – £2,500.
  • The cost for insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – £28,400.
  • The cost for leasing a standard facility in good, centralized and serene location – £145,000.
  • The cost for remodeling the facility – £47,800.
  • Other start-up expenses including stationery (£300) and phone and utility (gas, sewer, water and electric) deposits (£1,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – £60,000
  • 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) – £148,500
  • The cost for store equipment (cash register, security, ventilation, signage) – £9,500
  • The cost of purchase and installation of CCTVs: £4,500
  • The cost for the purchase of furniture and gadgets (Computers, Fax machine, Printers, Telephone, Flat ScreenTVs, Sound System, tables and chairs et al): £2,500.
  • The cost for building and hosting a website: £600
  • The cost for opening party – £6,300
  • Miscellaneous: £8,000

You will need an estimate of four hundred and thirty thousand Pound Sterling (£430,000) to successfully set up a medium scale but standard funeral home business in the United Kingdom. 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 outlet in key locations within same region.

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 Kingdom will cost about one hundred and forty five thousand to two hundred and eight five thousand Pound Sterling (£145,000 to £285,000).

When it comes to starting a standard and large-scale funeral home business with several outlets in key cities in the United Kingdom, a funeral home that can service over fifteen clients per-time and a funeral home with the intention of selling franchise and also offering complimentary services, then you should look towards budgeting well over two million British Pound Sterling (£2 million).

How Much Does It Cost to Start a Funeral Home Business in Canada?

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

  • For federal incorporation of business in Canada, the cost to incorporate is $200 if filed online through Corporations Canada’s online Filing Centre ($250 if filed through other means).
  • 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.
  • 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.
  • The cost for hiring a business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $30,400.
  • The cost for leasing a standard facility in a good and centralized location – $150,000
  • The cost for remodeling the facility – $50,000.
  • Other start-up expenses including stationery ($500), phone and utility (gas, sewer, water and electric) deposits ($6,500).
  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • 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
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • 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.
  • The cost for building and hosting a website: $600
  • The cost for opening party: $8,000
  • 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 Canada. 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 outlet 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 Canada will cost about 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 Canada, a funeral home that can accommodate over fifteen clients per time and a funeral home with 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).

How Much Does It Cost to Start a Funeral Home Business in Australia?

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

  • In Australia, the fees to register your business name with ASIC include: $34 for 1 year. $80 for 3 years
  • 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.
  • 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.
  • The cost for hiring a business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $30,400.
  • The cost for leasing a standard facility in a good and centralize location – $150,000
  • The cost for remodeling the facility – $50,000.
  • Other start-up expenses including stationery ($500), phone and utility(gas, sewer, water and electric) deposits ($6,500).
  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • 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
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • 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.
  • The cost for building and hosting a website: $600
  • The cost for opening party: $8,000
  • 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 Australia. Please note that this amount includes the salaries of all the staff for the first 3 month of operation. It is a business with the potential of owning more than one outlet 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 Australia will cost about 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 Australia, a funeral home that can accommodate over fifteen clients per-time and a funeral home with 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).

Estimating Start–Up Cost for Funeral Home Business Based on the following factors;

  • Specific Location

In this kind of business, the location of your business means a lot. The best thing to do when searching for a location for your business is to consider where other thriving funeral homes locate their businesses. If you do your research properly, you will realize that most funeral homes are located close to a mortuary, hospital or a public cemetery. Make sure you locate yours around any of these areas.

  • Equipment/Machines

When it comes to starting a standard funeral home business, you will need the following equipment/machines;

  • Standard Casket Carts, Casket Lowering Devices and Accessories, Preparation Room, Mausoleum, Urn Vaults, Vases, Burial Garments, Waste Containers, Lawn Boards, Straps and Slings, Chairs and Accessories et al
  • Hearse for transportation of bodies
  • Flower car
  • Limousine (optional)
  • Flat screen TVs
  • Computers and receipt issuing machines
  • Sound System (For playing music)
  • Point of Sale Machines (POS Machines)

Staff/Manpower

When it comes to starting a standard funeral home business on a large scale, you would need the services of the following professionals;

  • Chief Executive Officer
  • Funeral Home Director
  • Human Resources and Administrative Manager
  • Accountants/Cashiers
  • Mortician and Undertaker
  • Marketing Officer (Contract Worker)
  • Cleaners/Washer men (Full–Time Employee)
  • Drivers
  • Security Officer

Can Funeral Home Services Business Be Bootstrapped on a Lean Budget Right from Home?

Because of the nature in terms of the activities of funeral homes and the legislation involved in starting and operating a funeral home business, it is obvious that it cannot be bootstrapped on a lean budget from home.

As a matter of fact, the business involves preparing dead people for burial and you can be rest assured that your neighbors would not want such business around them. Besides, you can hardly get the required permits and license to successfully launch a funeral home in a strictly residential estate in the United States of America, the United Kingdom, Canada and Australia.

How Much Does It Cost to Buy a Funeral Home Franchise?

In the United States of America, the Average Cost of Purchasing a Funeral Home Franchise is $20,000. Examples of 3 Well – Known Funeral Home Franchising Companies in the United States of America are;

  • SereniCare Funeral Home – America’s First Funeral Home Franchise
  • Legacy Center Funeral Home Franchise
  • Cosmopolitan Funeral Homes Franchise

In the United Kingdom, the Average Cost of Purchasing a Funeral Home Franchise is £20,000. Examples of 3 Well – Known Funeral Home Franchising Companies in the United Kingdom are;

  • Poppys Funeral Care Franchise
  • Rosedale Funeral Home
  • Albert R Slack Funerals

In Canada, the Average Cost of Purchasing a Funeral Home Franchise is $25,000CAD (Canadian Dollar). Examples of 3 Well – Known Funeral Home Franchising Companies in Canada are;

  • Poppys Funeral Care Franchise
  • Muzyka & Son Funeral Home
  • Capital Funeral Home

In Australia, the Average Cost of Purchasing a Funeral Home Franchise is AUD$26,000. Examples of 3 Well – Known Funeral Home Franchising Companies in Australia are;

  • InvoCare Funeral Home Franchise – Australia
  • Skinners Funerals‎
  • Poppys Funeral Care Franchise
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