GREAT EXPECTATIONS FOR GREENHOUSE EXPANSION

Making the dream of building a reality, not a nightmare

November 1998
In order for a business to remain successful, it must continue to grow and evolve.

A solid business plan can help you determine what areas to focus on to achieve your goals. Expansion plans are the blueprint for the continued success of your business.

Your plans should include what you have learned from past building experiences. It may be helpful to list problems and concerns that you have encountered. Were there cost concerns? Was the payback period shorter than anticipated to cover any extra expenses? Every item that comes to mind should be listed, even if it seems insignificant.

Once you have given thought to your plan and laid it out on paper, you can begin to look at financing. Dollars from retained earnings or financing with a manageable debt service schedule are both good sources for your expansion project. If neither of these options are feasible, you may want to consider a lease option or wait until you are in a more advantageous financial situation.

Lining up financial resources is important because you will need to pay bills that accumulate during the planning phase, as well as those for expansion. Legal, engineering and permit fees can cost as much as 15 to 20 percent of the project or more.

Developing a production plan that covers all your needs and wants will create another checklist for you to consider and reconsider. These lists will undoubtedly save you money in the long run. It is better to make alterations on paper then when a builder is on site.

Your production plan should be as crop specific and profit specific as possible to make the cost analysis as accurate as possible. Your new facility will only be as productive as the planning behind it.

Along with your production plan, consider alternatives to your current approach that you may have read or heard about. If possible, go see them in action. Talk with those who have incorporated them successfully into their businesses. Consider a trial area within your existing facility before you make significant production or facility changes. Test new structure, covering, ventilation and watering systems thoroughly to ensure that they will benefit your operation.

Make sure your plans for the facility are flexible in case you decide to add mechanized systems. A product analysis will help refine movement. Employee input is also extremely important because they will be the ones using the equipment. A learning curve should be considered as well. If you decide to mechanize, be sure to choose a reliable manufacturer with experienced technical support and readily available parts.

Once you have completed your initial plan, be certain you know what will happen to the quality of your product after expansion. Quality should be paramount at a palatable price.

Consult an attorney about questions regarding building requirements and permits for your specific location and type of facility. The permit process is mandatory in almost all building locations.

With that in mind, it is extremely important to design and build your facility using National Greenhouse Manufacturer's Association standards. Your loading requirements, as well as weather, will vary from location to location. Have the NGMA member manufacturer of your building be prepare to provide calculations and professional sealed drawings for the structure before any final decisions are made on size and shape. Calculations and seals will be required for your permits.

Other components to consider before moving to the next phase are:

Site preparation
Grading should be accurate and complete. Allow appropriate drainage for all buildings and pavement within the project site. Consider measures for retaining water for recirculation at a later date.

Foundations and / or concrete anchoring
Masonry applications and installations are critical to stability of the structure. Plumbing and heating must be considered before concrete is poured so irrigation and heat can be provided efficiently. Concrete can also be used as a delivery system if you install slab heating systems or flood floors.

Mechanics: plumbing, heating, electrical
Have money allocated before requesting these services well in advance of making final decisions. It is worth the extra cost because you can still control the project on paper, as well as garner input from each of your suppliers. Revised drawings will help you develop realistic expectations for the equipment. It will also be easier to create budgets for these items and plan time tables for installation and start up.

Installers
Hire only experienced greenhouse builders. Check their references and confirm that they have proper insurance. Don't take any chances. Hire builders who want to work with you. They should be as enthusiastic about the project as your are.

Preliminary construction meeting
Consider having a meeting with all the members of your force. This will define the commitment each is willing to make to you.

It is important to remember that the details do matter. Take care of these issues yourself or assign them to someone who will get the job done the right way.

As a commercial greenhouse grower or retailer, you've decided to expand because you believe it will be good for your business. With planning and perseverance, it can be. Expansion is a time-consuming, frustrating commercial creation that will hopefully generate additional profit. In the end it will teach all involved how to be better greenhouse professionals. If we are going to continue to succeed, we all need to do better.

You need to be comfortable with mandatory versus desired expansion requirements. Your plans need to be economically feasible, yet environmentally sensitive. You need to comply, not confirm. Be different. Do what has made you successful. Don't lose sight of the vision that got you on this journey in the first place. You're good at it or you wouldn't be considering expansion in the first place.