FN MGT III The FD as a business person

“undertaker” stemmed from what lay occupations?

• Midwives/Physicians 

• Sextons

• Liveries

• Drapers

• Glovers

• Wood-workers

• Chemical Representatives

When will american funeral service peak?

In 2029

What is the primary objective of funeral service?

To meet the death-related needs of those grieving families that select the funeral home to serve them.

What is the secondary objective of funeral service?

To ensure that funerals generate enough money to meet expenses, make capital improvements, retain staff, and generate ROI

There’s approximately _______ funeral homes in the US

20,000

What is the staff size of most funeral homes?

Very small

What is considered a very small staff?

4-8 full-time, 4-8 part-time

Funeral business is ______

finite

In terms of business structure most funeral homes are considered:

sole proprietorships or partnerships

What determines the business structure in funeral service?

Call volume

How can call volume be tracked?

in sub-categories of services offered to families

Trying to maintain balance between the primary and secondary objectives of funeral service is

tricky

About how many funeral homes in the US are small businesses?

85%

What type of business structure do small businesses typically have?

• Sole Proprietorships

• Partnerships

How many calls does a small business typically get in a year?

Less than 500

About how many funeral homes in the US are large businesses?

15%

What type of business structure do large businesses typically have?

S-corps and C-corps

What is a sole-proprietorship?

an unincorporated business owned and run by one individual. There is no legal distinction between the owner and the business entity. The owner receives all profits but is also personally responsible for all business debts, losses, and liabilities.

What is a partnership?

a legal business arrangement where two or more parties co-own, manage, and operate a business to generate profit. Partners contribute assets or skills and share in both the company's profits and liabilities.

What is a s-corp?

a special tax designation for businesses that allows corporate profits, losses, deductions, and credits to "pass through" directly to the owners' personal income tax returns

• do not pay federal income tax themselves

• Less than 100 shareholders typically

What is a c-corp?

a legal business structure where the company is treated as a separate tax-paying entity from its owners. It is the default tax classification for corporations in the US, shielding shareholders from personal liability but resulting in "double taxation" on profits

• Typically more than 100 shareholders

The _____________ will change and develop in accordance with the needs of the community and the mission of the funeral home.

business structure

What is the FFDA?

The federated funeral directors of america

• Primarily concerned with financial averages to make small business stay profitable

What is the average gross profit in properly managed FH’s?

2-4%

What is the average increase per year in merchandise?

1-3%

What is the average increase per year in operating costs?

2%

How much was a average traditional funeral in 2015?

$6890

Are funeral directors recession proof or immune to economic downturns?

No!!!!!

What does Rodenburg of the FFDa believe concerning funeral homes and the economy?

Rodenburg believes the economy had an impact in the operations cost because it provided the impetus for funeral directors to look much more closely at their operations, such as spending. “In doing so, they are looking for ways to cut costs and retain the service level they are used to providing,” he said. “They are doing things that, without the effects of the way the economy was, or is, to a great extent, they probably would have let slide or overlooked.”    

Where is society on the move to?

WEST…Southwest to be exact!

Why is the population mainly moving south west important to us?

Because we as funeral directors will need to be able to relocate

What is management?

is the art of getting things done through others

What does the “art of getting things done though others” mean?

Delegation

Do you need to be in management to be a manager?

No

Why is it so important to develop leadership skills such as:

• Communications Skills?

• Financial Skills?

• Public Relations Skills?

• Technology Skills?

You need all these skills to be successful

What do funeral home managers manage?

• People (General Public)

• People (Employees)

• Business Operations

• Adherence to Federal/State Laws

• Quality Control

All while meeting primary and secondary objectives

What should a funeral home management structure look like?

• Upper Level/Owner (Maybe Spouse)

  • Strong Conceptual Skills

• Middle Managers

  • The “Gatekeepers” of Information  and Relationships

• Lower/Line Level

  • Details!

  • Getting things Done!

What is the important of the chain of command?

Kept for accountability purposes

Who reports to who in a business?

Lower-> Middle -> Upper Management

What is the chain of command in a funeral home?

Student -> Apprentice -> New Licensee -> Veteran Licensee -> Middle -> Upper

What is the span of control?

The number of employees that a manager supervises

What is a table of organization?

• Gives a written explanation of who reports to who and the authority/job description of each level

• Usually found in a handbook (if there is one)

What are the functions of management?

• Organization

• Planning

• Directing/actuating

• Evaluation/controlling

Define planning in a management sense

Being able to see the end result at the start of a process

Describe the first function of management planning

Being able to see the end result at the start of a process

• On-track in what areas

• Behind in what areas

• Ahead in what areas

Development of a mission statement

• The reason an organization exists

• Products and services offered

• Clientele served

• Nature and geographic marketing territory of business

• Areas of specialization

What are goals?

broad statements that are general and without reference to time

What are objectives?

Specific statements that provide quantitative and time framework

What are the advantages of having a standard of goals and objectives?

They can be motivational and keep staff up-to-date on products and services within the funeral profession.

Define organization in a management sense

Integration of firm’s employees, work processes, and material resources

Describe the second function of management organization

Integration of firm’s employees, work processes, and material resources

• Achieving primary and secondary goals?

• Manageable units of tasks

  • Person(s) responsible for each area of the business

• Synergy

  • Increasing productivity = raising morale

Define directing/actuating in a management sense

Removing Organizational Obstacles Hindering Employees

Describe the third function of management directing/actuating

• Removing Organizational Obstacles Hindering Employees

• Enjoyable Work Environment

• Sufficient Resources

Not only focus on systems and structures, but also people

• Understand the dynamics of effective human relations

• Inspire trust and loyalty

• Develop employee participation

• Diversity

• Bottom Line

• Constantly improve service to client families and the community

• Share the spotlight with employees

• Be fair, but firm

• Demonstrate a good work ethic

A manager should:

• Challenge the status quo

• Treat other funeral directors as colleagues rather than competitors

• Encourage creative thinking and problem solving

• Demonstrate effective leadership

• Communicate effectively

Describe the fourth function of management evaluating/controlling

• Good or bad results

• Measuring Performance

• Corrective Actions

• “Control” not “Power”

• New Concepts

• Revision of Old Concepts

Undertaking is a job based on a broad base of

knowledge of specialities

What should a funeral home manager know about finances?

• Accounting Systems

• Budgeting

• Management of Capital

• Management of Assets and Liabilities

• Cash flow

• Receivables and Accounts Receivable Policies

• Inventory

• Products in Variety and Value to Meet the Needs of Families

• Fixed Assets

• Monitoring

• Cost analysis

• Price Structure and Re-evaluation

• Financial ratios to account for every $