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The ritual business is very specific and not suitable for every aspiring entrepreneur. For those who have developed a philosophical concept of life and death, the creation of a project in the field of organizing a funeral will be an excellent opportunity to earn money. To successfully implement the idea, you will need not only start-up capital, but also a well-thought-out funeral home business plan with calculations.
The investor's goal is to open a funeral agency in a city with a population of over 200,000. Tasks - to help clients with dignity to send their deceased relatives on their last journey. What funeral services does the company provide:
Premises with an area of 100 m2 will be rented. The ideal location is in a residential area of the city, preferably near a clinical hospital. The staff of the funeral services company at the initial stage includes 4 vacancies - 2 managers, 2 sales consultants. The position of the director will be taken by the organizer of the project.
Selected organizational form- individual entrepreneur, taxation system - simplified taxation system, desired rate - 6% of income. The amount of investment in the project is 736,000 rubles. The main part of the budget is allocated for the purchase of samples for window dressing and the formation of an assortment of mourning paraphernalia.
Hundreds of people die every day in large cities of Russia, so ritual agencies always have work. True, the competition in this area is very high. There is a real battle on the market for information about every deceased person. This must be taken into account when organizing a business. In addition, according to statistics, the mortality rate in Russia decreased slightly over the period from 2007 to 2017.
In total, in our country there are approximately 8,000 companies involved in organizing and servicing funerals. Only a quarter of them are specialized services created under the administrations municipal institutions... Most of the funeral services are provided by private companies. Their number increased dramatically in 2012, when the licensing of the funeral business was canceled.
Reference. The annual turnover of the legal market for funeral services is about 60 billion rubles.
The ritual business in Russia is not an easy-to-implement and highly profitable project. It has many disadvantages:
The advantages of the project include the stability of demand for the services of funeral agencies. Even if there are few clients, their flow will remain approximately at the same level - after all, people die every day. Another plus is that there is no need to obtain a license.
Attention! The specificity of this business is such that in order to achieve success, its owner needs to possess certain qualities - composure, patience, the ability to negotiate not only with customers of services, but also with administrative employees of mortuaries, hospitals, and social services.
Before opening a funeral business, a future entrepreneur will have to study the situation on local market, draw up a portrait of the target audience and evaluate the negative factors that may affect the development of the project.
Customers of the agency's services are close relatives of the deceased. The target audience is scattered and heterogeneous - people of different ages with middle and low incomes. They are united by the grief of loss. Funeral home clients are under stress and need support. The task of the company's employees is to establish contact with them and to simplify the process of preparing for burial as much as possible.
Having made the decision to open a funeral agency, it is worth conducting a competitor analysis in the city. These are already operating ritual agencies that have managed to develop an extensive client base. It is important to find out:
The collected information will help the future entrepreneur avoid common mistakes of competitors and use their advantages to the maximum benefit.
Opening a funeral home is not difficult. It all starts with the legalization of activities. Then you have to start looking for premises, arranging it and recruiting personnel. One of the important aspects of the work is establishing contacts with suppliers of ritual paraphernalia.
For an agency of funeral services, the organizational form of an individual entrepreneur is suitable. Registration takes place at the tax office at the place of registration. You will need the following documents:
To switch to a simplified taxation system, you need to notify the inspector by filling out an application. The recommended deduction rate is 6% of the income received.
When registering, you must indicate in the application OKVED codes, allowing to conduct activities related to the organization of funerals. Main group - 96 "Activities for the provision of other personal services." Additional code - 96.03 "Organization of funerals and provision of related services."
Attention! The OKVED code 96.03 includes not only the conduct of activities for the provision of funeral services, cremation, the sale of burial places, the maintenance of graves and the preparation of the bodies of the deceased for burial. By choosing this code, an entrepreneur can also be engaged in the construction of crypts, making wreaths, drawing portraits and inscriptions on monuments.
Within 3 working days, the applicant will be assigned the status of an entrepreneur. Licensing of activities related to the organization of funerals is not required.
To run a business, you will need a space of 100 m2, located in a residential area. Neighborhood with hospitals and cemeteries is preferred. The proposed business plan does not provide for the presence of a farewell hall and your own morgue.
To demonstrate samples of funerary attributes - coffins, wreaths, fabrics, an area of 100 m2 is sufficient. Part of the premises is allocated for an office. One of the main requirements is the availability of parking, because the majority of customers come by car.
The office needs to be decorated in calm colors and equipped with tables for the manager and managers, a sofa for clients. You will also need office equipment - a printer, copier, laptop, router. Several display cases can be installed in the showroom for small mourning attributes. Samples of coffins, monuments, and wreaths are placed on the remaining square.
At the initial stage, it is not necessary to have your own hearse and other transport. To transport the deceased and his relatives, you can order buses and cars from third-party companies. It is worthwhile to agree in advance with the drivers on cooperation on favorable terms. This is how young companies usually work.
Reference. If you plan to make wreaths and other paraphernalia in parallel, you will have to allocate part of the budget for tools and the purchase of raw materials. In this case, you will also need a small room for a workshop.
This is the most important part of an organizational plan. An entrepreneur needs to find manufacturers of coffins, wreaths, monuments and fences. The main thing is to ensure uninterrupted delivery of products on time, because from the moment clients contact the ritual agency to the funeral, there is little time left - 1–3 days.
At first, the staff should include 2 managers who will receive calls, make appointments, invite clients to the showroom. Their responsibilities also include solving such issues:
You also need 2 sales assistants. It is better to hire women between the ages of 28 and 40 for this vacancy. They should be well versed in the range of goods and possess such qualities as stress resistance, poise, and communication skills. Sellers will have to communicate with grief-stricken people several times a day; tact is very important here. Managers and consultants work on a 2/2 or 3/3 schedule.
The management of the company rests with the organizer of the project. He is engaged in the promotion of services on the market, finding new business partners and human resources management. Accounting is outsourced.
Dishonest heads of funeral agencies are looking for clients in illegal ways. They get information about the deceased and call their relatives, offering their services. This practice is punishable, as it is associated with the leakage of data provided by employees of morgues, law enforcement agencies, hospitals.
Effective methods of promoting a funeral home on the market:
Attention! A good reputation is the most effective way to attract clients; many people turn to the bureau on the recommendation of their friends, neighbors and acquaintances.
Over time, it is worth creating an agency website where people will find information about products, services and prices. The development and promotion of an Internet resource will cost an entrepreneur 50,000 rubles.
Evaluation of the effectiveness of the project is carried out at the stage of developing a business plan. The financial section contains accurate data on the costs of starting, maintaining and developing a business, as well as expected income. On their basis, the payback period and the profitability of the business are determined.
To organize a funeral business, you have to spend money on:
Total: 735 800 rubles.
Monthly expenses include:
Total: 203,000 plus tax.
A small funeral home, which does not manufacture coffins, monuments, wreaths and does not have at its disposal vehicles for transporting the deceased, earns by selling goods at a premium. Another source of income is a percentage of the transfer of orders to carpenters, diggers, canteens, restaurants. The amount of remuneration for such cooperation rarely exceeds 30% of the order amount.
The average cost of organizing a funeral is 20,000-25,000 rubles, of which the agency takes 6,000-7,000. The markup for merchandise is 80-100%. The size of the average monthly revenue depends on the number of customer calls. Thus, the organization of 40 funerals per month will bring income in the amount of 280,000. Add to this the proceeds from the sale of paraphernalia, which will amount to about 50,000 rubles. The total amount is 330,000.
The business investment will pay off in 10-12 months, since the flow of clients will be weak in the first months of operation. It is necessary to reach the planned level of sales by the end of the 1st quarter and constantly work to promote their services in the local market. In a year, you should think about expanding - to acquire your own transport for transporting the deceased or organize the production of coffins, which will allow you to get more profit in the future.
The funeral business cannot be classified as a fast-payback and highly profitable type of activity. The development of the project is influenced by high competition in this area. The winners are mainly those companies that have managed to organize their own production of monuments, tombs, fences. To reach this level, large financial investments are required.
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Funeral services business plan
MassemMassem, thank you for your informative response. In today's market, it is more difficult to start not only a funeral services business, but any other business as well. Due to the fact that the market is overflowing with goods and services. Therefore, beginning businessmen require many times more effort and ingenuity than in the 90s. We wish you the best of luck.
Funeral services business plan
AlexanderAlexander, thank you for your response. Funeral services are a very delicate business, because you do not just work with people. People in grief and suffering turn to you. Here, the probability of attracting regular customers is low and competition is high. Therefore, an honest name becomes the basis of business. We wish you success in your business.
Funeral services business plan
ArkadyArkady, we are glad that you managed to avoid serious problems, guided by our business plan. The advice of professionals really allows you to more effectively cope with difficulties, which is what happened in your case. I wish you success!
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 associated with 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. Funeral firms have recently sprung up at a tremendous speed, but the quality of services in them does not always correspond to the expectations of the client.
Only businessmen who will be able to earn an impeccable reputation due to the high level of service have a chance to survive in the conditions of the highest competition. Moreover, the initial investments at the first stage are minimal: after all, transport, an orchestra, and even premises for a farewell hall - all this can be rented.
In the fight for the client.
Having decided to open their own business - a funeral services agency - entrepreneurs sometimes do not realize what difficulties they will have to face. And there are many of them, and, first of all, there is a shortage of clients. And the problem is not that people began to die less often, there are just so many funeral companies that the struggle for a client sometimes turns into the main task for an entrepreneur. But even if a person decided to contact your agency, there is no guarantee that the order is in your pocket. Potential client must be retained by offering him the most favorable conditions.
Despite the fact that people are interested in a quality funeral organization, few are willing to pay significant sums for these services. Therefore, a businessman has to be guided by an average check of 15-20 thousand rubles. But such a profit is unlikely to allow an entrepreneur to make ends meet. For this reason, many businessmen are trying to expand the range of services provided, develop business, for example, think about how to organize the production of coffins, monuments, gravestones. This usually pays off, as customers are attracted by the opportunity not to go to other companies.
The main difficulty in this type of business is advertising of funeral services. By promoting their agency, using illegal methods of searching for information about the dead, entrepreneurs run the risk of complicating relations with law enforcement agencies. The specificity of the funeral business is such that the owners of funeral 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 business plan for funeral services, which describes in detail all stages of creation own firm for the provision of funeral services.
We offer a business plan for a ritual business, because sooner or later each of us is faced with the fact that it is necessary to see off relatives and friends on their last journey, so this business is promising. At such moments, relatives want their cares and worries to be taken over by the appropriate companies, ritual agencies that will help to decorate the deceased on the last journey, agree on a memorial dinner, be able to provide transport to go to the cemetery and take on all the ritual chores.
In this document on the organization of funeral services, you will find calculations of the cost of paraphernalia for a funeral: coffins, monuments, clothes for the deceased, and also read the section that indicates the cost of work on the manufacture of monuments, engraving inscriptions, organizing funeral dinners and other services. For big cities, the services of a crematorium are in demand; this ceremony differs from the traditional one that is customary for many residents. This business is stable, because almost always the relatives and friends of the deceased want to pay respect to the deceased, as well as commemorate them according to folk customs.
Having studied the information on creating a funeral home, you can determine certain aspects of this entrepreneurial business, understand the nuances, along with the costs. Such companies should employ empathetic people who continue to do their job professionally, despite the fact that every day they face human grief, they give part of their soul to those who grieve for the dead. Therefore, you should think about careful selection of personnel for your company and then funeral services can satisfy relatives and friends who are faced with an irreparable loss.
In stock Funeral services business plan 5 13Unfortunately, no one has yet come up with a recipe for the elixir of eternal life. Sooner or later, people die, so the income of organizations that provide funeral services is stable. A well-established ritual business can bring a pretty good income. First of all, you should evaluate your strengths and attitude towards the issue of providing this type of service. Many people seriously believe that this type of business is unethical. But the need for funeral services is dictated by life itself. Without ritual services, people would have had a much harder time, since in a moment of despair, when death overtakes loved one, thinking about organizing a funeral is unrealistic.
So, if your prejudices about the provision of this type of service have been successfully dispelled, you can go to the main part of the article - detailed business plan a standard funeral service bureau.
Until 2004, the provision of funeral services was considered a licensed activity, however, in currently control over the activities of the funeral bureaus is only of a notification nature. Practically anyone can engage in ritual services today. At the same time, at the initial stage, you do not need to worry about the farewell hall and about transport. All this can be rented. The biggest challenge for funeral home owners is “finding the dead”. The procedure for finding the deceased is complicated by the fact that holding a funeral can actually be called a one-time service. In other words, you won't build up a customer base over time.
The lowest segment of the ritual market is funerals with a minimum set of services. The average cost of such a funeral will be approximately 15,000 rubles. A cheap funeral will keep your business from growing. The presence of many orders with a minimum package of services will only keep you afloat. Therefore, the only way to expand this activity is to diversify services. Funeral agencies can provide the following types of services:
After drawing up a detailed list of the services provided, you will need to search for premises where the office of your agency will be located.
The room should be located in a place with good transport links. As for the area of the premises, it directly depends on the list of services provided. For a funeral bureau providing a number of additional services, the premises should be divided into four separate rooms:
Also, in addition to the office, there should be a parking lot, where there are several buses for transporting relatives and hearses.
In this type of service, the competition is very strong, so it will be quite difficult to get promoted without a solid advertising budget. Choose a name that matches the activity, but don't use any names. Please note advertising campaign should be unobtrusive. It is enough to place a few advertisements in local newspapers and on the Internet. In addition to advertising, to organize a people search system, your business plan needs to include a budget for contracting with hospitals and ambulance services that will provide you with information about potential clients.
Be very responsible when choosing employees of your agency. Funeral agency staff need to be able to communicate properly with people. One of the main criteria for personnel selection is psychological stability, as visitors are usually very irritable and sometimes react inadequately to completely harmless little things. One of the most important members of the funeral home is the person in charge of the phone calls. Given the peculiarity of this situation, it is better to hire a girl with a quiet, pleasant and calm voice to handle phone calls, who can understand the needs of the customer and accept his grief.
The second most important worker will be the funeral agent, whose job is to visit clients to determine the list of services. Death certificates should be handled by an experienced lawyer. If the body of the deceased needs to be brought into the appropriate form, you will need a make-up artist and balm. Also worry about finding orchestra workers, drivers, and handymen ahead of time.
To open a funeral home you will need a budget of 800,000 rubles.
The following are individually calculated and credited to the invoice in the form of an advance: car rental, priest's services, musical accompaniment.
The profitability of this kind of business is beyond doubt. The average monthly profit, subject to the provision of additional services and the sale of ritual attributes, will be approximately 400,000 rubles. With considering fixed costs, the net monthly income will be 150,000 rubles. Annual - RUB 1,800,000 The payback period of the ritual business, according to experts, is at least 6 months.
The field of ritual business is interesting to many. They will learn where to start, how to start from scratch and where to find a business plan. We have tried to answer all these questions.
The main advantage is the constant demand. All people are mortal, and their relatives try to send the deceased on their last journey as beautifully as possible. Therefore, they turn to ritual agencies that organize funerals.
Disadvantages should also be noted:
Like any other business, the ritual business has its own characteristics:
For funeral services, a business plan with calculations can be downloaded by.
Previously, a special license was required to start working in this area, but in 2004 this practice was abolished. From now on, you only need to notify the state about the start of your business.
At the first stages, you will need to register with a tax company - LLC. You can do it yourself or entrust it to special agencies. In the latter case, the cost of their services should be included in the business plan of the enterprise in advance.
It is recommended to immediately select a special taxation regime, since, otherwise, the general one is set by default, which will require careful accounting and may create additional difficulties in calculating taxes and profits.
The simplified system implies the payment of only one tax: either 6% of income, or from 5 to 15% of income minus expenses. The tax is paid on a quarterly basis, reporting - once a year. Another advantage of this scheme is that it allows you to reduce the cost of insurance. To switch to this form of taxation, you will need to notify the tax office. This must be done before the expiration of a month from the date of opening.
The second idea for a successful business is Single tax on sane income, but it is not available in all regions. This system involves the payment of a fixed amount depending on the scale of the business. For the transition, you will need to prepare documents for the tax office within 5 working days from the start of the business.
The first step is to choose a room. It should be located in such places so that, if necessary, you can quickly get to any point in the city. The room should be spacious enough - in addition to the reception area for clients, there should be a hall showing coffins, types of monuments, its own morgue and warehouse.
A separate seat must be found for the hearse if it is planned to be provided. It is important to remember that it is strictly forbidden to equip such halls in residential buildings and municipal government institutions. By law, farewell halls should be at least 50 meters away from buildings.
Important: to equip your own morgue will require a lot of additional permits, including papers from the Environmental Protection, Fire Inspectorate and the Urban Planning Committee. This is another aspect of how to open funeral services from scratch.
The scope and specific list of equipment depends on what additional services are planned to be provided. Moreover, for own production separate workshops will be required. For example: to work with photos after opening, you need a printer, PC and frames.
In the case of making monuments, things are a little more complicated. They will require metal pins, crushed stone, mixtures, fittings, expanded clay and much more.
An equipped carpentry shop will be able to deal with coffins, where you need to buy a set of tools for working with furniture and a special fabric. In some cases, it makes sense to prefer not a full production cycle, but only an assembly from components.
Separately, it should be noted the moment of equipment for the farewell hall. It should contain a coffin stand, several armchairs or chairs. It is important to think over the design of the room in advance, it is recommended to put up a reception desk, armchairs and chairs, a coffee table on which various magazines are laid out, as well as a price list.
So, to start the funeral agency you will need: a computer, tool kits for each workshop, a cash register, a scanner and a printer. Furniture is purchased without fail in quantities corresponding to the planned scale of work. If necessary, a car is bought or a lease agreement is concluded.
People who will work for you must be very tactful and polite in all circumstances.
Knowledge of psychology is very important, since they will have to communicate with inconsolable relatives, sometimes not quite adequately behaving due to the severity of the situation. Also, employees must be sellers, that is, they must be able to offer services. Today there is even a separate specialization - a funeral agent, which combines all the listed requirements.
The staff will not be limited to agents alone. You will need to hire consultants, administrators, drivers, sellers, morgue specialists, lawyers, makeup artists, balsamists. At first, it makes sense to limit the needs and hire only the main specialists, and send all the narrow tasks to third-party companies.
Depending on the mode of operation, the company may require two people for each position. Remember that it is very important to hire exceptionally mentally resilient employees in this area.
Among the main services it should be noted:
Finding clients in this area is quite problematic. Judging by the reviews, many agencies spend a lot of money looking for information about the deceased. Very often this implies the use of openly illegal actions and the leakage of secrets from government agencies.
If you use only legal means of promotion, then you should immediately abandon the classic catchy posters and advertisements... Instead, small notes should be given in the relevant sections of the local media. mass media, create a website and arrange its promotion on the Internet from A to Z.
Video: ritual business.
The main costs of starting a business can be summarized in the table:
Initial expenses amount to several million rubles. A considerable amount of money will be spent on monthly spending. That is why the business is not so in demand among beginners.
