Unfortunately, sooner or later every person loses loved ones, and for obvious reasons, this becomes a big shock for many. But few people think that organizing a funeral is a fairly profitable business.
The burial of dead people has become a tradition many thousands of years ago. Over time, this process began to be accompanied by various rituals. Some of them took root and transformed over the years. The burial process was divided into several stages: you need to prepare a place for burial, provide musical accompaniment, flowers. Each step was carried out different people. Then they began to appear special organizations who took care of the funeral. Now a person experiencing a severe loss can apply to the bureau, which will provide him with a full range of services related to burial.
Features of business organization
No matter how sad it may sound, but the mortality rate throughout the world, as well as in our country, is constantly growing. In this regard, funeral services are becoming more and more in demand. Some entrepreneurs realized this and organized their own bureaus providing such services. It should be noted that the competition in this activity is quite high, but there is no need to be afraid of it. Even a novice businessman can count on rapid development, provided proper organization their activities, because to open a bureau it is not even necessary to obtain a special license.
First of all, it is necessary to draw up a project of the future agency. It should take into account all costs and possible risks. It is also necessary to prepare for the fact that at first, perhaps, there will be no profit or it will be quite insignificant. In order to avoid this, it is necessary to think carefully about the list of services that the bureau can provide. The more it offers the client, the higher his chances of success. Of course, in any business it is important not only the quantity of services provided, but also their quality. It must be remembered that you will have to work with people who are experiencing great grief, so it is important that the organization of the funeral does not cause them unnecessary trouble.
The development of a list of services begins with a study and a complete analysis of the market. You need to find out what other funeral organizations offer, what wishes customers most often have. It is important that the company can provide a full range of services, then the client will not need to go anywhere else.
Among the main services provided by the funeral home, we can distinguish:
- providing a place in the cemetery and preparing the grave for burial;
- providing a choice of various goods used at the funeral, these can be coffins, wreaths, artificial and natural flowers;
- organization of musical accompaniment;
- ordering or providing your own transport (hearse, cars for those who come to say goodbye).
During the formation of the company, you can limit yourself to only basic services, but in the future, their list needs to be expanded. For example, you can organize the production of wreaths, monuments, fences, mourning goods, the provision of various kinds of information. Increasingly, such services as cosmetic preparation of the deceased for burial, provision of a costume and others are in demand. Many large firms providing such services even have their own mortuary.
First steps
First of all, you need to find suitable premises For the company. It is more convenient when it is divided into 2 parts. The first is used to communicate with clients, discuss the terms of cooperation, and the second serves as a showroom, it houses coffins, wreaths and other goods. If you plan to organize a morgue, it is better when it is located in a separate room. It is more expedient to open an office closer to the city center so that it is convenient to get to it. It is also a good idea to organize a branch, which will be located in close proximity to the cemetery. There, customers will be able to purchase wreaths and flowers.
When planning to open a funeral home, you need to take care of its design. For this type of activity, such a form of management as a company with limited liability. To register an LLC, you must contact the relevant state body and provide the documents required by law. After completing the procedure, you need to visit the regulatory authorities and register the new company.
Staff
For funeral directors, not only professional quality but also personal. They must understand that they need not only to do their job well, but also to be able to communicate with people who are experiencing a great tragedy. The main qualities of employees should be patience and tact, which not every person possesses. It can be said without exaggeration that a funeral director must also be a good psychologist.
Mandatory positions should be:
- agent. His duties include accompanying the funeral, communication with clients;
- consultant. This employee is engaged in the sale of goods, he must know the range, be able to present it profitably;
- accountant. Each enterprise, regardless of the type of activity, maintains accounting records, because it is necessary to carry out various financial transactions, pay taxes on time, and also submit reports to regulatory authorities. Often the fate of the company depends on the work of an accountant, therefore, only a qualified, experienced and responsible specialist should be trusted in this field of activity.
If the list of services is wide enough, then the services of other workers, for example, drivers or handymen, may be needed. So it's good to fix business relationship with a fleet of vehicles and enterprises engaged in the manufacture of such products.
AT last years in Moscow, a school of funeral agents was organized, in which students study legislation and the characteristics of religious denominations. In addition, one of the subjects there is psychology. Such knowledge is very important for entrepreneurs who decide to go into the funeral business. When hiring employees in a funeral services office, you need to pay attention to whether the applicant has completed training at this educational institution.
How to find clients
Of course, going from house to house and offering your services will not be entirely tactful, so you need to act differently. An effective way to make yourself known can be to advertise in newspapers, but the best option will be the conclusion of relevant agreements with hospitals and ambulances. In this case, their employees can send relatives of the deceased to this particular company. This option will be convenient and beneficial not only for the employees of the bureau, but also for clients, since the first hours and days after the death of a loved one are very difficult for them. Often heartbroken people cannot adequately assess the situation and take care of preparing the funeral on their own. A good assistant will be the funeral services bureau, which will take care of all the unpleasant chores.
How to ensure profit
One of the important criteria for making a profit will be the opening of our own production. For example, you can arrange the production of wreaths and other related products. Of course, such a step will require additional material investments, it will be necessary to purchase materials and pay salaries to employees. But the costs will quickly pay off, because customers will be able to purchase everything they need on the spot, without contacting other companies. Most often, novice businessmen are unable to do this, so such a step is taken by large companies that have been successfully working in this area for a long time.
To expand the list of goods and services, you can set up the production of coffins, as they are the main attributes of a funeral. Such production will require a separate room, the acquisition of special tools and mechanisms, and the study of technology.
The production of so-called elite coffins requires high-quality wood. Such a product is not covered with a cloth, it is polished and varnished. For the production of elite coffins, it is necessary to have reliable suppliers of high-quality wood.
Another essential element is textiles. A bed and various accessories must be placed in the coffin. As is the case with the design of the outside, satin, silk, sometimes cotton fabrics are used inside. As a rule, light discreet colors are used. With the help of ritual textiles, wreaths, baskets, bouquets are also decorated.
In addition, special clothes are sewn for the deceased. Previously, it was made by hand, for which white canvases were used. It was customary to make stitches on such clothes in the direction away from you, while you cannot fasten the threads and make knots. Today, the main rule for tailoring clothes for the dead is to observe a special cut. As a rule, men are dressed in suits, women in dresses, and it is customary for young unmarried girls to dress up in wedding dresses.
To build successful business in the field of providing funeral services, it is necessary to study all the subtleties and nuances of such ceremonies, take care of a wide range of services and goods, hire professional staff, establish contacts with suppliers of raw materials for the manufacture of various ritual goods and much more. Only in this case, the business can become successful and bring good profits.
Unfortunately, there is no recipe that can give eternal life. Sooner or later all people die. Therefore, there is always a need for companies that provide services for the preparation and burial of the deceased. The funeral business brings in good money. And there is no need to feel a sense of disgust from the fact that you have to earn on someone else's grief. Without such services, the relatives and friends of the deceased would have had a much harder time. If you are not afraid of the gloomy atmosphere of such earnings, and your mind is subordinated to the desire to help grieving people, read our material below.
To open an agency for the provision of funeral services, you will need:- office and warehouse located in the right place;
- staff, including a lawyer;
- advertising media;
- agreements with manufacturers of funeral paraphernalia;
- coordination of your activities with the administration of the cemetery.
- department for employees;
- storage of funeral accessories;
- a room for a mini-morgue and placement of equipment for processing bodies in it;
- waiting room for loved ones and relatives of the deceased.
As a result, more than 200 sq.m. premises area. It is also necessary to provide a parking area for hearses and buses.
That, perhaps, is all. Try to drop all prejudices about such a business, help people and earn honest money!
Before you open a funeral business, you need to draw up detailed business plan, which will include both market analysis and all organizational issues. A business plan will need to be submitted to the state registration authorities in order to obtain permission to start a business.
A competent funeral agency business plan will help you quickly navigate the market and occupy a worthy niche in it. In fact, a business plan is the main tool, the purpose of which is to assess the prospects of the future funeral home and, possibly, attract investment. Funeral services business plan will help convince government bodies that your bureau is necessary for the city and cost-effective.
Funeral business in Russia: market analysis, competition
Because of cancellation of funeral business licensing the competition in the market is very high. In order to make a profit, you need to have information about the deceased, and for such information between competing firms there is a real war.
It must be remembered that the number of players in the funeral business market is large, and its profitability is rather low, so it is not easy to achieve large profits here. For this reason, many entrepreneurs are trying to establish their own production of coffins or monuments.
Officials believe that the situation on the funeral services market today is critical. Firstly, the condition of the cemeteries is simply appalling. Secondly, funeral services often become part of the shadow economy due to the lack of proper state regulation and clear legislative framework. The illegal sale of plots in cemeteries flourishes, although by law these plots must be provided free of charge. Very often, entrepreneurs accept payments in cash, which are not reflected in financial documents.
There are luminaries on the market who are not interested in new competitors and seek to control the funeral business. Most funeral homes do not produce anything, but only sell related products. And take into account the difference between the purchase price and the selling price is often impossible.
Goals, objectives, target audience
The purpose of the funeral home is to take the deceased on his last journey at a decent level and provide his relatives with a full range of related services.
Funeral home duties include:
- the most delicate work with the relatives of the deceased;
- making it easier for them to prepare for the funeral.
The target audience of the funeral home is the families and friends of the deceased.
How to start a funeral business? Legal aspects
We will figure out how to open a funeral services business in accordance with the law.
Once upon a time, in order to open a funeral home, you needed a state license. Today, no license is required: since 2004, you only need to notify government agencies that you are starting a business. It was from this year that the cities of the country began to be literally flooded with mourning signs.
The funeral home must be registered with the tax office as . Registration can be done on your own or you can contact a professional lawyer, the cost of which must be included in the business plan of the funeral business.
To open a funeral home, you need a standard set of documents for opening an LLC.
If during registration you did not write an application for a special taxation regime, then you automatically put on the general system. It is clear that this is not always profitable, especially for starting a business. You will need to keep full accounting, rather complex calculations of all income and expenses, pay all taxes and regularly submit relevant reports.
For a non-wholesale company that does not serve large enterprises, it always makes sense to pay attention to special modes.
Organizational moments
Today, anyone can open a funeral home, because as a farewell hall, transport can be rented, and instead of staff, hire specialists from an outsourcing company. Consider how to start a funeral business.
Where to open a funeral home?
The premises should be located in such an area of the city, from which it will be easy to get to any point in it. The dimensions of the room should be quite large. There should be enough space for an office, a hall for demonstrating coffins, wreaths, monuments, a mortuary, a warehouse. If you intend to offer hearses to customers, then you need space for them.
The farewell hall categorically cannot be located in a residential building. It must be located at least 50 meters from residential buildings, sports, medical, children's, educational, cultural institutions.
If you want to have your own mortuary at the bureau, you will need special permission for this. This will need to be coordinated with the Committee for Architecture and Urban Planning, Environmental Protection and the State Fire Supervision Authority.
Furniture and equipment
If you are planning your own production, then you will need to create separate workshops.
For example, for photo production you only need a computer with the appropriate software, a printer, photo paper, glue, special oval frames.
For making monuments you will need crushed stone, adhesive mixture, metal pin, formwork, sand concrete, profile, reinforcement, expanded clay, paving slabs, masonry mixture. From the tools you will need a hammer, a trowel, a level, a bayonet shovel, a capacity of 10-50 liters.
For coffin production you need a standard carpentry workshop, as well as tools for furniture production. In addition to wood or metal, a special fabric will be needed. Usually a small manufacturer does not make coffins on his own, but only assembles them from ready-made parts.
AT farewell hall there should be chairs or armchairs and a coffin stand. Naturally, it is worth considering also the appropriate design. 
In the very the Bureau, in addition to the reception desk, it is important to provide chairs or armchairs for customers, perhaps a coffee table with a price list.
To get started, you need to purchase a computer, scanner, printer, cash register, tools (preferably at least in duplicate). The amount of furniture and other equipment will directly depend on the size of your office. You can have your own car(s) or, if necessary, rent vehicles.
Recruitment
The staff who will work in the funeral home must be distinguished by tact and excellent knowledge of practical psychology, because they will have to work with relatives who mourn the deceased. In addition, employees must be able to sell services. Today, the so-called funeral agents receiving special education are especially popular.
In addition to agents, you will need an accountant, consultants, drivers, sellers, coffin, wreath, monument makers, mortuary workers, laborers, a lawyer, makeup artist, balmist, carpenters, carpenters, turners, an administrator. However, at first, the staff can be reduced and, if necessary, hire third-party specialists.
In fact, there can be either two employees in each area (consultants, administrators, drivers), or one at a time. It is important to select a staff from psychologically stable people.
Funeral home services
The bureau's income will directly depend on the range of services offered to clients. However, the expansion of the range will always be associated with an increase in costs. This includes the purchase of the necessary equipment, and the hiring of additional personnel, and additional advertising, and the purchase of materials.
Your company can provide services such as:
- funeral rites (for this you will have to agree with priests of different faiths);
- production of monuments, coffins, wreaths, photographs and other related products;
- search for a burial place with its subsequent registration;
- hiring workers who will dig the grave;
- body storage;
- performance of transport, orchestra, memorial dinner;
- cremation, embalming, disinfection of premises.
Customer acquisition
Today, attracting clients in the funeral business is mainly reduced to the illegal search for information about the deceased. This is due to corruption and data leakage. Businessmen who go for it are trying to establish contacts with the police and hospital morgues.
The state authorities have already taken care of the situation and are going to start a universal certification of all those involved in the funeral business in the near future.
Today, the Institute of Service and the Academy of Entrepreneurship in Moscow have already begun to train funeral business agents. The course is designed for 160 hours, and students study here all the subtleties of funeral legislation, basic psychology, the difference in religious rites in different religions. Interestingly, final exams are taken at the mayor's office of the capital. It is easy to predict that when the authorities tighten the requirements for the funeral business, the demand for relevant educational services will also increase.
Funeral services business costs and profitability
Initial investment will range from $10,000 to $100,000. It all depends on the price segment you are looking for. If you don't have own premises, then you will have to spend about 100 thousand rubles a month on rent. If you have a fairly decent staff of 20-30 specialists, then about 800 thousand rubles a month will go to their salary. Depending on the region average salary in the bureau will be 20-50 thousand rubles. 
The minimum equipment cost will be $5,000. However, if you plan to create your own workshops, a farewell hall, a mortuary, then the equipment can cost 70-80 thousand dollars. These costs will be measured only by the scale of the business. For example, minimum price on the not upholstered collapsible coffin will be 850 rubles. The approximate price for a funeral hearse will be 2 million rubles. cooling chamber for a mortuary will cost 30-50 thousand rubles, a hydraulic cart - 15 thousand rubles, an autopsy table - 25 thousand rubles. The wreath will cost about 1.5 thousand rubles. Opening your carpentry workshop will cost 3-5 thousand dollars.
The cheapest funeral will cost customers 12-16 thousand rubles. However, such orders will not allow the business to develop. On the stable profit can only be calculated if there are many orders with average checks of 20-60 thousand rubles.
Approximate profit per month, an average bureau with an average order of 20-60 thousand rubles will have 200-400 thousand rubles.
The profitability of the funeral business will be about 15-20%. The profitability of the production of related products will be higher - about 40%.
It is believed that the production of coffins, monuments and other paraphernalia will pay off in a year. Other services may pay off more slowly.
conclusions
So, the funeral business in Russia is far from the easiest and most profitable option. The competition here is high, and profitability is low. In addition, it can be difficult for beginners to find a sufficient number of customers. However, as our funeral home business plan shows, a good agency with a wide range of services and delicate attentive employees will be appreciated over time.
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The ritual business is always relevant and profitable for their owners. The reason is simple - the number of people dying cannot be influenced in any way. It remains only to watch how some come and others go. And you can not watch, helping grief-stricken relatives to organize a farewell process.
Benefits of starting a funeral home
Compared to other types of business, a funeral home has a number of the following advantages:
- Stability. The death of people is registered almost daily. Accordingly, new customers are constantly appearing.
- Relatively low costs for organizing a business. All you need is to find necessary premises, personnel and transport.
- Low cost to retain and grow the business. The owner must pay salaries, pay utilities, rent and other expenses.
- Undemanding in advertising. Since organizing a funeral forces people to look for a specialized company on their own, it is absolutely not necessary to impose their services - you can subtly hint at help.
How to open a funeral home, prerequisites
In order to open this business, you must first find a suitable premises. Its volume should contain at least two departments - a working office and a showroom for choosing goods. From a geographical point of view, the ideal option is a room located in the central quarter.
As the business develops, you can invite a lawyer to work with you. The range of his tasks will include the preparation of all papers for resolving legal issues of relatives, as well as resolving bureau issues. You can also engage in independent production of monuments, increasing the profitability of the business:
Estimated Cost Calculation
Practice shows that average bureaus spend up to 6 million rubles annually. The main costs are for:
- Room rental (from 25 tr. per month).
- Purchase of equipment (up to 1 million rubles).
- Purchase computer technology(up to 30 thousand rubles).
- Website creation (30 tr.).
- Advertising (72 tr.).
- Payment of wages (from 3 to 4 million rubles, depending on the average salary of city citizens).
- Taxes (from 100 tr per month).
At first, it is worth getting by with a small representation capable of meeting the simplest needs of citizens. Its maintenance will cost about two and a half million rubles.
When implementing a business, it is necessary to pay attention to the income component. For example, if there are 50 orders per month with a minimum cost of 6 thousand rubles for each, a businessman will be able to receive 300 thousand rubles (3.6 million rubles per year), which is enough to meet the needs of the loan, taxes and wages.
Where to start a business?
Initially, you need to register as an LLC. After registering, you must be registered with tax service. If this item is completed, you can proceed to the loan. To do this, you need to contact the bank and submit a business plan for verification.
The client indicates the exact amount that he expects to receive, as well as the term for providing credit funds. It is important to convince representatives of a banking institution that the opening of a new funeral home is beneficial for both parties - both the future owner and the financial institution.
After receiving credit money, you must first purchase or rent a room, and then prepare it for work. Make a purchase of everything necessary equipment for work and the first batch of goods. Only then find employees.
The standard list of funeral home employees usually includes an agent for communicating with people and accompanying the funeral processions, a sales consultant and an accountant.
If you plan to provide a wide range of services, you will additionally need the help of handymen, drivers, embalmers, make-up artists, loaders. It will not be superfluous to get 1-2 employees who will constantly be on duty near the morgue and lure potential customers to your side.
How cost effective can it be?
Having fulfilled all these requirements, you can start looking for clients. This requires a specific marketing strategy. You can create it yourself, but this will not guarantee a positive result in the future.
To accomplish this task, you need to use the support of professional advertising studios. They will independently develop all the necessary advertising, as well as ensure that it fully complies with the requirements set out in advance.
In order to actively receive additional income, it is necessary from time to time to expand the list of services and increase the range of the company as a whole. One of the most profitable activities of funeral homes is the production of funeral accessories on the basis of their own enterprise.
It is necessary to first find specialists to work with wood and other materials, purchase equipment and allocate funds for wages employees.
Profitability is achieved through potential customers who do not have to additionally run around looking for all necessary goods because you already have them in stock. As a rule, only those who have an existing business that has long been a “plus” decide to take such a step.
By observing all the requirements outlined above, you can create a sustainable and efficient business capable of consistently making a profit. The main thing is to constantly monitor its development, and, if necessary, make appropriate adjustments. An interesting solution would be the discovery, which does not require big investments if opened as a franchise.
Can a business by .
MS Word Volume: 28 pagesBusiness plan
Reviews (45)
We offer a business plan for the funeral business, because sooner or later each of us is faced with the need to see off relatives and friends on their last journey, so the case is promising. At such moments, relatives want the appropriate companies to take care of their worries and troubles, ritual agencies that will help dress the deceased on their last journey, arrange a funeral dinner, be able to provide transport to go to the cemetery and take care of all the ritual chores.
In this document on the organization of funeral services, you will find calculations of the cost of funeral paraphernalia: coffins, monuments, clothes for the dead, and also read the section that indicates the cost of making monuments, engraving inscriptions, organizing funeral dinners and other services. For large cities, the services of a crematorium are in demand; this ceremony differs from the traditional one familiar to many residents. This business is stable, because almost always relatives and friends of the deceased want to pay respect to the dead, as well as commemorate them according to folk customs.
Having studied the information on starting a funeral home, you will be able to decide on certain points of this entrepreneurial business, understand the nuances, along with the costs. Such companies should employ sensitive people who continue to do their job professionally, despite the fact that every day they face human grief, they give a part of their soul to those who mourn for the dead. Therefore, you should think about the careful selection of personnel for your company, and then funeral services will be able to satisfy relatives and friends who are faced with an irretrievable loss.
People are born and die, regardless of the state of the economy in the country, regardless of any political problems. And if the business is related to the provision of funeral services, you can be sure that these services will always be in demand. The profitability of this type of business is relatively low, and does not exceed 20%. But with a competent organization, it is quite possible to count on a stable income.
The opening of a funeral agency does not require licenses, which contributed to the active development of this business. Ritual firms have recently bred with great speed, but the quality of services in them does not always meet the client's expectations.
The chance to survive in the conditions of the highest competition is available only to businessmen who will be able to earn an impeccable reputation due to the high level of service. Moreover, the initial investment at the first stage is minimal: after all, transport, an orchestra, and even premises for a farewell hall - all this can be rented.
Having decided to open their own business - a funeral services agency - entrepreneurs sometimes do not imagine what difficulties they will have to face. And there are many of them, and, first of all, this is a lack of customers. And the problem is not that people began to die less often, there are simply so many funeral companies that the struggle for a client sometimes turns into a main task for an entrepreneur. But even if a person decides to contact your agency, there is no guarantee that the order is in your pocket. A potential client must be retained by offering him the most favorable conditions.
Despite the fact that people are interested in the quality organization of the funeral, few are willing to pay significant amounts for these services. Therefore, a businessman has to focus on average check at 15-20 thousand rubles. But such a profit is unlikely to allow the entrepreneur to make ends meet. For this reason, many businessmen are trying to expand the range of services provided, develop their business, for example, they are thinking about how to establish the production of coffins, monuments, tombstones. As a rule, this pays off, as customers are attracted by the opportunity not to contact other companies.
The main difficulty in this type of business is the advertising of ritual services. By promoting their agency, using illegal methods of searching for information about the dead, entrepreneurs risk complicating relations with law enforcement agencies. The specifics of the funeral business is such that the owners of ritual agencies often walk on the edge of a knife, trying to survive in a highly competitive environment. And if you have a desire to avoid serious problems, you cannot do without a competent funeral services business plan, which describes in detail all the stages of creating your own funeral services company.
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