Jake Johnson: The Path to Entrepreneurship in the Funeral Profession

November 13, 2024/Business/

Contributed article authored by Jake Johnson, CEO of Johnson Consulting Group:

The funeral profession has long provided avenues for entrepreneurship, and now, more than ever, the opportunities to become your own boss are growing. According to recent National Funeral Directors Association (NFDA) statistics, there will be a significant number of funeral home ownership transfers within the next five years. With approximately 18,000 funeral homes in the U.S., and 80% of those handling 100 or fewer calls annually, many current owners are facing succession. This creates a prime opportunity for funeral directors to step up and become business owners.

However, the allure of ownership should be approached with careful consideration. While the idea of having the freedom to set your own schedule and make decisions without supervision is appealing, there are inherent challenges. Being a good funeral director doesn’t necessarily equate to being a good manager, and similarly, good managers don’t always make good owners. It’s critical to recognize personal inadequacies and work on developing the skills necessary to succeed as an owner.

Jake Johnson
CEO
Johnson Consulting Group

As Tom noted in his article (Going into Business on your Own), the journey from funeral director to owner requires a deep understanding of what ownership entails. It’s easy to look at the rewards of owning a business without fully appreciating the hard work required to reach that level. The climb to the top involves a great deal of learning, adaptation, and a willingness to let go of certain tasks in order to assume the broader responsibilities of ownership.

When exploring ownership opportunities, it’s advisable to memorialize any promises of future ownership in writing with a current owner. Without a formal agreement, there is little foundation to build on, and years of hard work might not result in an ownership stake. Aspiring owners should also be prepared to enhance their leadership and management skills through conferences and training programs, such as those offeredby Johnson Consulting Group’s Leadership and Management Academies.

One of the current advantages in our profession is the availability of financing. With the right preparation, a bank can fund the purchase of a funeral home, allowing the new owner to pay back a loan over time while keeping the business for themselves. This is a key part of the American dream, but it requires thorough financial readiness, both in terms of savings and skill set. Aspiring owners must be equipped to manage debt and know when and where to seek assistance.

It’s important to remember that the learning process never stops. As an owner, others will look to you for answers, which can create pressure. But, it’s crucial to continue growing and seeking support when needed.

Looking at the next generation, there’s often a misconception that “They won’t work as hard as previous generations”. However, today’s business professionals are finding innovative ways to balance work and life. Through outsourcing, leveraging resources like associations and the internet, and using study groups, younger professionals are finding efficient ways to accomplish their goals without overworking themselves. In summary, it’s more about prioritizing balance and using the abundant resources available.

In conclusion, owning and running a funeral business isn’t for everyone, but it can be incredibly rewarding. The key to success lies in taking care of the families you serve…Period! If you can do that, they will take care of you. With the right preparation, support, and willingness to learn, you can enjoy the many benefits of ownership and establish a successful future for you and your family.

Funeral Director Daily take: We are pleased to present this article today authored by Jake Johnson, CEO of Johnson Consulting Group. The article comes on the heels of a October 2, Funeral Director Daily article titled “Going into Business on your Own” which you can read here.

If you are interested in knowing how you might purchase a funeral home or other Death Care related business you can learn more by going to the Johnson Consulting Group website here.

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