The climbing wall revisited

I have recently been asked the same question in a number of different ways; when I talk about my climbing cube, what am I actually talking about; what is it a metaphor for?
As weird as it seems, we have a climbing cube (4 walls) in the backyard of our suburban Adelaide home. To us its not weird;

• we like climbing
• climbing well takes fitness and strength
• as with all activities; the closer the training relates to the sport, the better it translates
• we can't get to rock faces regularly
• a climbing cube is cheaper to build than a good treadmill is to buy (cardio fitness)
• its a challenge
• its really fun

It fits into my whole philosophy of doing outdoor activities. Climbing, bushwalking, sea kayaking, etc. are all excellent fitness and get out activities and like all activities that take "effort", the more you train for the activity, the more/better/harder you can do it.
Getting more people into outdoor activities as a lifestyle decision requires support at the fitness end and a more mainstream approach to "home use".
To grow the regular people who use adventure providers, we need to be providing "training" programs as well as experiential programs.

Deworsification

We all consider diversifying; if you run bushwalking trips you may consider adding rock climbing or canyoning to your company's range of products. Is it a good idea? lets go back to our shop in a mall analogy; will your shop be successful if half of the front window is icecream and the other half bicycles? Possibly not, but two shops; one icecream parlour and one cycle shop can co-exist well in the one shopping mall. However, having two shops means you have two rents, two inventories and two lots of staff.

You have probably already prepared an arguement in your head; "most of my staff have a range of skill sets and I simply need to direct them to where the need is and most outdoor businesses have little if any shop front".

Let me agree and disagree. I have worked with examples of outdoor adventure companies where a solid focus on their public profile has paid large dividends over their opposition. Buyers look for expertise. if your public profile (website, brochures, shop front, car signage) suggest a "we do anything approach", then the local specialist will outstrip you 10-1.

It is possible to have a diversified public profile, but to be successful it needs to be well managed. You also need to keep in mind that though YOU know that most outdoor specialists have 2-3 activities in which they are qualified, those outside the industry don't. You may be qualified in rock climbing and sea-kayaking, but to your customers it can seem like their surgeon is also a pastry chef.

Do I or don't I diversify?
- every product needs focus to be successful; do you have the time and resources to focus on a varying portfolio
- would the same time put into developing a small specific range of products give a better return
- are you developing other products to maintain cashflow with new entrants into the industry.
The final point is worth consideration. It is quite common for people to come in and set up businesses in opposition to existing businesses. It can be done through careful research where the newcomer has analysed the market, identified a need and has specifically set up to capture that need. It may be that the newcomer has seen a successful business and just comes in blindly thinking that "if one can be prosperous, so can two". It has also been done by people who do no research at all and come in, set up a business and suddenly realise they are the third mountain biking company in the area.
If your opposition are intelligent, the two of you can co-exist very well. Focus on key (but different) areas and create a centre for the activity. If your opposition are either of the other two, they will eat into your customer base no matter how badly they operate.
Depending on your resources, the size of the market and the maturity of the market, this may be a point where a new diverse product gives you the cash flow to weather the storm.

It is a sad fact of the industry that many people enter the outdoor adventure industry for an "easy" lifestyle. They don't understand the business environment and end up spending most of their time doing other jobs to make enough money to run their business. The top performers are very focussed in product and market.

So do I diworsify? yes and no;
Know your market; there is no use buying 20 kayaks to use them 6 times a year. But if they can be a business centre of your business, then consider doing it.
Keep your shop front clean, have clear messages, have specific products (don't just offer to sell anything to anyone).
Don't compete for the sake of competing; I have seen companies say they offer things that they can't, simply so they look as big as their opposition. The classic is always training; every organisation wants to be a trainer. If you are a qualified trainer in a properly set up training organisation, great. If not you will soon look incompetent as your students reach your level of teaching or skill. Compete by point of difference, not similarity.
Diversify because you see a market with a need that you can successfully service

Risk? What Risk

Two kayakers went paddling on Sunday. One took an open racing boat (little floatation, unstable, fast, light and small) One took a sea kayak (floats even if flooded, stable, comfortable). The racer wore a light shirt, the sea kayaker, a PFD, sun hat and had a whistle, radio and other rescue equipment plus some food. It was a perfect day and both went for a 10km cruise along the gulf. Both returned happily without incident.
Now the arguement; which was appropriately prepared? The arguement (which is common to all outdoor adventure sports) rages often.
The arguement can be distilled to;
1) I have a high skill set which results in the craft/trip being safely undertaken in the conditions
2)You have no control over the conditions; only a small change in conditions would make your skill set inappropraite and below that required for a safe trip whereas I, the sea kayaker, though well able to handle the conditions was perpared for significantly worse conditions.
My time as the risk manager of Australian Canoeing showed me one thing; we all overestimate our expertise (especially in public). In all of the incidents I analysed and those seen in our various research, a single broken or missing component of the risk management chain resulted in a situation beyond the ability of the paddler, leading eventually to the incident we analysed.
However, don't think that translates directly to a conclusion that the Sea Kayaker with their extra equipment, etc. is safer.
Your most valuable asset (and the one most prone to failure) is between your ears. Take our two kayakers, a wind suddenly whips up;
Option 1; in 76 seconds the racer is on the beach, in 4 times that the sea kayaker hits the beach. The racer lands in ripples, the sea kayaker now has waves.
Option 2; in 76 seconds the racer lands, wanders to the closest surf club, gets a mate to call her boyfriend for a lift, etc. The sea kayaker carries on until a point comes where he is unstable and continually bracing. He now turns for shore, capsizes as he lands. In the exit he gets badly hurt as the seakayak lands on him.
There are endless options and it would be quite easy to provide a number where the racer eventually swims ashore without her craft whilst the sea kayaker watches from the shore as they boil a cup of tea.
Looking back at the statistics; wind strikes; brain reacts in one of two ways; clear thinking or slow processing. Quick decision based on accurate information leads to successful outcome. Slow or no decision resulting in the situation being out of control by the time a decision is made.
It is good advice to spend twice the amount on your brain that you do on your equipment. If you employ staff, make sure you have a "real" education budget.

Setting up an adventure tourism business

Its not about adventure, its not about tourism, its a small to medium business that happens to sell adventure activities as its product.
So you want to get into adventure tourism; great, you will meet fantastic people, at times have fun, have the odd bit of terror and hopefully earn a good living. What you wont be doing is doing your own favourite activity when and where you want to.
My first bit of advice to anyone who wants to start an adventure tourism business; go to your nearest shopping mall. Decide on a type of business that you like then work out how and where you would put one in that mall. Think about what you would do to get people into the business, how would you dress the window? Would you have a website? if so what would it offer?
I am not being silly here. I am getting your brain thinking about running a profitable business. Once you have worked out how to run a successful shop in a mall, alter the product and think about your adventure tourism business.
Don't skimp on your mall business. Always keep in mind that no matter what your product or where you deliver it, rule 1 on being in business tomorrow is making a profit today.