What business to start during a recession? Countless articles on the internet give you advice on that, and they usually tell you to focus on the essentials: food, clothing, budget chocolate. (Everyone neets a sweetener in tough times, right?)

So it was interesting to stumble over an article today which discussed how the funeral industry of all things was hit in the 2008 recession. Seriously? Yes, it did. And we can learn from it.

Rullis said his business has dropped off by about 25 percent. “This is the quietist” period in his career selling gravestones and monuments, he said. (on CNN, emphasis mine)

The crazy thing is … I mean, how can a recession impacts deaths? Well, it didn’t, or that wasn’t what hit the funeral parlors. It was that people arranging a funeral went for the cheaper, non-premium options:

  • they bought cheaper coffins or caskets (side note: do you know the difference? TIL caskets are a simple rectangular box, while coffins have this familiar wider shape at the shoulders.)
  • they cremated their loved ones instead of burying them (much cheaper!)
  • they shorten the time for visitation services
  • they go easier on the flower bouquets
  • they opt for smaller or fewer newspaper notices

Koth says a growing number of families are choosing less expensive caskets for their loved ones. (on MPR News)

So, what kinds of funeral businesses did the 2008 hit, and which did well?

Funeral businesses that lived off their premium offerings likely saw the most impact as people chose to go for the budget versions. For example, funeral parlors who make most of their money from premium coffins. Or hearse-related services.

On the other hand, businesses that were built around cheaper alternatives, such as crematories, likely did better. (For customers, cremation is a cheaper alternative to a burial.)

What does this mean for your (funeral) business?

If you’re running a business, any business, and a recession hits, look at how your customers might change their spending. You know your products and services. Go through each, and consider: what’s the budget version of this? If you were to look for options, what would be a cheaper alternative?

And when you figured that out: what do you need to change so you can be the one offering that cheaper version—and still make money. Maybe even double down on that.

What if you wanted to start a funeral business during a recession?

If you’re looking to start a new business, apart from considering those budget-related trends, see if you can carve a new niche out for yourself. You think death-related services are boring businesses and there is no innovation there? Think again. You wouldn’t believe what kind of service you can offer.

No matter if you already have a business or looking to start one—don’t do same-old when a recession hits. A recession means change, and you gotta change with it.