A. Introduction to the business
Key features:
· Sandy Fraser started on his own in 1977.
· Tough journey over 40 years.
· Many set-backs and challenges.
· Clear drive, ambition and vision.
· Never give up.
· Diversification to survive (from a one person electrical business to now 13 businesses including electrical, tourism, events, manufacturing/food and drink).
· Now a business over £3million turnover.
Please watch this video for a short series of images of the main areas of the physical business.
Video 1 – The Oak Tree Inn virtual tour of businesses
This narrated Powerpoint presentation provides an overview of the family business development over 40 years (1977 to 2017).
See also the INTERACTIVE TIMELINE accessed via the Background pages.
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Also via the Background pages are:
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(i) profiles and video interviews with each of the key players,
(iii) VR tours of various parts of the business.
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A.1 Key areas to explore in section A:
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1. What would you identify as being the main motivation behind the business and what would you say is its core vision, purpose and values?
2. What have been the key challenges over the years for the business?
3. Given where the business is located geographically, how important is that wider sector and location context to this business’s success?
4. Would you like to be Sandy Fraser? If so why? If not why not?
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A.2 Activity
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A reminder of key points:
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· Gaining an oversight of the whole business development;
· The importance of knowing and understanding your business aspirations and values
· Understanding of the family business dimension and dynamics;
· The basic business management components of:
o business start-up and planning,
o financing,
o marketing/sales,
o employing people,
· Managing your business.
· The importance of the family and providing employment to young people in the rural areas.
· Having a clear vision for the company and being sure about its values and beliefs.
· The challenges of a start-up business
· The importance of always being aware of the context and community within which the business operates.
Now watch and listen to videos 2, 4, 6, 7 and 10.
(if working in a team, watching these short videos could be shared out and then summarised back to the team)
Video 2 – How did Sandy get started?
Video 4 – What are your aspirations? Family business
Video 6 – How has the business grown?
Video 7 – Financing the business
Video 10 – Business and the community
A.3 Key issues to highlight
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Just four key issues to draw out from this activity:
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a) Doing “whatever it takes” to succeed – eg starting in a caravan, moving into a small rented house, running bed and breakfast in their own home for income to survive, putting a caravan in their drive to get income to pay off a loan.
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b) Business develops.
· Properties bought to support development of business:
- to expand business activity and produce more income (eg Ben Lomond Cottage)
– but doesn’t always work out (eg land at Milton of Buchanan), but business perseveres and looks at other options.
· Or properties bought but to help other plans (eg Balmaha House – renovated, added value then sold; but kept the land for future development)
· Investment in biggest project to date in 1997– building of the Oak Tree Inn (now central to all other businesses).
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c) Expansion of the business as opportunities came up – eg Cottary, Clairinch, Corrievern, Quarry, Loch Sloy, Violet Cottage.
· However, borrowing from bank very high (risk)
· Properties bought with additional benefits other than just “a house”
· Cottary came with the field and space to build two new houses;
· Loch Sloy gave vehicle access to the rear of Oak Tree Inn;
· the Quarry gives development opportunities
· Violet Cottage complements the Oak Tree Inn with a village shop
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d) This don’t always work out as you planned – so need to adapt:
Eg
· Land at Milton of Buchanan – bought then sold now looking to buy back again
· Garage in Drymen – agreed a purchase, paid deposit, sale fell through, now bought again.
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e) Things take time and can change – need to be patient and flexible
eg
· Quarry – bought 2007, planning permission 2012 for holiday homes, nothing yet built but may change permission to permanent homes
· Balmaha House 2 acres land – bought 1999, planning permission in 2016 for holiday houses and industrial unit, nothing built yet
· Cottary 5 acres land – bought 2005, 2015 built industrial unit; 2015 first event on land.
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What other key issues have you identified?
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Now go back to the four points listed in section A.1. What is your position on each of these now?