How to Start a Crematorium

Part 1 - How to start a Crematorium business - Background

As an alternative to the traditional casket funeral services, many consumers are choosing cremation for themselves or loved ones. Cremation offers families options on the final resting place and reduces funeral costs considerably.

Our guide is in 3 parts:

• Part 1 - How to start a Crematorium business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a crematorium?

Crematoriums need an initial investment for a building and equipment, but can often recoup their initial investment fairly quickly. Budget between $100,000 and $250,000 to start, depending on the location and cremation services offered. Animal cremation furnaces are considerably less than ones for human remains, due to industry standards. The two, by law, cannot be used for other than their intended purposes.

Consider these items in your initial budget:

• Industrial property lease or purchase

• Furnace and fuel equipment

• Staffing

• Business insurance – work with an experienced professional and inquire about both business and liability insurance

• Transportation/delivery vehicle(s)

• Certifications and licensing

• Marketing – if this isn’t your strong suit, consider seeking help from an advertising agency or inbound marketer

If franchising is an option, your initial investment could be estimated between $20,000 and $50,000. The initial investment is less, but so is your earning potential. You will pay a percentage to the parent company for equipment and advertising.

What are the ongoing expenses for a crematorium?

Monthly expenses will fluctuate. Approximate $10,000 – $15,000 per month, depending on the amount of cremations performed.

• Fuel expenses – between $15-$35 per cremation

• Property lease/rent- $1,500 to $4,000 per month

• Furnace maintenance and servicing – $400

• Payroll and taxes – $7,500

• Marketing $150/month

Who is the target market?

Your clients will often consist of other funeral homes, who are using your facility and equipment. Many established funeral homes are not equipped for cremations on site and must turn to an outside service. In some cases, a crematorium will operate independently and will see customers directly.

How does a crematorium make money?

Cremation businesses make money off of each cremation they perform.

How much can you charge customers?

Prices will vary somewhat, depending on the amount of fuel used and any special circumstances. Typical costs for a cremation service range between $1,000 and $2,500.

How much profit can a crematorium make?

Currently, the cremation business is on the rise. It is estimated that it is a $3-$5 billion industry, and growing. Salaries for crematorium executives average around $60,000.

How can you make your business more profitable?

Because cremation renders the remains to ashes, numerous products or services have sprung up around this industry. Offer some of the services as alternative revenue sources.

• Wearable remains – The ashes are sealed into glass pendants, paperweights of commemorative bowls.

• Plantable remains – Ashes are used in the germination and growth of plant or tree seeds.

• Launch your ashes into space

• Create an artificial reef structure with the ashes.

• Carbon free cremation – The cremation process uses alkali hydrolysis to break down the body, instead of fire.

Day-to-Day and Growth

What happens during a typical day at a crematorium?

A cremation business owner will fall into an established routine, with the occasional deviation in schedule.

Day-to-day activities will consist of:

• Scheduling cremation services

• Networking and communicating with funeral homes

• Marketing for your customer base

• Scheduling routine maintenance on building and equipment

• Researching your industry and emerging trends, equipment, and techniques

• Scheduling and training staff

• Handling various administrative duties

• Complying with safety procedures

What are some skills and experiences that will help you build a successful crematorium?

Compassion and strong communication skills, both with customers and other funeral service businesses is necessary. Being personable and professional in this business is also critical. Attention to detail and strong business acumen will also be an asset. For cremation certification, following industry trends, and ongoing enterprise support, the International Cemetery, Cremation, and Funeral Association and Cremation Association of North America offer significant resources.

What is the growth potential for a crematorium?

The crematorium industry is rapidly expanding and becoming increasingly profitable. Numerous families and individuals are making the choice to cremate, as opposed to the traditional funeral procedures and cost. Many pet owners are also choosing to cremate, which adds another facet to the industry.

What are some insider tips for jump starting a crematorium?

This industry is rapidly becoming a popular choice for entrepreneurs. Therefore, it’s important to consider the advice of those that have paved the path for you:

• Research the competition and saturation levels, in your region, prior to opening a business.

• Develop a relationship with the funeral home directors in your area. Networking is your greatest asset.

• Create a business plan before investing / finding investors and follow your plan. Carefully consider all of the costs associated with this kind of start-up.

• Talk with successful and established cremation owners you’re not in competition with. What worked for them?

How and when to build a team

You may not need a very large team for this business, especially initially. Over time, look for reliable and level-headed people to join your business. As with all employees, yours will represent your company and reputation. Persons with experience in the medical field or patient care are sometimes good fits, as they often have the right temperament.

Part 2 - Is a Crematorium business the right fit for you?

Part 3 - Action plan to launch your Crematorium business in 90 days