Luke Potter
on
In the funeral profession, operational issues rarely appear overnight. Most red flags emerge slowly, but with quiet signs that something is slipping. For owners juggling families, staffing, community obligations, day-to-day operations, and life in general, it’s easy for these warning signs to go unnoticed, but identifying them early can be the difference. Red flags aren’t failures; they are signals. And the most successful owners are the ones who recognize and address them before they become irreversible.
One of the biggest warning signs is inconsistent call volume. Whether calls are declining, stagnating, or shifting toward lower-margin services, the trend matters far more than any single year’s performance. A weak or unclear understanding of market share is another major indicator of a red flag, especially when competition increases or consumer preferences shift. Cremation mix, pricing position, and your alignment with community demographics all play a role in the success of your business. When these metrics aren’t tracked or understood, owners are effectively driving the business with no GPS.
Internal issues also tend to be large red flags. Rising debt with no plan of how to take care of it, outdated pricing, and not keeping up with an active budget can really do some damage. Leadership and staff morale are equally critical. A lack of accountability, training, and leadership, all leads to high turnover, which directly impacts service levels, reviews, and ultimately the success of your business.
The good news is that every red flag is also an opportunity. With a structured approach, like regular financial reviews, staff development, and down-the-road planning, funeral homes can turn these red flags into opportunities for improvement. By paying attention to these indicators now, owners protect not only their business value, but also their legacy, their team, and the families who rely on them.