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How to Start a Cemetery Business

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Edited by:

Reviewed by: Daniel Javor

Updated on December 23, 2022

How to Start a Cemetery Business

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Fast Facts

Investment range

$79,550 - $244,100

Revenue potential

$100,000 - $300,000 p.a.

Time to build

3-6 months

Profit potential

$40,000 - $120,000 p.a.

Industry trend

Stable

Commitment

Flexible

How to Start a Cemetery Business

Death and taxes are inevitable, and nobody likes to think of either one. But just as taxes are a major opportunity for accountants and bookkeepers, death offers opportunity as well. Cemeteries play a key role in the grieving and closure process, as many people choose burial. You can start a cemetery and provide a peaceful final resting place for the departed while making good money. You’ll need to make an investment, but you’ll be doing something valuable for your community.

First, though, you need to understand the process of starting a business. Fortunately, this step-by-step guide details all the entrepreneurial insights you need to start a successful cemetery business.

Step 1: Decide if the Business Is Right for You

Pros and cons

Starting a cemetery has pros and cons to consider before deciding if it’s right for you.

Pros

  • Valuable Service – Cemeteries are in every community
  • Good Money – Plots sell for $1,000 or more
  • Constant Demand – Unfortunately, demand for cemeteries is constant

Cons

  • Defined Income – Land space limits the number of available plots
  • High Startup Costs – Land doesn’t come cheap
  • Zoning Issues – Need to ensure the land can be zoned for a cemetery

Cemetery industry trends

Industry size and growth

cemetery industry size and growth

Trends and challenges

Trends in the cemetery industry include:

  • Many cemeteries are becoming eco-friendly, with people choosing not to be embalmed and being buried in biodegradable caskets.
  • The trend in the US for people to choose cremation over burial is creating the opportunity for cemeteries to sell smaller plots for the burial of cremated remains.

Challenges in the cemetery industry include:

  • The increasing number of people who choose cremation and either scatter the ashes or keep the ashes in an urn is decreasing demand for burial plots.
  • Labor shortages are making it more difficult for cemeteries to hire workers for excavations and property maintenance. 
cemetery industry Trends and Challenges

How much does it cost to start a cemetery business?

Startup costs for a cemetery range from $80,000 to $250,000 or more. Costs include a down payment on the land, preparation of the land, and excavating equipment. You need at least one acre of land, which could hold about 1250 burial plots.

Start-up CostsBallpark RangeAverage
Setting up a business name and corporation$150 - $200$175
Business licenses and permits$100 - $300$200
Insurance$100-$300$200
Business cards and brochures$200 - $300$250
Website setup$1,000 - $3,000$2,000
Land down payment$40,000 - $120,000$80,000
Land preparation$30,000 - $100,000$65,000
Excavating equipment$8,000 - $20,000$14,000
Total$79,550 - $244,100$161,825

How much can you earn from a cemetery business?

The average price of a burial plot is $1,000. Your profit margin after mortgage payments, trust deposits, and property maintenance should be about 40%.

Trust deposits are a percentage of revenue that cemeteries must put in a trust so that money will be available to care for the cemetery after it’s full and no longer bringing in revenue. Many states require this trust, sometimes called a perpetual care trust fund. 

In your first year or two, you might sell 100 plots, bringing in $100,000 in annual revenue. This would mean $40,000 in profit, assuming that 40% margin. As your cemetery becomes more well-known, sales could climb to 300 units a year. With annual revenue of $300,000, you’d make an impressive profit of $120,000.

You could earn additional revenue by selling headstones and flowers for gravesites, but you’d need to build a cemetery office or store in order to do so, which would add to your startup costs. 

cemetery business earnings forecast

What barriers to entry are there?

There are a few barriers to entry for a cemetery. Your biggest challenges will be:

  • The high startup costs
  • Finding adequate land to be zoned and permitted as a cemetery
  • Getting proper licensing for your cemetery

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How to Start a Cemetery Business

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Step 2: Hone Your Idea

Now that you know what’s involved in starting a cemetery, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Why? Identify an opportunity

Research cemeteries in your area to examine their products and services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing an eco-friendly green cemetery or a cemetery with a memorial park. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as burial plots for cremated remains, or larger plots with space for grave monuments.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or service

You can offer plots for burials, cremated remains burials, or a combination of both, as well as monuments. You can also sell gravestones and flowers to bring in additional revenue. 

How much should you charge for burial plots?

Prices for burial plots vary by location, with an average of $1,000. Check prices in your area to make sure that you’re competitive. You should aim for a profit margin after all costs of about 40%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market could be anyone pre-planning their final resting place, or family members with a recently deceased relative. For the most part, your target market will be an older demographic, to which you could reach out on Facebook. You also may want to try to connect with funeral directors on LinkedIn. They may give you referrals. 

cemetery business idea rating

Step 3: Brainstorm a Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

  • Short, unique, and catchy names tend to stand out
  • Names that are easy to say and spell tend to do better 
  • Name should be relevant to your product or service offerings
  • Ask around — family, friends, colleagues, social media — for suggestions
  • Including keywords, such as “cemetery” or “burial grounds”, boosts SEO
  • Name should allow for expansion, for ex: “Jim’s Bakery” over “Jim’s Cookies”
  • Avoid location-based names that might hinder future expansion
  • Use online tools like the Step by Step Business Name Generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

  • Executive Summary: Brief overview of the entire business plan; should be written after the plan is complete.
  • Business Overview: Overview of the company, vision, mission, ownership, and corporate goals.
  • Product and Services: Describe your offerings in detail.
  • Market Analysis: Assess market trends such as variations in demand and prospects for growth, and do a SWOT analysis.
  • Competitive Analysis: Analyze main competitors, assessing their strengths and weaknesses, and create a list of the advantages of your services.
  • Sales and Marketing: Examine your companies’ unique selling propositions (USPs) and develop sales, marketing, and promotional strategies.
  • Management Team: Overview of management team, detailing their roles and professional background, along with a corporate hierarchy.
  • Operations Plan: Your company’s operational plan includes procurement, office location, key assets and equipment, and other logistical details.
  • Financial Plan: Three years of financial planning, including startup costs, break-even analysis, profit and loss estimates, cash flow, and balance sheet.
  • Appendix: Include any additional financial or business-related documents.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist at Fiverr to create a top-notch business plan for you.

what to include in a business plan

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to cemeteries. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your cemetery will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

  • Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
  • General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
  • Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
  • C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
  • S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using ZenBusiness’s online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.

types of business structures

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist, and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

  • Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
  • SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
  • Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
  • Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
  • Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
  • Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a cemetery business. You’ll need a mortgage loan for the land. 

Step 8: Apply for Licenses/Permits

Starting a cemetery business requires obtaining a number of licenses and permits from local, state, and federal governments.

Most states have their own Cemetery Care Act which governs the location, licensing, and requirements of cemeteries. You’ll need to familiarize yourself with the requirements of your state. 

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your cemetery business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

  • General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
  • Business Property: Provides coverage for your equipment and supplies.
  • Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
  • Worker’s compensation: Provides compensation to employees injured on the job.
  • Property: Covers your physical space, whether it is a cart, storefront, or office.
  • Commercial auto: Protection for your company-owned vehicle.
  • Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
  • Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.
types of business insurance

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as cims, EverArk, or Chronicle, to manage your plots, records, invoicing, and payments. 

Accounting

  • Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero
  • If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Marketing

Some of your business will come from the casual passerby or online visitors, but you should still invest in digital marketing! Getting the word out is especially important for new businesses, as it’ll boost customer and brand awareness. 

Once your website is up and running, link it to your social media accounts and vice versa. Social media is a great tool for promoting your business because you can create engaging posts that advertise your products: 

  • Facebook: Great platform for paid advertising, allows you to target specific demographics, like men under age 50 in the Cleveland area. 
  • Instagram: Same benefits as Facebook but with different target audiences.
  • Website: SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Buy Now.” This can sharply increase purchases. 
  • Google and Yelp: For businesses that rely on local clientele, getting listed on Yelp and Google My Business can be crucial to generating awareness and customers. 

Kickstart Marketing

Take advantage of your website, social media presence, and real-life activities to increase awareness of your offerings and build your brand. Some suggestions include: 

  • In-Person Sales – Offer your cemetery services to local funeral directors.
  • Email marketing/newsletter – Send regular emails to customers and prospects. Make them personal. 
  • Start a blog – Start a blog and post regularly. Change up your content and share on multiple sites.
  • Seek out referrals – Offer incentives to generate customer referrals to new clients. 
  • Paid ads on social media – Choose sites that will reach your target market and do targeted ads.
  • Payper-click marketing – Use Google AdWords to perform better in searches. Research your keywords first.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

You can create your own website using services like WordPress, Wix, or Squarespace. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your cemetery meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your cemetery business could be:

  • A peaceful green resting place for your loved ones
  • Eco-friendly burial grounds to rest in true peace 
  • Beautiful headstones and a serene setting in perpetuity 
unique selling proposition

Networking

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a cemetery business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in cemeteries for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in cemeteries. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

 Potential positions for a cemetery business include:

  • Cemetery Workers – excavations, grounds maintenance
  • General Manager – reserve plots, accounting
  • Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Start Making Money!

Cemeteries can be beautiful places of remembrance. By starting your own, you’ll be providing a valuable service to your community and could make good money at the same time. It’ll take a serious investment to get started, but it’s a fairly simple business model that offers a real opportunity for new entrepreneurs. 

You understand cemeteries as a business now, so you’re ready to create a serene resting place for your community and a steady income for yourself. 

Cemetery Business FAQs

How much does it cost to start a cemetery?

You can start a small cemetery for about $80,000. You need a down payment on the land, which must be zoned and permitted to be a cemetery, funds to prepare the land, and excavation equipment.

Is a cemetery profitable?

A cemetery is profitable, though it takes a while to recover the initial investment required. The profit is also only temporary since eventually, the cemetery will be full. It’s better to focus on the value you’ll be providing to your community, while looking to expand and add more land.

Do I need a license to start a cemetery?

Most states have their own Cemetery Care Act, which governs the location, licensing, and requirements of cemeteries. You’ll need to familiarize yourself with the requirements of your state. You also may need various business licenses and permits as the state and local levels. Check with your local governments for requirements or visit MyCorporation’s Business License Compliance page.

How does a cemetery make money after it’s full?

Obviously, you won’t be making any more money from selling plots, but you’ll still need to maintain the cemetery. Most states require that you put a certain percentage of the revenue into a trust so that funds will be available for that maintenance. To continue making money, you could still sell flowers or headstones to be used in other cemeteries. You could also buy additional plots of land and open new burial grounds.