Nicole Vullo
on
Written by Axel Jean-Francois
(Names and identifying details have been changed to protect privacy. But trust me—these challenges and triumphs are all too real in the funeral profession.)
“Fire them, or pack your things.”
That was the ultimatum John Smith heard on an otherwise ordinary morning. The funeral home owner—John’s longtime boss—wanted an employee gone for purely personal reasons, a vendetta completely unrelated to job performance. John knew in his gut: that’s not how you run a successful business, and it’s definitely not how you treat loyal staff.
Within minutes, he grabbed his stuff, said goodbye to a place he’d poured years of effort into, and walked out. Enough was enough. In that moment, John realized: If I can’t stand by while someone’s wrongfully fired—maybe it’s time I run my own funeral home the right way.
But let’s be real—big decisions aren’t always glamorous. John had a family, young kids, and a nagging voice: Am I ready to shoulder all this risk? He craved the freedom (and yes, the challenge) of ownership, but leaving a stable paycheck for a pricier operation made his stomach flip.
Enter Foresight. We recognized John’s ambition and hesitations—he had the passion, the skill, and let’s face it, the grit to be a stellar owner. So when Heritage Funeral Home—an institution in Middle America for over 70 years—hit the market, we urged him to leap. Sure, it cost more than he’d pictured, but this was the funeral home in that region: deeper call volume, unmatched local reputation. Sometimes you don’t wait for the stars to align; you pull them together like constellations on your own terms.
What John couldn’t predict was how the next few years would throw him into storm after storm—figuratively and literally. But that’s precisely where our story begins: fueled by frustration, ambition, and a shot of blind faith that he could build something better.
- The Leap of Faith (2021): “Am I Crazy?”
Context
- Post-Pandemic Turmoil: Families still stressed, case volumes uncertain.
- Price Tag Shock: Heritage’s brand power meant a heftier sale price, which initially scared John off.
- Foresight’s Push: We showed him how a bigger operation could yield bigger rewards—if he dared to go big.
John’s Mindset: He was torn between playing it safe or diving headfirst. Ultimately, he tuned out the voice screaming “too expensive!” and signed on the dotted line. Because sometimes, the only path to serious payoff is the one that scares you silly.
Takeaway #1: Don’t let sticker shock kill a great opportunity. If key fundamentals (like call volume potential) stack up, a bigger purchase can be the game-changer.
- Immediate Headwinds: Calls Drop, Cremations Rise
Late 2021 – Early 2022
- Falling Case Volume: As COVID cases decreased nationwide in early 2022, Heritage’s call volume dipped below historical averages—likely a mix of local competition and post-pandemic shifts.
- Cremation Surge: Burials had been around 70% back in 2019, but by 2022, it slid to about 55%. Cremations mean lower revenue per call, forcing John to pivot—fast.
John’s Strategy
- Embracing Cremation: Rather than complain that cremation is “low margin,” John introduced rental caskets, special urns, and keepsakes. Sure, you’ll never fully match the merchandise revenue from a traditional burial, but by encouraging families to hold services anyway, he softened the financial blow.
- Service Packages: He also encouraged his staff to present alternative arrangements that still honored the deceased without sacrificing margins.
Takeaway #2: Cremation doesn’t have to be a profit killer. Get creative with merchandise and keep pushing for meaningful services—those added steps help recapture lost revenue.
- Storm #1: 2023 Tornado & Insurance Chaos
Nature Hits Hard
- A tornado ripped through Heritage’s roof—not exactly the “welcome to ownership” John had hoped for.
- While insurance did step in (including business interruption coverage), the claim process dragged. The partial closure threatened to tarnish Heritage’s calling card: a top-tier facility.
Operational Shuffle
- John juggled scheduling, used alternative rooms, and even borrowed a local church for some services. Morale wobbled, but the team pulled together.
Takeaway #3: Disasters happen. A robust contingency plan—temporary spaces, strong team unity—can avert a meltdown. Even if insurance helps, you still face reputation risks and timing headaches.
- Storm #2: 2024 Pipe Burst & the Insurance Drop
Double Whammy
- Less than a year later, a frozen pipe burst, prompting a second big claim. Talk about Murphy’s Law in action.
- Insurance covered the damages and business interruption again, but then deemed Heritage “too high risk” and dropped them. John’s new policy quote was more than double the old rate—an instant budget-breaker.
Fighting Back on Costs
- Vendor Negotiations: John refused random price hikes, renegotiating casket suppliers, prep-room materials, and more to claw back margin.
- Pre-Need Deals: Every 18 months, he shops around for better commissions, capturing any incentives to ease that new insurance pain.
- Price Raise: Despite a declining call count, John raised his overall pricing in 2024—losing some families but boosting average revenue per call by $1,000. Even with 40 fewer services, Heritage ended up with higher top-line revenue than in 2023.
Takeaway #4: When insurance or other overhead costs double, you’ve got to recoup those dollars. Negotiate aggressively, shop pre-need, and don’t be afraid to adjust your pricing—even if it risks losing a few families.
- Emerging Stronger: John’s Leadership & Foresight’s Guidance
Staff Loyalty
- Through two massive disasters and a shifting market, John kept his team involved and confident. That morale carried them even when their star facility was (literally) under repair.
Revenue Wins
- Thanks to the 2024 price raise, top-line revenue actually rose despite fewer total calls—and with cremation still at about 50%. Creativity and resilience paid off.
Looking to the Future
- Potential Pet Cremation: Observing increasing demand for pet services, John’s exploring expansions—always scanning for new revenue streams.
- Competitor Retirements: He’s also watching a nearby rival whose owner may retire soon, positioning Heritage to scoop up more market share.
Spotting—and Supporting—Your Future Owner
John’s story might feel dramatic, but his path from disgruntled GM to successful funeral home owner isn’t so rare. If you’re an owner wondering whether your star employee could carry your legacy, here are four quick checkpoints:
- Work Ethic & Problem-Solving
- Checkpoint: Do they tackle challenges unprompted?
- Conversation Starter: “I notice you jump on issues before they blow up. What motivates you?”
- Values Alignment & Team Respect
- Checkpoint: Does the staff look to them for guidance, especially under pressure?
- Conversation Starter: “The team respects your leadership—how would you shape our culture long-term?”
- Financial Curiosity & Vision
- Checkpoint: Are they intrigued by pricing models, vendor contracts, or expansion opportunities?
- Conversation Starter: “You’re detail-oriented. Want to see how we do budgeting for expansions?”
- Drive & Willingness to Risk
- Checkpoint: Do they own outcomes—wins and losses—without finger-pointing?
- Conversation Starter: “Running this place involves big stakes. How do you feel about that level of accountability?”
By recognizing (and encouraging) these traits, you pave the way for a smoother transition if and when you’re ready to pass the baton. Sometimes the next John Smith is right under your nose—just waiting for a chance to leap.
Final Reflection: A Chaotic Yet Triumphant Journey
Two natural disasters in under two years. A massive shift toward cremations. An insurance company that bailed the moment it got tough. Any one of those might have sunk a new owner outright.
But John Smith refused to fold. He:
- Raised prices despite fewer cases.
- Kept staff morale intact through major upheavals.
- Slashed costs by renegotiating vendors and strategically shopping pre-need.
- Planned expansions like pet cremation and capturing a soon-to-retire competitor’s market share.
Yes, buying a bigger, pricier funeral home in a post-pandemic world felt terrifying. Yet with careful planning, tough pricing calls, and unwavering adaptability, John turned near-disaster into a success story. Nature tested him, insurers tested him—but he emerged stronger, armed with a blueprint for any funeral director (or any business owner) facing storms, literal or figurative.
Here’s the thing: John didn’t jump in because he “felt ready.” He jumped because he knew the difference between coasting as a key employee and actually leading the charge. It was—like Miles Morales asked Peter Parker—purely “a leap of faith.” Sometimes, you don’t feel 100% prepared. Sometimes, you just do it anyway, trusting your work ethic and the right advisers to keep you afloat.
Ready to Steer Your Own Ship?
If you’ve got a star employee itching for more responsibility—or you are that star employee—maybe all that’s missing is the push to go from “I could” to “I did.” Because real growth often lives right beyond that moment of doubt. At Foresight, we’re here to offer the guidance and data you need so your leap of faith isn’t a shot in the dark. After all, the best defense against headwinds is a solid team, a strategic plan, and the conviction to move forward—no matter what the forecast says.