Why Funeral Homes Fail and How to Avoid It
Funeral homes fail for a variety of reasons. Sometimes it’s because the owner didn’t do their research and made common mistakes. Other times, it could be due to something more serious like funeral home negligence. No matter why they failed, it’s important to learn from these examples so you can avoid them in your own funeral home business. In this article, we’ll describe some of the most common reasons why funeral homes close down and also give you some tips on how to prevent that from happening to you.
Where not to locate your funeral home
One of the most common mistakes funeral home owners make is choosing the wrong location for their business. They might think that they can save money by building in a rural area, but that’s often not the case. The truth is, people are much more likely to use a funeral home that’s close to them. If you’re too far away, they’ll simply go to a different funeral home that’s more convenient. That’s why it’s so important to choose a location that’s easily accessible for your potential customers.
Consider demographics
An important consideration is the demographics of the area you’re thinking of building in. Are there enough people in that area who would need your services? If not, then it might not be worth it to build there. It’s important to do your research and make sure there’s a demand for funeral homes in the area you’re considering.
What about zoning laws?
Another important factor is whether the area you’re looking at is zoned for funeral homes. In many cases, you’ll need a special permit to build a funeral home in certain areas. Be sure to check with the local zoning board to see if you’ll be able to get the permits you need before you make any decisions.
Think about the future
When you’re planning to build a funeral home, it’s important to think about the future. What will the needs of the community be in the next five years or even 10 years? If you’re not sure, then it might be a good idea to wait until you have a better idea of what the future holds. It’s always better to be safe than sorry when it comes to something as important as this.
You don't maintain a good reputation
A common reason why funeral homes fail is because they don’t have a good reputation. If you want your funeral home to be successful, you need to make sure that it has a good reputation. You can do this by providing excellent customer service and always putting the needs of your clients first. If you have a funeral home that’s known for being rude or unprofessional, it will be very difficult to attract new customers.
Make sure you comply with the law
If you want your funeral home to be successful, you need to make sure that you’re always complying with the law. Funeral homes are regulated by state and federal laws, so it’s important to make sure that you’re following all of the rules. If you’re not compliant, you could be fined or even shut down.
Develop a good marketing strategy
Funeral homes can fail if they don’t have a good marketing strategy. You need to make sure that you’re reaching out to potential customers and letting them know about your funeral home. If you’re not doing any marketing, it will be very difficult to attract new business.
There are a number of different ways to market your funeral home. You can use traditional methods like print ads or billboards, or you can use more modern methods like social media marketing. It’s important to find a method that works for you and that you’re comfortable with. If you’re not sure where to start, you can always hire a marketing firm to help you.
Meet customer needs
Many funeral homes fail because they don’t meet the needs of their customers. If you want your funeral home to be successful, you need to make sure that you’re providing what people want. You can do this by surveying your customers and asking them what they want. You can also look at other funeral homes in the area and see what they’re doing right.
Make sure you have a good business plan
Another common reason why funeral homes fail is because they don’t have a good business plan. A business plan is important because it gives you a roadmap to follow and helps you stay on track. If you don’t have a good business plan, it will be very difficult to make your funeral home successful.
There are a number of different things that should be included in your business plan. Some of the most important things are your marketing strategy, your financial projections, and your goals for the future. If you don’t have a good business plan, it will be very difficult to make your funeral home successful.
Communicate, communicate, communicate
One of the most important things you can do to ensure the success of your funeral home is to communicate with your staff. If you have a good relationship with your employees, they’ll be more likely to go above and beyond for your customers.
It’s also important to communicate with your customers. If you’re not available when they need you, they’ll take their business elsewhere. Make sure you’re always available to answer questions and address concerns.
Finally, you need to communicate with your suppliers. If you don’t have a good relationship with your suppliers, it will be very difficult to get the products and services you need. Make sure you’re always communicating with them so that you can get what you need.
Make sure to keep up with the competition
If you want your funeral home to be successful, you need to make sure that you’re keeping up with the competition. There are always new funeral homes opening up, so it’s important to make sure that you’re keeping up with the latest trends. You can do this by attending trade shows, reading industry publications, and talking to other funeral home owners. If you’re not keeping up with the competition, it will be very difficult to make your funeral home successful.
Avoid funeral home negligence
One of the main reasons why funeral homes fail is because of funeral home negligence. This can include things like not properly preparing the body, not providing adequate services, or overcharging for services. If you’re found to be negligent, you could be fined or even shut down.
To avoid funeral home negligence, you need to make sure that you’re always following the proper procedures. You should also make sure that you’re providing adequate services to your customers. If you’re not sure what you need to do, you can always consult with an attorney.
Examples of funeral home negligence:
- Not properly preparing the body: This can include things like not properly embalming the body or not dressing the body in the proper clothing.
- Not providing adequate services: This can include things like not having enough staff on hand to properly take care of the body or not providing transportation to the funeral.
- Overcharging for services: This can include things like charging for services that are not needed or charging more than what is reasonable.
- Losing the body: This can happen if the funeral home doesn’t have proper storage facilities or if the body is not properly labeled.
- Dropping a corpse: This can happen if the funeral home doesn’t have proper handling procedures in place.
- Selling parts or organs of decedent’s body: This is illegal in most states and can result in the funeral home being shut down.
- Not properly cleaning the body: This can include things like not properly washing the body or not using proper disinfectants.
- Using unqualified staff: This can include things like having untrained staff members working on the body or having staff members who are not certified in the proper procedures.
- Burying the wrong remains: This can happen if the funeral home mixes up the remains of two different people.
- Failure to notify next of kin: This can happen if the funeral home doesn’t contact the next of kin in a timely manner.
- Unauthorized cremation: This can happen if the funeral home cremates the body without the proper authorization.
- Improper disposal of remains: This can include things like throwing the remains in the trash or dumping them in a landfill.
- Commingling of ashes: This can happen if the funeral home mixes the ashes of two different people.
- Failure to return cremated remains: This can happen if the funeral home doesn’t return the cremated remains to the family in a timely manner.
- Inadequate record keeping: This can include things like not properly documenting the information about the deceased or not keeping track of the cremated remains.
- Losing track of pre-paid funeral funds: This can happen if the funeral home doesn’t keep track of the money that has been paid for a funeral in advance.
Avoid these mistakes to ensure success
As you can see, there are a number of different reasons why funeral homes fail. As a new funeral home owner or one who’s been in the business, if you’re aware of these risks and take the necessary precautions, you can greatly reduce the chances of your funeral home failing. We hope that this information has been helpful and that you’ll use it to ensure the success of your funeral home.
If you’re considering buying, selling or financing a funeral home, or refinancing a funeral home, contact Matt Manske and the experienced team at 4BSF today. We can help prepare you to complete a successful transaction and guide you through funeral home lending.