Navigating Change: The Future of Funeral Home Ownership

Funeral service is undergoing a significant transformation, presenting both challenges and opportunities for small business owners and aspiring entrepreneurs. As the Baby Boomer generation of funeral home owners reaches retirement age, a wave of change is sweeping through the industry.

For long-time owners, the current market conditions offer an attractive opportunity to sell their businesses. Large corporations like SCI, Parklawn, and Carriage Services are actively acquiring funeral homes across the United States, expanding their portfolios and providing an exit strategy for owners looking to retire. This trend is beneficial for both parties – sellers can capitalize on their years of hard work, while corporations can strengthen their market presence.

If you are an owner who wants out and you have capable staff or a corporate opportunity, it might be a great time to enjoy a less hectic life. The stress of running a funeral home in today's challenging environment can take its toll, and selling could provide a well-deserved respite.

However, this shift also creates a unique opening for the next generation of funeral directors who may have previously found it difficult to enter ownership. As larger firms are acquired by corporations, smaller opportunities are emerging for entrepreneurial professionals who are passionate about funeral service. These individuals now have the chance to establish their own businesses, potentially at a lower cost than purchasing an established, high-volume funeral home.

For employees who've been promised the world, but have seen no action and are getting antsy or even fed up, this could be the perfect time to strike out on their own. It's a grind, but in the long run you may benefit financially by purchasing the closed small footprint bank in town and refurbishing the space. It may be drastically less expensive than purchasing a business with significant amounts of overhead and headaches.

The changing landscape presents its own set of challenges. Modern families have evolving expectations, and the stress levels associated with the profession are at an all-time high. This new reality requires a different approach to business ownership and client service.

While the desire to own a funeral home is admirable, it's essential to recognize whether one is prepared for the demands of modern funeral service. Some may find, as in the case mentioned, that their strengths are better suited to supporting the industry in other capacities, such as consulting or B2B services.

The next wave of funeral home owners will bring fresh perspectives to the industry. There's a prediction that many of these new owners will be women, focused on establishing clear differentiation in their markets. Whether competing against family-owned or corporate entities, these new entrepreneurs have the opportunity to innovate and adapt to the changing needs of their communities.

For young, entrepreneurial funeral professionals looking to make their mark, now may be the ideal time to explore ownership opportunities. With careful planning and a clear vision, it's possible to create a funeral home that serves the community effectively without breaking the bank by buying an old-school firm that could feel like an anchor from day one.