Taking a great idea global – part 2

Steve and Linda Scott have weathered the challenges of starting and growing a business amid the turbulence of the GFC. Now their hard work and innovation are paying off.

Based at Nelson Bay, NSW, BoatHoist specialises in the design, manufacture and retailing of a range of aluminium boat loaders, folding trailers, kayak loaders and accessories for the outdoor caravan and adventure markets. It holds patents, design registrations and trademarks across its range of products.

Last week we learnt how Steve and Linda started out and about the challenges they have faced. This week we discover how they have grown their business, and funded that growth.

Attracting clients

Steve says the website has been ‘by far’ the most effective method of attracting business. However, his appearances on New Inventors also continue to generate free advertising – many people he meets at caravan shows still comment on the program.

Steve’s next most powerful marketing tool is online videos through YouTube. ‘I would encourage all business owners to post as many videos as they can. You don’t need to be an expert; just grab a camera, shoot a 20-second clip and get the kids to upload it. You will be amazed how cheap and effective this can be.’

The website has been ‘by far’ the most effective method of attracting business.

Keeping one step ahead

The Scotts’ business targets the outdoor caravan and water-leisure markets, and trade shows are one of the best ways to stay in touch. ‘You need to stay engaged and respond to opportunities when they present themselves,’ says Steve.

‘For example, the growth in large fishing kayaks over the past five years and the requests for some type of kayak loader inspired me to design our StrongArm kayak loader. Similarly, we recently bought a SUP – stand up paddle – board for our own use and soon realised that there was a need for some form of a trolley to wheel the board to the water as they are just so big.’ As a result the Scotts patented a trolley for that purpose.

Innovation and business success

‘Innovation is the key to our success,’ Steve says, ‘not only with our range of products but with our marketing and our business model. All our products have been designed in-house so our entire business is based on supplying innovative products and solutions.

‘Innovation in marketing is central as nearly half our sales come from online, either through our web page or eBay; 90% of our customers research our products online before they buy. Even at caravan shows most customers will have already looked at our YouTube video.’ Steve says Engaging with social media outlets such as Facebook and Twitter is also important.

Steve’s tips for success

Be passionate about your business. If you don’t get a buzz out of what you do then your customers won’t either.
Have a plan and write it down. Take the time to step back and review your plan, listen to input from others whom you trust and stay flexible.
Don’t be afraid to try something new. Monitor it: if it works, great; if not, fix it.
Always provide the best product or service at a fair price.
Talk to your customers; they love the personal touch.
Believe in what you do because if you don’t, no-one else will.

Going global

Steve explains logistics are the biggest challenge in going global. ‘We have successfully exported some products to the USA, New Zealand and Canada but the challenge of establishing a viable export market is enormous. The cost of air freight is prohibitive and for sea freight you need to have volume.’ He says that you must first establish enough demand to justify sending the product, otherwise you will end up with a lot of it sitting in a warehouse going nowhere.

‘The cost of establishing the demand is the key; effectively you are starting a new business from scratch and you must be prepared to lose money for the period of time it takes to establish the required market.

‘Do the sums first, talk to people that have been there and research your market: what works here may not work overseas.’

Growing the business

Steve says there are two key factors in achieving growth. The first is to grow market share, which takes time. It involves a solid marketing plan, sensible advertising and getting out there showcasing products. ‘Never knock back an opportunity to talk about your business – word of mouth is a very powerful tool,’ he says.

The second factor is the growth of the market itself. Steve explains, ’we identified before we started that the baby-boomer retiree market would jump from 60,000 per year in 2010 to 110,000 in 2012 and remain at this increased level for the next 20 years, so effectively the size of our target market is set to double.’

Funding strategies

The Scotts have a long-term strategy. ‘Organic growth is a slow but ultimately sustainable method of funding, and once we had established a positive cash flow it gave us the ability to borrow additional funds to expand the business and start developing our export market,’ says Steve.

‘We are currently looking at raising investment capital to fund an opportunity to get a foothold in the US market with our new HiRoller SUP Trolley.’

This will involve selling a portion of the business – taking on investors and all that entails – and so another exciting chapter in the Scotts’ story is about to open.

Linda and Steve Scott wrote replies to questions submitted by The Business Centre (Newcastle Region), which has been providing business advisory services, mentoring and training to both start-up and established small businesses for nearly 30 years in the Hunter region of NSW.

For more information, go to www.businesscentre.com.au or call 02 4925 7700.