Business Setup and Operations
Cremation businesses provide goods and services, making money from each cremation which costs between $1,000 and $2,500 depending on fuel used and circumstances. Ashes are sealed in pendants, paperweights, and memorial bowls. You’ll need a location, equipment, and a team up to industry standards. Seek advice if unsure. The cremation rate continues rising in the US, surpassing 50% in 2016, creating opportunity to enter this estimated $3-$5 billion industry. Define your brand. Set up accounting, get permits, licenses and insurance. Opening requires large capital or investors. Entrepreneurs try less expensive niches like pet crematoriums since Russian law prohibits pet burial. In South Africa, a furnace costs R1,5 million and you need two to run a profitable business. It can cost R600,000 to R3 million to open a funeral parlour depending on location and company. The sources and uses table shows where capital comes from and how it gets spent, highlighting starting cash position which is key as sufficient funding is needed until break-even.
Certification and Compliance
When operating a crematorium, you do not need special certification. All you need is formal training on operating crematory machines and running the business. If you come across any helpful certification, pursue it. The Cremation Association has resources that will be invaluable to your new business.
Legal and Financial Aspects
Get information on regulations, laws, permits, and licenses you need to open a crematorium. Seek advice from professionals or other business owners if you have questions. Opening a crematorium requires large start-up capital or investors. Entrepreneurs are trying less expensive niches like a crematorium for pets. This is promising as Russian law prohibits pet burial. The cost to set up a crematorium in South Africa is R7 million. A furnace costs R1,5 million, and you need two to run a profitable business.
Capital Allocation and Management
The sources and uses table shows where capital will come from and how it will be spent. It also highlights the starting cash position, which is key as the business needs sufficient funding until break-even.