Becoming a funeral home franchise owner can make good business sense — the industry serves an annual U.S. market of almost $20 billion and enjoys steady growth. Connecting with a brand with a well-designed funeral home business plan can be a smart move for today’s investors.
Before deciding to buy a funeral home business, closely examine the industry and ask the right questions. It can help guide you to a brand developed with an understanding of the market and an eye for future trends.
- What’s in a funeral home business plan?
- Developing a better business plan
- How to create a funeral business in step with your clients
- Why convenience and client affordability can be critical for long-term growth
1. What’s in a Funeral Home Business Plan?
It’s best to start by understanding the basics of the business to get a thorough overview of the funeral industry. What’s involved in starting and running a funeral home, and what costs can an owner expect along the way?
Potential owners can dig into the funeral home business plan for the franchise that interests them to get answers to those questions. The plan lays out strategy, projections, expected costs, marketing, and other essential details of the brand and its future.
Equipment and More
One of the primary issues a business plan concerns itself with is cost. A funeral home business for sale should lay out in its business plan how much a new owner should plan on paying to get the franchise up and operating.
For a funeral home, up-front costs can be especially critical in an equipment-forward industry. Embalming equipment, hydraulic lifts, refrigerated storage, and office equipment are just the start — review initial expenses carefully before moving forward with the ownership process.
2. Creating a Better Funeral Home Business Plan
Ongoing costs are the next concern for a potential funeral home owner. A client-facing business like a funeral home can expect to see regular expenses along the way, and it’s crucial to account for them when looking into ownership.
Items like caskets, urns, and clothing must be restocked and replaced regularly, and embalming fluid and machine wear are also a continuing concern. Include those recurring costs in your funeral home business plan to get a clear picture.
Funeral home details can also play a significant role in expenses. Depending on building size and location, rent can become costly, and regular expenses for hiring and training staff to keep the business running must also be considered.
The franchise’s specialization can inform costs and revenue, too. For example, a brand that focuses on cremation has less equipment to deal with and a much smaller physical footprint to pay rent on, and that can result in a lower monthly bill.
3. Develop a Business in Step with Your Clients
A funeral home business plan helps make expenses clear, but that’s just part of what it can do to aid potential owners. The plan should also contain a roadmap for the future and detail where the brand expects to be in the future.
This makes a well-constructed business plan an invaluable aid for someone interested in joining the industry. It can show where the franchise came from and point the way toward emerging trends and projected growth to help guide future owners to the brand that best suits their approach.
Traditional Burial vs. Cremation: What to Know
Pay special attention to trends regarding cremation and traditional burial in the business plans. Over the past few decades, there’s been an ongoing movement toward cremation in the industry, which can present an opportunity for well-positioned franchises.
Almost 57% of all clients choose cremation today, and that number is expected to climb to over 65% within five years. Look for a business plan that centers its services on cremation to stay in tune with these changes and help transform the industry.
4. Convenience and Client Affordability are Key
The final stop for the prospective owner when reviewing a funeral home business plan should be the list of services the brand offers. Examining client options and costs is essential in any industry but can be particularly crucial in the funeral business.
For generations, traditional burial services dominated the business and were the overwhelming preference for clients. Rising burial costs, expensive add-ons, and increased restrictions and regulations have changed death care for the majority of Americans, though.
Keep it Simple and Maintain Quality
Build a business plan that makes low client cost the goal. Make sure to include streamlined service options that keep expenses low and can be within reach of as many potential clients as possible.
A brand that focuses on cremation can once more be the right choice for client-centered owners. Cremation is typically more affordable than burial, and it allows for multiple services at varied locations, so clients can pay less for a dignified and fulfilling experience available when they want it.
Create a Funeral Home Business Plan for the Future as a Cypress Pointe Cremation Franchise Owner!
A well-designed business plan can help guide a brand into the future. At Cypress Pointe Cremation, we’ve developed our franchise with the future in mind.
We specialize in cremation to give our clients the best experience possible and our owners a business that moves with the times. It’s aided our growth and given us a reputation for superior service.
Cypress Pointe Cremation is preparing to expand, and we’d love to connect with you.
Want to find out more information? Let’s start a conversation today!
