How to Start a Headstone Business

Starting a headstone business can be an exciting and rewarding venture for entrepreneurs who are passionate about helping families commemorate their loved ones with meaningful and lasting memorials.

That said, establishing this type of business will require more than just a passion for craftsmanship and a desire to help others — you will need to master a blend of technical skills, develop an empathetic approach to customer service, and understand the specific guidelines and requirements of local cemeteries.

In this comprehensive guide, we’ll walk you through all the essential steps you’ll need to take to start your own headstone business, from conducting market research and securing funding to choosing the right location, setting up operations, and attracting customers.

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Industry Overview

The grave marker and headstone industry is experiencing steady growth, with the market size valued at USD $1.6 billion in 2023 and being projected to reach USD $2.6 billion by 2030, expanding at a compound annual growth rate (CAGR) of 6.4%.

One of the primary drivers behind this growth is the increasing preference for personalized and meaningful memorials that capture individuals’ personalities, achievements, and cherished memories.

This has led to increased demand for more premium products, which has additionally enhanced the market’s overall profitability.

In addition to human memorials, the North American market is currently witnessing a steady rise in demand for pet tombstones. These markers often incorporate details like pet names, paw prints, and other symbols that capture the bond between owner and pet, catering to a small yet growing segment.

Looking ahead, the continued rise in cremation services is expected to further drive market growth by increasing demand for custom headstones with urn compartments, supporting both profitability and diversification within the industry.

Startup Costs

If you’re considering whether a headstone business is right for you, the first thing you’ll need to know is whether it’s a) affordable, and b) worth the investment. I mean, how much can you actually make running your own headstone business?

Well, it depends, and the initial investment for a headstone business varies widely based on factors such as the equipment you’ll choose, the types of materials you’ll source, and the level of customization you plan to offer.

Below we’ve broken this down in more detail:

• Stone Cutting and Engraving Equipment ($10,000 – $50,000+): You’ll need to acquire specialized equipment for cutting, shaping, and engraving headstones, which could include stone saws, engraving tools, and polishing machines, with costs varying based on the quality, brand, and type of equipment you choose.
• Raw Materials and Stone Supply ($5,000 – $30,000): You will need to source high-quality stone materials such as granite, marble, and limestone, which can vary in price based on the type, durability, and availability of each material.
• Workshop Setup and Utilities ($3,000 – $20,000): You’ll need to set up a workshop for crafting and storing headstones, covering expenses for workbenches, storage, lighting, safety equipment, and utilities like electricity and water.
• Transportation and Delivery ($2,000 – $10,000): You’ll need a reliable vehicle or delivery service to transport completed headstones to cemeteries or client locations, with costs depending on whether you’ll buy a vehicle, lease, or hire an external delivery service.
• Marketing and Advertising ($1,000 – $5,000): To build visibility for your headstone business, you’ll need to allocate funds for marketing, such as developing a professional website and fostering relationships with local cemeteries and funeral homes.
• Licenses and Permits ($500 – $2,000): To operate legally, you’ll need to acquire all required licenses and permits, with costs varying depending on your business’s location and the specific regulations in your area.

Note: Although not exactly a startup cost, it’s highly recommended to set aside working capital to cover three to six months of operating expenses, ensuring you can handle any cash flow gaps or unexpected costs during the early stages of running your headstone business.

Earning Potential

The earning potential of a headstone business is generally very promising, with most companies operating at profit margins of 60% or higher.

This favorable financial outlook is supported by clients who place a high value on craftsmanship and personalization (rather than on cost) as they’re motivated by the emotional significance of honoring their loved ones.

This means that (generally speaking), when clients come through your doors they’ll be disproportionately likely to see the value in your services — with the real challenge being actually getting them there in the first place.

This is because due to the sensitive nature of losing someone, traditional marketing approaches are often less effective, and people tend to avoid these discussions until they face an imminent “need” for such services.

The main business challenge, therefore, isn’t in demonstrating value; it’s in building strong relationships with local funeral homes, cemeteries, and community organizations who can help connect you with families during their time of need.

6 Steps to Starting a Headstone Business

In order to start a headstone business, you’ll need to complete the following steps:

1. Planning Your Headstone Business
2. Registering Your Business
3. Secure Funding (If Applicable)
4. Finding and Securing the Right Location
5. Getting all Applicable Licenses and Permits
6. Obtaining Business Insurance

We’ve broken each one of these down in more detail below.

Still exploring your options? Check out other small business ideas.

Step 1: Plan Your headstone business

Before diving into your headstone business, you’ll need to spend some time conducting thorough market research.

You’ll need to start by examining the local competition, identifying the types of headstones and customization services they offer, as well as their price points.

The main focus at this stage should be evaluating the potential challenges of entering this market and gauging how welcoming it may be to a new headstone business.

To do this, you should assess what’s required to build trust within local networks and determine whether established competitors or existing relationships in your area could pose obstacles.

You will also need to look into local demographics and burial preferences in your area to understand the demand for specific headstone styles or materials.

This will help you evaluate the financial viability of your project — including projected revenues and expenses — as well as set realistic targets for growth and profitability.

Finding a Suitable Name

Choosing the right business name is both important and challenging.

This is because your name will need to be eye-catching, memorable, and (at least somewhat) related to your industry.

If you don’t already have a name in mind and need help, you can visit our How to Name a Business guide or use our free Business Name Generator tool.

If you do have a name in mind, we recommend researching the following:

• Your state’s business records
• Federal and state trademark records
• Social media platforms

You will also need to make sure that your business’s name is available as a domain — this is your website’s URL address.

Note: If you’re planning to operate a sole proprietorship, you might want to operate under a business name other than your own name — known as a “Doing Business As” (DBA) name. Keep in mind that this is not recommended for a headstone business.

Building Your Local Network

One of the most important aspects of building your headstone business will be establishing a strong local network, as we previously discussed the importance of community integration in this field.

This can involve a range of approaches, including:

• Joining local business groups
• Attending industry events
• Partnering with funeral homes and cemeteries
• Engaging in sponsorships or volunteering
• Hosting local events

Remember that establishing a presence in the community will do wonders for your business, enhancing your reputation, building trust, and fostering the long-term connections necessary for attracting business.

Creating a Detailed Business Plan

A detailed business plan is essential for outlining your business strategy, securing funding, and mapping out your headstone business’s path to growth and profitability.

When drafting one, be sure to include an executive summary, market analysis, organizational structure, product offerings, pricing strategy, and financial projections.

Remember to include as many relevant data points, research insights, and concrete examples as possible to support your claims and demonstrate the viability of your business model.

The more comprehensive and data-driven your plan, the better equipped you’ll be to make informed decisions and attract potential investors.

For more information on this step, you can have a look at our How to Write a Business Plan guide.

Step 2: Register Your Business

One crucial aspect that cannot be overlooked when starting your headstone business is the importance of establishing a solid business foundation. While sole proprietorships and partnerships are the most common entity types for small businesses, they’re a far less stable and advantageous option than LLCs.

This is because unincorporated business structures (i.e., sole proprietorships and partnerships) expose you as an owner to personal liability for your business’s debts and legal actions, while LLCs protect you by keeping your personal assets separate from your business’s liabilities.

In practice, this means that if your headstone business were to face a lawsuit or incur any debts, your savings, home, and other personal assets could not be used to cover these costs. On top of this, forming your business as an LLC also helps it to appear more legitimate and trustworthy.

Note: If you’re interested in more information before getting started, we recommend having a look at our How to Start a Business guide (DIY) or our in-depth Best Business Formation Services review (for those opting for a professional service).

Step 3: Secure Funding (If Applicable)

Nearly every business, especially in the early stages, will require some level of financing to get off the ground, with the most common options available being:

• Small Business Administration (SBA) loans
• Traditional bank loans
• Private investors
• Angel investors
• Crowdfunding campaigns

Having said that, it’s important to approach financing with caution and ensure that you only take on debt that is manageable and aligns with your business’s revenue potential.

This is primarily because demand for headstones tends to be unpredictable, with no consistent pattern of high or low activity, meaning that, if you take on substantial debt with fixed interest payments, these slower periods could significantly strain your cash flow.

Of course, the extent that this step will be applicable to you will depend on your individual financial situation.

Step 4: Find and Secure the Right Location

While many factors come into play — some based on your personal preferences and taste — there are three main considerations to keep in mind when choosing a location for your headstone business:

1. Proximity to cemeteries and funeral homes
2. Adequate space for storage and production
3. Affordability to ensure manageable overhead costs

You will also need to make sure that your prospective property is zoned appropriately for your intended use and complies with all applicable local and state regulations (discussed in more detail in the next step).

Step 5: Secure All Required Licenses And Permits

The applicable licenses and permits that you’ll need will largely depend on your state and local regulations.

Even so, we’ve compiled a list of some of the common licensing regulations that you’ll likely need to satisfy in order to operate legitimately.

Sales Tax Permit

If your state imposes sales tax on services or goods, you’ll need to obtain a sales tax permit (also known as a seller’s permit or resale certificate).

This permit will allow you to collect and remit sales tax on headstones, as well as additional items you may offer — such as memorial plaques, vases, and inscription services — and can typically be obtained through your state’s Department of Revenue or Department of Taxation.

Zoning and Land Use Permits

Before establishing a headstone business, you’ll need to ensure that the land is zoned appropriately for your type of operations.

Zoning regulations vary by locality and dictate the types of activities that can be conducted on a piece of land. In some areas, you may need to obtain a special use permit or a variance if the land is not already zoned for your intended use.

We recommend consulting with your local zoning authorities in order to understand the specific requirements and restrictions that will be applicable to your headstone business. Alternatively, you can consult with a business attorney if you want someone else to take care of this for you.

Step 6: Secure Business Insurance

In addition to securing the necessary permits and licenses, you will need to obtain the right business insurance.

Note

Even if you form an LLC, purchasing business insurance is still a good idea. This is because an LLC structure protects your personal assets, not your business’s.

While specific coverage needs may vary based on factors such as location, size, and unique risks, there are several key types of insurance that most headstone businesses should consider.

We’ve briefly outlined these below.

General Liability Insurance

General liability insurance is a foundational coverage that’s essential for headstone businesses because it protects against claims of bodily injury, property damage, and personal injury that may arise from your business activities.

The average cost for general liability insurance according to recent data is $42 per month, or $504 annually, though costs can vary based on your business’s specific needs and risks.

Professional Liability Insurance

Professional liability insurance is another important coverage for headstone businesses as it protects against claims related to professional mistakes or negligence in the services rendered.

This may include errors in engraving, inaccuracies in design specifications, or issues with installation that could result in financial loss for clients, as mistakes may require costly corrections, such as replacing a headstone or making modifications that involve additional materials and labor.

The average cost for professional liability insurance typically ranges from $50 to $100 per month, though rates can vary based on factors such as the scale of your operations, the specific services you provide, and your individual claims history.

Property Insurance

Property insurance is essential for safeguarding your headstone business’s physical assets, such as the stone inventory, equipment, tools, and workshop facilities.

The median cost for business property insurance is approximately $63 per month for plans with a $1,000 deductible and a $60,000 policy limit.

Having said that, rates can vary significantly based on factors such as your location, risk profile, and the value of the property in question.

Ready to Get Started?

How to Start a Headstone Business FAQs

Is the tombstone business profitable?

Yes, tombstone businesses can be quite profitable, with most companies typically operating at profit margins of 60% or higher.

That said, you should always keep in mind that success will heavily depend on building strong relationships with funeral homes and cemeteries, as that is how you will acquire most of your customers.

How to start a business selling headstones?

To start a business selling headstones, you will need to conduct thorough market research, develop a comprehensive business plan, and obtain all necessary licenses and permits.

Once that is done, you will need to focus on securing a suitable location and investing in the necessary equipment to begin operations.

What do you call a business that makes headstones?

A business that makes headstones is commonly referred to as a “memorial company” or “headstone manufacturer.”

These companies specialize in creating personalized memorials, including headstones, gravestones, and memorial plaques, catering to the needs of families commemorating their loved ones.

What materials are commonly used for headstones?

The most common materials used for headstones are granite, marble, and limestone due to their durability and aesthetic appeal.

Granite, in particular, is the most popular choice for headstones due to its resilience and wide variety of colors, while marble is a close second, though it requires more maintenance to prevent weathering and deterioration over time.