Buying a funeral home is a big purchase. A dream by many that have wanted to start their own funeral service business, there are many great prospects in owning one. A great long-term investment, you know that there will always be business – no matter where you are living in the world. If you are thinking of relocating to start your business, there are a few things to consider. Will the business support your lifestyle? Do you have experience of running a business? Can I afford to buy one? Buying any business is complex, therefore you need to make sure that you are ready to take the plunge. To help get the ball running, here is a list of the top five tips for buying a funeral home:
Shutterstock Licensed photo – By Monster Ztudio
1) Get Your Finances Sorted
When you are thinking of buying a funeral home and starting a funeral service business, it’s important to consider that the purchases are financed with debt. When you want a loan for your purchase, they will look at the home you want to buy and how it can service the debt that you borrow from them, as well as your credit history and if you have paid bills in time. They will also want to know how you are planning on financing the purchase.
2) Find an Experienced Funeral Home Loan Specialist
Finding a reliable funeral home brokerage service that can offer you a business loan is a crucial step in buying your funeral home. Giving you advice throughout the purchase, they will bring you and the seller together. As it is a big purchase, you need to find a funeral home loan specialist with years of experience in the business. Matt Manske at BSF (https:www.4bsf.com/) has worked in the market for over 15 years and could help you to finance your purchase.
3) See What’s on the Market
Whether you are buying a funeral home which you have previously worked in or are looking to get into the business, examining the state of the funeral homes that are out there is key. Seeing the different prices, you can determine their worth and work out how much money you will have to spend on renovations if they need any done.
4) See if There are Any Marketplace Trends
When you are looking into funeral homes, see how the marketplace is doing in the location you want to buy. By understanding the demographics, you can evaluate business and market trends that could have an effect on your potential business. You should also take a look at the population in the area, what the cremation rate is and see what competition you may have in the area – these three factors may be the difference between success and failure.
5) Ask What’s Included in the Purchase Price
When you have found a funeral home that you want to purchase, ask the seller what’s included in the price. Once you have determined how much it is the real estate is worth, you can see what the term is and what the debt service will be like.