Friends! Do you think operating a Buddhist Columbarium or memorial hall is a capital-intensive, slow-return business?
Want to expand your scale but fear your hard-earned brand reputation could be tarnished by franchising?
Today, I share an innovative asset-light strategy for the Buddhist Columbarium industry, allowing you to expand rapidly with little to no investment, while firmly retaining control over service quality and brand image!

A friend of mine runs an excellent Buddhist Columbarium operation. It's known for its serene environment and standardized management, highly recognized by families for blending tradition with modern administration. Particularly meaningful is the Buddhist burial philosophy—accumulating merit, eliminating negative karma, and aiding rebirth into a better realm for the deceased through offerings, scripture chanting, and listening to Dharma teachings.

He wanted to scale this model to serve more people. But franchising gave him a headache. He said, "My brand represents decades of effort, embodying respect and commitment to the deceased. Franchising? Can others manage it properly? If service is lacking and the brand is damaged, it's not just business failure; it's a betrayal of the families and the deceased who trusted us!" He felt traditional franchising might seem profitable short-term but posed significant long-term risks. He is passionate, viewing this as a blessed vocation.

I said, "Brother, your concerns are absolutely valid! But have you considered how giants like McDonald's and KFC operate tens of thousands of global outlets, many not company-owned, yet maintain consistent quality? They use the 'Direct Management Model'!"

What is the "Direct Management Model"? Simply put: Others invest in building the facility, but you retain firm control over operations and management! You provide the brand, management systems, and standards, ensuring every Buddhist Columbarium meets your high requirements.

Let's break down how this model works and generates profit in the Columbarium industry:

1. Revenue Stream One: Startup Service Fee.
Consider building a standard Columbarium facility. Beyond land and the main structure (the investor's responsibility), significant investment is needed for interior finishing Buddha hall setup, custom Columbarium niche installation, smart management systems, security, fire safety, etc. Suppose this requires 1.5 million RMB.

Now, an investor believes in your brand and concept and is willing to invest. You can charge a "Brand & System Authorization & Construction Guidance Fee"—say, 2 million RMB. You use this 2 million, spend 1.5 million to build/install all internal facilities/systems to your standards, netting an immediate 500,000 RMB profit!

Crucially, this 500,000 is earned without investing a single cent in physical assets! The investor sees a high-standard facility built, and you gain your first profit. Using this model for 10 locations, just the startup service fee could bring 5 million RMB in risk-free profit! You add no fixed asset investment because your existing brand, team, and experience are your core capital!

2. Revenue Stream Two: Ongoing Management Fee.
A Columbarium isn't a one-time sale; ongoing maintenance, memorial services, Buddhist rites, and environment upkeep are crucial. As you handle operations, you charge the investor a management fee—like a service fee.

Assume a standard Columbarium location generates 5 million RMB annual sales (including niche sales, fees, value-added services). Charging an 8% management fee (adjustable) is reasonable, as your team handles salaries, maintenance, utilities, marketing, organizing rites, etc. That's 5 million x 8% = 400,000 RMB per location annually. With 10 locations, that's 4 million RMB in stable yearly cash flow!

3. Revenue Stream Three: Supply Chain Profit (Cost to Revenue).
This is the masterstroke! Previously, operating your own location, you purchased niche plaques, flowers, incense, offerings, cleaning supplies, custom ritual items, etc.—all "costs" to you.

Now, managing 10 or more locations, you become the centralized purchaser for all sites. You negotiate directly with manufacturers for the lowest wholesale prices, even customizing exclusive items with your brand identity.

Suppose related配套 items/services cost 30% of a niche's sale price. Previously, this 30% was your expense. Now, with centralized procurement supplying all 10 locations, this procurement volume—say, a total 10 million RMB annual demand—becomes the "sales" you bill to each managed location!

Bulk sourcing gives you much lower costs than their individual scattered purchases. Assuming a conservative 25% profit margin, this 10 million RMB supply chain business yields 10 million x 25% = 2.5 million RMB profit! Your former cost is now revenue!

4. Revenue Stream Four: Cash Flow Advantage.
Columbarium sales often involve advance or installment payments—families pay upfront for niches or services. But you pay staff next month, settle with suppliers months later, and pay for rites per session. This creates a significant "time gap," with substantial cash temporarily held in your account.

This is "funds employed" or "cash float." While I don't recommend using it for high-risk investments (as my friend says, focus on your core service), this large, stable cash flow itself significantly enhances your company's risk resilience and supports reinvestment for development!

It provides stability during market fluctuations and supports talent development and system upgrades. Conservatively, each location might hold hundreds of thousands of RMB in cash flow annually; 10 locations mean millions in working capital at your disposal.

So, do you see it? The essence of this "Direct Management Model" lies in Two Reversals:

• Reversing "Cost" into "Revenue" (via supply chain integration).

• Reversing "Investment" into "Financing" (others invest, you manage and integrate resources).

Ultimately, it transforms expansion from "no/little money" to "having funds and development"!

For the unique Columbarium industry, this model is particularly meaningful. It's not just commercial success; more importantly:

1. It ensures unified service quality and brand image. Any new location is managed by your team and standards, guaranteeing consistent respect for the deceased and commitment to families.

2. It better inherits and practices the cultural significance of the Buddhist Columbarium. Unified management ensures continuous, standardized activities like offerings and Dharma listening, truly helping the deceased eliminate karma and attain better rebirth, realizing the core value of a Buddhist Columbarium.

3. It pools resources—hiring more accomplished Dharma masters, building smarter management systems, conducting deeper life culture research—things a single site can hardly achieve.

Many industries are evolving. Past companies profited from selling products (traditional). Later, companies profited from designing models and integrating resources (new-type, like we discussed). Future companies might profit from aggregating massive users and deriving value from that base (future, e.g., internet platforms).

Our Columbarium industry must keep pace, moving beyond the traditional "selling compartments" mindset. By adeptly using new business models like the "Direct Management Model," we can achieve healthy, rapid, sustainable development while staying true to our mission and ensuring service quality.

So, if you are in the Columbarium industry or see the potential in this blessed, promising field, consider deeply studying the "Direct Management Model." It's not simple franchising; it's a wise choice creating a triple win for the brand owner, investors, and families!