How to Start a Cremation Business with Cost, Profit

The cremation business is very prospective and promising as the demand for cremation services is on the rise. People now prefer cremation over burial. Moreover, with an increasing number of people having pets, there is also a demand for pet cremation. So, there are personal preferences as well as the advantage of lower cost than burial.

The IBISWorld has predicted a growth trend in the field of the Cremation Industry in the period 2019-2024. According to Statista, the rate of cremation in the United States was 54.6 % in 2019; By 2035, this figure may witness a growth of up to 79.1 %. The U.S. funeral market is currently estimated to be worth around $20 billion annually. Nearly 2.4 million funerals take place each year. Industry experts predict this death rate is set to rise as the U.S. senior population will rise in the coming years,

What is a Cremation Business?

A cremation business is a facility or service provider that offers cremation services to individuals and families who have chosen cremation as an alternative to traditional burial for their deceased loved ones. Cremation businesses typically operate crematoriums equipped with specialized equipment to perform the cremation process safely and respectfully.

These businesses may also offer additional services such as memorial ceremonies, urns, keepsakes, and support for grieving families. The primary goal of a cremation business is to facilitate the dignified and respectful handling of human remains through the process of cremation while providing compassionate support and guidance to families during their time of loss.

Now let us discuss the steps you should consider for starting a successful cremation business. For your convenience, the steps have been divided into four broad heads: Financial, Operational, Setting Up, and Marketing. Let us start with the financial steps first.

13 Steps to Start a Cremation Business

Financial Steps

1. Estimate How Much Fund is required

Fund or finance is the first and most important aspect of any business. Depending on the location and size of your crematorium and the extent of service you wish to offer (human, pet, or human and pet) you need approximately $1, 00,000 to 2, 00,000.

You need to spend money on an incinerator/furnace (separate for humans and pets), fuel, real estate for the crematorium space and its office, vehicles for transportation, the salary of staff, office furniture and equipment, license, insurance, and other legal formalities, publicity, and marketing, etc.

2. Arrange Funds

After deciding on the amount of money required, it is now time to arrange the funds. If you have savings of that much amount of money, then you can start your business with that. Otherwise, you have to look for other sources of funds. There are several such sources as:

• A Bank loan or loan from another Financial Institution
• A loan from family or friends
• Grants
• Money from Investors or Business Partners

3. Expenses to Run Cremation Business

Like every business, your Cremation Business too has regular expenses on different heads. The more you are aware and calculative about the expenses; the chances are to make more profit. Let us have a look at the main heads of expenses incurred regularly:

• Rent of the Premise (If you are not buying the property and going for a rented premise)
• Salaries and Wages of employees
• Cost of Fuel for furnace
• Maintenance of the Furnace
• Marketing and Publicity Expenses
• Expense on taxes
• Fuel for Vehicles
• Maintenance of Vehicles

Apart from these, many kinds of incidental expenses are part of any business.

4. Calculate the Profit Margin

The profit margin in the cremation Business is good. You can charge between $ 1000-$2500 to your clients for the service. If you get at least one business per day, you can earn a profit of approximately 15-20%.

Your monthly expenses will be around $ 12-14000 and with one business per day, you can earn around $45,000 – $50000. So, there is sufficient scope for profit.

Here you have to keep in mind that the success of your business depends on your supervisory skill and the efficiency of the marketing strategies.

Operational Steps 

5. Naming your Cremation Business

In the first operational step of your Cremation Business, you have to name the business. Find out a well-thought and emotional name for your business. But remember, the name has to be small, catchy, and easy to remember.

You have to find out the availability of a relevant domain name, as creating a website is a must. If the domain is not available or taken by someone else, you have to think of an alternate name. Therefore, it is better to shortlist a few selected names.

Below are some cremation business names that can help you in choosing the right business name:

• Holy Crematorium NYC
• Harris Mortuary
• Crestwood
• Cremation Ideal Society
• United Cremation

6. Forming a Legal Identity

You have to give your Cremation Business a proper legal identity. There are different forms of business like Sole Proprietorship, Partnership, Limited Liability (LLC), or Corporation. You can go to any one of them.

However, forming an LLC is preferable, as it safeguards your resources. It is advisable to consult a legal professional before forming your company.

7. Bank Account, License, Tax, Insurance

After the legal status, you have to open a bank account in the name of your business. This will keep your financial transactions more organized. You will also need a credit card in the name of your Cremation Business Concern.

You have to get the required permits and licenses for the business, as per the rules of the federal and state Governments.

Along with that, you need to register for federal and state taxes. For that, you have to apply for the EIN.

You need business insurance to protect your business in case of any eventuality.

8. Certificate of Occupancy

To start your Cremation Business, you need the Certificate of Occupancy (CO) for the premises you are using for the crematorium. This certificate ensures that all the legal formalities and restrictions regarding the crematorium have been followed.

If you take the premise on rent or lease, then make sure that the landlord has the CO. If you are buying the land or building, you have to get the CO for the smooth running of your business.

Establishing the Cremation Processing Unit

9. Setting Up Cremation Business

The cremation Business is highly equipment-oriented.  You will need a cremation machine or furnace which comes in different sizes. There are separate furnaces for human bodies and pets.

So, you have to purchase a separate machine if you plan to have both human as well as pet cremation services. If you are opting for aqua cremation, then the machine is different.

Apart from that, you need a batch load incinerator, fuel for running the furnaces, and a refrigerated chamber for keeping the bodies before cremation.

You also need a computer, printer, internet connection, office furniture, and a comfortable sitting area for the family of the deceased.  You have to invest in Vases or Urns of good designs to keep the ashes and hand them over to the family.

10. Staffing and Training

Qualified Personnel: Hire experienced and compassionate staff to operate the cremation equipment, handle administrative tasks, and provide support to grieving families. Ensure that all staff members receive proper training in cremation procedures, safety protocols, and customer service.

Depending on your location, staff may need to undergo specific certifications or training programs related to cremation services and funeral industry regulations.

11. Service Offerings and Pricing

Develop a range of cremation packages to accommodate different needs and budgets. Consider offering additional services such as memorial ceremonies, urns, and keepsakes to enhance the customer experience.

Communicate your pricing structure to customers, including itemized costs for cremation services and any additional services or merchandise. Transparency builds trust and helps families make informed decisions during difficult times.

12. Have a Marketing Plan

Creative marketing strategies are the most important aspect of running your business and increasing profits. You must have a carefully crafted marketing plan to make the job easier. Follow these strategies for successful marketing:

a) Create a website for your business. Explain in detail the services offered by your Cremation Business. Also, make provisions for online booking and online payment.

b) Create pages in the name of your business on social media like Facebook, Instagram, and Twitter. Link the pages to your account and the website.

c) Print attractive flyers and pamphlets for distribution.

d) Give advertisements on local TV, newspapers, and hoardings.

e) Get attached to the local associations of the cremation business. This will help you to get more contacts.

f) In the initial phase of your Cremation Business, attract customers with special discounts. This will help you to get more customers.

g) Treat your customers with great cooperation, sympathy, and humanity. This will earn you good word-of-mouth publicity which will bring more customers in the future.

13. Add Value to Your Cremation Business

Regarding the value addition of your business, you have to think of some ideas which are innovative and out of the box. Some of the value-additions one can provide are the following:

• You can offer to make decorative pieces like bowls or other things made with the ashes.
• One can offer to use the ashes as fertilizer in a garden to grow flowers and trees.
• You can organize special packages of immersion of the ashes in special places like oceans rivers or mountains.
• Special prayer meetings or memorial programs can also be held at your crematorium. For that, you need a separate place.
• Make a special audiovisual presentation on the deceased person taking photographs and other information from the family members.
• In the case of the family living elsewhere, you can arrange the cremation on their behalf and send the ashes to the family with the utmost care.

Conclusion: The future of the cremation business is very bright. With the scarcity of land for burial and the low-cost option of cremation, the demand for it has been rising in recent years.

So, this is all about starting a profitable Cremation Company. If you follow the steps properly and honestly, you are going to be successful. According to industry experts, the cremation business has great growth potential in the coming future.

Frequently Asked Questions

What is the process of starting a cremation business?

The process typically involves several steps, including obtaining necessary licenses and permits, securing a suitable location for the crematorium, acquiring specialized equipment, hiring trained staff, and developing business and marketing strategies.

What licenses and permits are required to operate a cremation business?

The specific licenses and permits needed may vary depending on the location and regulations governing cremation services in that area. Generally, you will need health department permits, zoning permits, cremation permits, and any other local business licenses required.

What equipment is needed to start a cremation business?

Essential equipment includes a cremation chamber (cremator), cooling equipment, body handling and preparation tools, and safety equipment. Additionally, you may need administrative tools like computers and software for record-keeping and management.

How much does it cost to start a cremation business?

The cost can vary widely depending on factors such as location, facility size, equipment quality, and staffing needs. Costs may include facility construction or renovation, equipment purchase or lease, staff salaries, permits and licenses, insurance, marketing expenses, and more.

What are the legal and regulatory considerations for a cremation business?

Cremation businesses must comply with state and local regulations governing the operation of crematoriums and funeral services. This includes adhering to health and safety standards, environmental regulations, and laws regarding the handling and disposition of human remains.

How do I market a cremation business?

Marketing strategies may include building relationships with local funeral homes and hospice organizations, advertising in relevant publications, creating a professional website, attending industry events and trade shows, and offering educational seminars or workshops on end-of-life planning.

What are some challenges associated with running a cremation business?

Challenges may include navigating complex regulations, managing sensitive interactions with grieving families, maintaining equipment and facilities.