Sample Business Plan on Funeral Home Business Plan
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EXECUTIVE SUMMARY
The Business Concept
ABC Funeral Home, Inc. the Company or the Funeral Home is a full service funeral home offering an array of services and specializations. The Company was founded by two business people, John Doe and Jane Doe who are highly trained licensed embalmers and restorative arts technicians. Both founders are respected professionals in the field, graduates of the American Academy of McAllister Institute of Funeral Directing and members of the National Board of Funeral Directors Association.
Jane Doe holds the positions of Secretary and Treasurer of the ABC Funeral Directors Association and is the Vice-President of ABC Monuments. John Doe is the President and Funeral Director of John Doe Funeral Services Inc. Using their combined knowledge, skills and abilities, Mr. Doe and Ms. Doe are committed to their customers’ needs and are dedicated to providing the community with an association of trustworthy, compassionate, forward-thinking, highly ethical funeral directors.
The funeral home offers a full menu of services from the sale of caskets and memorial accessories to providing traditional and non-traditional funeral, memorial and committal services to direct burials and cremations. It specializes in national as well as international shipping of human remains to all parts of the world including: Antigua, Barbados, Venezuela, Guatemala, Guyana, Haiti and the Philippines to name a few. The Company is located in Brooklyn, New York.
ABC Funeral Home, Inc. is driven by the passion of its responsive, young and innovative funeral directors who are dedicated to serve the community. The Funeral Home is willing to change in order to meet the needs of customer’s requests. The Company will offer a quality, dignified service with love at a competitive cost.
ABC Funeral Home, Inc. is seeking to buy an existing funeral home building. This will allow the Company to grow its business because not only will the owners bring their own clientele, but they will also receive the residual services from the previous building’s owners. The Company will continue growth by using the latest marketing technologies of the 21st century in mortuary science as well as displaying the individual artistic talents of its staff.
The Company’s anticipated location is in a growing and bustling area of CITY (123 STREET off of ABC Parkway – zip code 11111). Surrounding neighborhoods include ABC, XYZ, DEF, GHI and PPP. Out of the five boroughs of New York City, Brooklyn is New York City's most populous borough and if it were a separate city, it would be the fourth-largest city in the United States. Many Brooklyn neighborhoods are ethnic enclaves where particular ethnic groups and cultures predominate.
ABC Funeral Home, Inc. will take advantage of several factors to drive its growth especially catering to the ABC need of shipping human remain to countries in the XYZ. Demand for funeral services will increase as the population ages and with it the number of deaths. Government economists expect job growth and demand for funeral directors to be as fast as the average for all careers through 2016.
ABC Funeral Home, Inc. expects to gain a profitable market share within a very short period of time. Determinations have been made for the size of the market, amounts of budgeted advertising and promotional dollars, the number and kinds of distribution channels and the competitive landscape.
Projections call for the Company to generate revenues of $1.014 million in its first twelve months. ABC Funeral Home, Inc. will achieve strong growth over the next several years, reaching $2.275 million in revenues and more than $1 million of net income by the fifth year.
The Opportunity
Funeral Industry
As the old saying goes, “Nothing is certain but death and taxes.” The United States funeral homes industry is comprised of approximately 22,000 businesses, employing more than 100,000 people. According to research, 89% of all funeral homes are privately run by families, individuals, or small independent corporations. According to Toon van Beeck, senior industry analyst at IBISWorld, an industry research firm, American funeral industry revenue is predicted to increase 1.2% in 2009, to $20.7 billion. 3
Research reflects average funeral costs of $6,000-$8,000, but can total as much as $10,000 or more, says Genevieve Keeney, director of the National Museum of Funeral History in Houston.
In 2008, the Population Reference Bureau (PRB) reported more than 2.4 million people died in the U.S.; nearly 57 million worldwide. The industry has an advantage other industries don’t, a guaranteed, expanding customer pool. 1, 2
The Small Business Development Center (SBDC) says the funeral industry is “Characterized by family-owned businesses, which typically have been owned for a few generations, the industry is primarily comprised of small businesses, which operate in localized markets. The industry is fragmented and as such may be subdivided according to religion, cultural or ethnic background.”
As far as job opportunities in this sector, prospects are good, especially for those who also embalm. Expected funeral director employment growth is predicted to increase by 12% through the 2006-2016 decade. However, the death care services industry, in general, is expected to reflect steady growth.
The U. S. Census Bureau expects deaths to grow at a 1% rate per year to year-end 2010. According to the agency, “Funeral homes in the United States average 47 years in business; however, it is not uncommon to find firms that have been in operation for 100 years or more.” 4
Although the industry has shown endurance over the years, especially during times of economic crisis, the funeral business is in desperate need of new and innovative ideas to stay highly competitive in today’s 21st century marketplace. New and innovative ideas that reflect the present and future global technological expansion and extremely advanced environment of our target markets are noticeable absent. ABC Funeral Home, Inc. believes that the key to success is having the ability to understand the needs of their sophisticated customers and readily adapt and creatively evolve to meet those needs.
Green Funerals
A 2007 survey conducted by AARP, advocacy group for individuals 50 years of age and older, revealed 21% of participants were interested in ‘green burials’; interest jumped to 43% in 2008. Jessica Koth, spokesman for the National Funeral Directors Association (NFDA) states although green burials represent a small portion of the market, the segment is growing. 2
Customized Burials
Peter Moloney, funeral director of six Long Island funeral homes, says "You have to give people something special. If you don't, someone else will.” Moloney believes tough times or not, “people should have what they want.” (ABC Funeral Home, Inc. will work tirelessly to provide what their customers want.
Consequently, customized products will always be available including theme urns, caskets, and services that are as varied as the customers. The New York Times writes, “Bike lovers pay an extra $200 or so to take their last ride in a special hearse towed by a Harley-Davidson motorcycle. Gardeners select wildflower seed packets to include with their funeral programs. One gentleman wanted to be remembered for comforting his grandchildren with ice cream, so, after the funeral, mourners were greeted by a man in a Good Humor truck, handing out frozen treats.”