Executive Summary
Rest in Power is a funeral home business that has a particular focus on making burials more affordable for the general public. We've achieved this by offering a funeral plan that is paid monthly. For as little as $17 a month, people can essentially save for a dignified and holistic funeral for their families.
We offer a wide range of services which have helped us exceed our sales forecasts since we entered the market three years ago. These include body transportation, catering, burial, preparation of obituaries, caskets, and death certificates.
We don't have the facilities to offer a venue as yet, but we have a vast network of chapels that we work with. However, Rest in Power’s unique selling proposition is our counseling services. This tactic has been especially popular amongst the younger demographic.
We invest the majority of our budget in sales and marketing to penetrate the market at a quicker rate. This has helped us establish ourselves in the market. We have outbound sales agents that bring in the bulk of our business.
We're seeking an investment of $850,000 to invest in a chapel that is currently on auction, so it would be a steal. Adding a chapel to our range of services will result in an ROI of 19% YoY.
Our trump card is our management team. We have passionate individuals on board who consistently make decisions that drive the business forward.
Rest in Power is seeking $120,000 in start-up or growth capital to fund operations, marketing, and staffing in the first 12 months.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $320,000 | $560,000 | $880,000 |
| Gross margin | 73% | 73% | 73% |
| Net profit / (loss) | $52,800 | $116,000 | $203,600 |
Company Overview
Rest in Power is a funeral home & memorial services founded by Reverend Isaiah Brown, operating as a LLC. Headquartered in Atlanta, Georgia, USA, Rest in Power was established to serve the growing demand for specialist services in this sector.
Mission: To deliver exceptional value to our customers through expertise, reliability, and a commitment to continuous improvement.
Business objectives:
| Period | Target |
|---|---|
| Year 1 | Establish brand, acquire initial client base, achieve operational break-even |
| Year 2 | Expand service offering, grow revenue by 50%, hire additional staff |
| Year 3 | Establish market position, target new geographic or demographic segments |
Rest in Power was founded by Devon Kelly and Floyd Adams in 2020. The company is registered as an LLC in the state of Missouri. The funeral home business is based in Kansas City. Devon and Floyd are the CEO and CFO respectively.
Devon is a seasoned executive officer who worked for Emerson, a company that operates in over 150 countries. Whereas Floyd served as the CFO for Centene and Ameren. They met at a conference in Springfield, Missouri, and shared an interest in getting into the ever-profitable funeral home business.
2 years on and the business is thriving, which is expected given their competencies and combined experience.
Rest in Power values access to quality funeral home services for the working-class Minnesotan. Inclusivity is at the heart of our beliefs as a company.
Market & Customer Analysis
The funeral home market is certainly vibrant in the US. According to Evermore.org, the industry generates an estimated $20 billion a year. This indicates that there is certainly an opportunity to build a thriving market in this business. However, it also attests to the competitive nature of the market.
We've developed various strategies to ensure that we outperform our competitors. Our wide range of services, pricing strategy, and 24/7 customer service have helped us gain a greater market share.
Our research suggests that the average Minnesotan pays roughly $7,100 for a funeral. This is not a far cry from Truehold’s study, which estimates that Minnesotans pay between $7,500 to $8,500. We've undercut this price by almost $3,200 with our monthly funeral plan strategy.
However, a project called the Indigent Burial and Funeral Fund buries indigent people for just $400. This presents a significant threat, considering we're targeting the low-middle class. Regardless, our monthly $17 premiums for life cover still attract this demographic.
Taking advantage of emerging industry trends has been highly beneficial to our growth in the market. We offer digital funerals for individuals who can't attend the funeral of a loved one. This is a trend that emerged during COVID. We also personalize our funerals based on the interests and values of a loved one.
We'll continue to study the market diligently to ensure that we increase our market share and profits in Missouri.
Customer analysis:
As we all know, death doesn't discriminate on age, creed, or gender. However, 73% of our customers are between 23 and 80. They're typically based in and around Kansas City and have a household median income of at least $14,000. Due to the sheer quality of our services, we still attract customers who can be considered wealthy.
Many of our customers face financial challenges. We help them overcome this pain point by allowing them to essentially ‘save’ for their funerals long-term. This reduces the stress of paying thousands of dollars in the event of a death in the family.
Given the organization of every department in our business, we have achieved a rating of 4,5 stars on Google and 5 stars on Yelp. We've also amassed dozens of positive reviews online. We prioritize the feedback of our customers and aim to improve even further going forward.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Service Corporation International | Established brand, wide reach | Higher price point, less personalised |
| Park Lawn Corporation | Strong marketing, national presence | Generic offering, less specialist focus |
| Dignity Memorial | Competitive pricing | Lower service quality, limited expertise |
Funeral Home & Memorial Services's competitive edge: Specialist expertise, personalised service, and a clear focus on the underserved segment of the market set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong client relationships; differentiated positioning | Weaknesses: Limited brand recognition as a new entrant; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing market demand; underserved niche segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic downturn reducing discretionary spend; regulatory changes |
Sales & Marketing Plan
Our sales have increased by 137% over the last year. We've attributed this to recruiting 16 outbound sales agents who frequent malls and residential areas, informing them about our highly affordable funeral home services. This has been highly effective. We expect to have well over 50 sales agents by year 5.
What has also been exceptionally effective for our sales performance is the implementation of a referral program. We offer regular citizens a handsome commission for finding us new clients.
We ensure that we deliver top customer service consistently. At Rest in Power, we go beyond being friendly and welcoming to customers. We also have a 24/7 customer service hotline that works remotely. This constant availability has been exceptional when it comes to attracting and retaining clients.
We're constantly tracking our sales performance in comparison to the initial goals that we set for ourselves. This allows us to be more aware of what's working and what isn't. This awareness of our sales tactics and their related outputs has helped us develop effective strategies.
Our sales projections indicate that we'll grow by 217% over the next 3 years. We've attributed this to an aggressive recruitment of sales agents, intensive sales training courses, and the natural growth of our reputation in Kansas and beyond. Acquiring our own chapel will increase this projection substantially.
Additional marketing notes:
We use a combination of social media and traditional media to market Rest in Power. Our traditional marketing is focused on popular publications and blogs. For example, we regularly run ads on Minnesota Monthly, The Minnesota Daily, and City Pages.
Our social media marketing hasn't been as effective as we’d anticipated. But it has helped us grow our mailing list significantly. Our emails have a conversion rate of 14%, which is a considerable success considering the infancy of our business.
The quality and affordability of our services have resulted in a great deal of word-of-mouth marketing. The word is quite simply spreading about the funeral home service that only costs $17 a month for a maximum funeral cover of $15,000.
We have brand advocates who are letting their family and friends know that there's a worthwhile funeral savings business in town. This will help us reduce our marketing spend significantly over the years.
Operating Plan
Staff Member Job Position Task(s) Rahul Finnigan Driver
- Driving our vehicles to and from funerals
- Ensuring all vehicles are clean
- Collection caskets for our showroom Pierce Levi Embalmer
- Repairing and cleaning the deceased for viewing Mildred Owens Admin Assistant
- Preparing all important documents for the deceased, including death certificates
- Ensuring that all insurance claims are completed on time Regina Stewards Receptionist
- Welcoming clients
- Assisting with telephonic, electronic, and face-to-face customer inquiries
- Assisting our admin assistant where necessary Steven Wilson Grief Counselor
- Helping our customers cope with their grief Basil Cook Funeral Attendant
- Cleaning before and after funeral services
- Arrange flowers and decor for funeral services
- Assisting with burials Cheryl Phillips Funeral Director
- Coordinating funeral arrangements, visitations, and burials
- Ensuring every funeral is compliant with regulatory laws
Management Team
CEO: Devon Kelly
Devon is a natural-born leader who has 14 years of experience working for Emerson. He led 10,000 employees in his tenure and learned a great deal about how to lead, innovate, and achieve goals. He completed his bachelor's degree in business science.
CFO: Floyd Adams
Floyd Adams is an ace when it comes to balancing the books. Much like our CEO, he's also worked for the best of the best in Minnesota. He served as the CFO for Centene and Ameren over his illustrious career. He was also mentioned in Business Insider in their ‘Ones to Watch in Finance’ list. Floyd studied financial management at Columbine State University.
CMO: Tarryn Bellingham
Tarryn is a talented marketing manager who is responsible for crafting our marketing messages. She's also a proficient web designer, which makes her even more of an asset. She studied communications at Carleton College. She later took a social media marketing course at The University of St. Thomas.
HR Manager: Evelyn Price
When it comes to recruiting the very best in the game, Evelyn Price is nothing short of a pro. Ironically, she was the very first hire for Rest in Power. She then helped us build a super team of executives and recruited over a dozen sales managers in just a year. Evelyn earned a qualification in human sciences from the prestigious Yale University.
Sales Manager: Ashley Iverson
We brought Ashley in to help train our outbound sales agents simply because they weren't performing well enough. We discovered some of her e-books about sales and took a risk with her. It certainly paid off! Not only did she help increase our sales by 56% in just 6 months, but she also took on a secondary role as our operations manager. Funnily enough, Ashley studied literature at Boston University.
Financial Plan
Projected Profit or Loss Statement
Year 1 Year 2 Year 3 Sales $90,000 $170,000 $300,000 Direct Cost of Sales $20,500 $30,000 $82,000 Production Payroll $0 $0 $0 Other $0 $0 $0 Total Cost of Sales $20,500 $30,000 $82,000 Gross Margin $69,500 $140,000 $218,000 Gross Margin % 77% 82% 73% Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll $20,000 $40,000 $40,000 Advertising/Promotion $800 $1,000 $1,000 Travel $0 $0 $0 Miscellaneous $500 $500 $500 Total Sales and Marketing Expenses $21,300 $41,500 $41,500 General and Administrative Expenses
General and Administrative Payroll $20,000 $40,250 $100,250 Sales and Marketing and Other Expenses $0 $0 $0 Depreciation $1,000 $1,000 $1,000 Dues and Subscriptions $200 $200 $200 Professional Fees $300 $300 $300 Rent $2,000 $2,000 $2,000 Software Purchases $0 $15,000 $0 Insurance $2,000 $2,000 $2,000 Telephone and Internet Access $2,000 $2,000 $2,000 Utilities $400 $400 $400 Miscellaneous $0 $0 $0 Payroll Taxes $500 $1,200 $3,000 Other General and Administrative Expenses $0 $0 $0 Total General and Administrative Expenses $28,400 $64,350 $111,150 Other Expenses:
Other Payroll $0 $0 $0 Consultants $0 $0 $0 Contract/Consultants $0 $0 $0 Total Other Expenses $0 $0 $0 Total Operating Expenses $28,400 $64,350 $111,150 Profit Before Interest and Taxes $19,800 $102,840 $225,410 EBITDA $19,800 $103,860 $226,430 Interest Expense $800 $3,632 $2,957 Taxes Incurred $0 $24,802 $56,540 Net Profit $19,000 $34,150 $65,350 Net Profit/Sales 21% 20% 22%
Projected Cash Flow Statement Cash Received Year 1 Year 2 Year 3 Cash from Operations
Cash Sales $90,000 $170,000 $300,000 Cash from Receivables $0 $0 $0 Subtotal Cash from Operations $90,000 $170,000 $300,00 Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $20,000 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $110,000 $170,000 $300,000 Expenditures
Expenditures from Operations
Subtotal Spent on Operations $48,900 $94,350 $111,150 Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $800 $0 $0 Principal Repayment of Current Borrowing $10,000 $10,000 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $59,700 $104,350 $193,150 Net Cash Flow $50,300 $65,650 $106,850 Cash Balance $19,000 $34,150 $65,350 Projected Balance Sheet Assets Year 1 Year 2 Year 3 Current Assets
Cash $90,000 $170,000 $300,000 Accounts Receivable $0 $0 $0 Other Current Assets $0 $0 $0 Total Current Assets $90,000 $170,000 $300,000 Long-term Assets $10,000 $9,000 $8,000 Accumulated Depreciation $1,000 $1,000 $1,000 Total Long-term Assets ($1,000) ($1,000) ($1,000) Total Assets $100,000 $179,000 $308,00 Liabilities and Capital
Current Liabilities
Accounts Payable $0 $0 $0 Current Borrowing $20,000 $10,000 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $20,000 $10,000 $0 Long-term Liabilities $0 $0 $0 Total Liabilities $20,000 $10,000 $0 Paid-in Capital $30,000 $30,000 $30,000 Retained Earnings ($20,000) ($30,000) $41,000 Earnings ($12,000) $44,000 $160,000 Total Capital ($2,000) $44,000 $231,000 Total Liabilities and Capital $18,000 $54,000 $231,000 Net Worth $80,000 $169,00 $308,000
Wrapping up the Funeral Home Business Plan Your business will end up 6 feet under if you don't have a comprehensive and well-structured business plan to help you make strategic decisions. Fortunately, this guide we'll put you head and shoulders above most entrepreneurs looking to enter the funeral home industry. It's a cost intensive business to get into, so you've gotta make sure you do it right. This business plan template was drafted alongside one of the very best in the US, so you should do just fine. If you need some additional one-on-one help from our business plan pros, get in touch and we'll help you on your business plan writing journey!
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $320,000 | $560,000 | $880,000 |
| Direct labour and contractor costs | $86,400 | $151,200 | $237,600 |
| Gross profit | $233,600 | $408,800 | $642,400 |
| Gross margin | 73% | 73% | 73% |
| Salaries and wages | $102,400 | $179,200 | $281,600 |
| Marketing and advertising | $35,200 | $61,600 | $96,800 |
| Rent and utilities | $24,000 | $24,000 | $25,200 |
| Other operating costs | $19,200 | $28,000 | $35,200 |
| Total operating expenses | $180,800 | $292,800 | $438,800 |
| Net profit / (loss) | $52,800 | $116,000 | $203,600 |
Break-even analysis:
- Estimated monthly fixed costs: $15,100
- Monthly revenue required to break even: $20,600
- Break-even is projected to be reached within the first 12–18 months of trading.