As funeral home owners, you know the funeral industry isn’t exactly Silicon Valley, but you can still use The Star Principle to grow your business strategically. The Star Principle is a book by Richard Koch (I highly recommend it).
Let’s talk about two types of business in our industry: “cash cows” and potential new “stars.” Understanding how to manage and grow these can lead to lasting success.
What’s a Cash Cow, and Why Protect It?
A cash cow is a part of your business that brings in steady, reliable income with little extra investment. For most funeral homes, this is your core service—traditional funerals, memorials, and burials.
It’s not the fastest-growing part of your business, but it’s essential to your financial stability. Protecting these cash cows means maintaining quality, keeping costs down, and delivering great service every time.
In practical terms, invest in reputation management and keep a close eye on reviews. In this digital age, people rely on online feedback when choosing a funeral home.
Also, since your number one source of business is from families you’ve previously served, be sure to use social media, especially Facebook, to maintain a relationship with past families.
What’s a Star, and How Do You Create One?
A star is a high-growth part of your business, ideally one that’s also gaining market share by at least 10% annually. Stars are where the future revenue growth lies, and in our industry, they often involve emerging services.
Think of areas like cremation, eco-friendly options, or personalized memorials—services that are rapidly growing in demand. Celebrant services could be a shining star for many of you.
To create a star, start by investing modestly in these services. Offer more options, such as green burials or unique, custom memorials. Get the word out through targeted social media campaigns that highlight these newer services. This way, you’ll attract the clients seeking these creative options.
In short, protect what works and carefully grow into new areas. By applying the Star Principle, you’ll keep your core strong while building future revenue streams that let your business shine.
Until next week
John
