Nicole Vullo
on
Written by Taylor Weber
(Note: names, specific locations, and identifying details have been changed to protect privacy. The scenarios described, however, are real and reflective of genuine trends in the funeral and cemetery profession.)
Across the country, funeral homes are experiencing a seismic shift. With skyrocketing real estate prices and evolving preferences for funeral services, providers are reconsidering their traditional reliance on physical facilities. This shift has prompted a growing number of funeral homes to adopt “asset-light” models—operating without traditional brick-and-mortar spaces, leveraging third-party partnerships and rented spaces to deliver meaningful, personalized funeral experiences. While this innovative approach offers substantial growth potential, it also presents unique challenges, as two similar but ultimately very different funeral homes discovered.
Evergreen Farewell Services: Losing Sight of the Mission
Evergreen Farewell Services was established with a clear, heartfelt mission: to provide families with deeply personalized, environmentally friendly funeral services. Located in a region recognized for its high cremation rates and expensive real estate, Evergreen distinguished itself by offering unique, “white glove” home funerals and natural burial options. Their thoughtful approach resonated deeply with families seeking meaningful, eco-conscious end-of-life services.
However, as market pressures intensified, Evergreen’s founder sought a strategy to grow revenue through volume. Hoping to boost case volumes, Evergreen partnered with a large local cremation society providing discounted cremation services. Initially promising, this strategy soon proved problematic. Increased volume did not translate into much greater revenue or maintain the high-value services that defined Evergreen’s identity. Instead, Evergreen found itself unintentionally competing with low-cost cremation providers. Unfortunately, this approach created unexpected problems. The influx of low-margin, high-volume cases quickly overwhelmed the staff, diminishing service quality and significantly reducing average revenue per case. This clashed directly with the personalized, meaningful care that had once defined the business.
Burnout quickly set in, as the small staff struggled to manage the high volume of impersonal direct-disposal cremations. The small team, initially hired for their kindness rather than strategic alignment with Evergreen’s vision, was unprepared to cope with the stress and workload. This misalignment meant Evergreen lacked the internal support and clarity of mission required to handle such pressures. The partnership inadvertently shifted Evergreen into a volume-driven operation, far removed from its founder’s heartfelt mission.
By the time Foresight stepped in to help the founder end the problematic partnership and refocus on their original mission, Evergreen faced another crisis. Their primary third-party trade and cremation provider unexpectedly ceased serving external funeral businesses, leaving Evergreen unable to perform night calls, preparation work, and cremations, as well as not having access to storage. Families had to be turned away—an emotional and operational crisis that ultimately forced Evergreen to make the difficult decision to close its doors.
Serenity Memorial Care: Aligning Mission, Strategy, and People
Across state lines, Serenity Memorial Care took a distinctly different path. Also operating within a high-cremation, high-cost real estate market, Serenity embraced the “asset-light” model with deliberate clarity and dedication to its vision and strategy from the outset. Serenity’s founder had deep industry knowledge and financial skills, positioning the business for sustainable success.
Recognizing a timely opportunity, Serenity acquired a book of business from a neighboring affluent community—perfectly aligning with its mission to provide high-level, personalized services. This strategic acquisition not only expanded Serenity’s market reach but significantly enhanced its average revenue per case. Unlike Evergreen, Serenity did not chase volume—it pursued meaningful growth through quality service and market affordability and alignment.
A vital component of Serenity’s success was its intentional approach to staffing. With a similarly sized staff to Evergreen, Serenity deliberately hired employees whose personal values and professional ambitions very well aligned with the company’s mission and vision. Serenity’s team was purpose-driven, committed, and capable of consistently upholding the high standards set by the founder—even under challenging conditions.
Despite facing similar operational hurdles—third-party dependencies, logistical complexities, and high transportation costs—Serenity consistently thrived. Proactive management and contingency planning effectively mitigated risks associated with external service dependencies. The result was a remarkable 25% annual increase in profitability, demonstrating the profound impact of strategic alignment in mission, market positioning, and hiring practices.
Shared Experiences, Different Outcomes
Both Evergreen and Serenity navigated similar market conditions—high cremation rates, soaring real estate expenses, and reliance on third-party providers. Yet their outcomes differed dramatically due to critical strategic choices surrounding mission alignment and staffing.
Key Takeaways:
- Stay True to Your Core Mission: Competing outside your strategic niche can undermine your original business vision and create unexpected problems. Pursuing volume at the expense of your core values can have lasting negative consequences.
- Strategic Alignment is Essential: Partnerships and growth opportunities must complement, rather than compromise, your core values and service philosophy.
- Hire Strategically, Not Just Nicely: Align hiring practices with your strategic vision to build a resilient, passionate, and mission-driven team.
- Proactively Manage Third-Party Risks: Dependence on third-party providers carries inherent risks; actively manage these relationships and develop strong contingency plans.
- Strategic Expansion Pays Off: Thoughtful, mission-aligned acquisitions can significantly enhance service offerings and profitability.
As more funeral homes embrace “asset-light models,” these critical lessons highlight the importance of clarity, strategy, and purposeful decision-making, enabling businesses to thrive in an evolving landscape—even without owning walls.