Are you looking to start a funeral business? If so, do you have the capital to start a new small business in this economic climate? If you’re struggling to get the funds to begin the process of establishing your funeral home, then you may qualify for funeral home business loans. 

Our guide below will explain how you can begin operating a funeral business, how to create a funeral business plan, your financing options for this endeavor, and why business loans are extending to the funeral business. Keep reading to learn more! 

How to Start a Funeral Home Business 

If you want to learn how to start a funeral business, you’re in the right place! Below, we outline the steps you need to take to start a funeral home business.

  1. Produce a business plan (consider startup costs, name of the parlor, target market, and customer fees)
  2. Create a legal entity (determine company structure – partnership, sole proprietorship, etc.)
  3. Register for taxes and apply for EIN
  4. Open a bank account and credit card account for your business
  5. Develop an accounting system or hire accountants for your business
  6. Check to see what type of permits and state or local licenses you will need to open a funeral business
  7. Obtain business insurance such as general liability insurance
  8. Develop your brand, logo, and marketing strategy
  9. Design a business website
  10. Purchase and set up a phone system in your funeral home

Guide to Creating a Funeral Home Business Plan 

Our guide to developing a funeral home business plan involves the following factors.

  • Create an executive summary describing the value of your funeral home
  • Discuss the products and services of your business (include the separate rooms available for the funeral)
  • Outline your mission statement and overall vision
  • Describe the business structure, including goals and hierarchy of managers and employees
  • Outline the different job roles and responsibilities of each worker (such as funeral home director, mortician, administrative assistants, human resources professionals, etc.)
  • Conduct a SWOT analysis and assess the strengths and weaknesses of the business 
  • Use the SWOT analysis to define opportunities for promoting your business and identify potential risks 
  • Perform a market analysis and identify market trends and your target market

Is a Funeral Home Business Profitable? 

How much money do funeral homes make? Well, the entire funeral industry makes $17 billion in revenue, on average, per year. Furthermore, the median cost for a funeral is $7,360, and the average funeral home handles about 150 deaths or less every year.

A funeral home business makes its profits when providing the following services:

  • Moving the body to the funeral home
  • Embalming, dressing, grooming, and cosmetology
  • Selling the casket
  • Using the facility and professionals to plan a viewing and funeral ceremony
  • Using a hearse or another automobile
  • Memorial cards and register book along with any other printed pieces

In addition, funeral homes often charge a basic services fee. This fee is usually around $2,000. The average gross profit margin in the funeral sector is 62.5 percent. Furthermore, top-earning owners of funeral homes can make more than $92,000 per year. Clearly, the funeral home business is a profitable venture.

What are Funeral Business Loans Requirements? 

Requirements related to business loans for funeral business involve a variety of factors, such as specific documentation to apply for a loan. 

The most small business loan requirements involve business and personal tax returns, income statements, identification like a passport or driver’s license, commercial leases, personal and business bank statements, a balance sheet, and articles of incorporation.

Essentially, you will need to provide as many financial records as possible to your lender, and you will need to spend at least six months in business before you apply for a small business loan. Furthermore, you will surely need to have a good personal credit score to gain business loan approval.

Lastly, you’ll also need to outline the revenue and gross sales you’ve made running a small business as part of the standard funeral business loan requirements. 

Why Business Loans are Extending to the Funeral Business 

The funeral home industry is slowly growing, and business loans are steadily increasing for this sector. Business loans are extending to the funeral business profitable, as funeral homes do have a gross profit margin of 62.5 percent. 

Essentially, this shows lenders that funeral homes are profitable, and they’ll likely have the loan paid off with interest in the required period of time. Essentially, the funeral home industry is expected to have a growth in revenue due to the coronavirus pandemic. 

Over the next five years (from 2021 to 2026), the funeral industry is predicted to rise in revenue on a marginal level. The older baby boomer population is expected to lead to growth in this industry as well. 

Financing Options to Support Your Funeral Business in 2022

Opening a funeral home is not a simple process and can be very costly. It may cost you anywhere from $150,000 to $300,000 to operate a funeral home.

If you have a chunk of this money already set aside, you might still need to qualify for a $50k business loan to run a mortuary. Luckily, there are four options you can pursue to obtain a $50,000 loan.

First, you can get a conventional loan, but you will have to provide an extensive amount of proof to the lender if you go this route. You can also choose to get a small business association loan or a business line of credit. 

You may consider getting an alternative lender instead of a bank. An online lender is similar to a bank but has expertise in lending funds to businesses. These four financing options are excellent for supporting your funeral home business in 2022.


When opening up a new funeral home, you will need to take the necessary steps to create a business plan and determine how much funding is necessary to run this business. With the funeral industry growing stronger, business loans are increasing for this sector. 

If you need extra funds to start a mortuary, contact a bank or online lender for a business loan.

About the Author, Madison Taylor

Madison Taylor is the Brand Ambassador at ROK Financial. She is responsible for raising brand awareness and business relationships with business owners across the country. Madison loves that she plays a small role in getting Business Back To Business Through Simple Business Financing and looks forward to hearing what you think about the blogs she creates! Madison has been working in the financial space for six years, and loves it! When she is not at work, you will find her at home learning a new recipe to test out on her family or going on new adventures with her friends.