The Good The Bad And The Ugly... Reasons Why Greenhouse Growers Expand
The Good:
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The Bad:
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The Ugly:
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At GGS we design greenhouses, we manufacture greenhouses, we build greenhouses, so you can see that our growth quite literally requires our customers to grow. But not all expansion projects are created equal, and growth for growths sake is never a good idea. Here are a few tips to check to see if your expansion motivations fall on the good side of growing or not.
Customer driven reasons for building greenhouses:
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Many of your existing customers are asking for more product from you. |  |
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A big new customer is maybe interested in taking more product than you can give without a sizable expansion, but won't sign a contract. |
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If you build it they will come. Even though you have not seen any indication that customers want more product you are sure that more product will equal more sales |
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Your sales people have been successfully adding new customers and new markets, and by expanding the greenhouses your production plan will provide enough extra product to allow for additional sales without betting the whole farm on it. |
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Your sales people have determined the grass is greener in markets as of yet unexplored and have convinced you that they need more product to sell for them to go after the business. |
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You feel your salespeople are under producing and the best way to put pressure on them to sell is to double the amount of product inside the greenhouse |
Family Business motivations for building greenhouses:
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Your children have been working in the greenhouse business with you and you have developed a plan together for organized growth |
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If you build a bigger greenhouse business your children who are not interested now will become interested in taking over the family business. |
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Your lazy do nothing child needs a project and an acre of greenhouses will certainly keep him busy |
Cost savings motivations for building new greenhouses:
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You have looked at the operating costs of the old greenhouse, labour inefficiencies because of layout, heating costs, and the quality of crop, and compared it to what a new greenhouse with modern technology can produce and cost to operate. You have determined an acceptable payback for the expansion. |
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If you double the size of your greenhouse all your overheads costs are half on a per square foot basis, and you can push your employees to do more, so their costs are half too. |
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You have been offered a cogen opportunity, and hey with free heat, who needs a business plan. Let's build greenhouses! |
Ego driven plans for expanding the greenhouse:
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You are proud of your success and the success of your team, and you continue to build a great greenhouse business year after year. |
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Your goal is to be the biggest greenhouse producer in the state / country / world because bigger = better. |
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Your high school reunion is coming up and you want to show everyone what a big shot you are with billions of square feet of plant production. |
Looking to expand your greenhouses? Contact GGS
Author
Leigh Coulter
Leigh Coulter is the President of GGS Structures Inc. a leading greenhouse manufacturer with sales worldwide. Leigh holds a degree in business from the Richard Ivey School of Business at the University of Western Ontario, and she has been asked to speak at numerous events regarding manufacturing and business development. GGS manufactures greenhouses for all crops, as well as manufacturing fabric covered buildings. After years of working with cannabis growers to improve medical marijuana cultivation technologies, and as part of the company’s strategic development in 2013 Leigh established a division within the company dedicated to the emerging legal cannabis industry, and as such GGS is on the forefront of the movement. As part of this division new people were brought into the company to expand the company’s knowledge in indoor controlled agriculture cultivation (CEA) as well. GGS was the first greenhouse manufacturer worldwide to actively promote cannabis cultivation in greenhouses through their website, brochures, and in the media. Leigh believes passionately in “doing the right thing” and that supporting people’s rights to choose how they take care of their bodies is fundamentally “the right thing”. Working with cannabis growers all over the world she has developed the utmost respect for people who want to perfect their craft, and grow their best plants, and everyone on the GGS team is delighted to be part of that mission.
