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With any B-Plan Purchase
425 Page Capital Directory
Through Apr. 30


Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017


Funeral Home SWOT Analysis

 

Strengths

 

One of life's inevitabilities is the people are going to pass away. As such, funeral homes are always going to be in demand among the general public. The services provided by these businesses are considered invaluable to the families that have lost a loved one. The barriers to entry for a new funeral home are very high as people are required to have a license to own and operate these businesses. The startup costs range from $250,000 to well over $1,000,000 given that a converted residential facility is often used as the site of the funeral home. The gross margins for these businesses are very high given that it is a combination of both a product and service oriented business.


Weaknesses

 

Competitive issues are always an ongoing issue with funeral homes. This is due to the fact that many people hold the necessary licensure to operate as a funeral director or owner-operator of a funeral home. Competition is much more of an issue in densely populated metropolitan areas. Additionally, the operating costs of a funeral home are relatively high given that a full scale facility has large monthly expenses. Equipment costs for these types of businesses is also high.

 

Opportunities

 

For most owners of funeral homes, the best way to expand their operations is by establishing additional locations. A single funeral home can only handle so many services in one day. The other way that these companies expand is by developing offsite or onsite crematorium facilities. This can drastically increase the revenues of a funeral home as these services can be provided to the company's own customers as well as to third party businesses. Columbarium services are also becoming popular among people that want to have their ashes interred.

 

Threats

 

Outside of standard competitive issues, there are very few threats faced by funeral home businesses. It should be noted that many large corporations have taken to acquiring existing funeral homes while retaining the brand name established by the founder. As such, this needs to be taken into account when potentially developing a new funeral home location. 

 


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