The theme of Summit 2021 is The New Confidence, which focuses on the new changes brought in by the new year and their anticipated effect on the funeral industry. After the unprecedented events of 2020, it’s evident that it’s time for something different and as the saying goes, “Change is the only constant.” If you aren’t ready for 2021, then it’s time to prepare yourself for the new wave of trends and transformations in the funeral home profession. “I recommend you ride this new wave, stay true to your business, but challenge yourself too,” says Johnson. “A great way to evolve your thinking is by reaching out to your peers or [networking] by attending an event.”

The JCG Virtual Summit takes place March 1 – 4, 2021. You don’t want to miss the conference’s interactive sessions which include:

• Innovative speakers that teach design thinking to help funeral/cremation professionals develop agile mindsets and build resilient organizations.
• Lively discussions with peers on how to navigate operational hurdles and take their business to the next level.
• Hands-on coaching on how to listen and understand the Voice of the Customer, and how this feedback can help you retain customers and improve the value of product and services.
• In-depth insights into the future of the funeral profession and how to maintain financial stability in a new normal.

Jake Johnson and the Johnson Consulting team created the M&A Minute to help business owners through the process of of buying or selling a business. The M&A Minute utilizes Jake and the JCG team’s knowledge to give advice that helps individuals feel confident and at ease when going through one of the most important times of their lives, selling or purchasing their most valuable asset. The M&A Minute is released every other Thursday. You can watch episode 5 now. Follow us on Facebook, LinkedIn, and Twitter to get M&A Minute updates.

Interested in Summit 2021? Register here! 

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Q: What trends are you seeing based on the pandemic?

A: Regarding the pandemic, it has effects on the business from two sides: the customer service side and the business side. As we know, COVID-19 has placed restrictions on the way loved one’s can celebrate the memory of someone who has passed. I think these restrictions—once lifted—will increase the significance of the funeral’s afterward. But, it’s important not to overstate this. When we think about percentages of the population, right now, a very small percentage of the US population has been to a funeral during the restrictions. So, if those are lifted, for all those people, it’s always been business as usual. As we know, many clients only visit a funeral home once or twice in a lifetime. It’s not the same relationship model as other businesses that depend on frequent visits. For all those customers who are having funerals now, it’s important that we help them feel that we did all we could within the restrictions to help them celebrate their loved one, to mourn their passing.

Q: How do these trends fit into goals for 2021?

A: From the business side, it’s taught us the importance, more than ever, of having a strategic plan. You have to look at your business from every angle, from business practices, financials, workplace morale, customer service, to make sure you’re prepared for fluctuations. You have to build a working budget and be able to adjust as the needle moves. You need to build a strong budget for 2021, based on what 2020 has looked like. You have to be prepared to review financials monthly, and to watch the market, to know what the government is doing, how is the jobless rate, so that we can respond to customer needs with what we offer.

Q: How is it a seller’s market and how is it a buyer’s market?

A: Regarding whether it’s a seller’s or a buyer’s market, it’s both. Here’s what we mean. There are investors out there looking to diversify in the funeral industry. So, it’s a seller’s market if you have your financials in order to show the investor that your business is a smart investment. If you have a succession plan in place and you know how to treat your employees, you’ll sell even better.

For the buyer’s the opportunities come from the people, maybe those who are over 55, who don’t want to deal with COVID-19 lingering around or with something similar, and they just want to sell. This is an especially good opportunity when the seller is unprepared. They don’t have clean and orderly financials. They don’t have everything in order, so they have to sell for less. As a buyer, you’re in a good place when you have options, many businesses to chose from, and there are plenty of businesses for sale right now.

If you are thinking of buying a business, creating your exit strategy, or taking your business to market contact our experts at Johnson Consulting Group.

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Social Distancing Effects on Funerals

No one could have predicted for the large-scale effects that social distancing has had on traditional funeral and burial services. Even when looking back to the 1918 Spanish Flu pandemic where public funerals and wakes were banned in certain cities, funeral directors could not have known that almost the same thing would happen 100 years later despite all the medical advances of the 21st Century.

The social distancing and stay-at-home requirements of 2020 have limited funeral gatherings to a maximum of 10 people or less in certain states. Restrictions include no hugging, kissing or hand holding, and funeral guests are encouraged to stay at least six feet apart from each other during the service. This has been a difficult adjustment for many families — the true essence of a funeral is being able to comfort and support bereaved mourners, and it’s just not the same offering sympathy from a distance.

Many funeral homes are now livestreaming funeral and memorial services on private channels or social media sites like Facebook, so that more people can experience the event in real time. Some funeral directors are even arranging drive-through viewings for family members and friends to pay their last respects while maintaining social distancing guidelines. It may seem strange to attend a live-streamed funeral or a drive-by visitation, but it is a practical option
during these crisis times. And while it can’t replace the personal connection of a traditional funeral gathering, more families will likely demand these options even after the pandemic ends.

Delayed/Postponed Services

Under normal circumstances, you can make funeral arrangements within a week of a loved one’s death. But burial timelines are being pushed out during this pandemic. Many families coping with the loss of a loved one due to COVID-19 are having to postpone funeral and burial services for several weeks. The Coronavirus crisis has hindered how quickly bodies can be transported from place of death to the funeral home, and shipping the deceased person’s remains to another state or country is almost impossible with airlines operating at a bare minimum.

In addition, many funeral homes can only schedule a handful of services daily and in some areas there aren’t enough licensed funeral providers with the capacity to serve the increased number of families affected by Coronavirus. Families that can’t plan the funeral they always envisioned for their loved one due to social gathering restrictions may prefer to wait until a later date to make arrangements. However, the selected funeral home may lack the space to shelter the remains for an extended period of time, and not many people can afford the increased costs for storage.

Cemeteries and crematories have also been impacted by the crisis. Some cemeteries are quickly running out of space and crematories are operating beyond capacity which means that burials and cremations are being pushed out days and even weeks into the future. Unfortunately, being able to hold a funeral and graveside ceremony after a loved one dies is no longer a certainty in this uncertain environment, but funeral directors are creating various options for their families.

Complicated Grief

COVID-19 has caused untold havoc on the grief process, perhaps the most important of all death rituals. It’s true that grief is a personal and unique experience, and there’s no “one size fits all” approach, but nobody can deny the importance of being able to mourn the loss of a loved one with family and friends. Due to the Coronavirus crisis, some bereaved families have missed out on the opportunity to honor and celebrate their dearly departed the way they would like — even with creative livestreaming and online memorial options, saying a final goodbye to a loved one just doesn’t feel the same during a pandemic.

Stay-at-home orders and social distancing mean that bereaved families can’t receive much-needed emotional comfort and support from the community in the ways they are used to — they are forced to grieve alone, which can be a painful and overwhelming experience. Others may not be able to acknowledge the death of a loved one because they were absent at the hospital or at the funeral/burial, which can make it all seem surreal. This struggle can lead to instances of compounded or complicated grief, where feelings of sorrow, pain, guilt, or anger are intensified and the person can’t seem to adjust to a new reality without their loved one. Someone who is experiencing complicated grief may self-isolate, have trouble with normal routines or become depressed.

Phone calls, emails and letters can help when someone is grieving alone, and tech tools are especially useful if you can’t make a personal visit. Dr. Alan Wolfelt, a well-known grief expert, encourages people to take advantage of video chats as face-to-face conversations can make all the difference when someone is mourning a loved one.

If you are having trouble coping with a personal loss or have symptoms of intense grief, consider getting help from a professional therapist.

After the Pandemic

Once the Coronavirus crisis ends, what will be the new normal? For funeral home and cemetery owners, the answer to this question will be essential to creating a successful legacy for your firm. For practical and customized guidance on adjusting to a changed reality, please call on the experts at Johnson Consulting Group.

The post How Coronavirus is Changing Death Rituals appeared first on Johnson Consulting Group.

It is not easy to sustain a funeral business during a pandemic, but several initiatives and resources have been developed to help make things a little easier for funeral homes in these challenging times. Here are five essential tips for funeral home owners that are worth considering:

Take Full Advantage of COVID-19 Relief Programs

The U.S. Government has developed various COVID-19 relief programs and stimulus offerings to help businesses navigate the unique challenges brought on by the virus outbreak. Funeral providers should take full advantage of this assistance to maintain their firm’s economic position. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted at the end of March 2020, offers several benefits for funeral home owners:

• Paycheck Protection Program (PPP) loans – a PPP loan provides cash to funeral home owners who maintain payroll and keep their staff employed during the coronavirus emergency.
• Debt relief programs – the CARES Act includes economic injury disaster loans and emergency grants, as well as immediate relief for small businesses with non-disaster Small Business Administration (SBA) loans for six months.
• Expanded bonus depreciation provisions – funeral homes can now accelerate depreciation on certain interior improvements such as drywall replacement or electrical and plumbing upgrades – which is a tax savings opportunity that should not be ignored.

The Funeral Service Foundation has also launched a COVID-19 Crisis Response Fund to provide grants for organizations providing funeral services and grief resources for families mourning the loss of a loved one due to Coronavirus.

Maintain Healthy Cash Flow

Maintaining a positive cash flow position is a key component of any company’s financial plan. In this unusual environment, funeral home owners should carefully evaluate their cash position to ensure they can effectively cover any short-term obligations. Tracking the inflows and outflows of cash in your business allows you to address material fluctuations and forecast future cash needs, which can be a make-or-break issue in the current economic climate. Due to this, funeral providers should carefully manage their cash reserves and explore options for access to additional cash if necessary.

Be Proactive with Sales Mix Adjustments

The COVID-19 crisis has led to atypical adjustments in the “normal” funeral home sales mix.  Social distancing guidelines, viewings and full traditional services have been replaced with livestreamed funerals and small graveside ceremonies. In addition, some funeral homes are experiencing a decline in cases while others are struggling to keep up with the rising demand. If changes to your sales mix are negatively affecting margins, consider making proactive adjustments to your funeral products and services to ensure your business stays healthy after the pandemic is over.

Stay Up to Date with Financial Reporting

In this crisis environment, timely and accurate financial reporting is more important than ever before. Don’t delay your monthly reporting process no matter how busy you get with daily tasks — it is crucial to have a clear understanding of your numbers. Additionally, if considering applying for any type of aid under the CARES ACT, keeping track of your business expenses is a requirement of the program. Therefore, your funeral home accounting system should enable you to evaluate your business activities and outcomes against prior year results and assess financial statement variances against budget projections. Holding true to a fiscal plan is a good way to achieve profitability and growth targets, even in these extraordinary times.

Use Industry-Specific Benchmarks for Analysis

When it comes to business management, you must use the right tools to get the job done correctly. For an accurate analysis of how well your funeral home matches up against other competitors, using industry-specific benchmark tools is the best way forward. Our team at Johnson Consulting Group (JCG) has worked with hundreds of funeral businesses across the country, providing strategic solutions and compiling large amounts of financial data to establish benchmark targets for funeral homes. Our JCG database offers an in-depth look at your funeral home’s performance vs. similar firms, as well as realistic reference points for strategic planning. In this crisis, knowing your overall position is key to forging a path forward after the pandemic is over.

We are the largest broker in the funeral industry, with seasoned experts ready to offer practical guidance on how to cope with the disruptive challenges caused by the Coronavirus pandemic. To learn more about our services, please contact us for a personalized consultation today.

The post 5 Essential Tips for Funeral Home Owners During These Challenging Times appeared first on Johnson Consulting Group.

Communication

Successful funeral home and cemetery management has always included effective communication. During a crisis, it’s important to increase communication amongst the entire company. This means within the management team and then delivered to the rest of the organization. Schedule daily times to review new information and issues. Take time to inform, educate, and train on topics pertaining to COVID-19. Consider designating one team member to be your COVID-19 information specialist.

Customer Interaction and Service Delivery

In funeral service, caring for families is at the core of what we do. Now, however, COVID-19 has changed the means by which we do this; but it hasn’t changed the core fundamentals themselves. Be creative in serving families and celebrating lives. Look for ways to do things differently with technology for private or small gatherings. It’s also important to establish your business’ protocol for how you handle arrangements, private services and delayed services. Ensure that all staff understand these procedures. Identify support resources for the families you serve and take time to network with colleagues and professional organizations. Finally, understand your limitations in sheltering loved ones, and explore options for temporarily expanding your sheltering capacity.

Staff Safety, Care, Concern and Welfare

Times of crisis reveal character, and this is true for both individuals and businesses alike. Now, more than ever, your staff needs to know that you care about their health, welfare and the work they do. Take all precautions to ensure staff safety by adjusting staffing levels and individual schedules. Understand your essential workforce – the team of critical employees are vital to operate your business. Remember, although the goal is to be efficient, cutting resources to cut costs and labor in the short term are not sustainable to business success in the long term. Support your COVID-19 information specialist to stay current on guidance from governmental organizations such as the Center for Disease Control and Prevention and the Equal Employment Opportunity Commission.

Cash Flow Management

With a change to case mix comes a change to revenue and cash flow. In order to properly adjust to these changes, take time to make some initial projections based on the previous weeks’ trends. You should do this to understand exactly how much revenue shortfall you can expect in the next 90 days or longer. Additionally, you should be maximizing the revenue that is possible, and carefully consider expense reduction initiatives. Consider utilizing inventory without replacement in the short run and reach out to your lenders and request payment deferrals. A great way to do this is to contact ask a JCG Business Consultant about SBA lender information to apply for the Paycheck Protection Program, Economic Injury Disaster Loan, or an Express Loan if necessary. Lastly, ensure that you utilize your monthly financial statements as a tool to manage your cash flow accurately and effectively over the next several months.

Many of the components of a good crisis management plan are, in fact, parts of operating a successful funeral home or cemetery business outside of a crisis. The difference, however, is that the margin of error has become razor thin during this COVID-19 crisis. In a sense, the fundamentals are no longer optional. They are the keys to weathering this storm and emerging stronger and more united on the other side. As there will be “the other side” of this crisis, now is the time to position your business for that next chapter so that the more families understand the value of ceremony, your employees know you care about them, and your community knows the exceptional role you played during this COVID-19 crisis. To schedule a free crisis consultation with a JCG Business Consultant, click here.

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