Starting a funeral home from scratch can be an incredibly daunting task. Not only do you have to worry about all the logistics of setting up and running a funeral business, but you also have to compete with well-established funeral homes that may have been in business for many years.
We explore the pros and cons of starting from scratch or buying into a franchise model.
Starting from Scratch vs. Buying Into a Franchise
When it comes to starting a funeral home, there are two main options: starting from scratch or buying into a funeral home franchise.
There are pros and cons to both options, but here we will focus on the differences between them. If you start from scratch, you are on your own. It’s up to you to invent the wheel. With a franchise, the wheel is already invented. Essentially, someone else already established the infrastructure.
Funeral Franchise Pros
The funeral industry is ripe with franchise opportunities. Some of the most well-known funeral franchises include Dignity Memorial. Funeral Franchises provide entrepreneurs with a few key advantages:
Start with a Known Brand
When you buy into a funeral franchise, start with a brand that is already known and has a good reputation. This can be helpful in funeral pre-planning sales because people are more likely to trust a brand they know.
Another significant advantage of funeral franchises is that you have built-in support. This can come from training, marketing, and even day-to-day operations. This is helpful because it takes a lot of the guesswork out of starting a funeral home.
Many funeral franchises also come with built-in marketing plans. This means you don’t have to start from scratch when marketing your funeral home. These funeral marketing plans can help get your funeral home off the ground.
Funeral Franchise Cons
Of course, there are also some potential disadvantages to funeral franchises. These include:
One of the most significant disadvantages of funeral franchises is that they can be costly. The initial franchise fee can be tens of thousands of dollars, and you will also have to pay ongoing royalties to the franchisor. This can eat into your profits and make it difficult to turn a profit.
Potential Operational Issues
Another potential downside of funeral franchises is that you may have less control over day-to-day operations. This can be an issue if you want to run your funeral home in a specific way.
Now that we’ve looked at the pros and cons of funeral franchises let’s look at the funeral industry as a whole.
Funeral Industry Outlook
The funeral industry has seen a lot of change in recent years. In particular, the rise of cremation has been a game-changer. Cremation now accounts for nearly 50% of all funeral services, and that number is only expected to rise.
The funeral industry is also an industry that is quite resistant to recessions. Funeral spending increases during economic downturns. This is because people are less likely to cut back on funeral expenses when they are grieving.
Start a Funeral Home Pros
If you are considering starting a funeral home, you should keep a few things in mind. First, the funeral industry is one that is ripe with opportunity. There are many funeral franchises to choose from, and the funeral industry is growing.
You can start from scratch too. The pros are:
- You have complete control
- No franchise fees or royalties
- You can be creative
Starting a Funeral Home Cons
There are some potential drawbacks to starting your funeral home from scratch as well. These include:
Difficult to Start
If you start your funeral home from scratch, you will be responsible for all aspects of the business. This includes marketing, funeral pre-planning sales, and day-to-day operations. This can be a lot to take on, and it may be challenging to get your funeral home off the ground.
Another potential downside of starting your funeral home from scratch is that you won’t have the same built-in support that you would if you bought into a funeral franchise. This means you may have to do things like funeral marketing and funeral pre-planning sales on your own.
Decide Between a Franchise and Starting on Your Own
There is no right or wrong answer when starting a funeral home. It really depends on what you are looking for and what you are comfortable with. For example, if you want complete control of your funeral home, then starting from scratch may be the best option for you. But if you are looking for built-in support, a funeral franchise may be a better fit.
No matter which route you choose, the funeral industry is full of opportunity.