Wednesday, 23 May 2012
Go Ape |
Treading the business high wire
When former soldier Tristram Mayhew gave up his military career in 2001, it was with some reluctance. He had enjoyed an adventurous lifestyle, but had come to the conclusion that it would no longer be compatible with having a family and he "didn't want to drag them through it".
For a few years Mr Mayhew embarked on a conventional business career, joining well-known multinational companies. But he couldn't stick corporate life for long. "Their only objective was making a dollar and that wasn't enough for me," he says. "I wanted to do something that was fundamentally worthwhile, enjoyable and where I liked the people I worked with. I couldn't tick those boxes as a corporate guy."
A "lucky break" changed everything. He was holidaying in France with his wife Rebecca and their six-month old baby when he saw a high-ropes adventure centre that sparked the idea for Go Ape.
Mr Mayhew envisaged – and Go Ape has become – a treetop adventure business set in beautiful forest locations, complete with high wires, tricky crossings (using ladders, walkways, bridges and tunnels made of wood, rope and super-strong wire) and wind-in-your-face zip wires.
Clients are kitted out with harnesses and pulleys and given a 30-minute safety briefing and training before being let loose into the forest canopy, free to swing through the trees. Instructors patrol the forests to offer assistance where it's needed.
"At first we didn't think such a business would be allowed in the UK on health and safety grounds," says Mr Mayhew. "To our surprise, we found that the authorities were more worried about the UK becoming too risk-averse! They encouraged us as long as we managed the risks properly, removing unnecessary danger and providing proper supervision, training and insurance."
Marketing was the next challenge. This was solved by focusing on 40 potential locations around the UK where there were "woods with the ‘shop window' of a visitor centre" where Go Ape could be promoted and seen by potential ‘Tarzans'. Mr Mayhew then took the concept to the Forestry Commission, where an entrepreneurial management team warmly welcomed it.
Crucially, he had the foresight to negotiate a deal at the outset that allowed the company to trial one site at first, then a further five sites in the first six years. If all went well, Go Ape would win ‘preferred partner' status over the whole Forestry Commission estate. "Before we even opened our first course, we knew that if the business model worked we would have exclusivity over 40 locations for 26 years," he says.
The husband and wife team worked hard, first proving that the idea was viable, then quickly establishing four sites – in East Anglia, the Lake District, Sherwood Forest and the New Forest. Initially, they financed the venture themselves, using proceeds from the sale of Mrs Mayhew's flat.
It was a brave move, which almost came unstuck because of the speed of the roll-out, with the business running short of cash early in its second season. Go Ape needed to borrow £50,000 for just six weeks, to cover its costs until July, when its summer-based revenues would come rolling in. "Of course, the banks were no use – they never lend you money when you need it," says Mr Mayhew. The venture was saved by another slice of luck – a short-term loan from his mother who had recently inherited a lump sum.
"We've got 27 sites now, we employ 450 people and we've won lots of awards – but we nearly screwed the whole thing up because of a lack of basic cashflow forecasting," he says.
It was a lesson well learnt. "We've tried to develop from being enthusiastic amateurs into business professionals," says Mr Mayhew, who has himself attended a business growth programme at Cranfield School of Management. The course was run by Gerard Burke, an experienced trainer who now offers transformational development programmes to the owner-managers of growing businesses through the Your Business Your Future initiative. (Programme scholarships are available to Intermediate and Advanced Forum members – find out more here).
In 2011, Go Ape will make a pre-tax profit of £1.4m on turnover of £11.5m. But despite achieving such scale and success, the business, like its thrill-seeking customers, is eagerly searching for its next challenge – not merely to satisfy the ego of its founders, but "because momentum is very important," says Mr Mayhew. "We need to grow to provide interest and career progression for our staff."
Expansion will include some new tree top adventure sites, but there isn't the scope to grow these exponentially in the UK. Instead, the focus is on diversification, both geographically and in terms of business activities. Overseas, there are 15 centres in the pipeline in the US, through a 50/50 joint venture, while at home Go Ape is diversifying into new businesses that can sit alongside – or rather underneath – the high-ropes. So far these have included family mountain-bike and segway (electrically powered scooters) hire centres, and ‘cafe in the forest' catering outlets.
The company is prepared to consider any activity – from caving and climbing to adventure holidays – that fits into its motto of "creating adventure and helping people to live life more adventurously". Now generating cash, it is even willing to embark on the ultimate business adventure, the acquisition trail.
So how can a treetop adventure company continue to grow so rapidly and succeed so far beyond it's original niche? Mr Mayhew is in no doubt: "By sticking to our ethos of respect, trust, integrity and shared values that go way beyond making money," he says with utter conviction. "We'll invest for the long term and we'll be two steps better."
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