One of my favorite business books is Richard Koch’s The Star Principle. In that book, Koch emphasizes investing in “star businesses” that dominate their niche in a growing market. For funeral home owners, applying this principle can unlock significant growth in 2025. Here’s how.
Identify Your Niche
A star business serves a specific niche and is the market leader. For funeral homes, this means identifying areas where you can dominate. It might be eco-friendly burials, cremation services, or catering to specific cultural or religious needs.
If your market is crowded, find a segment that is underserved and focus on serving those families. For example, one of my clients has built a very successful funeral home business by focusing on ship-outs.
Focus on Growth Markets
It is crucial to pick a growing market. Consider trends like continuing rises in cremation rates or the increasing preference for personalized end-of-life ceremonies.
Positioning your funeral home as the leader in a growing segment will attract new families and build long-term brand loyalty.
The key is to pick a growing market that you can profitably serve. Direct cremation may be growing, but low-profit margins and rising competition make it a tough market to focus on.
Stand Out With Value
Differentiation is key to dominating your niche. Your funeral home could offer unique packages, such as celebrant-led ceremonies, or have advanced online planning tools. The key is to offer something that your competitors do not offer families.
Invest in marketing strategies highlighting these strengths, like optimizing your website and Google Business Profile. You should also consider leveraging grassroots connections with hospice providers and clergy.
The “Star” of Funeral Homes
In 2025, the “star” funeral home will likely excel in cremation and personalization. Offering affordable cremation packages and meaningful memorial options can appeal to modern families.
Technology is another growth driver—consider tools such as website chat to meet tech-savvy customers where they are.
By targeting a high-growth niche, dominating it, and consistently innovating, your funeral home can align with Koch’s Star Principle and thrive in 2025.
