The cost of running a fully functional private funeral home
“Most people think that the funeral business is an easy way to make money, but it isn’t,” says Theo Rix, MD of Independent Crematoriums of SA.
He says the cost to set up a fully functional crematorium in South Africa is around R7 million. A cremation furnace costs around R1,5 million and you need at least two to run a profitable business.
Other costs include smoke extractors and their installation, protective clothing for radiant heat and so on.
A typical start-up
Consider a typical existing upmarket funeral home based in Johannesburg:
- Sales revenue: R4 million
- Cash flow: R1,2 million
- Employees: 7
- Hearses: 3
- Leasehold rent: R108 000 per annum
- Size of the premises: 300 m2
It can take up to two years to get the necessary permits and permission to run a funeral home from local municipalities and government authorities.
“Because the paperwork is so extensive, we don’t attempt to do it ourselves. We employ attorneys to get the process going on our behalf,” says Rix.
Related: Small Business Start-up Guide
Are you the right person for the job?
Starting a funeral home is not for everyone. Here are some points to consider:
- Because of the nature of the business funeral directors must be able to work at odd times of the day.
- A person who runs or owns a funeral home should be an excellent communicator and a good listener. People from various cultures and traditions will have to be managed with equal ease.
- An understanding and caring attitude is a must, while at the same time the funeral director has to be emotionally strong and not shaken by other people’s distress.
Usual tasks include:
- Speaking to the bereaved in order to make funeral arrangements.
- Liaise with others such as the clergy and cemetery workers, and even write obituaries.
- Keep records, such as lists of items that come with the body.
- Obtain all clearances and adhering to regulations associated with the event, he or she will need to be well versed in procedures and legal issues.
- Have extensive knowledge and respect for the religious sentiments and beliefs of various cultures and communities and will also need to know about different customs and rituals followed by various religious groups during the funeral service.