Buying a Business Archives - Johnson Consulting Group https://www.johnsonconsulting.com/tag/buying-a-business/ Funeral Home and Cemetery Consulting Thu, 25 Apr 2024 17:12:48 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.1 https://www.johnsonconsulting.com/wp-content/uploads/2020/02/cropped-jcg-32x32.png Buying a Business Archives - Johnson Consulting Group https://www.johnsonconsulting.com/tag/buying-a-business/ 32 32 Navigating the Challenges of Shipping Loved Ones Home for Ceremony https://www.johnsonconsulting.com/funeral-home-shipping/ Thu, 25 Apr 2024 17:12:48 +0000 https://www.johnsonconsulting.com/?p=7663 As we wrapped up the year 2023, much like any other year, the funeral business landscape revealed its diverse facets. Across the United States, some firms appeared untouched by external influences, while others experienced the ebb and flow of challenges such as slow months, fluctuating death rates, and the overarching impact of the ongoing COVID pandemic.

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The satisfaction of shipping loved ones home for a funeral has seen a steady decline since 2018, even before the pandemic.(Johnson Consulting Group research Trends, and Insights see page 44). According to the Wall Street Journal, it’s estimated that over 200,000 cases annually involve the transfer of a loved one over 300 miles for funeral services. This decline in satisfaction can be attributed to various factors, including the airline industry’s reduction and alteration of routes, as well as increased government red tape involving death certificates and staffing issues at health authorities.

 

One potential solution to increasing satisfaction would be to have a dedicated person for shipping loved ones, but this could prove to be costly. Another approach would be to engage an experienced third-party entity experienced in shipping loved ones for ceremony. This solution involves dealing with a company that understands the intricacies of shipping within every state of the country, as well as with consulates and embassies in other countries remarks David W. McComb owner of Inman Shipping Worldwide the industry’s largest and most experienced transportation entity.

 

Johnson Consulting Group with the leadership of Jake Johnson, has been instrumental in producing survey results that illustrate the decline in customer satisfaction with shipping loved ones home for ceremony. It’s clear that addressing the challenges associated with this process requires collaboration with experienced entities and leveraging comprehensive survey data.

 

By navigating the evolving landscape of shipping loved ones home for ceremony, it’s essential to prioritize expertise and insights from organizations such as Inman Shipping Worldwide and the Johnson Consulting Group. This ensures that the challenges associated with this process are addressed, ultimately restoring satisfaction and tranquility to families during their most delicate and challenging moments.

GET IN TOUCH TODAY

 

About Inman Shipping: Worldwide – your seasoned shipping professional

Let them be your transportation department!

Time!  It’s something we never seem to have enough of and this is especially true for funeral directors.  Staffing shortages across the country mean funeral directors are working longer and harder to serve their families.

When they need to bring a loved one home for ceremony,  they can spend what can be hours on the phone coordinating the shipment and then if they run in to issues with the shipping funeral home or airlines is just more TIME!

Instead, they can contact Inman Shipping Worldwide and allow Inman to be their transportation department.  Dave McComb, is the CEO of Inman Shipping and is also a fourth generation funeral director.  He understand the needs and demands funeral directors face every day.

Inman has been serving the death care industry since 1978 and has established a network of over  750 vetted service providers.  In addition, air transportation is coordinated with their sister company Eagle’s Wings Air (EWA).  EWA is the largest shipper of human remains of all the airlines.  If something goes wrong, we have the cell numbers of all the airline cargo managers and go to work on your behalf.

Inman’s state-of-the-art software allows for constant monitoring of all shipments for the convenience of the receiving funeral home.

Shipping human remains is a process that involves complying with a variety of legal requirements and can vary across the country and around the world.  As the largest and old repatriation company in the country, Inman is a seasoned transportation specialist.

Spend your time where it’s the most important – serving your families and let Inman Shipping Worldwide be your transportation provider.

For more information visit www.shipinman.com or contact us at (800) 321-0566.

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Navigating the Landscape of Funeral Business: Reflections on 2023 and Projections for 2024 https://www.johnsonconsulting.com/funeral-business-projections/ Tue, 30 Jan 2024 18:25:16 +0000 https://www.johnsonconsulting.com/?p=7617 As we wrapped up the year 2023, much like any other year, the funeral business landscape revealed its diverse facets. Across the United States, some firms appeared untouched by external influences, while others experienced the ebb and flow of challenges such as slow months, fluctuating death rates, and the overarching impact of the ongoing COVID pandemic.

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As we wrapped up the year 2023, much like any other year, the funeral business landscape revealed its diverse facets. Across the United States, some firms appeared untouched by external influences, while others experienced the ebb and flow of challenges such as slow months, fluctuating death rates, and the overarching impact of the ongoing COVID pandemic. This period, which we’ve aptly termed the “COVID correction,” witnessed a shift in death rates back to levels reminiscent of 2019 or earlier, sparking a careful analysis of financial trends and the essential planning of financial strategies for the upcoming years.

The accelerated deaths due to COVID marked increase case volume years for the funeral profession in 2021 and 2022. However, as we stepped into 2023, the initial momentum slowed down, returning to a more typical caseload at most funeral homes. Yet, some establishments maintained their caseloads, highlighting the varying experiences across the industry.

This slowdown in case volume inevitably affected valuations. Some offers for funeral businesses were either stalled or withdrawn, accompanied by an uptick in interest rates. Funeral homes with variable interest rate loans and tight fixed charge coverage faced challenges, while those with careful financing and a mindful approach to debt-to-cash flow navigated the period with relative resilience. Despite the hurdles, my optimistic viewpoint leans towards a favorable outlook for the funeral business in 2024 and beyond as we emerge from the shadow of COVID.

One of the pivotal shifts during the pandemic was the transformation of the labor market. With the advent of remote work, rising inflation, and increased awareness of employment options, funeral businesses witnessed a notable increase in labor costs. This shift, though challenging, presents a dual perspective. On one hand, it offers an opportunity to attract and retain skilled employees who may have been underpaid. On the other, failure to adjust compensation may lead to staff seeking employment elsewhere, emphasizing the need for strategic decisions in response to changing labor dynamics.

Rising cremation rates continued to leave their mark in 2023, with technology advancements enabling online cremation offerings and discounted options. While cremation’s popularity persists, funeral homes need to adapt to the evolving landscape of service offerings.

Reflecting on valuations, 2021 and 2022 witnessed peak valuations, whereas 2023 introduced a more varied landscape. Premium firms continue to receive high valuations, but the range of offers expanded, differentiating between businesses prepared for market dynamics and those with unresolved issues. Well-prepared businesses, with a focus on budgeting, strategic planning, staff engagement, merchandising, and effective marketing, continue to stand out in the market.

As we stride into 2024, normalized projections for case volume, and stabilized or lowered interest rates offer a positive backdrop for funeral business acquisitions. The industry remains dynamic, with a steady flow of individuals interested in owning and growing funeral businesses. However, a discerning approach to evaluating future business prospects has become integral, considering the normalization of call volume after the unique challenges of 2021 and 2022.

The trajectory of labor costs seems to have found a balance, with some firms still navigating necessary adjustments. The anticipated “silver tsunami” of an aging population further underscores the importance of retaining a skilled workforce. Despite the challenges, the funeral space stands poised for growth, with a potential increase in case counts in the coming years.

In conclusion, meticulous attention to budgeting, forecasting based on trends, strategic planning, and a holistic review of various facets of funeral business operations are paramount. Whether considering succession planning, third-party involvement, or nurturing the next generation within the business, these considerations are not just essential; they are vital for the continued health and prosperity of funeral businesses and their impact on the communities they serve.

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Funeral Home Customer Experience: Measuring What You Can Manage https://www.johnsonconsulting.com/funeral-home-customer-experience/ Fri, 05 Jan 2024 16:44:06 +0000 https://www.johnsonconsulting.com/?p=7599 As Benjamin Franklin once said, “In this world, nothing is certain but death and taxes,” so if you’re looking to enter a profession, funeral homes (or accounting) might seem like a lucrative choice.

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Let’s face it – there are plenty of uncontrollables in funeral business right? People not showing up on time, start time delays, weather – you name it. Unfortunately, those things do make an impact on funeral home customer experience whether we like it or not. This is why your staff must control the controllables, and it all boils down to performance.

Any successful funeral business needs to measure performance if they want to stay ahead of their competition, while also retaining families they’ve already served. Measuring performance helps owners and managers to identify areas where they can improve their services and maximize their profits. It can ensure that you are providing quality services while also improving your bottom line.

However, in order to do this, you need to make sure you know exactly what you should be tracking and how.

KPIs You Should Track for Your Funeral Staff’s Performance

Of course there are plenty of aspects you could be measuring within your business, the options are really endless. Tracking everything and anything can become overwhelming. At JCG, we believe that success in any firm boils down to two things: family satisfaction and profitability. 

Family Satisfaction

Everyone wants to think that the families that they serve are happy. Afterall, you didn’t get any complaints – right? If this is your mentality, you aren’t alone. The day-to-day grind can make it seem like your families are satisfied. However, if you don’t have the tangible data to back up your claim that your families are happy, the harsh reality is you really don’t know. It’s important to measure your interactions with families and team members in order to determine your team’s progress and development.

Remember this, losing just one family costs your enterprise value anywhere between $30,000 – $50,000!

Profitability

How profitable are you so far this year? Don’t worry – many funeral home and cemetery operators can’t answer that question with full confidence. It’s critical for you to measure each of your staff’s sales in order to know how to set goals to get to the next level. This means digging deep into your sales contracts and analyzing them from different angles of your business for the best possible outcome.

Tracking Funeral Business Performance Metrics

Understanding exactly what funeral business performance metrics to track allows business owners to identify necessary changes that need to be made, and what is working well, including staff that should be recognized and rewarded for their work. With this data, funeral businesses can also allocate resources according to what best serves family needs, making them more profitable.

Net Promoter Score (NPS)

The Net Promoter Score (NPS) helps measure funeral home customer experience and loyalty levels towards their firm, and how likely they are to recommend it to someone else. It’s a great tool to use if you want to get an understanding of what your customers think about your staff and facilities.

It’s important to note though, that the NPS Score is NOT the only score you should be tracking, as you will be missing other key performance indicators.

Online Reviews

Monitoring and collecting your online reviews to review with your staff can be an effective way to motivate continuing great performance, while also opening up conversations to talk through any issues. Responding to negative reviews immediately is a great way to show families that you care as well.

The other key value to online reviews is that it drives families to your business. The more online reviews you can obtain, the more likely somebody will visit your business.

Case Count

It’s important to monitor how many calls you’re getting per month so that you can set realistic business goals.

Average Sale

The median sale your team produces is also an important metric in order to set yourself up for success. This helps you determine what your yearly profitability is going to be.

Income Statement (profit/loss statement)

Without tracking your P&L’s, it’s incredibly hard to determine if you’ve been successful for the month. This helps with the creation of budgets, guides spending, determines benchmarks, and more.

Sales By Arranger

Your team will be motivated by tracking their success month over month. This allows them to set goals and be rewarded based on their progress. You may find when tracking this that there is room for improvement and extra sales training might need to happen. If you happen to have multiple locations, it is extremely beneficial to track each one as well.

Creating an Action Plan

Now that you know what you should be tracking, it’s important to know exactly what to do with that data to make the right decisions for the future of your business.

Benchmarking

After assessing your financial health, it’s time to determine where you want to go. Doing your research to compare your success with other firms of your size can give you a framework for how well you are doing, or if you and your team need to step it up.

Create an Incentive Compensation Plan

Once you have your sales team’s numbers, it’s time to set goals for them. If you have a great staff and want to keep them, the best way to do this is to create an in-depth incentive compensation plan. This provides extra motivation for them to get rewarded for their performance and be part of the overall goals of the business.

Avoiding Burnout

Tracking all of this on top of your day job is impossible. We know the day-to-day grind gets in the way and staying on top of these numbers can feel overwhelming, even though it’s critical for your business health. That’s why we’ve poured so much time and resources into our Performance Tracker X to make your life easier.

Our funeral and tech experts designed this tool to make tracking the customer experience and profitability within funeral homes a breeze. With the ability to send surveys, monitor sales, create online reviews, and more, you have the power to improve your bottom line at your fingertips.

GET IN TOUCH TODAY

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Why Independent Funeral Home Owners Need to Think Like Private Equity https://www.johnsonconsulting.com/funeral-home-equity/ Mon, 13 Nov 2023 17:57:37 +0000 https://www.johnsonconsulting.com/?p=7540 Private equity controls somewhere in the range of 15% to 20% of the overall economy according to John Coates, former Acting Director for the Division of Corporate Finance for the SEC. And private equity exists in the death care profession for a reason: there are returns available, there are attractive acquisitions to be made, and there is ample room for technological change to be leveraged.

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Private equity controls somewhere in the range of 15% to 20% of the overall economy according to John Coates, former Acting Director for the Division of Corporate Finance for the SEC. And private equity exists in the death care profession for a reason: there are returns available, there are attractive acquisitions to be made, and there is ample room for technological change to be leveraged. Independent funeral homes are operating in an investment space that big dollars want to be in. Is this a threat or an opportunity? When asked about the future of our profession, a colleague of mine often says that “we are bullish on funeral service” – perhaps a comment aligned with vocabulary of private equity. But our optimism isn’t limited to private equity-backed firms. We are bullish on the independent operator as well. In this article, I’ll explain the sources and conditions of this optimism and some of the lessons independent operators can learn from private equity funeral home companies.

 

Why the attention on private equity when publicly traded funeral service companies remain the giants of consolidation in our profession and independent operators still outnumber the publicly traded firms? The speed of entry and growth of new private equity groups in funeral service in recent years may be a factor. But I also believe that many private equity-backed companies have been successful in operating their firms in recent years and with that success comes attention from the rest of our profession. These companies will likely survive and continue to grow in funeral service not only because of their economies of scale and available capital but because of the experience of their management teams and their focus on fundamentals such as customer experience and financial performance. These companies look years into the future, clearly define their targets and desired outcomes, and strategically plan to achieve them. These companies often have a strategy for acquisitions and a strategy for the development of their people, processes, technology, and facilities. These companies are revolutionizing their customer experience. These are just a few of the areas of comparative advantage for companies with capital to invest. This does not mean that the independent operator cannot practice these strategies.

 

The first way independent operators can practice thinking like private equity-backed firms is to have a strategic plan. Knowing where you are in your business lifecycle and planning effectively for the next stage is vital for success in the future of our profession. This means not only tracking your business’ value year to year but also crafting your succession plan. For many readers, this may mean identifying and developing a key employee that may have an interest in carrying on your firm’s legacy. Few funeral directors come out of mortuary school with the skillset to effectively serve families and even fewer are equipped to lead, manage, and operate a funeral home business. Conventions, conferences, leadership and management training programs, and good old-fashioned mentoring are all essential in developing future leaders for your business. Private equity-backed firms undoubtedly recognize the importance and value of developing people within their organization. An operation that is overly dependent on one or two people presents great risk to business growth, sustained profitability, and overall succession.

 

By building a team that can operate the day-to-day business of the firm, independent funeral home operators can create capacity for themselves to focus on strategic growth initiatives such as acquisitions and key relationships. Private equity-backed firms often have multiple people on their management team devoted to business development and acquisitions. This is a hat the independent operator must wear for their own business. Building relationships with funeral home owners in neighboring markets and seeking out opportunities for acquisition is an important component in long-term growth and sustainability. As the pressure on profit margin increases, key acquisitions represent an opportunity to synergize multiple rooftops with shared operating expenses. Just as private equity firms often utilize leverage for acquisitions, it’s also worth reviewing your own capital structure regularly to evaluate the appropriate time for refinancing, utilizing lines of credit, and other financial services.

 

Even with a clearly identified succession plan, independent funeral home companies must think like private equity by continuing to develop their workplace culture, which is the foundation for exceptional customer service. Setting clear expectations, effective communication, and accountability management are all ingredients of an optimum workplace environment that promotes a performance culture. Establishing expectations at the funeral home starts with well-defined roles and responsibilities for every person on your team. Clarify your company goals and make sure they are specific and measurable. These goals can be derived from your operating budget which represents the financial needs of your company for long-term sustainability. Company goals must be relatable to each position on your team, however. Metrics such as call volume, average sale, or even the percentage of cremation cases with services can all be relatable goals for your funeral directors and team.

 

Accountability often comes with a mistaken negative connotation, and this is largely due to the past experiences of many managers and employees. Perhaps some have been held accountable in the past in an inappropriate way while others have dealt with the uncomfortableness of attempting to hold people accountable with inadequate tools. One of the hidden strengths of private equity-backed death care companies is the accountability that exists throughout the organization. Shareholders hold the board of directors accountable, the board holds the management accountable, and the management holds employees accountable. This inherent culture of accountability yields a positive, performance-driven environment that achieves results. Independent operators need to intentionally create accountability practices to replicate this type of performance culture. Individual one-on-one meetings, employee reviews, and incentive compensation plans are all ingredients for the independent operator to utilize in promoting accountability. Finally, the use of a business coach or consultant can help create a level of accountability for owners that would otherwise only exist with a board of directors.

 

The most relatable metrics for your team, and ones that private equity firms watch with extraordinary care, are the metrics related to customer experience. A common argument against private equity in the funeral space tends to focus on the claim that they prioritize financial performance over customer service. Experienced funeral home managers are often involved in operating these firms and these executives recognize that exceptional financial performance does not occur without exceptional customer service – at least not in the long run. They have analyzed the data and understand that their future call volume is dependent on the experiences their teams are providing to their client-families and guests today. Previously attending a service, online ratings, reputation, and coming highly recommended are all customer experience-based reasons people choose a funeral home (Figure 1). And these reasons in aggregate are considerable. Therefore, measuring customer experience through a metrics-based survey program is priority number one. Tracking Net Promoter Score and value indexes are simply part of the standard operating procedure. No risks are taken when it comes to the heritage a firm has with a family.

Figure 1:

Chart showing the primary reasons for choosing a funeral home

Source: Johnson Consulting Group 2023 Trends & Insights, Volume 6, 2023

Our profession has two unique advantages when it comes to customer service and the experiences we provide to our client-families: 1. Our teams can rally around clear center-point values and 2. Funeral home employees are generally motivated by creating meaningful impacts in the lives of families in their community – in other words, they’re passionate about their work. While businesses in other industries often need to put considerable thought into their center-point values (what they stand for and why they exist), funeral homes know this intuitively. It’s generally some variation of: compassionately celebrating lives and helping families heal while practicing integrity every step of the way. The lost opportunity for many funeral homes is the failure to leverage these clear center-point values for the purpose of company alignment and training on employee service aptitude. This is a practice that the large death care companies and many private equity-backed firms do very well. Customer experience workshops and training are an ongoing investment, not a one-time expense.

 

Ask five of your employees for an example of world-class customer service and you’ll likely get five different answers. For some it’s the experience of a 5-star hotel in a resort city half-way around the world, while for others it’s the service they receive at their favorite coffee shop, auto repair facility, or fast-food restaurant. In your employees’ personal lives, there’s absolutely no issue with these preferences and differences. But issues can arise when their personal standards of service begin to trickle into the delivery of service for your client families. Hence the value and necessity of clearly defined service standards for every stage of your client families’ journey with your firm. We consider these practices to be the “non-negotiables” that ensure a consistent experience for every family, year after year. Fostering this culture of world-class customer experience must originate at the top of any organization with an obsession-like passion for service. This is a reality many large funeral home companies know well and practice.

 

By this point it should be clear that most private equity-backed funeral homes are exceptionally attentive to their performance in the fundamental areas of customer experience, the workplace environment, and marketplace strategy. But high performance in these three fundamental areas alone is not sufficient for future success in our profession. Attention to the details of your business’ financial performance is an absolute necessity. Gone are the days when operators could take care of their families and everything else would fall into place. With the rising cost of doing business and continued unfavorable shifts in case mix, long term success depends on consistent financial performance management – a habit known well by private equity-backed businesses.

 

Fortunately, the habits and tools needed to manage financial performance regularly are no secret. Independent funeral home owners must first assess if they are able to measure their financial performance in a meaningful way. The profit and loss statement should provide information that allows management to make good decisions, not simply check that net income is in the black. This type of information is possible when the tools of budgeting and benchmarking are utilized. Monthly financial statements that are industry specific allow managers to benchmark or compare groups of expenses to the industry standard. Benchmarking is also valuable when it comes to measuring profitability or EBITDA (earnings before interest, taxes, depreciation, and amortization). If a firm is not achieving a healthy industry standard EBITDA of 26% – 31% of revenue, then a careful comparison of all expense categories to industry benchmark can help identify the potential areas of opportunity (Figure 2).

Figure 2:

Chart showing funeral and cemetery 2023 financial performance benchmarks

Source: Johnson Consulting Group Accounting and Merger & Acquisition Data, 2023

Remember that private equity-backed funeral homes have the hidden advantage of built-in accountability given their organizational structure. And this accountability most certainly applies to their financial performance. Independent operators can replicate this financial accountability by using an operating budget and by partnering with a business coach or even joining a study group. An operating budget should outline targeted revenue objectives in the form of call volume and average contract value for all case types (traditional burial, direct cremation, etc.). Furthermore, it should forecast all operating expenses by general ledger account and expense category, so that at the beginning of every year your financial future is clear. Your targeted profitability is known, your targeted debt service coverage ratio is known, and your targeted cash flow is known.

 

Although willing our financial projections into reality is not possible, managing towards the outcome of a well-crafted operating budget absolutely is. An operating budget is meant to be used – month to month and quarter to quarter – to know where our business has been, where it is, and where it’s going. Understanding and utilizing the levers of financial management is paramount. In driving revenue, these levers include pricing, which should be an annual exercise, and many forms of arranger training. Detailed sales analysis tools can allow managers to quickly identify the causes and remedies of arranger discrepancies in average contract value, frequency and average of merchandise selection, and even significant discrepancies in case mix percentages of direct cremation versus cremation with ceremony. Seemingly small actions, controls, and processes can result in thousands of dollars in additional top line revenue.

 

Expense controls are a powerful tool for course correction and achieving targeted profitability. A $10,000 decrease in annual operating expense can equate to over $50,000 in increased enterprise value. By comparing expense categories to budget and industry benchmarks, the independent operator can better understand areas of opportunity for expense reduction. Whether they take the form of changes to the workflow of the business, vendor or ordering processes, a more detailed facility maintenance or advertising plan, expense controls have an important place in the financial management of a funeral home business. They are certainly part of the financial toolkit of private equity-backed firms – a toolkit that is robust, expansive, and effective. The good news for the independent operator is that nothing is preventing them from using those very same tools.

 

In funeral service, the competitive marketplace in which we operate is often on our mind. New low-cost competition, competitor advertising and promotional strategies, and changes in the ownership of current competitors tend to usurp a great deal of our grey matter. In the end, though, the actions of our competitors – whether they’re owned by private equity or not – are largely out of our control. The choice of the independent operator is how to react. At Johnson Consulting Group, we are bullish on the independent funeral home operator, so long as they see and act on the opportunities that we do. Private equity in the death care profession is a fact. The real question is whether you see it as an opportunity.

Grow With JCG Today

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Is Owning a Funeral Home a Profitable Business? https://www.johnsonconsulting.com/is-owning-a-funeral-home-a-profitable-business/ Mon, 10 Jul 2023 16:00:15 +0000 https://www.johnsonconsulting.com/?p=7460 As Benjamin Franklin once said, “In this world, nothing is certain but death and taxes,” so if you’re looking to enter a profession, funeral homes (or accounting) might seem like a lucrative choice.

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As Benjamin Franklin once said, “In this world, nothing is certain but death and taxes,” so if you’re looking to enter a profession, funeral homes (or accounting) might seem like a lucrative choice. 

But with large conglomerates buying up many funeral businesses that were once owned by families, aspiring funeral directors must ask the question: Is owning a funeral home profitable? 

 

Is Owning a Funeral Home a Profitable Business?

As with any business, owning a funeral home can be profitable, provided you practice good business habits. Death care is also considered a recession-proof profession, as funeral home spending remains relatively constant even during times of economic downturn. 

To harken back to Benjamin Franklin’s quote, people are always in need of ways to honor the passing of their loved ones. While the exact preferences in the type of memorial may fluctuate over time, the fact remains that people will always need the assistance of funeral professionals to plan services, execute burials, and aid in the grieving process. 

 

Purchasing or Launching a New Business 

If you’re considering owning a funeral home, then you’ll have two ways to enter the profession: either purchasing an existing funeral home or building a new business from scratch. 

Buying a funeral home is undoubtedly the simpler and quicker option. With this approach, you’ll need to partner with an industry consultant that will help you navigate the process of finding, vetting, and negotiating the sale of the business. The primary downside of purchasing an existing business will be adapting its infrastructure (facilities, employees, and operations) to your vision. 

Building a funeral home from scratch naturally comes with a lot more work and expense, as you’ll need to purchase property, hire employees, and develop an entirely new business strategy. However, for those who are unafraid of the lengthy process, this approach can allow you to create a business that’s completely aligned with your vision. 

Regardless of how you plan to start a business, professionals like those at JCG can guide you through the accompanying strategic decisions. Whether you’re building or purchasing a funeral business, financials, employee management, and marketing can all benefit from some outside help. 

 

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6 Tips for Improving Funeral Home Profits

 

1. Create a Business Plan 

At the onset of creating your funeral business—whether you’re building from scratch or purchasing an existing funeral home—you’ll need to create a business plan. Along with drafting a mission and your values, your business plan should also include tangible financial goals and timelines. As your funeral home continues to operate, you can reexamine these goals to better understand how you’re performing. 

2. Marketing

While people continually need the help of funeral homes, your business will likely not be the only option available in a given region. Because of this, you’ll need to develop a marketing strategy—one that incorporates social media, a well-designed website, and SEO practices—to ensure that your ideal families find your services and feel compelled to book. 

3. Customer Service

Quality customer service is arguably the most important component of your business. If a family has a positive experience with your funeral home, then they’re not only likely to return, but they’ll also likely recommend your business to friends. 

Because of this, funeral directors need to implement a strategy to collect and monitor feedback from families. This allows a business to quickly address issues and build upon areas of strength.  

4. Recruit and Retain Talent

To create an exceptional family experience, you’ll need to recruit and retain the best talent available. By networking with local mortuary schools and looking to funeral profession job boards, you can find highly skilled individuals that bring value to your team. 

Once you’ve acquired the right people, you’ll also want to create incentive compensation plans as well as offer career development opportunities to ensure that personnel want to stick around. 

5. Add New Services

While people will always need funeral homes to help them honor the passing of loved ones, the specific ways in which they wish to accomplish this goal are subject to change. Because of this, funeral homes need to remain aware of trends and consider introducing new services into their offerings when appropriate. 

For example, during the pandemic, in-person gatherings were impossible to conduct safely. Many funeral businesses began offering webcasted memorials in which people could remotely attend a service and pay their respects. Now, with in-person gatherings resuming, many funeral homes offer the option of adding a virtual component to a memorial service, which allows those who live far away to still attend. 

Offering new products like these can put extra money in your pocket as well as demonstrate to families that your funeral home is on the cutting edge

6. Partner with a Funeral Home Consultant

Whether you’re purchasing a funeral business or building one from scratch, stepping into the role of business ownership is highly challenging. To ensure that you’re adeptly handling every component of the process, it’s often best to get advice from death care experts.

At Johnson Consulting Group (JCG), a leading death care consulting firm, our experts can partner with your team to help with every stage of creating a funeral business. Our Buying and Selling Consultants can help negotiate the sale of a business, our death care accountants can help get your financials in order, and our business consultants can help you build out marketing and employee retention strategies. 

No matter how you plan to start a funeral business, you’ll need to get the right help. At Johnson Consulting Group, our team has the profession-specific expertise that can help your funeral home at any stage.

 

GET IN TOUCH TODAY

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