Starting a cemetery business is a rewarding venture that combines compassion for your community with business savvy. The industry sees tens of billions of dollars in revenue annually, thanks to the consistent demand for burial services and plots from families planning ahead or facing an immediate need.
This guide will take you through the practical steps of selecting the right location, securing funding, and obtaining the necessary permits to help you launch a successful cemetery business in the U.S.
Step 1: Plan your business and validate the market
Start by analyzing your local market. You can pull demographic data from the U.S. Census Bureau to understand population trends and age groups. Also, check with your county health department for mortality rate statistics. This data helps you forecast demand for burial plots.
Next, visit at least three nearby cemeteries. Take note of their plot prices, burial service fees, and the condition of the grounds. Seeing what others offer, from traditional burials to cremation niches, shows you where you can fit in and how to price your own services competitively.
Estimate your startup costs
Your initial investment requires careful financial planning. Land is the largest expense, often from $50,000 to over $500,000 depending on acreage and location. You will also need to budget for equipment like a backhoe and mowers, which can cost $50,000 to $100,000.
Beyond the land purchase, budget for preparation. This includes grading, landscaping, and building access roads, which can add another $100,000 to $300,000. A frequent misstep is not accounting for these site development costs, which can exhaust your capital before you open.
Here are 3 immediate steps to take:
- Request mortality rate data from your local county health department.
- Create a spreadsheet comparing the services and prices of local competitors.
- Draft a preliminary budget with line items for land, site development, and equipment.
Step 2: Establish your legal framework and obtain licenses
Most new cemetery owners form a Limited Liability Company (LLC). This structure protects your personal assets if the business faces debt or lawsuits. An S Corporation can offer tax advantages later, but its setup and compliance are more complex. Not consulting a CPA first is a frequent mistake.
Secure federal and state credentials
First, get an Employer Identification Number (EIN) from the IRS website; it’s free and you will need it to open a bank account and hire staff. Next, contact your state’s cemetery board to apply for a cemetery license. Fees can range from $500 to $2,000, with processing times of three to six months.
Many states also require you to create and fund a perpetual care trust. This ensures the cemetery grounds are maintained indefinitely. Underfunding this trust can lead to legal trouble and the eventual decline of the property, so understand your state’s specific contribution requirements from the start.
Handle local permits
Your local city or county government has the final say on land use. You must secure zoning approval before any development. You will also need building permits for any structures like an office, chapel, or maintenance shed. These permits confirm your plans meet local codes.
Here are 4 immediate steps to take:
- Consult a CPA to choose the right business structure for your financial situation.
- Apply for a free Employer Identification Number (EIN) directly from the IRS.
- Find your state’s cemetery board online and review its license application.
- Contact your local planning and zoning department to discuss land use requirements.
Step 3: Secure insurance and manage risk
Your next move is to protect your business with the right insurance. You will need a few different policies. General liability coverage of $1 million to $2 million is standard, with annual premiums often between $2,000 and $7,000. This protects you if a visitor is injured on the property.
You should also secure professional liability insurance. This covers errors like incorrect plot assignments. In addition, you need property insurance for buildings and fences, workers’ compensation for your staff, and commercial auto insurance for any vehicles like backhoes or maintenance trucks.
Some new owners try to save money with a general agent, but this can leave you exposed. You might want to consider specialists like Federated Insurance or Glatfelter. They understand the unique risks of a cemetery and can build a policy that truly covers your needs.
Address cemetery-specific risks
Beyond typical business risks, you face unique challenges. Ground subsidence can occur over time, creating uneven surfaces and liability issues. Vandalism to headstones is another concern, so check that your property policy specifically covers monuments, not just buildings and fences.
Here are 4 immediate steps to take:
- Request quotes for a general liability policy with at least $1 million in coverage.
- Ask potential insurers about their experience with cemetery businesses.
- Confirm your property insurance policy explicitly covers monument and headstone vandalism.
- Inquire about adding a professional liability rider to cover service errors.
Step 4: Select your location and purchase equipment
You will need a sizable parcel of land, typically 10 to 20 acres, to start. This provides enough space for plots, roads, and buildings. Contact your local planning department to discuss zoning; cemeteries often require a “special use” or “conditional use” permit rather than standard commercial zoning.
Before you buy, a soil percolation test is a must. Some owners get stuck with land where a high water table makes burials impossible. Also, confirm the property has access to utilities like water and electricity, as extending service lines can be a surprise expense.
Acquire your groundskeeping equipment
Your main equipment costs will be a backhoe for digging graves ($30,000-$60,000 used) and a commercial-grade mower ($10,000-$20,000). You will also need a vault-lowering device. You might consider buying used heavy equipment to manage your initial capital outlay effectively.
For specialized supplies like lowering devices and grave markers, you can look at industry suppliers such as B&A Bohl or American Cemetery Supply. They can provide catalogs and pricing to help you budget for these items that you will need for daily operations.
Here are 4 immediate steps to take:
- Ask your local zoning office about the process for a special use permit.
- Hire a geotechnical engineer to perform a soil test on any land you consider.
- Get quotes for a used backhoe from local heavy equipment dealers.
- Request catalogs from cemetery-specific suppliers to price out smaller equipment.
Step 5: Set up your payment processing
Cemeteries handle both large one-time payments and installment plans for pre-need arrangements. You might require a 25-50% deposit to reserve a plot, with the balance due before the service. For pre-need sales, monthly or quarterly payment plans are common.
You will need a system that can manage these different payment types. Some owners get caught by high transaction fees on large plot sales, so it pays to compare rates carefully. Look for a solution that handles both single and recurring payments efficiently.
Accept payments on-site
For cemetery businesses that need to accept payments on-site or on-the-go, JIM offers a streamlined solution. With JIM, you can accept debit, credit and digital wallets directly through your smartphone - just tap and done.
At just 1.99% per transaction with no hidden costs or extra hardware needed, it's particularly useful for taking deposits for plots during a site visit. Other payment solution providers often charge commission rates between 2.5% and 3.5%.
- Get Started: Download JIM app for iOS
- Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone
- Access Funds: Your money is available right on your JIM card as soon as the sale is done - no waiting for bank transfers
Here are 4 immediate steps to take:
- Draft your payment terms, including deposit amounts for plot reservations.
- Compare payment processing rates, focusing on fees for large transactions.
- Decide which payment methods you will accept, such as cards and checks.
- Explore mobile payment solutions for accepting payments on-site.
Step 6: Fund your business and manage finances
To secure funding, you might want to look at Small Business Administration (SBA) loans. The SBA 7(a) program is a popular choice, offering up to $5 million. Lenders typically look for a credit score above 680 and a solid business plan with financial projections.
Interest rates often range from the Prime rate plus 2% to 5%. A frequent misstep is underestimating the timeline. The approval process can take 60 to 90 days, so it is wise to start your application early to avoid delays in your project schedule.
Estimate your working capital
Beyond the initial purchase, you need funds to operate for the first six months. This working capital covers payroll, insurance, utilities, and marketing before you generate steady revenue. A budget of $50,000 to $150,000 is a realistic starting point for this period.
Some states offer grants for land preservation or small business development, which can supplement your loans. Check your state’s economic development agency website for programs you might qualify for. These grants can help offset some of your initial site preparation costs.
Here are 4 immediate steps to take:
- Contact an SBA-preferred lender to pre-qualify for a 7(a) loan.
- Create a six-month operating budget to determine your working capital needs.
- Finalize your business plan with detailed financial projections for loan applications.
- Search your state’s economic development website for relevant grants.
Step 7: Hire your team and set up operations
Define roles and responsibilities
You will likely start with two key hires. An office administrator handles sales, client communication, and record-keeping, with a typical salary of $40,000 to $60,000. A groundskeeper manages all maintenance, from mowing to minor repairs, and usually earns $30,000 to $45,000 annually.
For burials, you need someone to operate the backhoe. This can be a dedicated equipment operator or a groundskeeper with the right experience. While formal certifications are not always mandatory, you should confirm any state-specific requirements for cemetery managers with your local cemetery board.
Streamline your daily workflow
To manage plot sales and records, you might want to consider cemetery management software. Programs like Cemify or PlotBox help you create digital maps and track inventory. This avoids the critical error of selling the same plot twice, a mistake that can happen with manual spreadsheets.
For a new 10- to 20-acre site, a two-person team is a good starting point. As your business grows, you can add part-time help for burials or peak landscaping seasons. Cross-training your staff also ensures operations run smoothly if someone is unavailable.
Here are 4 immediate steps to take:
- Draft job descriptions for an administrator and a groundskeeper.
- Research cemetery management software like Cemify or PlotBox.
- Check with your state cemetery board for any required staff certifications.
- Outline a basic training plan for new hires on daily procedures.
Step 8: Market your business and attract clients
Build relationships with local partners
Your most valuable marketing channel will be local funeral homes. Directors are the first point of contact for families in immediate need. You can build these relationships by introducing yourself and providing a clear price list. Some cemeteries offer a modest referral fee, around $100 to $200 per client.
You should also connect with estate planning attorneys and elder care providers. They work with clients who are planning for the future. Provide them with simple, professional brochures about your pre-need services. This positions you as a thoughtful resource, not just a service provider.
Develop a compassionate online presence
Create a simple, professional website that shows your grounds, outlines your services, and provides clear contact information. Families often research online first, even in times of grief. Your site should be serene and easy to navigate, with a section for pre-need planning inquiries.
A frequent mistake is to adopt a tone that feels too commercial. All your marketing, from your website copy to social media posts, must be respectful and subdued. Focus on communicating peace, permanence, and care. This builds trust with families making difficult decisions.
Here are 4 immediate steps to take:
- Compile a list of local funeral homes and schedule introductory meetings.
- Draft a simple brochure outlining your pre-need plot and service options.
- Outline the five essential pages for your website: Home, Services, Pricing, Plot Map, and Contact.
- Identify three local estate planners or elder law attorneys to connect with.
Step 9: Set your pricing and profit margins
Start by pricing your plots. A standard single plot often sells for $1,500 to $4,000. You can create a tiered system where plots in more desirable locations, like near a pond or under a large tree, command a 20-30% premium over standard plots.
In addition to land, you will price your services. The "opening and closing" fee, which covers the burial itself, typically runs from $1,000 to $2,000. This fee accounts for labor, equipment use, and administrative work for a single service.
Establish your profit model
Your profit margin on plot sales can be quite high, often 80-90%, as the land is a one-time purchase. Service fees have lower margins, closer to 40-60%, because they involve direct labor and fuel costs for each burial.
One area that can catch new owners off guard is pricing for pre-need sales. You must account for future inflation and maintenance costs. A good practice is to build a 3-5% annual price increase for all unsold plots into your business model.
Here are 4 immediate steps to take:
- Create a tiered pricing sheet for plots based on location desirability.
- Calculate your direct costs for an opening and closing to set a profitable service fee.
- Analyze the price lists of at least two local competitors for comparison.
- Build a 3-5% annual price increase into your financial model for unsold inventory.
Step 10: Maintain quality and scale your operations
To maintain quality, you can look to standards from the International Cemetery, Cremation and Funeral Association (ICCFA). Use a simple groundskeeping checklist to score lawn care, headstone cleanliness, and road conditions weekly. This creates a consistent standard of care for families.
You can also measure service quality with a brief post-service feedback form. Ask families to rate communication and their experience on a scale of 1 to 5. A score consistently below 4.5 signals a need to review your procedures or staff training.
Know when to grow
With your quality standards in place, you can plan for growth. A good benchmark for hiring another groundskeeper is when your current team spends over 80% of their time on burials, leaving little room for maintenance. For administrative staff, consider a new hire when you average over 15 client meetings per week.
Many owners wait too long to acquire more land. Once you sell 75% of your available plots, you should start the process of purchasing and zoning an adjacent parcel. This avoids a gap in sales. Software like CIMS or PlotBox becomes very helpful here to track inventory accurately as you scale.
Here are 4 immediate steps to take:
- Download a sample grounds maintenance checklist from the ICCFA website.
- Create a simple, three-question client feedback form for post-service follow-up.
- Set a calendar reminder to review plot inventory levels every quarter.
- Establish a hiring trigger based on staff capacity, such as 80% of time spent on burials.
You now have the steps to build a cemetery business. Remember, your role is to create a place of peace, and your compassion is what families will value most. With this plan, you are ready to build a meaningful legacy.
As you help families, make payments simple. JIM turns your phone into a card reader to accept payments anywhere on-site for a flat 1.99% fee, with no extra hardware. Download JIM to be ready from day one.
