Funeral Home Business Plan

Funeral Home Business PlanEXECUTIVE SUMMARYDeath is an inevitable phenomenon. When one dies, it is in state that he or she gets a good send off-key from booster shots and family members. Ohio, one of the greatest states in America has numerous towns with funeral al-Qaedas. How incessantly, they do not offer an all metre utility for the disease. Unfortunately, Monroe, one of the towns in Ohio has no funeral root consequently citizens move to sepa position towns, an expensive and time-consuming issue. This computer programme outlines the st reckongy by which a new-fashioned funeral home, Dobrozsi get out define and dominate a new perspective of funeral service provision in Monroe town, Ohio State and extend to the whole USA.It also foc dos on the untapped opportunity in the cremation of the dead bodies. Up to now, very few funerals home be cremating the dead bodies. Change in worshipping has resulted into umpteen people going for cremation or else of burial. The image out lines how these opportunities leave alone be made use of to increase the railway line scope and turn over there by increasing the profit boundary line of the line of work. It will also bring out how these services will be achieved in both the long and the short time. It explains how it shall use the competitive advantage to plug that it is on top of the business.The plan also brings out the mission, vision, and the objectives of the business. It analyzes the mission of the business its vision and goals as well as the organizational nicety. The business will be built on the philosophy of divided we fall united we stand this means that the business can not do a lone negatively charged the early(a) key s tearholders in the sector which include the families, use upees, the owners and the environment at large. It describes the cultivation and what will be done to attain the finish of the business.On a unalike perspective, the plan describes the business to be started. It giv es a brief summary of the business, the type of the business, which is Limited Liability Company. It clearly defines the shargonholder who is the sole owner of the business.The plan analyzes the opportunity available through research and how the opportunities will be exploited. The plan identifies the very good and many good opportunities, the entities already in the market, how the incoming entity will take a competitive advantage over the other rivals and outwit them. It mentions the available competitors in the market. It goes ahead to discuss the marketing strategy and plan that the business would use. In this chapter, it discuses identification of the customers or consumers of the product will be identified and mechanisms to reach them. grocery segmentation is discussed in this chapter with at least four assorted segments that the business will try to meet in its endeavors to provide the scoop out quality diseases. It identifies the target markets out of these segments and a market strategy to reach to them.It discuses heed and trading operations of the service business the entity is going to engage in to meet the needs of the customers. The competition in the business has been described vividly together with the different acquire patterns experienced in the industry. The plan also identifies the competitive progress and the sales strategy that may be employed to attain the target sales. To conclude, the plan gives a financial breakdown of the necessary follow for financing the project. It the goes ahead to give a implore for funding and the exist strategy. It closes by bounteous appendix.MISSION, flock AND CULTUREMissionThe mission of the Dobrozsi Funeral Home is to take the best care of the families and friends in the time of a lost love one by providing the plain environment. The facilities involved will help accommodate the families and friends and the homes serenity will give much consolation to them.The funeral home will, through provis ion of such services germinate to be the best funeral home not whole in the town alone also in the state of Ohio and to the larger USA. It will use these service provisions to be the close profitable home in the environs.VisionThe vision of the funeral home is to be the first successful funeral home in Monroe with the best service. This will be attained through provision of the superiorest quality services with well the best facilities in the state, well trained, and experienced personnel at the most affordable rates.CultureIn order to achieve the set mission and vision, the funeral home will develop a culture of a combination of sizeable work environment, hard work, and family and customer service. The healthy work environment will be ensured through provision of better running(a) equipment to the employees with good pay in turn promoting hard work amongst them.The main concern of the funeral home is to take care of families at the point of bereave thus, they will form part of our culture achievable through provision of better services and more especially customer service.COMPANY DESCRIPTIONDobrozsi Funeral Home a comprehensive type or mode of a funeral home with unique services and characteristics form the other funeral homes. It will handle services for all faiths, cremation, and pre-planning on a location of 45050 Monroe at Ohio State found on street 6305 Hamilton along the Lebanon Rd with operations of the business scheduled to begin on February 1, 2011. It is going to be the first funeral home ever in Monroe.The funeral home will be a limited liability corporation (LLC) and the owner will hold all its shares. Evan Dobrozsi, the owner of the funeral home is cognise for his well-managed entrepreneurial skills that chip in helped him start up businesses resulting into changing lives of most citizens. With this motivation, he has decided to start up a funeral home at Monroe. This is will be a funeral home of its kinds though with competition from Mi ddletown, Hamilton, Franklin, and Liberty Township and West Chester area having other different funeral homes.Making it an exceptional funeral home will be the normal home looking buildings together with different chapels of different sizes. The home looking building will create a home environment for the mourners giving them a sense of hope while the different chapels sizes will be due to different service-size demands. Their main intentions are to help in the celebration of a life well lived by the deceased, provide consolation, and hope to friends and relatives through services in the chapels. In addition, it will ensure better customer service to take on board the families as part of the organizational culture.OPPORTUNITY ANALYSIS AND RESEARCHState of Ohio has a population of about 11.5 million people existence the seventh mettlesomeest in the USA. The death rate of the USA citizens has been on the increasing note every year according to research conducted of late. In Monroe, the death rate has been significantly increasing with no funeral home around. The closest funeral homes are found in the other towns of the Ohio state, stag people to move for long distances taking a lot of time before they get a funeral home.There is no funeral home in Monroe and the death rates are increasing considerably. This means that the cost of direct off a loved one is higher due to the additional costs incurred in transporting the bodies to and from the far funeral homes.It also leads to too much time wastage surrounded by the towns of the state and looking for a funeral home. Time lost is a very valuable resource and once lost can never be recovered. umteen people in turn are getting disappointed and demoralized when they, in sure sense as supposed to be consoled. Though there are funeral homes around, their services have been limited, slow, and expensive. Staffs in these funeral services lack the experience to offer the best funeral service. Whats more, they concen trate so much on the dead sort of than on the people bereaved. There are no measures to console them. In addition, they do not take of other ways of sending off the loved ones such as cremation.The funeral homes having these facilities are very poor with inadequate number of employees some of whom do not have the skills to offer such services.Research has proved that many citizens are now going out of the state to look for a friendlier funeral home for the services of these loved one lost. Most of these funeral homes in any case, use the non-automated systems making service delivery ineffective. There is push towards cost, as people prefer funeral homes with low costs without compromising on the quality of the service offered. Majoring on these weaknesses of the competitors and the unavailability of the funeral homes in the state, Evan Dobrozsi created an opportunity and is about to venture into serious business.Dobrozsi funeral home will take up the opportunity by focusing much on the competitors weaknesses in order to strengthen them as well as taking the bigger opportunity of the lack of funeral homes in Monroe. In this case, it will enjoy the monopoly post within the region. It will bring services closer to Monroe citizens as compared to the others.MARKETING STRATEGY AND PLANIdentification of the customersIn a bid to know the real customers of the funeral home, it is better to segment the market, dividing it in need categories. Most funeral homes if asked today will admit that they do not know their customers. American population is segmented in correspondence with generations making up the population. The funeral will therefrom concentrate on the generations. Statistics has proven that people age 23 and over are capable of making a acquire decisions, thus our strategy will be to reach out to people of ages 23 and above.The funeral home will also target other faith that believes in the cremation of the dead. Most funeral homes have ignored this area fo r a very long time. Our better, high quality resources will enable us discharge the cremation services to the bodies of the deceased who believe in the cremation. The most effective market among the segments id the Generation with a high demand and very weensy supply hence the funeral home will focus on the market.Market SegmentationMonroe has a family percentage of 76% with an average age of 39.7 years old. Our market segmentation will be based on the Americas division of people in terms of ages. We have realized that within these segments, generation as used by USAs demography, the purchasing power differs and focusing on all of them leading to a variety of market hence needs and services. The market divided according to decision makers on purchasing is has the following segments for focusV.2.1 The GI Generation (born 1901-1924 and may be referred to us post World War I)According to the USA demographics as at 2003, these are people who are now 76 years and above. In this busines s, it is the most active with a mortality rate of about 10.9% per annum. Due to this high mortality rate, they have to make funeral arrangements either by themselves for those not afraid or their caretakers will make for them. They in most cases have very little hope in living, more that is a fueling factor for their mortality. The new funeral home will take on this market with a lot of enthusiasm.V.2.2 The mute Generation (born 1925-1945)With a mortality rate of 3.1%, most funeral homes tend to concentrate so much on them. Unexpectedly, the Boomers rather than the G1 have influenced them. Much of their lifestyles revolve chiefly on the Boomers trying to much them. A reason that has made many funeral homes to concentrate so much in them is due to other causes of death other than natural attrition. It is considered the working generations with so much experience and many years of service. In effect, they are the richest and help the G1 and the Boomers meet their expectations of fun eral services.V.2.3Boomers (also called the post World War II born 1946 through 1964)Compared to the two generations, their mortality rate is quite low about 0.5%. However, the majority of this generation are considered very productive, innovative and more crazy than the above two generations. As a result, they are engaged in planning services and especially for funeral arrangements. For our success, we cannot leave the generation since they will bring business when are attracted to good and high quality services. We win them they bring business.V.2.4 Generation X (1965-1980)Amongst all the cohorts, this is the last and the youngest with a low mortality rate hardly may experience some changes due to change of behavior. They are so adventurous, a fact that is currently changing their mortality rates. They believe in themselves but are also very influential not necessarily in death but they also participate in the funeral arrangements of their parents and grand parents. Even though they have very little to do with funeral matters, they still influence decisions regarding the funeral arrangements especially if they have no relations in Silent and G1 but boomers.The Target Market for the homeThe target market of the funeral home will be the G1, Silent, and the Baby Boomers. The three cohorts have different needs, tastes, and potential very significant in the operations of the funeral home. Through the three cohorts, the funeral home will learn how to provide differential high quality services to the customers and the families involved. The other target will be the little tapped opportunity in cremation services especially around Monroe. umpteen funeral homes fear venturing into this type of product and we shall take advantage of this fact to help us have differentiated products to the customers.Marketing StrategyOur culture is to enhance the correlation amid the employees, the customer and the management, the funeral home focus will to establish a link betwee n the three parties for the success of the business. This will be achieved through provision of high quality services to the consumers at an affordable price, ensure that the employees have the best working environment consequently, high return for the owner.The chapels will be available for the families of the bereaved to offer service to the deceased and get consolation that he or she has started a new life for the believers.MANAGEMENT AND OPERATIONSHaving toured the funeral homes and seen the management of the homes below expectations. Dobrozsi funeral home will have the best management of human resources and the services delivered. It is going to wear a competitive advantage through provision of high quality services as compared to the rivals. It strategic management policies will ensure that it achieves the objectives, mission, and vision.The existing funeral homes are far from the people with low quality services and they have failed to offer-differentiated products to the va ried needs and wants of the consumers. It is on this basis that the Dobrozsi funeral home will be managed in order to out do our competitors. From Portes five forces that affect the operation of the business, the funeral home shall develop better policies to enhance its effectiveness and avoid any further threats from the incoming entities in the same industry.Analysis of the service business to be implementIn the event of death, a person has to be buried of cremated depending on the deceased culture and traditions. Since the remains of the deceased are never useful to the family members and relatives there is an option of a funeral home. Funeral homes universally offer some important services to the dead which includes homework of a service for then deceasedEnsuring that the body of the deceased is well preserved and ready for viewingMoving of the body from the funeral home to residential home and to the burial siteProvision of certain resources to aid the funeral such as casket, u rns, remembrance productsProviding immediate burial minus a service depending on the culture an tradition of deceasedProviding cremations service not common to many funeral homeCompetition and Buying Patterns in the marketPeople would choose a funeral home first for convenience purposes, service to the family and reputation derived from the funeral home. The biggest percentage goes for convenience in terms of location and costs. Monroe has not had a funeral home since time immemorial.Having identified the buying pattern, customers will go for the easiest and fastest option, we are going to launch our funeral home at Monroe to take up this opportunity.Freedom of worship has also changed the buying pattern. Many people are now joining the religious groups of their choices. Consequently, there has been an increased demand for cremation, an are not well exploited by the funeral homes. People are also becoming too religious. For this reason we are going to have different chapels of diffe rent sizes and we shall provide cremation to have competitive advantage not only over the rivals in the market but also for those who may want to join the industry.Competitive EdgeDobrozsi Funeral Home is one of the best homes to be started in Monroe. It will provide caring atmosphere with facilities to ensure a person is given a dignified send off by the home. It ensures that the remaining family members and friend are consoled in order to have the faith that one day they will meet again. The upcoming funeral home will explore its competitive edge to offer these values and functions and help promote the living standard of the employees.Its competitive edge is the fact that many have not ventured into the business in Monroe as well as the cremation, which is offered by very few funeral homes. It will uphold the values and purposes of a burial or a funeral for that matter. The values and the purpose of a funeral gathering is to appreciate someone for the life well lived, wish him a f arewell and support the ones left behind with consolation.Sales StrategyIn showdown our sales, a strategy has been laid down to ensure its achievements. The home will bring on board executive directs sales agent who will employ the process of personal selling to approach customer, present the product, convince the customer to purchase the product and close the sales. The sales executive may then request for more leads from the customer. Once a sale is closed, the customer will be like part of us. Through him, we shall reach other hundreds of customers out thereVII. fiscal ANALYSIS AND PROJECTIONSThis analysis and plan aims at getting a loan of $ 184,000 with the total net worth of the business being. Our start-up expenses of $32,500 and asset purchases of $151,500 are to be financed by loanStart-up Funding Amount in $Start-up Expenses to Fund32,500Start-up Assets to Fund151,500Total Funding Required184,000AssetsNon-cash Assets from Start-up58,500 coin Requirements from Start-up121, 250Additional Cash RaisedCash parallelism on Starting DateTotal Assets235,300Liabilities and CapitalLiabilitiesCurrent Borrowing184,000Long-term LiabilitiesOther Current Liabilities (interest-free)Total Liabilities184,000CapitalPlanned Investment owner58,500InvestorAdditional Investment RequirementTotal Planned Investment58,500Loss at Start-up (Start-up Expenses)(32,500)Total Capital26,000Total Capital and Liabilities210,000Total Funding242,500VIII. living REQUEST AND EXIST STRATEGYStarts up costs of a funeral home are much higher than businesses of the same size. The costs of cars are very high and the small fare of equipment that is needed is high. All these items are things that you have to have to operate a funeral home aside from the facilities. All the things that are in this key are things that are absolutely required and are not things that you can do without.To have a funeral home you must be able to embalm a body and make-up which you need tables for. The embalming tab le is stainless steel which is what makes it so expensive. You must have a van and a cot to make removals. Another big thing is the cost of the hearse with is probably the biggest expense cause it has to in a since be custom made. The last large expense is a cooler to keep bodies in that arent embalmed or are going to be crematedWe are therefore requesting for a funding of $ 184,000 which we are sure to pay in the next one year that is a period of 12 months. The amount is to assist us get the required material for the start of the business. We shall repay the amount together with the interest required. On a straight line basis without the inclusion of the interest rate we are sure to pay the following amountAmount borrowed $ 184,000Period of repayment 12 monthsMonthly repayment 184,000 / 12 months= $ 15,333.33 per monthOnce the amount is paid up we shall be glad to be a member of the bank. All our proceeds shall be used through your good bank.We therefore humbly request for the fina ncial assistance to help us achieve the objective and promote the lives of the people of Monroe by giving the family members of the deceased a good consolation and ensuring that the deceased is given the best send off by the people he or she loved. We are proud to be associated with you and we look forward to doing business.APPENDICESAppendix 1 Financial RequirementsAppendix 1a) The financial requirements of the hard visa a viz the actual that we be used up during the implementationItemCostEstimate/ActualStart-Up ExpensesAccountant Fees1500Expensed Equipment2500Financial Institution Fees individuality Set/Stationary3000Insurance5000Legal Fees10000Licenses/Certificates/Permits1000Marketing Materials (cards)2000Payroll (with taxes)2000Professional Fees Other2000TravelUtilities1500Web Fees2000OtherTotal Start-Up Expenses32500Start-Up AssetsCash Balance for Starting DateEquipment25000Furniture Fixtures30000Leasehold ImprovementsCarsRent DepositSignage3000Utility Deposit500OtherTotal Start-Up Assets58500Total Start-Up Requirements151500Appendix 1 b) The required assetsItemQuantityCostEquipmentHearse1100000Removel Van135000Embalming Table12000Removal Cot11300Prep Table1900Embalming Pump1800Church Truck11000Prep Stuff12500Cooler18000Other CostsStart-Up Investment-TOTAL$242500Cash halt$121250Total Start-Up Investment + Capital Reserve$363750Appendix II The Work plan and how the activities will be donePROJECTJANUARYMARCHAPRIL JUNEJULYSEPTEMBEROCTOBER declinationDrawing the planCollection of the materialsSeeking for fundingPurchase of the assetsBuilding project inceptionDoing a market research for determination of the demand directGetting the required people in time to begin businessRegistration of the companyAppendix III Statistics found out on the target of the Monroe StateSeries 1 represents the Mortality rate of the BoomersSeries 2 represents the Mortality rate of the Silent generationSeries 3 represents the Mortality rate of G1 Generation