Nicole Vullo
on
As we guide our clients through the second quarter of the year, the question of seasonality arises as we get closer to Spring and Summer. We asked Financial Analyst, Luke Potter to share his insights on how to set your business up for the slower days of the summer months.
Question: “How can we strategically position ourselves for when we approach the slower days in the upcoming months?”
Luke Potter: The funeral business is one that operates in a realm where seasons may not always follow the typical patterns observed in other industries. Although the funeral and cemetery profession is not entirely predictable, there are strategies funeral home owners and cemetery operators can employ to navigate the slower days of summer effectively.
Your Business is Your Baby
- Treating the business as if it were family is an essential principle to uphold. Just as one would care for loved ones, funeral home owners and cemetery operators should prioritize the well-being of their business. This means making decisions that ensure long-term sustainability and prosperity, even if it requires short-term sacrifices. It is absolutely crucial to exercise and understand sound financial management practices. Save your money effectively so you can avoid running to the bank.
Understanding the Cyclical Nature of the Funeral Business
- While summer may seem slow, it’s often a period of respite before an uptick in activity. It’s crucial to build the slow months of the year into the operational process. This means having cash reserves available to weather any financial storms that may arise during quieter times. A common misconception is to assume that you are losing money in slower months…WRONG. It is not that you are losing the money, it is about evening out the cash flow and using extra cash to reimburse yourself. Ultimately, preparing for slow months should be an integral part of the budgeting process. By forecasting potential downturns and adjusting expenses accordingly, funeral homes can mitigate financial strain during quieter periods. This proactive approach allows for greater stability and adaptability in an inherently unpredictable profession.
Smart Utilization of Part-Time Help
- Smart utilization of part-time help during slow periods is extremely important, but also very difficult. Many tasks within a funeral home should be delegated to part-time employees, freeing up licensed funeral directors to focus on more profitable endeavors. By optimizing staff resources, funeral homes can maximize efficiency and productivity. However, personnel management is perhaps the most challenging aspect of navigating the slower months of the year. It’s crucial not to place undue financial pressure on employees, especially part-time staff who may rely on their wages to support their families. Instead, use part-time help wisely, ensuring that their contributions align with the business’s needs and objectives. Operators must resist the temptation to overstaff or retain unnecessary help during slow periods. While it may provide a sense of security to have extra hands on deck, the cost of idle labor can quickly damage profitability. Instead, focus on optimizing staffing levels to match demand while maintaining financial prudence.
Navigating the slow days of summer in the funeral business requires a combination of foresight, discipline, and strategic planning. By embracing the cyclical nature of the profession, prioritizing financial stability, and leveraging resources effectively, funeral homes can weather any storm and emerge stronger on the other side. With careful attention to detail and a commitment to excellence, operators can rest assured that their businesses thrive, even during the quietest of times.