What do you need to open funeral services. How to open a funeral business or How does a funeral home earn? Office opening procedure

07.08.2020

To organize a funeral quickly, taking into account all the details and paperwork, the easiest way is to contact a funeral agency. There are specialists who know exactly the procedure, they will offer to organize a memorial dinner, book a place in the cemetery, take relatives, pick up the coffin and wreaths, and prepare the body of the deceased. This is the opinion formed by ordinary people who, in grief, turn to professionals for help.

And if you look at the situation from the other side, is it so difficult to organize a funeral business? And how soon can you earn money? If these questions are of interest to you, then you will be interested in familiarizing yourself with the business plan of a standard funeral home. Starting investments will amount to 1,920,000 rubles. It is planned to receive these funds on credit. Full payback of the business is expected within 24 months. Payment of interest on the loan will be made from the first month of work. Repayment of credit funds will also be paid monthly from the moment of opening. During this time, the business will reach a stable level and will be profitable.

Possible risks

When planning the organization of your agency, you should not focus on the economy option. The most budgetary burial will cost around 6-8 thousand rubles. This amount includes a minimum range of services. Such a plan of action will lead to a minimum profit that will allow you to pay salaries to a few employees, rent and will not allow the business to grow in the future.
When recruiting staff, special attention will need to be paid to mental stability and the ability to communicate with inadequate clients. People who have lost loved ones or relatives behave somewhat unusually and require special attention. If the staff is not selected correctly or not trained, there will be a turnover of staff, which in the end will have a bad effect on the activity.

A business will be able to make a profit if customers are offered Additional services, such as the manufacture of monuments, wreaths, coffins, photographs, memorial dinners, etc. If, in the course of work, the bureau can independently provide the full range of these services, then there will be no need to turn to competitors. Which will ultimately increase profits.

An interesting discussion of the realities of the funeral business in Russia can be viewed on the video:

Opening preparation plan

Preparations for the opening can take from one to two months. During this time it is necessary to solve financial, organizational and personnel issues.

You need to start with . You can choose the form (simplified taxation system) with an interest rate of 6% of the annual profit. By registering with the state registrar, becoming registered with the tax office and reporting your activities to the administration, you can begin activities. It should be noted that LLC entity must have company letterhead and seals. Without them, it will be impossible to conclude a contract with a client.

№	Name of the event	Deadline (number of days)
1.	Entering into State Register, registration with the tax and administration	30
2.	Getting a loan	1-30
3.	Finding suitable premises, concluding a lease agreement	1-30
4.	Room design	40
5.	Search and training of personnel	45
6.	Procurement of equipment and consumables	30
7.	Equipment installation	10
8.	Carrying out a marketing campaign	20

Location selection

After the start of registration, it is worth starting the search for a suitable room. In a city with a population of about 700,000 inhabitants, it is better to look for a place near a cemetery or mortuary. If this segment is busy, pay attention to the central part of the city. Suitable detached building with an area of at least 200 square meters. m. In this space, it is necessary to equip an office, a showroom, a farewell hall for the deceased, a room for preparing the body.

The room must necessarily comply with sanitary and fire standards, must be equipped with communications, a good ventilation system. The building should be located at a distance of 50 m from residential buildings, hospitals, schools, kindergartens, etc.

It is convenient if there is a small parking lot nearby, which can accommodate customers' cars or a hearse.

Financial plan

It is planned that the bureau will provide funeral services and implementation own products such as coffins, wreaths and monuments. The average number of services rendered per month in a city with a population of 700,000 inhabitants will be within 100 units.

The cost of services provided in the second year of project implementation will be slightly higher than in the first year. This is due to the promotion of the enterprise, the expansion of the list of services, as well as the natural growth of market prices for consumables.

Project implementation time	Services list	Cost, rub.)	Number of services per month	Amount (rub.)
Summary for 2 years:				35 491 392
1 year	Funeral organization	8000	100	800 000
	Sale of funeral items	1000	100	100 000
Gross income for the year:				900 000*12=10 800 000
Income including taxes (6%)				10 152 000
2 year	Organization of funerals, provision of hearse services	10720	120	1 286 400
	Realization of coffins, monuments of own production	8000	120	960 000
Gross income for the year:				2 246 400*12=26 956 800
Income including taxes (6%)				25 339 392

Starting costs

To start a business, you need an amount of 1,920,000 rubles, which is planned to be spent on the purchase of equipment, rental of premises and other organizational activities:

Item of expenses	Quantity	Cost, rub.)
Total:		1 920 000
Room for rent 200 sq.m.	1 building	50 000
1 month rental deposit	-	50 000
Room design	2 rooms	400 000
Paperwork	-	10 000
Purchase of equipment	10 pieces.	1 370 000
	-	150 000
Website development, hosting payment	1 PC.	50 000
Purchasing a hearse	1 PC.	313 000
Payment for fuel	200 l	7000
other expenses	-	20 000

fixed costs

The loan repayment will be carried out from the first month of the bureau's work and will be the same for 24 months. The amount of the monthly contribution will be 101,512.51 rubles, 1,218,150.12 rubles will be paid for the year, and 2,436,300.24 rubles for two years. The interest overpayment will amount to 516,300.16 rubles.

Also, a constant cost item will be the payment of salaries to 10 employees, which, with insurance deductions, will amount to 390 thousand rubles. per month. Total for a year fixed costs will amount to 8,345.35 thousand rubles.

Item of expenses	Per month (rub.)	per year (rub.)	for 2 years (rub.)
Total:		8 345 350,12	16 683 700,24
Loan payment	101 512,51	1 218 150,12	2 436 300,24
Fund wages 10 employees	390 000	4 680 000	9 360 000
Including payroll insurance	103 350	1 240 200	2 480 400
Payment for the rent of the premises	50 000	600 000	1 200 000
Purchase of consumables	50 000	600 000	1 200 000
Acquisition of fuel and lubricants	7000	7000	7000

Equipment

It is planned that the bureau will provide the following services:

organization of the burial of the deceased;
production of wreaths;
preparing the body of the deceased for burial;
production of coffins (second year of work of the bureau);
provision of hearse services;
digging a grave and erecting a monument;
organization of musical accompaniment and memorial dinner.

Services such as a memorial dinner and the work of musicians will be paid for under a contract for work performed. The production of coffins is planned to be established in the second year of operation, wreaths will be made from the first year.

1,370,000 rubles will be spent on the purchase of furniture and special equipment.

For the production of wreaths, it will be necessary to purchase the following equipment:

marking machine;
winding machine;
irons;
scissors, needles, awl.

The list of standard equipment will include office furniture, air conditioners, tables, bayonet shovels. It is also planned to purchase their own hearse. Bus rental will be paid separately and included in total amount order.

To organize a workshop for the production of coffins, it will be necessary to buy carpentry tools and agree on the supply of materials.

In the case of expanding the business, it will be necessary to rent another room to organize a workshop for the manufacture of monuments and tombstones. This option is possible after reaching self-sufficiency and two years of profitable work of the bureau. The purchase of specialized equipment for the manufacture of granite and concrete monuments will be quite expensive.

Personnel

Recruitment will be carried out without the involvement of specialists. The staff will include 10 people:

account Manager;
lawyer;
accountant;
handymen - 4 people;
driver;
a carpenter;
turner.

The salary fund per month will amount to 390 thousand rubles.

Project Summary

Starting expenses amounted to 1,920,000 rubles and were received under a loan at 24% per annum. Within two years, the loan will be repaid and in total with interest will amount to 2,436,300.24. The repayment of the loan is included in fixed monthly expenses, which for two years amounted to 16,683,700.24 rubles. Total 18,603,700.24 rubles will be spent on organizing and running a business over 2 years.

Profit received within two years, including taxes, will amount to 35,491,392 rubles. Including all costs net profit for two years will be 16,887,691.76 rubles. This amount will allow expanding the Bureau's vehicle fleet, as well as acquiring new equipment for the manufacture of monuments.

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Reviews (5)

Funeral services business plan reviews (5)

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Funeral services business plan

Massem

simple points

Massem, thank you for your thoughtful response. In the modern market, it is more difficult to start not only a business of funeral services, but also any other business. Due to the fact that the market is overflowing with goods and services. Therefore, many times more efforts and ingenuity are required from novice businessmen than in the 90s. We wish you good luck.

Funeral services business plan

Alexander

Alexander, thank you for your response. Funeral services is a very delicate business, because you work not just with people. People turn to you in grief and suffering. There is a low chance of attracting regular customers and high competition. Therefore, an honest name becomes the basis of business. We wish you success in business.

Funeral services business plan

Arkady

Arkady, we are glad that you managed to avoid serious problems, guided by our business plan. The advice of professionals really allows you to cope with difficulties more effectively, which happened in your case. I wish you success!

The main thing about the business plan of funeral services

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 only for businessmen who will be able to earn an impeccable reputation thanks to high level 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.

Fighting for a client.

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. Potential client it is necessary to keep, 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 funeral 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.

A ready-made business plan for funeral services from scratch with examples of opening calculations

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.

AT 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.

In stock Funeral services business plan 5 13

One of the types of business that is considered “eternal” is funeral business, since people are mortal and will always remain in this sad quality. However, starting even such a seemingly a priori profitable business, it is necessary to draw up a clear business plan of action. It is based on the fact that the agency involved in the organization of the sad rite must conduct a tough competitive and not always ethical fight with several other organizations of a similar profile in their city.

Preparatory Steps

The funeral home is a very expensive business. At the same time, the plan for its opening and functioning should take into account the possible complete lack of profit in the early stages of formation. Therefore, before opening a funeral organization, you need to carefully consider what kind of services, in what quantity and quality, you plan to provide, creating a reputation for the company. And for this it is necessary to explore the local market in order to identify what exactly will be in demand.

The organizer of the funeral home must take into account that the relatives of the deceased, heartbroken, will not run around different companies in search of the necessary, which means that you need to think over the basic list of services provided. A possible list is presented in the table:

The business plan of the funeral services agency assumes that if the bureau is engaged only in this type of activity, large initial investments will not be required. However, as the list of services develops, it simply needs to be supplemented with new ones. Ideally, you need to master independent production coffins, tombstones and fences and other things. The funeral agency must provide services for dressing and processing the body, so it is advisable to have your own room for “working” with the bodies.

Office opening procedure

The business plan of the funeral company includes a description of the required premises. The main requirement is an area of at least 100 square meters. m., to be able to distinguish three departments. In addition to a room for working with customers (30 sq. m.), a trade and exhibition hall (50 sq. m.) and a mortuary (20 sq. m.) are needed. The business plan of the funeral services office prescribes that it is desirable to provide a room for the mortuary in a separate building.

The ideal location of the office is near the cemetery. But this place should have good transport accessibility. Successful business plan also takes into account the fact that today most of the cemeteries have been moved outside the city. In this case, it is rational to open a main office in the center and a small outlet near the cemetery.

Having chosen a place for a funeral services bureau, it is worth thinking about the legal form of the enterprise. For such a firm, lawyers recommend opening an LLC, and interacting with the tax office on the basis of the USN.

The nuances of recruiting

It is fundamentally wrong to think that the funeral business is "rough" enough to recruit qualified personnel. People working in the office should be able not only to help with the choice of a rather specific product, but also to be a kind of psychologists. After all, your customers will be people crushed by recent grief. In a number of large cities of the Russian Federation, schools of funeral directors began to open, so it is advisable to hire people who have been trained in such institutions.

In general, the recruitment plan should include the following specialists:

Since this business requires the maximum application of time and effort, the place of the director of the funeral agency is taken by the founder of the LLC. In addition to these specialists, there may be a need for the services of others (for example, drivers). But since they will not be in demand every day, it makes sense to establish links and conclude agreements with third-party specialized enterprises (car fleets, etc.).

Methods of finding clients and working with them

Let's make a reservation right away that most of them are quite expensive. Firstly, this is the conclusion of contracts with ambulance stations and hospitals. Secondly, work with the registry office. You can try to place on the information desks of hospitals or stick up near the cemeteries and "regular" announcements. Clients will be referred to you by employees of organizations recording the fact of death. Such a search for clients will save your company from the reputation of an “intrusive office”, and your agents from ethical qualms when they are forced to walk around apartments on their own and offer citizens to “buy” funeral services.

Of course, a good profit can be obtained only if a number of conditions are met, the most important of which is the constant expansion of the range of goods and services offered. It is worth paying attention to such a direction as funeral paraphernalia. Making it yourself is quite expensive, but do not forget that 70% of your customers will want to buy everything they need for a turnkey funeral in one place. Therefore, the profit, if you can provide such services to the client, will increase several times.

High-margin activities

These in the funeral business include the manufacture of coffins and ritual textiles. Both require the presence of specialists in the state and are quite expensive. But given that, in fact, the main funeral attributes are produced, expansion in this direction is quite justified.

The coffin maker first prepares the base (fastens the planed boards), then decorates the surfaces with a fabric of red, blue or gold colors, after which he decorates the product. The cost of a coffin is largely determined by the type of wood, so the owner of the funeral home needs to find reliable suppliers of the right types of wood in advance.

A significant part of the price of the coffin is its decoration with cotton, silk or satin fittings. It makes sense to hire one professional designer to “finish” coffins, as well as to make mourning ribbons, wreaths, and flower baskets.

Ritual textiles are primarily understood as the clothes of the deceased. A specialist engaged in this area of the ritual business must know the peculiarities of culture and ritual traditions in order to fulfill the will of the relatives of the deceased as clearly as possible.

As noted above, the costs of entering a funeral business are quite high. Together with the registration of an LLC and the introduction of authorized capital, they can reach 1 million rubles. When providing a minimum set of services and, accordingly, a small estimated number of clients, the ratio of monthly expenses and income may look like this:

Expenses	Amount, rub.	Income	Amount, rub.
1. Rent of the head office and industrial premises + utilities	70000	1. Performance of funeral services by the staff of the organization	190000
2. Salary to the team, including bonuses and contributions to the Pension Fund	155000	2. Performance of ritual services by outside organizations (mediation)	75000
3. Taxes	26700	3. Sale of ritual supplies and accessories	180000
4. Purchase of equipment	60000
5. Purchase of materials	70000
6. Unforeseen expenses	8000

Thus, the net profit will be just over 55 thousand rubles per month. Accordingly, the payback period of the enterprise under the most favorable conditions will be one and a half years. On average, a funeral home pays for itself in 2-3 years.

Summing up, we note that not everyone can start a funeral business. In addition to a solid start-up investment and the need to overcome serious competition, it carries many ethical and aesthetic points that not every businessman can adequately respond to. Those who, having calculated their strength, began to act in this area, a good income, subject to investing the maximum of their strength, is guaranteed.