Business Reality Check: I Didn’t Realize I Was the Business
Scenario: “I Didn’t Realize I Was the Business.”
Meet David Reynolds (age 61), owner of Reynolds Family Funeral Home.
David purchased the funeral home 28 years ago from the retiring owner who had served the community for nearly four decades. At the time, the funeral home averaged about 180 calls annually. Through hard work, exceptional service, and countless nights on call, David grew the business to nearly 300 calls per year. Today, Reynolds Family Funeral Home is widely respected throughout the region.
Recently, while attending a state funeral director’s convention, David sat through a presentation on succession planning. During the presentation, the speaker asked a simple question: “If you didn’t come to work for the next 60 days, would your business continue to operate successfully?” David immediately thought, “Absolutely not.” He laughed to himself. Not because the question was funny – but because he knew the answer. His daughter, Claire, asks when he’s going to retire. His wife, Susan, reminds him they haven’t taken a vacation longer than four days in years. He dismisses the conversation by saying: “Nobody can do what I do.”
Then…A few months later, David had knee replacement surgery that had been put off for years and is forced to stay home for several weeks.
Suddenly…Families keep asking for David. Employees won’t make decisions. Accounts payable pile up. Pricing questions wait until he gets back. The phone rings at his home several times every day. Staff members text him constantly. David begins to realize something uncomfortable: He hasn’t built a business. He’s built a business that depends entirely on him.
So … What’s the Problem?
At first glance, David has an outstanding business:
- Nearly 300 calls.
- Excellent reputation.
- Beautiful facilities.
- Loyal community.
So why would a buyer be concerned? Because buyers don’t purchase the past. They purchase the future. If removing one person dramatically changes how the business operates, then the business becomes much riskier. And risk affects value.
What Should David Do?
Obviously, there is always a first step. For David, that first step isn’t hiring a broker. It isn’t getting an appraisal. It isn’t calling a buyer. The first step is honestly evaluating whether the business can function without him.
That means asking questions like: Who makes decisions when I’m not here? Do my employees know how to solve problems without me? Are our procedures documented? Could someone else maintain our community relationships? What parts of my job absolutely require me – and which parts don’t?
So … Where Does David Start?
David left that state convention a few months ago with more questions than answers. On the flight home, he kept replaying that one question in his head. “Would my business survive without me?” He assumed not. His absence following his surgery confirmed his fears. He realized this wasn’t an acceptable outcome. The Monday he was able to return to work following his recovery, he arrived at the funeral home earlier than usual. Instead of diving into emails and phone calls, he simply watched.
Within the first hour … One funeral director interrupted him three times to ask questions that David thought should have been easy to answer. His office manager needed approval to order supplies. Another employee asked what price to quote a family. The maintenance company called because no one else knew whether to approve the repair. David couldn’t help but laugh. “Maybe I really am the problem.” Not because he wasn’t working hard but because everyone had become dependent on him. That afternoon, David made a decision. Instead of trying to fix everything overnight, he would begin removing himself from one responsibility at a time.
Building Leaders Instead of Followers
The first conversation David had was with Jennifer, the funeral director who had worked alongside him for nearly twelve years. He asked her a question she wasn’t expecting. “What decisions do you think you should be making that you’re waiting on me to make?”
Jennifer hesitated before answering. “Honestly … most of them. I usually wait because I know you’ll want to be involved.”
David suddenly realized something. He had unintentionally trained everyone to ask permission. Not because they lacked ability. Because he had never let them lead. Over the next several months, David began delegating decisions instead of simply assigning tasks. Sometimes Jennifer made a different decision than David would have made. That was okay. She was growing into a leader.
If It’s Only in Your Head, It Doesn’t Belong to the Business
One afternoon, David received a call from a family he had served years earlier. They wanted exactly the same personalized memorial tribute he had created for their father. David knew exactly how to do it. The problem? Nobody else did. It wasn’t written down. The same thing happened with aftercare procedures, veterans’ paperwork,church contacts, andfirst-call protocols. Everything existed inside David’s head. He finally admitted to himself something many owners struggle to acknowledge.
“If I disappeared tomorrow, a lot of what makes this business successful would disappear with me.” So, he and his staff started documenting procedures. Not because they planned to sell the business but because they wanted the business to be consistent regardless of who was working.
The Numbers Told a Different Story
David considered himself financially responsible. The bills were paid. The bank account looked healthy. The business made money. Wasn’t that enough?
His CPA challenged him. “David, tell me your EBITDA.” David smiled. ”I can tell you how many funerals we handled last month.”
The CPA smiled back. “That’s not what I asked.” For the first time, David began looking beyond his checkbook. He started reviewing monthly financial statements. He learned how cash flow differed from profit. He discovered how buyers evaluate earnings rather than simply revenue.
More importantly … He realized there were opportunities to improve profitability that had nothing to do with increasing call volume.
Looking at the Business Through Someone Else’s Eyes
One Saturday morning, David asked his wife to walk through the funeral home with him. “Pretend you’ve never been here before.” She pointed out things he no longer noticed. The faded landscaping.
The worn carpet outside the chapel. A family lounge that hadn’t been updated in years. The arrangement room still had furniture they’d purchased fifteen years earlier. None of it affected the quality of care they provided. But together, it sent a message. David wasn’t embarrassed. He was motivated. Over the next year, they tackled one project at a time. Nothing extravagant. Just thoughtful improvements that reflected the pride they had in their business.
Sometimes the Hardest Changes Aren’t Operational
During a meeting with his accountant, another uncomfortable topic surfaced. There were expenses running through the business that really weren’t business expenses. The hunting lease, the country club membership, his personal vehicle, some travel … For years, it had never seemed like a big deal. His accountant explained that buyers – and lenders – often adjust for these expenses anyway.
Cleaning them up would make the financial statements easier to understand and eliminate unnecessary questions during due diligence. David realized transparency creates confidence, and confidence creates value.
Building a Management Team
Perhaps the biggest change came when David stopped trying to be the answer to every question. Jennifer became responsible for operations. His office manager took ownership of accounting and administration. Another funeral director began coordinating community outreach and preneed events.
At first, David worried things wouldn’t be done exactly as he would have done them. Sometimes they weren’t. But something surprising happened. His employees developed confidence. Families continued receiving excellent service.
The business kept running, and David finally took a vacation where his phone barely rang.
The Systems Didn’t Replace David – They Protected His Legacy
Three years after attending that convention, David looked around the funeral home and saw something different. The building looked better. The financial reports made sense. His staff solved problems without him. Procedures were documented.
Leadership had emerged throughout the organization. The business hadn’t lost its personal touch. It had simply become stronger. When he eventually had the business professionally appraised, the appraiser made an observation that stuck with David.
“You’ve reduced the risk.” Not because the building had changed dramatically. Not because call volume had doubled. Because the business could now succeed whether David was standing in the arrangement room – or sitting on a beach with his wife.
For the first time, David understood something many owners never do. He hadn’t been preparing his business to sell. He’d been preparing it to last.
The Outcome
Over a three-year period, David intentionally began changing how he operated the funeral home.
He empowered his staff to make decisions. He documented procedures that had existed only in his head. He encouraged one funeral director to oversee operations and another to manage community outreach. His accountant helped him better understand the financial performance of the business, and he began reviewing monthly reports instead of simply checking the bank balance.
The changes weren’t easy. There were times when it would have been faster to step in and do things himself. But he resisted. When David finally decided to have his business professionally valued, the appraiser noticed something that had little to do with the building or the call volume. The business no longer depended on David. It could continue to thrive without him. That made it more valuable – not just to a future buyer, but to David himself. For the first time in nearly 30 years, he and his wife took a two-week vacation without checking in every day.
Ironically, by building a business someone else would want to buy, David also built a business he enjoyed owning even more.