Consider the following scenario - we have an e-commerce enabled website selling (say) routers in Britain. Now, one of my keyword (of great importance) is "British Routers". My website is already on second page but not moving ahead for this keyword. A little bit of research revealed that the domain britishrouters.com was available which I bought. Now I want to make know what is the best possible way by which I can get my original website to move ahead on this keyword using this domain. Though I am no SEO person but I guess 301 redirects would already be covered by Google. My best possible bet is to probably do a wordpress install and write a few blogs having links to my original domain.
Exact match domains no longer carry a lot of weight (if any from what I understand) with Google so that won't help your SEO any more.
If you do choose to use the new domain you need to do a 301 redirect from the old domain to the new domain for every page of your website. This is trivial to do with a snippet in htaccess if you use Apache.
Creating a blog just to link to your main site is pointless and possibly even harmful. That blog itself will have no SEO value and will thus convey no SEO benefits for the sites it links to. Additionally, if Google determines you are engaging in a link manipulation scheme in order to manipulate their search results your site will go to SEO hell and then you will have just done the opposite of what you're hoping to accomplish.
In this day and age there's little point in having keywords in the domain because it won't or at least shouldn't help you rank any more better than a domain with no keywords - this is because people like yourself, and many millions others came up with idea to buy domains purely with keywords to dominate the rankings - this worked for many and many years and Google has recently addressed the issue, meaning its harder.
Now, EMD stands for 'Exact Match Domain' so this would indicate that you can still use some keywords in the domain but you should try and make a good business brand.
Pet Memorials would be an exact domain match, using 1st memorials would not on the phrase pet-memorials however it be an exact on just memorials, so you really need to be careful. My advice is to come with a business name that allows your business to move forward and build a brand, if it makes sense to have a business with some keywords then do so, but do not make a company name based on Google's SEO, that's juts bad practice.