Entrepreneurial activity in the field of funeral business requires understanding legislative framework and specifics of the market sector. Without this, even the ideal, successfully tested by a number of people financial plan the Bureau ritual services will not be able to help business in a competitive environment. Do something like this economic activity are entitled to individual entrepreneurs, legal entities registered in accordance with the procedure established by law.
The business in the lucrative funeral service sector is the provision of household, funeral and memorial services. According to the classifier of types of activity OK 029-2014, they relate to personal services for public services (code - 96, name - activities for the provision of other services).
The market sector is associated with funeral facilities, the creation and operation of:
- funeral homes, where a full range of services is provided;
- bureau - points of acceptance of orders;
- workshops where funeral accessories, tombstones are made;
- ritual halls - specialized rooms for rituals;
- cemeteries;
- remains;
- catafal transport garages;
- crematoria;
- columbarium;
- funeral parlors.
The complex of services of the ritual market and the necessary investments
Subjects economic activity in the field of funeral business, when interacting with the consumer, they provide individual funeral services or perform a full range of necessary actions.
Funeral organization
The service involves the reception, placing an order for the ceremony. The contract is concluded:
- in funeral homes;
- specialized points for receiving orders (their placement in medical organizations forbidden);
- location chosen by the customer.
When planning a business, it should be borne in mind that only a funeral service agent has the right to provide this service. In order to perform their duties, an employee must qualification certification. The agent advises, organizes the necessary events up to the completion of the funeral.
Please note: it is prohibited to place order points, shops, other funeral facilities in the premises of apartment buildings. The minimum allowable distance to residential buildings is 50 m.
Basic expenses:
- training of ritual agents - from 20,000 rubles. (depending on the available education);
- rental of premises for receiving orders (from 20 m 2) - from 20,000 rubles / month;
- agent salary - from 10% per order.
Transportation of remains (ashes)
The transportation of the body of the deceased or the ashes is carried out from the morgue, between the objects of the funeral destination, to other cities. The service involves the performance of loading and unloading operations.
The business will need hearse transport - special cars, buses, minibuses equipped with a pedestal for the coffin and places for passengers. Modern hearses are equipped with ventilation, a bactericidal lamp for interior sanitation, air conditioning, and a retractable mechanism for fixing the coffin. There is a special partition between the driver's cab and the passenger compartment.
When transporting cargo over long distances 200, a refrigeration unit is installed in the hearse. The provision of such a service makes the soldering of zinc coffins in demand.
Basic expenses:
- rent a hearse - from 5000 rubles / order, from 1000 rubles / hour;
- the price of a new hearse interior is from 250,000 rubles;
- loading and unloading works - from 5000 rubles.
Preparation for burial
On initial stage business promotion on the pre-burial maintenance of the remains as a ritual service can not be concentrated. But if funds allow, it is worth organizing the work of the remains, the washing room and hiring specialists to prepare the bodies. Before burial, the bodies of the dead are subjected to sanitary and hygienic treatment, embalming. Hairdressing and restoration works are carried out.
After preparing the body in the prepared ritual hall, a farewell ceremony is held. The procedure at the request of the client includes additional services:
- ritual master of ceremonies;
- musical accompaniment;
- organization of the memorial ceremony.
The remains of the dead are burned only in crematoria. The procedure is performed by an operator of specialized equipment, who is also involved in the processing of ashes.
Basic expenses:
- rental of premises for ritual, washing halls, stalk storage (from 60 m 2) - from 50,000 rubles / month;
- services of a specialist in the preparation of bodies - from 5000 rubles / order;
- organization of a commemoration - from 10,000 rubles / order;
- crematorium services - from 4000 rubles / order.
burial
To fulfill the order, burial workers will be required to prepare the burial sites, as well as:
- transfer the remains of the dead to the earth, in a coffin or without;
- they place urns in graves, columbar niches, coffins - in mausoleums, crypts, pantheons, sarcophagi;
- scatter the ashes.
The same workers carry out exhumation for reburial or investigative actions. The burial procedure can be performed using a singumator (ritual elevator). The device is used in business when organizing a VIP class burial.
Basic expenses:
- services of workers - from 4000 rubles / order;
- purchase of a singumator - 60,000 rubles.
Trade and production
It is worth including the creation of a salon-shop in the organizational plan of the funeral services business. At first, he can occupy the premises, after the successful promotion of the bureau's activities - a separate building. Trade in tomb structures, funeral accessories can bring a good income. Samples, price lists for products should be presented in the salon:
- coffins, textile decoration, decor for lids, handles;
- capsules, burial urns;
- funeral clothes, shoes;
- ribbons, wreaths;
- tombstones.
A promising line of business is the creation of a workshop. In a specialized workshop, products necessary for the funeral business are made, and repairs are carried out. The clients of the workshop are not only those who ordered the burial, but also newly created bureaus.
Basic expenses:
- rent of premises for a shop, workshop, warehouse (from 60 m 2) - from 50,000 rubles / month;
- equipment - from 100,000 rubles;
- materials - from 40,000 rubles;
- funeral accessories for 1 order - from 5000 rubles;
- tombstone - from 5000 rubles.
When does the funeral services business pay off?
Preliminary calculations show that the minimum initial investment in the funeral business is 1.1 million rubles. The amount includes expenses:
- for the rent of 2 premises for the point of reception of orders and the ritual hall for six months;
- training of 1 agent;
- purchase of 1 hearse;
- purchase of a singumator;
- advertising.
The ritual business pays off after about 200 orders are completed at a price of 25,000 rubles. each, which occurs in 1–1.5 years. With the functioning of a workshop, a salon-shop, the period decreases, but the amount of the initial investment of funds increases to 1.7 million. Renting a hearse or a singumator will allow you to receive additional income.
You can reach the level of the desired profit earlier if you pay due attention to the organization of the funeral of the VIP class. The minimum price of 1 order is 60,000 rubles.
Registration of a business entity and taxation
When choosing a legal form, one should take into account the changes in Russian legislation in 2014 in relation to legal entities. The Civil Code of the Russian Federation divides organizations into 2 types.
1. Unitary legal entities: SUE, MUP, autonomous NGOs, foundations, etc.
2. Corporate legal entities. Members meeting - supreme body corporations. The powers of the sole executive body can be granted to several persons, that is, the legislation allows for the presence of 2 or more general directors in 1 company. This type includes, in particular, business companies, which are created in the form of JSC (CJSC, JSC cease to exist) or LLC.
Funeral business registration in the form is often chosen to create a family business. At the initial stage of activity, when the amount of expenses will be significant, it is more profitable to choose a simplified taxation system.
For optimal it is considered patent system taxation:
- funeral services are included in the list of activities for which this system is applied;
- for the first year of operation on the market, the income will not exceed 60 million rubles;
- the need to hire more than 15 employees at the initial stage of business promotion does not arise;
- the entrepreneur is exempt from paying personal income tax, property tax of individuals, is not recognized as a VAT taxpayer;
- it is allowed to carry out calculations without the use of cash registers ( required condition- issuance of a document confirming the receipt of funds at the request of the client).
Activity Licensing
The abolition of licensing of ritual services in 2002 made the start of economic activity comfortable for individual entrepreneurs, the founders of a legal entity. However, in the second half of 2014, the Ministry of Construction of Russia developed a draft Federal Law “On the funeral business in Russian Federation and on Amendments to Certain Legislative Acts of the Russian Federation”, capable of changing the situation.
If you are going to open a funeral services business in 2015, we recommend that you treat this legal act as valid federal law. Such an attitude will make it possible to legally competently build entrepreneurial activity. The document is publicly available on the website of the Ministry of Construction and other services. Submitted by the Government of our country.
The draft Federal Law includes a list of ritual services, the provision of which requires licensing:
- pre-burial maintenance of the remains;
- burial;
- exhumation and reburial;
- preparation of bodies for burial;
- cremation services;
- transportation of remains;
- organization of the funeral.
The entry into force of the Federal Law in Russia is scheduled for 01/01/2018. The project obliges individual entrepreneurs, legal entities engaged in the field of funeral business, to obtain a license before 09/01/2018.
An exception is that activities in the ritual sector of the market are carried out on the territory of the constituent entities of the Russian Federation that have concluded agreements with federal body executive power on the development, implementation of state policy in the field of housing and communal services and legal regulation. For these entities, other terms are established for the entry into force of the Federal Law and for obtaining a license: 07/01/2016 and 05/01/2017, respectively.
Today, all over the world, including in our country, more and more people are engaged in business. Business is big and small. The difference is that big business will require huge capital investments. In addition, it has an international scope. The most promising and demanded sectors of small business are trade, services and farming. Special place Among them is the service sector. Apart from ordinary business there are also more non-traditional ideas, such as organizing a funeral business. One of its directions is the production of coffins.
This type of entrepreneurship is very relevant, because people die every day in any country, in any city. This cannot be avoided. Many people prefer to bury people thanks to the so-called budget funerals with minimal costs. And some prepare more expensive funerals, acquiring wreaths, coffins to order for this. Funeral services are now quite widespread in any city. The competition is quite high, and there are not so many customers. Let us consider in more detail how to organize your production of coffins, the profitability of this business, what are the main costs, and so on.
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Registration and collection of necessary documentation
Coffin making as a business can be quite profitable business. But like any type of entrepreneurship, it will require the preparation of a whole business plan, which should include: determining the location for the future enterprise, purchasing necessary equipment, establishing the process of manufacturing this product, organizing a customer base, calculating profit and loss, and so on. The production of coffins as a business will require premises. This will require small area. It is best to rent the premises, since it is unprofitable to rebuild it. The production of coffins as a business will be impossible without official registration.
To do this, a novice entrepreneur needs to register with the local tax office as individual entrepreneur or LLC. The first option is the most optimal, simple and will save time. In addition, you will need to collect some documents. Until recently, all funeral services were subject to licensing, but in 2004 it was canceled.
Now control over their activity has only a notification character.
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coffin making
The production of coffins as a business does not require big investments from a budding businessman. Most milestone- This is the process of making this product. Coffins can be made different in design: with one or two lids, metal or wood. Wooden products are the most common. Such a product can be made in any workshop. The list of tools is the same as in the manufacture of the most ordinary furniture. It is very important that business here can be established in two different ways. The first is to build your own workshop, the second is to purchase finished parts of the product and assemble them together.
The last option is the simplest, it does not require almost anything other than finding a client. Previously, there was a fierce struggle for any client. Business could be done not only by organizing the production of goods, but also by providing information about potential clients. As for our version of entrepreneurship, the production of coffins is based on 3 of its components: a lid, a bed and a handle.
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Metal coffins: business profitability
The production of metal products is also very promising. At the same time, the process of their manufacture becomes more complicated. To do this, you will need special equipment in the form of a punching press, with which the master makes small details from a large sheet or piece of material. After that, the resulting blanks go to the stamp, where they are given the final shape. Then some parts of it are welded into a single whole. Most The final stage is the addition of a bed. Metal ones are stronger and more durable than wood ones. But they also cost more. Their cost can be very different. There are so-called social options, where they cost 5-10 thousand rubles, and there are also expensive ones - from 20 to 60 thousand.
The profitability of this business is low, ranging from 20 to 25%. Payback depends on the number of customers. The production of coffins as a business will also require the calculation of basic costs. Basically, they will be associated with the acquisition of raw materials (wood or metal), renting premises and paying wages workers.
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Features of packing coffins and transportation
The production of coffins as a business is quite simple. It is very important to keep it safe and sound. finished goods. The thing is that when transporting to a warehouse for storage, they can be easily scratched. Therefore, you need to make sure that they are tightly and well packed. For this purpose, they are wrapped in large sheets of special paper. It is important to know that the most vulnerable part of any coffin is the corner, so they are wrapped tightly. After that, the coffin is placed in a special plastic pocket. After that, it is again wrapped in plastic and placed in cellophane. Thus, the production of coffins as a business will require accuracy and careful handling of the goods.
Funeral services are a very specific activity and not suitable for everyone. But if you are ready to work in this area, then you have every chance of making a good profit and occupying a solid niche in the ritual business.
Funeral home pros and cons
First of all, it is worth listing all the advantages of opening an agency:
- Business demand. As sad as it is to realize, we are all mortal. Perhaps this is one of the few types of services that will always be relevant. Relatives wish to see the deceased on his last journey with honors, and the agencies, in turn, take care of all organizational issues.
- Fixed salary. Even great competition will not be an obstacle in making a decent profit. Enough orders for everyone.
- Activity specificity. Agree, this process can not be called pleasant. Thoughts of death make many people nervous. And if you observe it daily or even several times a day, it is not far from depression.
- Competition. In large cities, it is much more difficult to promote your services due to the huge number of similar firms. Therefore, at first, you will need a detailed business plan for funeral services in order to analyze the profitability and decide how profitable such a business is in your city.
- Big investment. Opening a funeral home is far from free. It will take a lot of money, so at first it will be quite difficult to gain a foothold and wait for the first profit.
How to open a funeral business according to the letter of the law?
Previously, to start work, you had to obtain a state license. Today, this item can be omitted. Since 2004, no official license is required. And it was this period that was marked as a real boom in the emergence of various ritual bureaus.
In view of this, competition in the funeral business is very high. There is a real war going on in big cities. After all, it is very important to get information about the deceased before anyone else in order to have time to contact relatives and offer their services.
So, how to start a funeral business? Since the opening of LLC. Registration consists in collecting a certain package of documents. You can do it yourself or use the help of specialized companies.
As for taxation, a simplified system would be the best option.
Funeral home organization
To start such an activity, you do not need to have special knowledge. It is enough to rent a farewell hall, transport, and hire specialists through an outsourcing company.
The room under the funeral home should be located in a place that can be easily reached by public transport and car. The office should have enough space for an office, a showroom where coffins, monuments, wreaths and other products are sold. There is also a hall of farewells and a storage room.
The farewell hall should not be located in a residential building. Moreover, this room must be located at least 50 meters from residential buildings, as well as kindergartens, schools, medical institutions, sports and cultural organizations.
If you want to equip your own office with a morgue, you will need a special permit. It is coordinated with the Committee of Architecture and Urban Planning, State Fire Supervision and Environmental Protection.
The complex of funeral services often includes the production of monuments with photographs. For the manufacture of monuments, crushed stone, a special mixture of glue, metal pins, formwork, profile, reinforcement, expanded clay, paving slabs and other materials, as well as a set of tools.
Taking photographs will require following equipment And Supplies: computer with a special program, printer, glue, photo paper, frames.
You can also independently carry out the production of coffins. This requires a workshop, tools and materials (wood, metal, special fabric). Most often, small funeral homes do not make their own coffins, but only assemble ready-made parts. 
Production and sale of coffins - a good additional income
In the farewell hall, chairs, armchairs, a coffin stand are needed. It is important to consider the design of the room.
In the office space, you will need to install a desk for the administrator, chairs or armchairs for the visitor, as well as a coffee table with a price list of services.
Staff
The main quality of the staff is tact and knowledge of psychology, because you will have to communicate with grieving relatives. In addition, the ability to sell a service is also an important factor. The so-called ritual agents possess all necessary qualities listed above. 
A ritual agent is a good psychologist and seller of services
In addition to agents, an administrator, an accountant, a driver, a salesman, a master in the production of coffins, monuments, mortuary workers, a lawyer, a balmist, a make-up artist, a handyman, carpenters, carpenters, and turners are needed.
What services to offer?
Your income will directly depend on the range of services provided. The wider it is, the more revenue.
The funeral home offers the following:
- Sale of ritual accessories
- Funeral rites (you will need to conclude an agreement with several priests in advance)
- Search and registration of the place of burial
- Production of photographs, monuments, coffins, wreaths and other goods
- Looking for workers to dig a grave
- body storage
- Embalming, cremation
- Transport services, orchestra
- Funeral dinner.
Where to look for clients?
The main way to find clients is through informal arrangements with the police and hospital morgues. It is these institutions that provide information to funeral homes. It's definitely not too much legal way. But still common due to high competition.
If you list legal methods, then advertising in popular newspapers, magazines and online resources works well here. Bright advertising on billboards, radio and television advertising in this situation is inappropriate. 
Calculate income and expenses
The initial investment is 10-100 thousand US dollars, depending on the number of services provided. If you don’t have your own premises, the costs will be higher, if you have your own car suitable for conversion into a hearse, feel free to reduce costs. A decent staff of specialists will also take a lot of money.
Funerals cost clients at least 12-16 thousand rubles. But such cheap orders will not allow your funeral home to make decent money. A stable high income is possible only with a large number of orders with an average check of 20-50 thousand rubles.
The approximate amount of profit per month is about 200-400 thousand rubles. The profitability of the business is 15-20%, and when selling ritual goods - about 40%.
The payback period for funeral paraphernalia is 1 year. Investments in services pay off more slowly.
Thus, it is important not only to know how to start a funeral business, but also to take into account that this is a rather costly and troublesome option. A lot of competition and low profitability, the difficulty of entering a niche and the special specifics scare away many. But a good agency with delicate employees is highly valued.
If you have something to add to the article or have questions, we are waiting for your comments.
Unfortunately, there is no recipe that can give eternal life. Sooner or later all people die. Therefore, there is always a need for companies that provide services for the preparation and burial of the deceased. The funeral business brings in good money. And there is no need to feel a sense of disgust from the fact that you have to earn on someone else's grief. Without such services, the relatives and friends of the deceased would have had a much harder time. If you are not afraid of the gloomy atmosphere of such earnings, and your mind is subordinated to the desire to help grieving people, read our material below.
To open an agency for the provision of funeral services, you will need:- office and warehouse located in the right place;
- staff, including a lawyer;
- advertising media;
- agreements with manufacturers of funeral paraphernalia;
- coordination of your activities with the administration of the cemetery.
- department for employees;
- storage of funeral accessories;
- a room for a mini-morgue and placement of equipment for processing bodies in it;
- waiting room for loved ones and relatives of the deceased.
As a result, more than 200 sq.m. premises area. It is also necessary to provide a parking area for hearses and buses.
That, perhaps, is all. Try to drop all prejudices about such a business, help people and earn honest money!