ABC Greenhouse

1. Introduction

All businesses face risks of some kind. Risk management is important enough that any large corporation has a business area dedicated to identifying and minimizing risks. Unfortunately, small businesses often do not have the ability to hire a dedicated employee or advisor for risk management.

The Students for Workers Movement is a program through the Goldenson Center for Actuarial Research at the University of Connecticut created to provide free risk management services to local small businesses, particularly those run by minorities, women, or those serving a disadvantaged group. The services are provided by a group of graduate and undergraduate students, under the guidance of the director of the Goldenson Center, Jeyaraj Vadiveloo. This program gives students an opportunity to apply the lessons learned in the classroom to real businesses while providing the businesses we ally with a free evaluation and recommendation towards managing that organization’s risks.

This report is directed towards the ABC Greenhouse, a non-profit based in Connecticut. The greenhouse has existed in some form for decades, which means the decades of experience and
non-profit nature of the organization give this small business unique advantages and obstacles compared to many other small businesses that the Goldenson Center has worked with. The Greenhouse has a track record of good performance and good leadership. This project’s intention for the greenhouse is to add value by seeing the business from a different
angle, analyze any risks and opportunities not being taken advantage of, and provide suggestions that can be considered.

2. Background & History

“Originally the greenhouses on this site were built in the 1970’s on the grounds of a School to offer vocational opportunities in the horticultural field to residents of the facility. The buildings and property did not sit idle for very long after the school began closing down in the late 1970’s. In 1982, the Greenhouse returned as a vocational program for adults with intellectual disabilities as well as a retail greenhouse and nursery. XYZ Industries, a very small nonprofit based in Connecticut, proposed turning the site into a privately run program. The State of Connecticut, through what is now the Department of Developmental Services, approved the funding for the proposal and soon the Greenhouse was up and running with a staff of three or four providing support to about half a dozen individuals. From the start, home produced plants and crafts were offered for sale to the public, a format expanded on and followed to this day.

Shifting times and budgets brought changes to the Greenhouse Program. In 2011 XYZ Industries was absorbed into ABC. At that time our name changed to ABC Greenhouse. As big a change as it was, we managed [to] maintain the high quality of service, merchandise and community relations we were known for. A few more years passed before our next big change came along. In the meantime, we expanded the total workforce to over twenty people but maintained a staff of only five. Again, attention was paid to keeping our reputation for quality plants; friendly, knowledgeable service; and vital support for the individuals we serve.

In 2017 our biggest move took place. ABC merged with another large cooperation creating one of the largest nonprofit agencies in the state providing residential, recreational and employment opportunities to people with developmental and intellectual disabilities. The significance of this event is the financial security provided by the merger. Since 2017 we have enjoyed unprecedented support from our parent agency allowing us to grow and thrive. In addition, our relationship with local and distant communities expands constantly with around 5,000 customers now passing through our doors each year. Further support is evident through the responses we receive from our annual events. Our mailing list has now grown to over 1600.”

3. Goals

Unlike for-profit businesses, ABC Greenhouse does not have a primary goal of being as profitable as possible. The greenhouse aims to provide training and work experience to individuals with mental disabilities. To continue to meet this goal, the business needs to maintain a comfortable level of revenue that allows them to cover labor costs, expenses, and address unforeseen issues. While the current site is close to capacity for how many individuals can comfortably work there — especially during the cold winter months — there is the potential for possible expansion to other greenhouses and related businesses (such as flower shops) if sufficient funding and capable candidates were available.

4. Recognition of Risk

  1. Employee risks – The current employment market makes it difficult to hire skilled specialists at a non-profit salary. Tri-County Greenhouse also faces the challenge of facilitating a smooth transition as the long-time director approaches retirement. In addition, the business side of the greenhouse could benefit from an additional retail assistant.
  2. Weather risks – The largest risk to the plants being sold: the weather is unpredictable, making it a problem that can never be fully solved nor anticipated. Plants face the risk of unexpected frosts and irregular seasonal transitions.
  3. Changes in state funding or wage laws – Being supported by state funding is a large advantage, but does introduce the risk of changes in this funding. There is a possibility that the method in which wages for individuals with mental disabilities are calculated will change in the future.
  4. Chance of missing out on potential customers and donors – While this is not necessarily a traditional risk, it is an opportunity to reduce all other risks by adding a cushion of additional income that can be put towards addressing any concerns.

5. Recommendations

Employee Risks

Regarding employee risks, a few approaches that could be taken to mitigate them include:

  1. Setting up a retail assistant internship with UConn students for college credit (possibly with UConn School of Agriculture or School of Business). Roles could include marketing and social media management. This could also possibly expand to operating a small on-campus booth/storefront on holidays. UConn also has a special education department that may have students interested in getting involved for volunteer hours or college credit.
  2. While the retirement of the greenhouse director is not an immediate issue, a few years can go by quickly and being as prepared as possible for the transition will ensure that the greenhouse continues on its current path. Documenting procedures for easier training and allocation of duties when the director retires reduces the risk that knowledge will be lost.

Weather Risks

The increasing uncertainty of weather patterns make it difficult to fully anticipate unfavorable weather. However, by increasing revenue and thus increasing the amount that can then be allocated towards equipment upkeep, the greenhouse inventory can be better protected. Similarly, to how an expansion would allow for more employees to be hired, it would also allow for more of the inventory to be kept in a climate-controlled environment rather than having to withstand weather volatility.

State Funding Risks

Connecticut state minimum wage is continuing to increase. A change in the methods of wage calculation for the greenhouse employees has also been discussed. Raising revenue and keeping thorough paperwork to be on hand to support requests for additional funding can help lessen or dodge the impact of that change. In addition, that funding can be used to continue providing high quality services and training for new management.

Revenue Generation

Ideas for increasing revenue are as follows:

  1. The greenhouse currently has collected over 1700 emails from customers that would be interested in being part of a mailing list. The greenhouse currently sends paper letters to many of these people but has not yet utilized the collected emails. Creating a mass email list could increase the outreach to customers and potential donors. The greenhouse could also determine whether some customers may be okay with only receiving an email and don’t need a physical letter, which could reduce spending on printing and sending a letter of appeal by mail.
  2. Increasing social media presence. While the greenhouse has a loyal and generous customer base, there are tens of thousands of people a short drive away from the greenhouse who are not aware of its existence. Social media is a great tool to increase awareness of the greenhouse and to familiarize more people with the products, employees, and goals of the greenhouse. This connects to the previous suggestion involving setting up internships for college credit with UConn. The students are a resource of social media savvy individuals who may not need to be financially compensated if they can receive credit or volunteer hours.
  3. While the greenhouse may be able to generate ample customer visits without this idea, if there are any slow times, or if there are opportunities with UConn interns, advertisements around UConn campus could be posted by students, introducing more of the student body to the greenhouse. Additionally, it could be possible to have interns set up booths around UConn campus that could sell plants and other products. A booth or pop-up like this could tap into the customer base of UConn students who do not have transportation to leave campus to buy plants, and also could generate high volume of revenue during times that the greenhouse may be less busy, such as at the start of semesters. This would likely be reliant on interns to run and facilitate these additions as to not add more to the employees’ responsibilities.

Revenue looks to be trending upward — excluding the increase in activity during the pandemic when many people looked to pick up gardening as a hobby. The effects of the pandemic have lessened, but the greenhouse revenue looks to be growing well compared to pre-pandemic revenue.

6. Conclusion

As a non-for-profit organization, the primary recommendations in this document serve to ensure the continuation of the business as a service to the intellectually disabled community in perpetuity, over those that serve to increase revenue. Our analysis concludes that there are no dire changes needed to the current business practices. Our suggestions provide ideas for increasing revenue or creating a relationship with UConn that could provide free services that would benefit the greenhouse and the students involved. Ideally, these ideas would be able to be managed largely by students and faculty of any schools interested in being involved, so that there wouldn’t be an increase in work for the managers who already have difficult schedules. The ABC Greenhouse could benefit greatly with continued state support along with UConn’s support towards gaining voluntary manpower and local engagement necessary to ensure the continued employment and improved quality of life for those with disabilities in local and beyond, all while serving the community with a great source of plants and gardening knowledge.