Stories of Stumbles and Success in Succession Planning

There’s a lot of joy to be found in running a floriculture operation. But as with any other field, there are also challenges. With the vast majority of businesses in horticulture being family owned, one of these challenges is in determining when and how the next generation will take over running the company.

One of the panels that took place at Cultivate’26 tackled this issue head-on. Moderated by Karin Walters, CEO of Walters Gardens in Zeeland, MI, the discussion featured honest conversations about some of the ups and downs that can occur in transitioning a business from one generation to the next. Fortunately, in addition to the pain points involved, there were also plenty of lessons to be learned.

Along with Walters, the panel also included:

• Keith Berns, Managing Director and Chief Flower Grower at Berns Garden Center and Landscaping in Ohio, a third-generation owner along with his cousin (the business actually shifted from the first generation to the third).
• Jeremy Deppe, General Manager of Spring Meadow Nursery in Michigan, who is now a second-generation owner.
• Robert Saunders, CEO of Saunders Brothers, Inc. in Virginia, which recently completed a transition to both the third and fourth generations of the company.

What was the biggest takeaway from the conversation? For me, it was that while the reasons for the transition, and the process, were a bit different for each company, they also had several common elements.

None of These Owners Thought They’d Be Where They Are Today

While each of the four panelists grew up in the greenhouse, nursery, or garden center, all of them left around their college years with no intention of returning. Yet they all came back.

“I left for college at age 18 and earned a degree in engineering, with plans to own a factory,” Saunders said. “But that vision changed pretty quickly, and the opportunity came for my brothers and I to return the family business, each with our own skill sets.” Today, Saunders says he’s still running a factory: “a factory of plants.”

Deppe also left the farm to pursue an accounting degree before eventually deciding he wanted to return to the family business. His biggest challenge? “I knew my parents wouldn’t ask me to come back – I had to be the one to ask.”

None of Them Had a Formal Background or Training in Horticulture

You’d think a degree in horticulture would be a prerequisite to running a floral business. And yet, this is the exact path that more and more green industry business owners are taking today. It also means on-the-job training and education by absorption is critical.

“My dad was not the best person when it came to training, so I learned a lot by reading our accounting books,” Walters said. “Like others on the panel, I also rely on the horticulture knowledge of others on my team.”

Saunders echoed the thoughts of Walters, noting that “you need to have good people in positions you trust. If you’re around the plants and those people, you’ll learn as you go.”

Each of Them Relied on Outside Help During the Transition – To Varying Degrees

Robert Saunders and his brothers brought in two consultants, each of whom recommended starting the succession conversation now instead of waiting. “We continue to work with them as we divide what the third and fourth generations will each need to do.”

For Walters, there were a few false starts before finding success.

“My dad was livid when he found out we were talking to an outside company,” she said. “To get around that problem, we had him pick out who we should be working with.”

Deppe admits the process was much smoother at Spring Meadow. “My dad and I agreed on 99% of the decisions, so we decided we didn’t need to use anyone else,” he said. “My dad was also super intentional about the transition process.”

Berns worked with consultants, but found little success.

“What really helped me was talking to peer groups and mentors when they retired,” he said. “We did end up forming an advisory group based on those conversations.”

Each of Them Are Now Running the Business a Bit Different Than Those Before Them

• “We try to communicate more as a team, and talk about problems with a tone of mutual respect,” Walters said.
• “We have become more open as a company in terms of sharing our financial numbers with the entire team,” Saunders said.
• “I almost feel like we’re running a completely different business now than we were 20 years ago. I don’t walk around the greenhouse like my dad did; I try to manage the company at a higher level,” Deppe said.
• “What got us here won’t necessarily get us to where we want to be in the future. We’ve brought in a lot of outside talent and new leadership that are experts in their fields,” Berns said.

Perhaps the most important lesson came from Saunders. “We insist that the next generation has to go work somewhere else for at least three years before coming back,” he said. “Once they come back, they’re not guaranteed a job. They have to apply and interview like everyone else.”