The funeral profession is on the brink of a significant shift, with 50% of funeral businesses expected to change hands as the next generation takes the reins.The burning question for funeral home owners is not just how to adapt to this change, but how to turn it into a catalyst for exponential growth. Here’s our roadmap designed to transform this industry shift into an opportunity for your funeral home to thrive:
First, Let’s Get Your “House” in Order
Business Assessment
Ensuring success begins by strengthening the core of your operations. Think of the thorough operational checkup as checking the heartbeat of your funeral home in the areas of workplace, financial management, market place, and customer service. Recognize your strengths, find areas for growth, and locate where you can make things run smoother. It’s like giving your business a health check to make sure it’s in top shape for the journey ahead.
Strategic Planning
Identifying areas of opportunity within your business can only be created by a strategic plan, this is where many businesses fail. We are staffed appropriately to manage the daily operations but not to execute on areas of opportunity identified in a business assessment.
Customer Service “CX” Culture Training
Strengthen your internal team by cultivating a culture that’s eager to embrace expansion. Enhance communication channels, ensuring everyone is passionately engaged in the exciting road ahead. A united and empowered team is the driving force to ensure that your funeral home can grow successfully in the dynamic landscape of acquisitions.
Now, What You Need For A Successful Succession
Expanding your business isn’t just about being brave—it’s about knowing what you’re doing and having a plan. From funding the dream to knowing how much your business is worth, there’s a lot to consider when moving through a successful succession.
Determining the Right Price
Valuation isn’t just numbers; it’s an art. Learn the art of valuing funeral homes, taking into account industry-specific factors. Master negotiation strategies to ensure a fair and mutually beneficial deal.
Funding the Dream
It starts with funding. Know your cash flow, understand the assets involved, and make sure you can manage any funeral home loans. Explore different funding options while keeping your business stable. Evaluating various financing options without sacrificing your business’s stability is vital to success, underscoring the importance of amortization, interest rates and balloon payments, among others.
Understanding the Structure
With any business value, the details of it are the structure. It has been said that you can make any value work if the structure is correct. For that reason, knowing among other things, what to allocate to cash, to a loan, to a non-compete agreement, and to consulting agreements, are critical.
Successfully Onboarding a New Acquisition
The real magic happens post-deal. Craft a plan for a smooth transition, addressing challenges before they arise. Ensure the cultural integration of teams to create harmony within your funeral home. How do you do this? …. Due diligence and a strategic plan!
Each step is a critical part in mastering the deal. Armed with knowledge and equipped with strategies, Johnson Consulting Group can help you step confidently into the future of acquisitions.