Kaitlin Radebaugh, AAF, fourth generation owner and president of Radebaugh Florist & Greenhouses in Towson, Maryland, shared in the January/February issue of Floral Management how her family has managed succession.
Many florists are second, third or even fourth generation owners of their family business. But how does a family business ensure a smooth transition from one generation to the next?
In the January/February issue of Floral Management, florist Kaitlin Radebaugh, AAF, fourth generation owner and president of Radebaugh Florist & Greenhouses, shared with writer Sarah Sampson how her family has managed succession.
Radebaugh’s Towson, Maryland business adheres to bylaws, which dictates who is eligible for ownership and how it is attained. For instance, it stipulates that for a family member to inherit ownership, they must enter the business by age 30 and be a full-time employee for 10 years. At that time, shares of the company are passed down from the previous generation.
Radebaugh is grateful for the guidance the bylaws provide, describing it as a roadmap. “As things happened or come up, we’ve always looked at the bylaws again,” she says.
She encourages others who want to keep their business in the family to create a structure to guide the succession. “It’s never too early to start,” she says. “Most people don’t start thinking about it until it’s too late, where someone needs to retire. Having set guidelines, and really getting those fundamental ground rules down truly safeguards the business…You might be a small business, but you need big business bylaws.”
To read more about succession planning — including how other florists have sold their business to industry outsiders, other florists, and employees — read “What’s Your Exit Strategy?” in the January/February issue of Floral Management.
Amanda Jedlinsky is the managing editor of SAF NOW.
