We have been busy and as a result we have many new and exciting things to share with you.

Thanks to all of our many clients and the support they have given us, we will be moving to a new office building this month. A formal announcement with all the details will be coming your way soon.

For those contemplating our accounting services, we are now offering stand alone traditional monthly accounting service. You may continue to use your existing management software, i.e. TDAW, Mortware, Mims etc. You would capture your expenses with our QuickBooks Enterprise edition. We are also adding a new independent tax service to enhance our accounting services to our clients.

We have listened to clients and the market place and have now responded with even more services as your Total Solutions Company.

This issue we will highlight all of our services to explain what they are – how they work – and most importantly how each service ties to the other to provide a Total Solutions Approach for our clients …

We hope you find this issue informative and helpful in knowing whom we are and what we are all about. As you review our flow chart below, you will see how a Total Solutions Approach makes sense and the value-added we can provide from understanding the entire process is unmatched in the funeral industry.

In closing this message, I want to take this opportunity to wish you and you family the best of the Holiday Season.

Call us or reply to us if you have questions, we look forward to hearing from you.

Accounting Services

Legacy Management and Accounting Services, a Johnson Consulting Group company is one of the few companies offering a complete web-based accounting solution to the funeral professional. Drawing from our own experiences and past processes, we have developed an accounting service and system that allows access to the accounting software to the client. This allows total flexibility to our clients who wish to have reporting capabilities at their fingertips. Along with our service, comes a financial statement designed with the funeral professional in mind. Average sale, call counts, a cash flow line (EBITDA), and benchmarked sections to our 100’s of clients doesn’t leave you guessing on how well you are achieving your goals. This service is for all sizes of firms at a fraction of the cost of hiring an accountant internally or outside of the business. Call today for a free assessment to see if Johnson Consulting Group can help you with your goals!

Management Services

How will you know how you compare with other organizations without a Performance Analysis. This Johnson Consulting service looks at all areas of your business, not just the financial side, to determine if your company’s processes and structure is maximizing your success in the Marketplace, Workplace, Customer Service, and Financial Management. After this assessment, we offer a strategic plan with specific tactical actions that are customized to improving your firms operating performance. We have proven success in enhancing the business environment, which ultimately affects the bottom line. The following is a short list of some of our offerings.

• Current Operating Performance Analysis
• Customer Service Assessment
• Workflow Analysis
• Competitive Marketplace Assessment
• Financial Analysis
• Web-based Family Satisfaction Survey and Sales Analysis reporting
• Customer Service Training
• Arranger Training
• Collections Training
• Management Development Training
• Employee Development Training
• Accountability Management Programs
• Employee Satisfaction Survey
• Customized Incentive Plans
• Employee Recognition Programs
• Phone Shopping Survey
• SWOT Analysis
• Marketplace Price Comparison Matrix
• Market Share Trends Analysis
• Master Marketing Plan
• Revenue Analysis
• Expense analysis
• Accounts Receivable Analysis
• Cash Management Strategies
• Strategic Pricing Plans
• Annual Business Operating Plans
• Strategic Planning
• Monthly Performance and Accountability Management Meetings

Business Valuation

“If you can not afford a valuation, you can not afford to be in business” Most people have a better understanding of what their personal stock and cash values are than their own business value in which their life’s work is involved. Having a detailed valuation and assessment of the financial and market conditions of the business is key to successful business decision making.

Johnson Consulting Group is quickly becoming the leader in the business valuation arena. We have analysts on staff who are creating business valuation packages for both funeral homes and cemeteries daily. Our strength comes from our experience and processes. Having bought, sold, operated, and started our own funeral businesses in the past, we have a keen sense of how funeral businesses are operated. From this experience we also assess the “non monetary” values of a business that can make one business more valuable than another. We call it the Johnson Consulting Value Matrix. With our involvement in Mergers and Acquisitions, we have a daily perspective on business values and what the market is willing to sell or buy a business for. We go yet one step deeper through our underwriting experience to help determine how financing constraints can affect the value on a firm. Through our proprietary web-based datasite, we can show you a demonstration of our valuation package. Call today for a free assessment to see if Johnson Consulting Group can help you with your goals!

Mergers and Acquisitions

“You’ve worked hard for every penny, so don’t leave any on the table” Whether a company is expanding through acquiring other business or selling their business, professional advice on value and structure is critical.

Johnson Consulting Group is the leader in the Mergers and Acquisitions arena having completed 100’s of transactions both on the funeral home and cemetery side. Our strength comes from our experience and processes. Having bought and sold our own businesses in the past, we have a keen sense of the gives and takes of transaction negotiating. We also utilize our proprietary web-based marketing data site to ensure a streamlined and confidential process that ensures that the transaction is completed in a timely manner. Our ability to find financing for buyers also greatly assists us with acquisition assistance as well as bringing forth qualified buyers to our selling clients. Call today for a free assessment to see if Johnson Consulting Group can help you with your goals!

Expanding and growing businesses is one of the indicators of a successful business. How a company expands can be the difference between great success and failure. Typically, funeral professionals operate businesses that have been with the family for generations. Due to this, they are in a debt position that is more conservative than in a new venture. When acquiring a new business, it is paramount to know what the fair market value is and create the right structure for success. Determining the correct loan size and the forecast or budget for years to come is critical to success.

Divestitures

When selling, It isn’t just about finding the right buyers, it’s about knowing what the fair market value is and developing a structure that will maximize what the seller wants! This is the single most important transaction the seller will be involved in. Wouldn’t it be smart to have a company on your side that has helped hundreds of sellers in this situation? You Bet!

Succession Planning

Transferring a funeral business to family members or key employees has been occurring for many years. Setting up that structure correctly to ensure success of the next generation while still maximizing value for the seller is critical. Structure in a transfer such as this is very important.

Tax Services

It’s just good business to have your taxes prepared by a firm that specializes in tax work and has a clear understanding, in depth knowledge and experience working with small businesses. Our accounting system and reports have been tailored to provide a very smooth and easy transfer of the quarterly and yearend financials to help expedite the preparation and filings.

Until Next Time

Now is the time to think about what you want to achieve for 2009 …

It’s pretty simple: if you are not satisfied with your results, but you keep doing the same things, it is almost guaranteed you will get the same disappointing results. We have help hundreds of funeral homes achieve their desired success. We can help your achieve your desired results and more …

We hope you found this issue informative, helpful and useful if you are contemplating taking the right steps to improve your performance and productivity.

From our perspective here at Johnson Consulting, there has never been a better time to be in funeral service than today.

Sincerely,

Jake & Tom Johnson

]]> http://www.johnsonconsulting.com/november-2008-management-insights-newsletter/feed/ http://www.johnsonconsulting.com/november-2008-management-insights-newsletter/ http://feeds.feedburner.com/~r/JohnsonConsultingGroup/~3/450920432/ http://www.johnsonconsulting.com/jake-johnson-talks-about-the-economy-and-the-importance-of-cash-flow/#comments Wed, 12 Nov 2008 17:36:01 +0000 Johnson Consulting Group http://www.johnsonconsulting.com/?p=119 In the second part of the conference call with Jake , together with Scott Meierhoffer of St. Joseph, MO, and Robin Heppell, Jake shares his thoughts on the economy and the importance of having a healthy Cash Flow.

Jake’s Perspective on the Economy

Click the Play button at the left of the silver bar >

Jake Emphasizes the Importance of Cash Flow

Click the Play button at the left of the silver bar >

Return to the November 2008 Management Insights Newsletter

We called Tom Johnson who has been a personal friend for some thirty years. Tom and his team listened to us and assisted us in putting together our succession plan. They did a masterful job that exceeded our expectations. My son and I feel confident that our family firm is well positioned for the future.

When your firm reaches the point of ownership transition, give Johnson Consulting Group a call or call me first and I will be glad to share with you our success story.

Tyson McLane, McLane Funeral Services, Valdosta, Georgia

Welcome back… It’s hard to believe that autumn is upon us and school is back in session. Our economy has taken quite a few twists and turns these last few weeks and now Congress is bailing out the private business sector. The Chinese proverb “May you live in interesting times…” certainly applies to our present day challenges…

We continue to get new subscribers to our newsletter and our feedback has been very positive. Thank you for your participation. We have asked for ideas and suggestions for various topics to discuss and we have received some excellent suggestions. One suggestion read:

Tom, you have a wealth of knowledge and experience in all aspects of funeral service, why don’t you devote an issue giving your perspectives on the challenges and opportunities we in funeral service face today…

We thought about it and decided to act on that suggestion. So this issue will be just that… I will address and share with you our perspectives as we view the landscape in funeral service at Johnson Consulting. Recently, I wrote an article that I believe addresses the current situation and my thoughts and ideas as to how to best address them.

We have had several suggestions to hold an annual educational meeting to share our perspectives on the state of funeral service and what successful funeral service owners and operators are doing to succeed in this challenging economy. We have improved the performance and financial results for each of our clients this past year and we want to share those same methods and processes with our audience. We are working on the details, as we speak, and will be announcing our plans soon.

In addition to sharing my perspectives in this issue, we want to let our subscribers know what we will be featuring in Orlando at the NFDA convention. We hope to see you there…

Regards,

Tom Johnson
Chairman

We are often asked by our clients, what it is the best strategy to employ in an economic downturn and how has this downturn affected my funeral home’s value? These are tough questions to answer but funeral directors can take some comfort in the fact that funeral service in general is one of the more “recession proof” businesses in the United States. There are many of our constituents in other fields that don’t have it so good right now. Home builders, commercial construction, real estate, trucking, automobile dealerships and restaurants to name a few are in particular feeling the hard times.

Funeral service marches on as families continue to need our services. The best way to handle the downturn is to work harder and smarter than you have in the past. Go the extra mile with families. While your competitor may be crying the blues it can separate you from the pack. Especially from an image standpoint and will pay dividends in years to come.

It is also amazing to me that many funeral homes really do not have an accounting system. They tend to just gather information and send it to their accountant so they can get year end taxes completed. There is no more important time to get your financial affairs in order than now. No matter who you use, get a professional accountant to assist you in not only handling your accounting but also doing some financial planning and budgeting. It is one of the hallmarks of our company now as our accounting division has grown rapidly during the past year.

Read the rest of Tom’s article Funeral Service Industry Economy

Recently Jake Johnson, together with Scott Meierhoffer of St. Joseph, MO, was on a conference call with Robin Heppell.

The three of them were talking about how to be successful in the changing, and this somewhat difficult time for funeral service. We have two excerpts from the interview. Robin asks Jake to elaborate on the keys of a successful funeral operation and then asks Jake to sum up his thoughts of the conversation.

Listen to the excerpts at: Successful Funeral Home Operations

Note from Jake: “If you plan to attend the NFDA convention and you have questions or would like more information on what I discussed, stop by our booth and I will be glad to answer your questions.”

We are excited about all we have to show you at our booth at NFDA this year. It has been a very busy and productive year for our organization. We have earned business from many new clients and have continued to serve our existing clients employing several new enhancements to our products and services.

We are all facing new economic and operational challenges that require methods that we never had to employ in the past. As I mentioned in the article, accounting systems are vital in these times to guide you and help you pinpoint the areas that need attention and strengthening. Our accounting systems are actual management tools designed and tailored to do just that- Web-based and available to you 24/7 with current information.

Owners and lending institutions are relying on our expertise to provide a thorough and in-depth Business Valuation of a funeral home’s total worth. The tightening of Credit has made it more challenging to obtain in all segments of our economy. Funeral Service is no exception. We can help.

Our M&A business is strong and growing. We have earned the market leader position and have all the expertise you may need.

We will be front and center anxious to say hello and show you our new product enhancements and answer any questions that you may have regarding our products and services. We will be featuring services ranging from:

• Management and Operational
• Performance Analysis
• Benefits of a Business Valuation
• Mergers and Acquisitions
• Succession Planning
• 24/7 Web-based Accounting
• Web based Customer Surveys and Sales Analysis
• Management Services

Be sure to stop by our booth and say hello to the Johnson Consulting team. We look forward to seeing you…

We realize the cost of travel these days may influence the attendance at the convention this year. We want to assure you that if you will not be attending, we can very easily bring our convention messages directly to you. How? Just give us a call or reply to this newsletter and request any information you need and we will respond promptly.

If you plan to attend, have a safe trip to Orlando.

“Family Appointment”

If this family had called our P.M. receptionist this time last year, no way would we have said all the right things to help this family at a very difficult time. The JCG / Van Beck training has showed an immediate impact on the way we respond to our families (RACM) and created that important and lasting first impression. Thanks again for all you guys do for us.

- Anthony Guerra, Guerra Gutierrez Mortuaries, Los Angeles, CA

* * * * * * * * * * * * * * * * * * *

“JCG Web-based Accounting System”

JCG gives us real-time, accurate accounting specific to the funeral industry. No accountant compares to the innovative reporting JCG can do. Their experienced staff has helped us manage our 7 locations, providing us with up-to-date information we need to make our daily business decisions. Whether its financials, surveys, contract analysis or simply getting advice on issues we face, JCG is always there - exceeding our expectations, so we can manage our funeral homes.

- Brittni Dye, Legacy Funeral Homes, Anchorage, AK

Now is the time to think about what you want to achieve for 2009 and let us know if we can help you achieve your goals.

We hope you enjoy the recordings and articles and would appreciate your feedback. If you could do us a small favor - let us know what you would like us to cover in future issues.

Sincerely,

Jake & Tom Johnson

The three of them were talking about how to be successful in the changing and this somewhat difficult time for funeral service. We have two excerpts from the interview. Robin asks Jake to elaborate on the keys of a successful funeral operation and then asks Jake to sum up his thoughts of the conversation.

Jake’s Keys to a Successful Funeral Home Operation

Click the Play button at the left of the silver bar >

Jake’s Parting Thoughts

Click the Play button at the left of the silver bar >

For more information about our Management Services, see the article: Funeral Home Management Services

Stay tuned for more excerpts from the interview - we will let you know as soon as we have them uploaded.

Return to the September2008 Management Insights Newsletter

Funeral service marches on as families continue to need our services. The best way to handle the downturn is to work harder and smarter than you have in the past. Go the extra mile with families. While your competitor may be crying the blues it can separate you from the pack. Especially from an image standpoint and will pay dividends in years to come.

It is also amazing to me that many funeral homes really do not have an accounting system. They tend to just gather information and send it to their accountant so they can get year end taxes completed. There is no more important time to get your financials affairs in order than now. No matter who you use, get a professional accountant to assist you in not only handling your accounting but also doing some financial planning and budgeting. It is one of the hallmarks of our company now as our accounting division has grown rapidly during the past year.

There may be some families that opt for cremation because of the economy but I do not believe that is wide spread. If this happens it is probably the families that were sitting on the fence with this decision and economics push them over the edge. You may also have some families that do not select as much as they might have in good times, but in my 30 years of funeral service and having gone through this a few times, that really wasn’t much of a factor in the funeral homes I owned. Some funeral directors say that they extend terms on their contracts during these times but I really do not think it is a good idea unless absolutely necessary and then secured.

The funeral homes it affects the most are the ones that were struggling before the economy turned. It’s probably pretty tough for them right now. They may make it or may not. Time will tell. However, for the majority of funeral homes in the United States, it’s a good time to look at all of your expenses and maybe get rid of some of the “fat” in your organization that you have been putting off. As we do our “Performance Evaluations” around the country, we often can assist funeral directors in this effort. In nine times out of ten, the savings or enhancements that are created more than cover our costs. My caution is that the savings should not be in areas that are service connected as I firmly believe it’s time to give the best service you can.

There is a scene in the movie the Godfather that I think back to during situations like this. It was when the gang families were about to go to war to take over each others turf. Michael Corleone asked Clemenza (one of his father’s soldiers) “What happens during a time like this.” Clemenza retorted by saying “These things happen from time to time, don’t worry about it. Things will eventually get back to normal.” It’s true with our business. Things will get back to normal. The question is when?

With regard to the economy’s effect on the value of funeral homes, let me say this; The major way the economy has the affected the value of funeral homes is that the tightening of credit has had a limiting effect on the number of buyers. In our profession, where prices are primarily market driven, this will have an effect on value. The more “willing and able buyers” there are, normally the higher the price. However, this negative is mostly felt by smaller to mid size operators. Premium firms will always command a good price as long as it fits the demographics of the major buyers.

Finally, the best way to maintain or build the value of your funeral home is to continue to offer great service in your community while maintaining your property and grounds in excellent condition. Make sure you are following up with your families. If your call volume and revenues are maintaining or increasing you will be maintaining the value of your firm in the long run.

Hopefully, those who read this article noticed the number of times I referred to the word “service.” It is not an accident. As I have owned or operated over 300 funeral home or cemeteries in the past, the level of service given to the community is the hallmark of any successful firm I have had the pleasure of being associated with. With our many clients it is the same. Some give great “lip service” to the word, but really are just going through the usual motions. It is the funeral directors who are always looking towards “continuous improvement” in their service level that eventually lead the way.

I hope this has given you some insights and ideas that you can bring to your organization. As we know and sometimes say, “It’s not rocket science…” It’s doing the little things, paying attention to the details…and getting back to the basics.

Return to the September2008 Management Insights Newsletter

Brittni Dye, Legacy Funeral Homes, Anchorage, AK

We are all facing new economic and operational challenges that require methods that we never had to employ in the past. As I mentioned in the article, accounting systems are vital in these times to guide you and help you pinpoint the areas that need attention and strengthening. Our accounting systems are actual management tools designed and tailored to do just that- Web-based and available to you 24/7 with current information.

Owners and lending institutions are relying on our expertise to provide a thorough and in-depth Business Valuation of a funeral home’s total worth. The tightening of Credit has made it more challenging to obtain in all segments of our economy. Funeral Service is no exception. We can help.

Our M&A business is strong and growing. We have earned the market leader position and have all the expertise you may need.

We will be front and center anxious to say hello and show you our new product enhancements and answer any questions that you may have regarding our products and services. We will be featuring services ranging from:

• Management and Operational
• Performance Analysis
• Benefits of a Business Valuation
• Mergers and Acquisitions
• Succession Planning
• 24/7 Web-based Accounting
• Web based Customer Surveys and Sales Analysis
• Management Services

Be sure to stop by our booth and say hello to the Johnson Consulting team. We look forward to seeing you…

We realize the cost of travel these days may influence the attendance at the convention this year. We want to assure you that if you will not be attending, we can very easily bring our convention messages directly to you. How? Just give us a call or reply to this newsletter and request any information you need and we will respond promptly.

If you plan to attend, have a safe trip to Orlando.

Return to the September2008 Management Insights Newsletter

Anthony Guerra, Guerra & Gutierrez Mortuary, Los Angeles, CA

Lindsay Jones, Lawrence A. Jones & Sons, Kansas City, MO.