How to Increase the Value of Your Funeral Home with Technology
September 28, 2023
Written by Natalie Chapman, Passare Content
You did it. You crafted the perfect succession plan.
Well, it's the perfect plan on paper.
When it finally comes time to pass the torch, buyers will be looking for more than a well-thought-out transition plan. They will be looking for value.
Some might say value is in the eye of the beholder, but there’s one thing all successors and buyers want:
A profitable, well-run funeral home.
To attract the right buyer, you need to show that your funeral home is successful and will be in the future. It has to have the potential for future growth.
One way to increase the value of your business is by implementing technology and digital solutions that will scale as your business grows.
Then, when it comes time to retire, your funeral home will look like an opportunity, not a renovation.
In this article, you'll learn 3 simple ways to use technology to increase your business valuation. Let's dive in!
3 simple ways to increase your business valuation with technology:
#1: Digitize your business processes over time, not all at once.
Many funeral homes try a one-off attempt to overhaul their processes. But research has shown that's actually a less successful method.
McKinsey & Company, a technology company, surveyed users and found that respondents who were "top performers" in technology use saw great returns on their technology transformations.
But they didn't become tech-savvy overnight.
On average, these top performers implemented five out of ten tech transformation initiatives in recent years.
Read more about the 10 tech initiatives here.
When you implement small changes over time, you'll have an easier time keeping processes up to date. Not sure where to start? Read this article and find 6 technologies every funeral home needs. ➡️
#2: Implement technology that benefits your staff
Your staff is the core of your funeral home. They keep things running and make sure tasks get done right. That's why adding technology that helps them do their job better is a game-changer.
McKinsey's survey found that companies that made 'people-focused' technology transformations saw overwhelming success. And 22% of companies that updated technology processes saw an increase in revenue.
Because when you give employees tools to make their jobs easier, they can do more. And by creating a solid staff and operating system, your business will be a well-oiled machine that anyone can step into and keep going.
#3: Use technology to increase your revenue
Technological advancements have proved to be a successful solution when looking to increase revenue.
Over two-thirds of respondents in the McKinsey & Company study reported that a technology change increased revenue from existing streams. More than half said it created new revenue streams.
Here are 4 great technologies you can use to increase revenue at your funeral home:
Funeral home livestreaming
Include livestreaming services as an add-on for your packages, or you can offer the recording to families for a fee.
At-need or preneed eCommerce
Generate leads and additional revenue when you allow families to plan online.
An updated website
Simple additions like adding your florist vendor on your website let families purchase and send gifts to the funeral home. Plus, you'll get a cut of the profit!
All-in-one case management
Cut costs when you consolidate all your tools into one platform. For example, in Passare, you can access eSignatures, case management, family collaboration tools, and more all in one place (at no extra cost!).
Start implementing solutions before it's time to sell
"I don't want to inherit debt. I want to serve our customers well and make a difference in the community when I'm in charge. I don't want to spend my whole career trying to fix a broken clinic."
These are the words of my friend who declined an opportunity to succeed the owner of the vet clinic he worked at.
Quality successors will think no differently when buying your funeral home.
You've worked hard to grow your business throughout your career. Don't let bad processes get in the way of seeing the returns of your hard work.
Start implementing technology now so that future buyers won’t be able to pass up your business opportunity.
Get a demo of Passare today! 👇