The cremation industry is a promising business venture, as the public’s preference for cremation services is increasing. Burial is no longer the go-to option.
Additionally, as the pet ownership rate grows, there is a greater demand for pet cremation services. This has the benefit of being more affordable than burial and also satisfies individual preferences.
According to IBISWorld and Statista, the Cremation Industry has a predicted growth trend from 2019-2024. In addition, in 2019 the cremation rate in the US was 54.6%, with an estimation that 79.1% of Americans will choose cremation by 2040, according to Forbes.
We’ll now cover the steps for starting a successful cremation enterprise. These are divided into four categories: Financial, Operational, Setting Up and Marketing – let’s begin with the financial steps first.
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Ten Steps for Starting a Cremation Business
Financial Steps
1. Estimate How Much Fund is required
Setting up a crematorium requires an investment of $100,000 to $200,000, depending on the location and services being offered (human, pet, or both). Financing is the initial, and most important step for any business.
For a successful crematorium, you must invest in the right incinerator/furnace (for both people and animals), fuel, real estate, vehicles for transport, staff wages, office materials and equipment, license and insurance policies, promoting and advertising activities, etc.
2. Arrange Funds
Once you have calculated the amount of money that is needed, it is time to organize the finances. If you have saved up this sum yourself, then you are able to move forward and begin your business. On the other hand, if not, then there are various sources of funds available to you like:
- A loan from a bank or other financial institution.
- Financing from family or friends loan.
- Grants
- Funds from Investors and Business Partners
3. Expenses to Run Cremation Business
To maximize profit in your Cremation Business, it is important to stay aware of and calculate the expenses on different categories. Here are some of the main expenses incurred regularly:
- Renting a location (If you are not purchasing the property outright, and instead going for a rented space)
- Employee Payrolls
- The price of fuel for a furnace.
- Maintenance of the Furnace
- Marketing and Publicity Expenses
- Expense on taxes
- Fuel for Vehicles
- Maintenance of Vehicles
Additionally, any business will incur various miscellaneous expenses.
4. Calculate the Profit Margin
If you offer cremation services, it can be a very lucrative business. For each job, you can charge between $1000-$2000 and make a profit margin of 15-20% if you land at least one client per day.
You should anticipate spending around $12-14000 per month and can make up to $45-50000 with one successful business transaction daily, leaving the significant potential for profit.
Remember, your business’ success is determined by your leadership abilities and the effectiveness of your marketing tactics.
Operational Steps
5. Naming your Cremation Business
Coming up with a memorable yet concise name is an important initial step when starting a Cremation Business. The name should be easy to remember and capture the emotion behind the business.
When creating a website, you should shortlist a few domain names and then check their availability. If the top choices are already taken, then you’ll have to pick an alternate name.
The following list of cremation business names can assist you in selecting the right one.
- Holy Crematorium NYC
- Harris Mortuary
- Crestwood
- Cremation Ideal Society
- United Cremation
6. Forming a Legal Identity
To make your Cremation Business legitimate, it must be registered as one of these forms of business: Sole Proprietorship, Partnership, Limited Liability Company (LLC), or Corporation.
Establishing an LLC is the best option for protecting your resources, so it’s a good idea to get advice from an experienced attorney before creating your business.
7. Bank Account, License, Tax, Insurance
Once you’ve established the legal status of your business, open a bank account and get a credit card in your business name to help keep financial records organized.
According to federal and state laws, you need the necessary permits and licenses for your business.
You must register for federal and state taxes and apply for an EIN in order to do so.
Business insurance offers protection to your company in case of an unexpected event.
8. Certificate of Occupancy
To begin a Cremation Business, you must obtain a Certificate of Occupancy (CO) for the facility being used for the crematorium. This certifies that all legal requirements and regulations regarding the crematorium are fulfilled.
Prior to renting or leasing, ensure the landlord has a certificate of occupancy (CO), and if purchasing land or a building, you should obtain a CO for the efficient operation of your business.
Establishing the Cremation Processing Unit
9. Setting Up Cremation Business
Cremation requires particular equipment, such as furnaces. These are available in various sizes and can be used for humans or pets.
If you intend to offer cremation services for both people and pets, you must purchase a different machine. An alternate option is aqua cremation, which also uses its own unique machine.
Additionally, you will require an incinerator, fuel to power the furnaces, and a cooled storage space for the corpses before cremation.
When organizing a funeral, you will need a computer, printer, internet connection, office furniture, and a comfortable seating area for the deceased’s family. Additionally, it is essential to invest in aesthetically pleasing urns or vases to store the ashes and give them to the family.
An ambulance and other transportation are necessary for your cremation business to transport the deceased and their families, if necessary.
- Your Cremation business needs:
- Manager/Supervisor
- Reception Assistant
- Publicity and Marketing Assistant
- Accountant
- A Furnace Operator and an assistant.
- Cleaner
- People needed to drive ambulances and other vehicles.
To exert direct control over your business, you can take on both the roles of manager and reception or front desk person if desired. This will enable you to stay involved in all aspects of your business’s operations.
Reaching Out to Prospective Customers Looking for Cremation-Related Services
10. Have a Marketing Plan
Crafting a well-thought-out marketing plan is the most critical step of running a successful business and increasing profits. These strategies can help make your marketing endeavors successful:
- Construct a website to showcase your Cremation Business and the services it provides. Furthermore, enable online booking and payment procedures.
- Set up social media accounts with your business name on sites like Facebook, Instagram, and Twitter. Connect them to your profile and website.
- Produce bright flyers and leaflets for distribution.
- Advertise on local television, newspapers, and outdoor signage.
- For more contacts, join the local cremation industry associations.
- During its launch phase, offer special discounts to draw in customers and help grow your Cremation Business.
- Demonstrating good cooperation, sympathy, and kindness to your customers will result in positive word-of-mouth publicity, resulting in more customers in the future.
Add Value to Your Cremation Business
To give your business added value, consider creative ideas. Value additions that can be offered include:
- Decorative items like bowls created with the ashes can be offered as gifts.
- The ashes can be used as fertilizer in a garden to help grow flowers and trees.
- Special packages are available to spread ashes in oceans, rivers, or mountains.
- Crematoriums provide a special area for prayer meetings or memorial services.
- Create a memorable audio-visual tribute to the deceased using photographs and other information provided by family members.
- If your family is not local, you can arrange for the cremation of their loved one and send the ashes with loving care.
Conclusion
Cremation is becoming an increasingly popular choice due to the lack of space for burials, and its affordability compared to other funeral options. The future of the cremation business looks bright.
Following the right steps will ensure success in starting a profitable Cremation Company. Industry professionals agree that the cremation business has great potential for future growth.
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