| There is a prevailing idea that “smaller” funeral | | | | to articulate it and understand its meaning and |
| homes face a greater challenge to succeed and grow | | | | importance. Step Three: Evaluate your human |
| than larger firms. How real is this issue? Is the path to | | | | resources. Create written job descriptions for |
| success for a larger firm easier to navigate? If size | | | | everyone, build on peoples strengths. This is important |
| really matters, what can a smaller firm do to secure its | | | | in allocating responsibilities such as family follow-ups |
| long-term success? For discussion purposes we must | | | | and preened - activities that help build your brand and |
| define what a smaller firm is. It is conceivable that a | | | | secure future business. Step Four: Take control of |
| funeral home that does 500 cases annually may be | | | | communications in your marketplace regarding funeral |
| comparatively small in a large metropolitan market; a | | | | service and funeral professionals. Today, most |
| 200-call firm in a highly competitive trade area may be | | | | consumers get information about funeral service from |
| considered the “big firm” in town, depending on | | | | the news and entertainment media or word of mouth. |
| its market share. We asked people who work in | | | | The media is often either negative or a caricature. |
| funeral service, or who are affiliated with funeral | | | | Re-focus your existing advertising and public relations |
| services firm to define the characteristics of a smaller | | | | so that it communications the value of funeral service |
| firm: | | | | and funeral professionals in positive. relevant manner. If |
| * “In this business, small is defined by the number of | | | | consumers wish to know about cremation options, |
| calls, 100 calls would be termed a small but nice | | | | they should hear it from you! If you do not currently |
| business.” | | | | spend money on advertising, it’s time to budget for |
| * “A small firm is defined by the number of full-time | | | | paid marketing communications. However, much can |
| licensed funeral directors on staff.” | | | | be achieved using press releases, community |
| * “A small firm would be one that serves a limited | | | | calendars and speaking at civic meeting luncheons. |
| geographic market which does not allow it to expand | | | | Step Five: Become the authority on advance funeral |
| its call volume.” | | | | planning your marketplace. Why become a raving fan |
| * “A small firm does less than 100 calls a year, with | | | | of preened? Go back to the “unknown” |
| a market share of less than 5 percent in metro areas | | | | discussed earlier. We know several things about |
| of less than 40 percent in rural areas.” | | | | consumers today Some prefer cremation, and among |
| * “A firm doing 90 cases may only have 100 | | | | those that do, there is little awareness that visitation |
| deaths in its market. So they have 90 percent market | | | | and other traditional services are available to them. |
| share. That firm is huge in my eyes, regardless of the | | | | Furthermore, people today want highly personalized |
| number of cases.” | | | | service. Across all business lines, people want it |
| There seems to be logical ways to look at defining a | | | | “their way”. Expectations of funeral service will |
| small firm. Next question: What are the top challenges | | | | change into he future, so why not capture the mindset |
| faced by a small firm defined in these terms? Let’s | | | | of today’s consumer? Step Six: look of r new to |
| go back to our panel: | | | | one marketing communications purities. A strong |
| * “Keeping good help - licensed funeral | | | | community outreach program that includes aftercare, |
| directors.” | | | | eldercare and advance funeral planning accomplishes |
| * “Not having adequate capital to reinvest in the | | | | this. If it is not feasible to hire someone who wakes up |
| business.” | | | | every morning thinking about marketing, promotions |
| * “Decreasing profit margins.” | | | | and public relations, consider engaging the services of |
| * “Erosion of profits die to increase of | | | | a marketing organization that specializes in funeral |
| cremation.” | | | | service. Step Seven: Support your preened and |
| * “Staffing: too many hats (most small firm owners | | | | outreach programs! Train your funeral directors and |
| do everything.” | | | | staff (administrators, apprentices, embalmers. |
| * “Not enough staff to have the time to get and | | | | gardeners), on how to answer questions about |
| keep a full-head of steam on any projects.” | | | | prearrangement and aftercare, and how to hand the |
| * “More staff, better group plans, more leverage | | | | individual off to your preened or aftercare designee. |
| with suppliers, more market to capture and easier | | | | Developing incentive program furor funeral home |
| access to personnel.” | | | | personnel who cultivate leads that convert to funded |
| * “I think large firms have the same issues but are | | | | prearrangements. Step Eight: Use “free” media |
| sometimes more equipped to handle them.” | | | | to communicate frequently to the community. |
| * “Owners of larger firms have more time to work | | | | Generate regular press releases on new ideas in |
| on their business than in their business.” | | | | funeral service such as personalized and cremation |
| The Common Denominator | | | | options. Offer and promote seminars on |
| There is a theme that runs through all of the | | | | prearrangements, healthcare advance planning and |
| aforementioned answers. Simply put, it is the availability | | | | grief support. These can be hosted for little to no cost. |
| and allocation of resources, including time. Owners and | | | | Step Nine: Aftercare is a vital link, keeping families |
| managers of small businesses often struggle with cash | | | | loyalty o your firm. Communicate frequently to the |
| flow (operations), l (financing) mad making large | | | | families you serve. Host a holiday memorial program in |
| expenditures for facilities provident, updated vehicles or | | | | December. Promote Veterans Day and Memorial Day |
| information technology (investing with funds from cash | | | | events in your area. Create a monthly luncheon event |
| or financing). Thus in a small funeral home. it is all about | | | | fro widows and widowers. These are worth the |
| resource. Firms with fewer resources, or limited | | | | investment to secure your future, and play a role in |
| access to resource (one may have the money to hire | | | | communication the sustained value of your funeral |
| help but nor have access to skilled labor), do not grow | | | | home. Step Ten: Be active in your state funeral |
| or they experience a slower rate of growth, either | | | | directors association and /or new of the n atonal |
| problem is like being in reverie gear, putting the | | | | associations. One must grow, market share. The idea |
| business in peril. One funeral professional in Northern | | | | generation, camaraderie and support received through |
| Ohio observed that in some small firms, funeral service | | | | active participation in these organizations, will enrich you |
| is sometimes not the owner’s only source of | | | | and your business. Isolating yourself from your peers |
| income. “in many small communities the funeral | | | | creates apathy - a condition that is sure to prevent |
| home owner is also, a farmer, or works for the fire | | | | success. Bonus Tip: Keep it going. Continually evaluate |
| department, or may be a city administrator” he said. | | | | your marketing communication, public relations and |
| The service resource in the o lead market shifts. | | | | promotions to determine effectiveness. Don’t let |
| Service programs such as active preened or | | | | anything get in your way of a regular staff meeting |
| aftercare. Thus, he or she is not able to capture future | | | | happening, even if you cannot be present. Keep your |
| business and protect or grow. Comparatively | | | | value proposition to-of-mind. Many of the attics |
| speaking….Are the challenges really greater for | | | | discussed do not require a large financial commitment, |
| operators of smaller firms than larger firms? It depends | | | | but they do take time. Even if you want to stay |
| on the goals of business, really. Large or small, failure | | | | “smaller”, the aim id long-tern success thought |
| to overcome challenges in operations, financing, | | | | well-planned strategic resource allocation that helps |
| marketing and investing will inhibit a business ability to | | | | you promote the value of funeral service. While the |
| sustain itself. One of our panelist commentated, | | | | criteria for funeral home size varies depending on the |
| “Larger firms understand shifts; they have greater | | | | person you ask, small funeral homes seen to share |
| market share and probably lead market shifts. Smaller | | | | similar changes. |
| market share and probably firms continue to focus on | | | | Market conditions such as rising cremation rate, |
| what “was”. The smaller firm should be able to | | | | declining death rate and changes in the population have |
| be more responsive than a large firm, but the owner | | | | a greater effect: |
| usually does not nave the midst to change. The | | | | Recruiting and retaking skilled business and lLess time |
| assertion is than small business owners should think like | | | | for an owner to wooer “on” the business |
| big business owners. In other words, regardless of size, | | | | because he or she is so involved working in the |
| the operator of a smaller funeral hone must be | | | | business. |
| forward- thinking and nimble enough to adapt to | | | | All of these points can be summed up into one word: |
| changes in the market. Better yet” Ely not be | | | | resources. The problem of scarce resources requires |
| forward-thinking enough to effect change rather than | | | | creative strategies, and it is critical for the owner of a |
| to react to it? Another panelist has o answer to that | | | | smaller funeral home to redirect his or her efforts to |
| question:” Many owners of small firms like their size | | | | long-term success. One must not fall into the trap of |
| because they control the rate of growth, the amount | | | | complacency, thinking no completion exists. While a |
| of free time they have and so on”. Owners, | | | | spirit of cooperation may indeed exist between |
| according to this person can make a good living | | | | competing firms, is it realistic to think that your |
| without many of the “headaches” that come | | | | colleague will turn away a family you have served for |
| with depending on employees, such as finding good | | | | many years? Review your business plan often. |
| help, absenteeism, payroll taxes and benefits. But if | | | | Understand the cost of doing business so you can |
| you’re the “only game in town” ask yourself | | | | make informed decisions about resource allocation. |
| these questions. | | | | Even if you are the only game in town” and have a |
| * “Do I know what customers will think about | | | | wonderful relationship with your colleague across town, |
| cremation services in the future?” | | | | you do have competition. The news and entertainment |
| * “What will the population in my trade area be in | | | | media currently shapes the consumers view of funeral |
| five, 10or 20 years?” | | | | service - this is perhaps a greater challenge than |
| * “What will prevent a funeral homeowner in the | | | | competing against an aggressive firm, because |
| next town from building a firm in my town, a block | | | | consumer demand dictates the future of all business. |
| away?” | | | | Be the authority on funeral service. Befriend the media |
| These unknown are compelling reasons why owners | | | | and take advantage of positive, free press. Allocate |
| of a seller funeral home, or the only funeral home in | | | | resources to marketing communication, public relations, |
| town, should not be satisfied with the status quo. | | | | and promotions. Funeral directors and staff who work |
| Things will change. Things are changing. | | | | in funeral homes should retake an active role in |
| Allocation of Available Resources | | | | communicating the value of funeral service. Create a |
| Time, human resources and money tend to be the | | | | value proposition and communicate it throughout your |
| most prevalent issues for smaller firms, so a great deal | | | | organization. Even if ours is a husband and wife |
| of thought must be given to the wisest allocation of | | | | operation, articulating the benefits families will receive |
| these resources. We have established that goals must | | | | by doing business with your firm creates universal |
| be set, regardless of the market situation. Whether | | | | understanding of the value you provide. Develop an |
| there is a competing firm in town or not, the funeral | | | | active one - to - one marketing communications |
| home owner still competes for the buying mindset of | | | | program that supports active e preened, aftercare and |
| the consumer. Setting goals is the first step; breaking it | | | | other com mutiny outreach efforts. Get some training |
| all down to objectives and action plans will help you | | | | on how to handle preened inquiries and find a person |
| achieve success. One important reminder: If it has | | | | to be decimated to grieving families before and after |
| been some time since you created or reviews your | | | | the funeral service. This gives you an opportunity to |
| business plan, this is a good time to review it. Knowing | | | | connect to families in a relevant, service oriented |
| your true costs of doing business is key when making | | | | manner. If you cannot or do not wish to hire staff, |
| decisions about personnel, marketing and other | | | | there are marketing organizations that specialize in |
| investments in the future of your business. The | | | | developing active preened programs that will enhance |
| following are steps to success that funeral homes of | | | | your business and secure the future success of your |
| any size can follow: | | | | firm. Finally, size does not matter! There is nothing |
| Step One: If you don’t already have a value | | | | wrong with being a smaller business. But if you want to |
| proposition, it is time to create one. A value proposition | | | | stay in business long-term, you must adopt growth |
| is a clear statement of the tangible things a customer | | | | strategy. Thinking competitively and finding ways to |
| receives from doing business with you that separates | | | | create greater value for the community you serve |
| you from your competition. It had to be specific and | | | | wile ensure that yours will be the firm of choice for |
| sustainable. Think of the reasons why a person should | | | | years into the future. |
| choose your firm besides off-street parking, access | | | | If you or a family member have any further questions |
| for the disabled or that you” care”. Think | | | | or concerns with respect to cremation, cremation |
| “benefits” not “feature:. Step Two: | | | | services, cremation costs or a direct cremation please |
| Intuitionalism the value proposition throughout your | | | | feel free to contact Cremation Options toll free 24 |
| organizations. Each and every person should be able | | | | hours daily at 1-877-989-9090. |