Are You Ready to Own a Funeral Home?
Many funeral directors talk about owning their own funeral home, but what traits are shared by those that become funeral home owners?
First, they realize they have the aptitude, dedication and desire to own a funeral home. They’re willing to sacrifice long hours and time away from family to achieve ownership. They’re willing to be the last one each night responsible for anything left undone during the workday. They know that if they are making these types of sacrifices already, they may as well be doing it for their own retirement.
Answering the following questions honestly will help you determine if you are cut out for owning a funeral home. It will also help you prepare for the questions of a seller or a lender should you decide to go forward.
Do I have the experience to own a funeral home?
Many wonder if they have the experience to own a funeral home. It takes more than being a licensed funeral director and embalmer to be a funeral home owner. Management experience is critical because owners are responsible for the entire business. Owners manage the flow of first calls, embalming, cremations, arrangements, visitations, funerals, clergy, inventory, supplies, staffing, filings and the other administrative paperwork. Owners also manage relationships with the community, employees, suppliers and clergy. Owners track cash flow while keeping expenses low and successfully collecting receivables. Having solid management experience is often the first requirement for achieving ownership.
Am I entrepreneurial?
How much does it cost to own a funeral home?
You may wonder how it costs to own a funeral home. When you buy a funeral home, the purchase is financed with debt. Lenders will look at the funeral home you buy and its ability to service the debt you borrow. They will also see if you have a consistent history of making payments on time: credit cards, utilities, house payments. They will want to see that you have money saved for a down payment.
