Last week two young ladies met me at the nursery. They wanted to pick my brain about the garden industry. They were considering starting a retail garden center and growing some plants as well; a sort of retail-wholesale business.
One was very interested in plants and horticulture. Although having no formal education, she clearly loved gardening. The other was interested in finance and business management. She had some formal education; perhaps a BA degree.
As I smiled and listened I thought to myself, “Why would anyone want to open a nursery? A typewriter store or a record store might make more sense”.
I recalled some recent nursery industry headlines:
August 21, 2008: Hines Nurseries declares bankruptcy. Founded in 1920, it operates 7 nurseries on over 4,000 acres in four states, including its well known Irvine location.
December 23, 2008: Bordier’s Nursery declares bankruptcy. Founded in 1924, it grows plants on 800 acres, including a very large facility over the fence from Hines, on Irvine Bl.
January 22, 2009: Orange County Nursery declares bankruptcy. Founded in 1887, it grows plants on over 800 acres.
Then, just two weeks ago, on April 2, 2010: Park Seed Company and Jackson & Perkins declare bankruptcy. Park Seed was founded in 1868 and Jackson & Perkins in 1872.
Even though these are all wholesale nurseries, almost every gardener will recognize at least one or two of these venerable gardening companies. Each are large, well managed, multi-generation companies, with impeccable reputations and considered industry leaders. How many companies do you know, in any industry, that have been in business since 1924 or 1920? Not many. How about since 1887, 1872 or 1868? Can you name one?
Just ten years ago, Jackson and Perkins was the #1 most recognized plant brand in the United States. Now, they are struggling to survive, with declining revenues and huge debt.
So why would two smart young women want to start a nursery? In my observation, those who want to get into the garden center business can be divided into four seperate groups:
Dreamers. This is a big group. They love plants and love the atmosphere at a well run, well merchandised garden center. They want serenity in their lives and figure growing and selling plants would be a great way to get it. But almost none of the “dreamers“ ever follow through on their nursery ambition. The reality of operating a garden center eventually becomes known, and the “dreamers“ move on to something else.
Escapists. The nursery business tends to attract a good number of “escapists”. These are accountants and ex-bankers and the like who buy garden centers they wouldn’t advise anyone else to buy. But, because they know what they are doing, they think they can make it work. Surprisingly, sometimes they do succeed.
Hobbyists. Hobbyists get into the industry for a little while, until the work-to-pay ratio takes the fun out of it. Then, their support group of friends and family check out and go back to their real lives. Invariably, they make lots of bad business decisions. Nurseries run by hobbyists can make a big splash for two or three years, but seldom last for long.
Landscape contractors. By far the most frequent visitors to the garden center business is this group. Tiring of the hard physical work and boom-or-bust insecurity of contracting, they figure a nice stable garden center might be a good way to go. But since most contractors aren’t good at the intricate detail and multi-tasking needed to run a retail business, they usually lose interest quickly, especially when they underestimate such things as capital needs, inventory complexities and most of all, employees.
So my advice to anyone wanting to start a nursery, including the two eager your women last week, is usally the same. First, get a job at a nursery, even if it’s part time. Second, spend as much or more time on your business skills and education as on your “garden“ skills. Garden skills will get you into the business, but business skills will keep you there. Third, write a detailed business plan, then have it reviewed critically by an impartial consultant or business expert, not a family friend.
If you decide not to open a nursery, maybe you can open a typewriter or record store instead.
Ron Vanderhoff is the Nursery Manager at Roger’s Gardens, Corona del Mar
Questions from Readers
April 17, 2010
Question:
Being a novice in growing tomatoes, a friend informed me that I could get at least two harvests from one tomato plant by simply removing the old stalks and continuing with watering and feeding. Is this so, and if so, would the second crop be as good as the first?
Lu, Newport Beach
Answer:
I don’t understand your friend’s advice. Tomatoes are everbearing plants. Once they begin bearing fruit, they continue to do so until the die, usually either of cold weather, disease or pests, or a combination of all three. If a tomato is planted at the right time, watered and fertilized and given reasonable care it should produce tomatoes for months. Eventually though it will begin to decline. When this is obvious, it is time to get rid of it rather than attempts to nurse it back to health – it will seldom happen. If there’s still time in the season, you’re better off shelling out the two or three dollars for a new plant.
