Do you have a plan B?

This article was published in the March 2024 issue of Garden Center.

Running a garden center — especially during an ongoing labor shortage — has many hands-on owners in the trenches for long hours each week to fill the gaps. Most don’t — or can’t — delegate as much as they should. Few have any formal contingency or succession plans in place.

And while insuring your business for fire, flood or theft allows you to breathe easier, what happens if you become seriously injured or face a critical illness? What if a loved one falls ill and you’re the primary caregiver? Would your company or the wellbeing of your staff suffer if you’re not there?

Ben Smith, owner of Sunnyside Nursery in Marysville, Washington, took over the business from his father two years ago and admits he’s given little thought to “what if” thinking.

“All my time and attention is keeping the business running smoothly, but the biggest factor is that a contingency plan is just not on my radar,” says Smith.

Even if you’re focused on the day-to-day, it’s important to take a step back. Scrambling during a crisis to execute an improvised game plan won’t protect your business or your employees. Here’s what you can do instead.

Adopt a ‘systems thinking’ mindset

If you launched your business without any documentation or have taken over from a family member, you’re likely the one with the operational knowledge. However, without formal systems in place, decisions get made on the fly if you’re not around. Putting basic processes in place enables someone else to immediately take over in an emergency, says Dan Pestretto, a third-generation horticulturist and landscape business owner and founder of Systems Organized by Design (SOD Inc) in Harvard, Massachusetts.

“Systemizing allows you more options. You can scale. You can pick and choose what you want to do in your business. When you go to sell it, it’s more valuable. And if you get sick, somebody can step in,” says Pestretto, who coaches owners to develop and implement effective business systems.

First, create a standard operating procedures (SOP) manual using a software-based business systemization platform or a simple spreadsheet, he suggests. Companies can succeed without a manual, but everything’s in the owner’s head.

“There was a greenhouse retail operation near where I grew up, and when the owner died, that was the end; they just closed,” says Pestretto.

“If you want freedom and to offer opportunities to your people and your community, an SOP manual helps you do that.”

Work on your business, not in your business

Next, define your vision and values, advises Pestretto.

“Why did you start this business? What’s its purpose? What are the values behind why you’re doing it, and where do you want to take it? How do you want to live?” he says.

Then, build an organization chart outlining your management structure and office support and how everyone’s role relates to your overall strategic objectives.

“We want your business to be able to work on its own with or without you,” adds Pestretto.

LaRene Bautner, second-generation owner and general manager of Millcreek Gardens in Salt Lake City, Utah, adopted a systems mindset when she took over the business in 1995.

“I prefer to have backup plans two and three deep to be prepared for anything, especially contingency plans, because we’re not invincible,” says Bautner.

Get information out of your head so your team can see it

Garden center owners might know supplier and customer lists by heart, but it’s crucial to transfer that data into a system others can access. Develop bullet-point checklists or detailed instructions that include what Pestretto calls the four key functions of your company: Getting the business, doing the business, running the business and guiding the business.

“Identify each process in an area and put an objective to it. Then, go back to your org chart and assign each process to positions on that chart,” he suggests.

Next, expand each system. For example, the process for finance would include the bank’s contact information, how you reconcile your books, how you do invoicing and how you pay your bills.

“Typically, a medium-sized business has 200 different processes, so prioritize the most important ones with a mindset of ‘I’ve got to make sure this business goes on without me,’” suggests Pestretto.

Bautner hangs laminated sheets at different stations around her garden center, outlining steps for each process, from receiving merchandise to which scoop to use when filling trays with soil.

“I have a flagging system for the annuals, perennials, ground covers, veggies and hanging baskets, and I’m pretty strict about how they roll those racks off the truck,” she explains.

Bautner hangs up laminated sheets featuring the different colored flags and how they’re used — sorted plants get a red flag that’s swapped for green when it’s priced and ready to go to the floor, and blue flags indicate a plant needs watering, for example.

“We’re doing this all at once so it’s easier to sort them and get them on the sales floor. I’ve been able to step away because I have everything documented,” she adds.

Break processes down into manageable chunks

Overwhelmed just thinking about describing hundreds of systems? Pestretto advises investing an hour a week and doing 10 at a time. Identify trusted people who are performing well and get them involved, adds Bautner.

“Your team has great questions, and if you do one process, you’ll find it applies to others,” she says.

Employees in charge of specific departments can provide useful checklists to create systems, notes Pestretto.

“They know certain things better than you, and if they have a hand in systemizing the process, they’re going to take ownership of it and make sure it works,” he says.

Instead of starting from scratch, take advantage of free contingency plan templates offered online by many software companies, banks and insurance companies. You can also use artificial intelligence to speed things up. Provide a prompt like “how to do bank reconciliations,” and you’ll get 10 or 20 steps that you can then revise according to your company, he adds.

Smith already has effective processes in place, which will make creating a contingency plan easier.

“We have too many moving parts for any one person to carry all the knowledge. We live by lists here — handwritten notes or digital documents,” he says.

“We have checklists for closing procedures for the greenhouses and the store, and for all the tools we need to set up at trade shows.”

Smith’s team also documents things like how many cut Christmas trees were sold or what trends they spotted, so they can adjust the following year.

Encourage your team to think on their own

Implementing business systems doesn’t mean relying on people to look everything up in a manual during an emergency, says Pestretto.

“Give people the freedom to make things better based on understanding your values so anyone can make a decision about what constitutes better,” he explains.

Share your contingency plan with your tax planning accountant, attorney, insurance agent and banker, and update it regularly. Being proactive about your business means making sure it can run independently of you. Plus, it’ll allow you the freedom to step away for a vacation, not just to recover from illness.

“I’m here as a resource to coach and mentor my team. I’ll do some hands-on, but I’m working myself out of a job, so other people can take responsibility for things,” says Bautner.

Wendy is an award-winning journalist, content provider and TV producer based in Montreal, Quebec, Canada. Reach her at wendy@taketwoproductions.ca.