I have my own theories on why the biggest purchase of our lives so far (apart from real estate) has turned to a disaster. This is my attempt to put them into words.
I run a very small business.
It has taken many many years to develop it from absolutely nothing into something 'dependable' that feeds, clothes and waters the family and pays for a few little extras into the bargain.
It got to that stage because I spent a great deal of time and effort on researching what people wanted and then made a huge committment to making sure that I gave my very best to ensuring they were offered the closest approximation I was capable of providing.
This is a constantly changing requirement and a constantly changing and growing committment. When you are dealing with market forces you can never sit on your laurels or the world just leaves you behind.
I am always taking little 'temperature' checks on my business. There are numerous tools on the web to facilitate this. Here's one example from the Small Business Advice Service - The Guide to help you Health Check your Business
Then there are books such as The Complete Idiot's Guide to Being a Successful Entrepreneur
One of the lessons I took close to heart was the damage that can be done to a business when it expands too fast. Is an overflowing order book necessarily a sign of success? Or might it be a danger signal that businessmen ignore at their peril?
The cautionary tale of Boo.com is remembered by most internet entrepreneurs with a shiver. But their demise is educational to all businesses in expansion.
The simple truth of the Boo story is that their marketing was too successful for their organisational skills and infrastructure to cope with.
When the flood of customers arrived, they could not serve them appropriately and their entire business collapsed under the strain caused.
Here is a link to an article on the Cornwall Marine website entitled Powercat roars ahead. It is also to be found on the Google cache of the Falmouth Packet but this time entitled redruth boat builder expands and date stamped as follows From the Falmouth Packet, first published Saturday 10th Mar 2007
Anyone seeking to improve their PR skills could learn a lot from the Powercats PR Initiative. In the article they pay tribute to the help given by the Cornwall Marine Network which is the owner of the Cornwall Marine Website previously mentioned.
However I found and read this article recently with different eyes, having had my own experience of Powercats' product and 'customer services'.
These are the points which leapt out at me.
"we began producing Powercats in 1999"
"The company has just passed another milestone with completion of its 50th Powercat 525 "
"Powercats managing director Barry Philpott confirmed that he was on target to beat his goal of 36 motorised catamarans a year"
So according to the article;
Powercats at the time of publication in 2007 had been in business 8 years maximum
It had built in total - 50 Powercats 525
This year (2007) they had built more than 36 Powercats
So
50 minus 36 = 14
(total boats built ever) (boats built 2006 - 2007) (boats built 1999 to 2006)
which is on average 2 boats a year up until the expansion.
Going by those figures even if they had built ALL the previous boats in the year 2005 - 2006 it would still be an expansion of more than twice the production rate!!!
Now in my opinion a phenomenal expansion like this has got to be fraught with dangers.
As far as I can see, Powercats used to employ 2 people when they were the tiny original company, and according to the article (mar 2007) it " now employs eight people and may need to recruit more".
So the production expansion from average 2 boats a year to 36 boats in a year (an eighteenfold production increase) was managed with a fourfold staff increase!!!
If they could manage all this and keep standards as high as when they were providing a much more leisurely product, then I think all business owners should be beating a path to their door to learn how.