Agrarian Society Industrial Society Service Based Society Experienced
Agrarian Society Industrial Society Service Based Society
Experienced Base Society
Experiences Services Goods Commodities
New Rules for the Experience Economy • Rule 1: Authenticity • Rule 2: Responsiveness • Rule 3: Customer Focused • Rule 4: Education Centered • Rule 5: Tell Your Story • Rule 6: Empower Other to Tell Their’s
How can we quantify what we do… • Determine Mission • Establish Guiding Principles • Create Pillars for Success
Data: 2015 NFDA Cremation and Burial Report Link: http: //ht. ly/PPYCI
* PBS Economics of the Funeral Industry Link: http: //www. pbs. org/pov/homegoings/economics-of-the-funeralindustry. php#. Vd. N 29 h. NVh. Bc
• Cremation CAN have an effect on your cash flow • Look for ways to add value to every service • Are there changes you need to make to stay competitive and serve the families in your market?
Data: NFDA Trends and Statistics Link: http: //nfda. org/about-funeral-service-/trends-andstatistics. html
• Owners are reaching retirement • Marketplace is changing • Creates an opportunity for you to grow & acquire
STRUCTURING THE DEAL
BUYING AND IMPROVING
Live Oak Bank Lending Conventional Lending • Lend capital based on cash flow of the business, without being focused on the real estate value. • Lend capital based on 80 -85% of the real estate value, and no consideration for goodwill. • Lend on the goodwill of the business, therefore rewarding the seller’s hard work in building the business name and reputation. • If real estate value is not adequate to satisfy the sales price, the seller gains no credit for the business reputation, size, and performance.
Live Oak Bank Lending Conventional Lending • Longer term loans, no balloon payments, and no loan covenants. • Shorter loan terms that include balloons, off-setting the lower interest rate offered. • All appraisal, environmental, and other costs are included in the loan proceeds. • Higher out-of-pocket cost for buyer and seller. • Simple loan structure that includes working capital and seller carry options to satisfy any required down payment. • Complex loan structure that can have as many as four loans to satisfy one request.
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