Third-Generation Family Business Draws Dad, Daughter Closer Clients Benefit from Long-Time Relationship with Karel Exposition Management

Furniture World Magazine

This summer, thousands of sons and daughters will launch cross-country treks to visit family members scattered from coast to coast. Many will spend at least some of their vacation time connecting and catching up with everyone from friends to siblings - and especially parents. But unlike most adults, Jill Rosditsky sees her father nearly every day. That's because she works for him as comptroller at Karel Exposition Management, a family-owned producer of regional furniture and accessory trade shows founded by Jill's grandfather, Jules Karel, in 1952. Working together has strengthened the bond between Jill and her father and given the company an added level of continuity that puts its customers at ease. Statistics say that less than 30 percent of family businesses survive to the second generation, and only 10 percent make it to the third. So what makes KEM one of the exceptions? According to the Karel family, it's a thorough understanding of one another's strengths and a willingness to relinquish control of parts of the business. "I love the creative aspects of my job," said Larry Karel, president of Aventura, Fla.-based KEM, which produces shows in five different regions of the United States. "Even after all these years, it's a thrill to see a convention center littered with cardboard boxes and display equipment transformed overnight into a dazzling, show-biz-style production. But collecting money has never been my strong point. In the old days, we'd pin notes on the booths telling exhibitors to see us in the office. Sometimes they came, and sometimes they didn't. That changed when Jill joined us. Now we arrive at shows with all our accounts paid in full." Since she left the banking business in the mid-1980s to join the family business, Jill said she's gained a deeper appreciation for her father as person, as well as a businessman. "My dad has taught me by example that the key to making any business work is caring about your customers - and that's something he learned from his own father," she said. "To survive in the business world over several generations, you have to realize that without the customers, there would be no business. That means taking the time to understand their needs and doing everything in your power to accommodate their requests." For clients, doing business with a family-owned company provides a greater sense of security. "It's nice to deal with somebody who's hands-on and third-generation like myself," said Corey Steinbock, CEO of Steinbock Sleep Mattress of Brooklyn, N.Y., another durable family business that services the home furnishings market in the Northeastern United States. "In the 10 years I've been working with Larry, we've grown the New Jersey market to more than double its size. Prior to that, we never did shows, but it's proved to be a very important part of our business. It gives me the opportunity to meet with a great many of my customers one-on-one during a three-day span. People are fighting to get into his shows." Scott Brann of Lux-Art Silks, a family-owned business in Sarasota, said, "We've been doing the Karel shows for close to 20 years. Our business has grown with the help of their business. We have a nice relationship and a history together. Over the years I've worked with Larry, and now I've come to respect his daughter, Jill's role in the business." Such long-standing relationships give third-generation businesspeople a lot to live up to. "When you're the third generation to be involved with a business, you feel a real sense of responsibility," Jill said. "The company carries our family name, and we want to always be proud of what it stands for and the direction it takes." Larry said his sense of family pride enabled him to expand KEM from its humble beginnings as the producer of a housewares trade show to a leader in the home furnishings industry. Back in 1952, Chicago housewares salesman Jules Karel tried to lease exhibit space at a large trade show but discovered it was sold out. Undaunted, he decided to start his own show. That was the beginning of KEM, which now produces nine regional home furnishings trade shows in Orlando, Fla.; Tampa, Fla.; Long Beach, Calif.; Edison, N.J., and Fitchburg, Mass. Jules brought his son on board after Larry attended college at the University of Miami, and in 1968, the family moved to South Florida. Rebuilding after the move was difficult, but things began to turn around when the Florida Furniture Association chose KEM to produce their then-small shows. "We were able to expand our slate of shows to include cities like Indianapolis, Nashville, Columbus, Chicago, Denver - all over the country, until we settled in with the ones we knew would produce the results we wanted for our exhibitors," Larry said. When Jules died in 1972, Larry continued with the business, focusing hard on expansion. By 1980, the Florida Furniture Association's market was drawing more than 700 exhibitors, as well as major regional buyers. The business has grown tremendously, with about 6,000 booths sold annually, and tens of thousands of buyers visiting nine shows. Today, KEM occupies two buildings in Aventura and has a mailing list of more than 125,000. "The recent economic downturn and airline scares have actually helped boost the popularity of our shows because exhibitors were finding it too costly to maintain permanent showrooms," Larry said. "And buyers don't want to travel as far. Many of them can drive to our shows instead of getting on a plane and return home the same day, all for less than a tank of gas." Karel Exposition Management is the nation's largest producer of regional furniture and accessory markets with shows in Tampa, Fla.; Orlando, Fla.; Edison, N.J.; Fitchburg, Mass.; and Long Beach, Calif. For additional information, visit www.kemexpo.com or call (305) 792-9990.