How to Start a Cremation Business with Cost, Profit

Cremation Business is a very prospective and promising business idea, as the demand for cremation 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 also predicted a growth trend in the field of the Cremation Industry in the period 2019-2024.

Now let us discuss the steps you should consider for starting a Cremation Business and make it profitable. 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.

10 Steps to Start a Profitable 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 incinerator/furnace (separate for human 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 your 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 other 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 more to make more profit. Let us have a look at the main heads of expenses incurred on regular basis:

  • 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, there are many kinds of incidental expenses that are part of any business.

4. Calculate the Profit Margin

Cremation Business is quite a profitable one. You can charge between $ 1000-2000 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 $ 45-50000. So, there is sufficient scope for profit.

Here you have to keep in mind; 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 find some cremation business names that 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 most 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 the 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 rule of the federal and state Government.

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 premise you are using for the crematorium. This certificate ensures that all the legal formalities and restrictions regarding 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

Cremation Business is highly equipment-oriented.  You will need a cremation machine or furnaces which come 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 humans 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.

Your Cremation business also requires an ambulance and other vehicles for carrying the dead bodies and transporting the family of the decease if needed.

  • Among the manpower of your Cremation business you need:
  • Manager/Supervisor
  • Reception Assistant
  • Publicity and Marketing Assistant
  • Accountant
  • Furnace Operator and a helper
  • Cleaner
  • Drivers for Ambulance and other vehicles

If you want, you can play the dual role of manager and reception or front desk person. This will help you to keep direct control over the business and be involved in the day-to-day activities of your business.

Reaching Out to Prospective Customers Looking for Cremation-Related Services  

10. Marketing and Value Addition

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

  • 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.
  • 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.
  • Print colorful flyers and pamphlets for distribution.
  • Give advertisements on local TV, newspapers, and hoardings.
  • Get attached to the local associations of the cremation business. This will help you to get more contacts.
  • In the initial phase of your Cremation Business, attract customers with special discounts. This will help you to get more customers.
  • Treat your customers with great co-operation, sympathy, and humanity. This will earn you good word of mouth publicity which brings more customers in the future.

Regarding the value addition of your business, you have to think of some ideas which are innovative and out of the box.

  • You can offer to make decorative pieces like bowls or other things made with the ashes.
  • You 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 or 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.


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 is rising in recent years.

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 %.

An article at Forbes claims that, by 2040, nearly 80% of Americans will be cremated.

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.