The funeral home industry is an exceptionally stable business. Characterized by predominantly private, localized operators, many families have profited from running this type of business. The 1990s saw takeovers of many small funeral homes. However, many regionally specialized operators maintained their close-knit businesses. Specialization in terms of services available distinguishes operators from their competitors, and attracts reliable customer bases.

The industry was plagued with bad publicity during the early 1990s, when the Federal Trade Commission investigated the practices of some funeral homes. Regulation has since forced these businesses to charge for each service on an individual and itemized basis, rather than billing premium rates for bundled packages. The industry standard today mandates full, up-front disclosure to potential customers in the form of price lists.

Basic operations include preparing the deceased for embalming, coordinating funerals, remembrance ceremonies, and burial. As the prices of preparing funerals have increased, a sub-industry specific to funeral planning has emerged. Industry certification for Certified Preplanning Consultants is now available through the National Funeral Directors Association.

It is important to review any lease encumbrances. Special permits are often required by local zoning departments to operate crematoriums; however, many homes opt to not include cremation services, given the lower market price for conducting cremations instead of embalming.