Steve Potts, founder and CEO of Scout Boats, turned a $50,000 investment into a $100 million boat company by combining passion, persistence, and people-focused leadership. In today’s episode of The Small Business Show, he shares how he overcame early setbacks, natural disasters, and industry competition to build a generational business that continues to thrive today.
Potts has been immersed in boats since he was 14, working in the industry before founding Scout Boats in Charleston, South Carolina, in 1989. Despite limited knowledge of sales and marketing, he started small with just his wife and a helper, producing 14- and 15-foot boats and personally pitching them to dealerships along Interstate 95. Initial rejections were nearly universal, but Potts carved a niche in the coastal fishing boat market by focusing on design and quality that mirrored the evolution seen in the automotive industry.
Launching a business required navigating capital challenges. While conventional wisdom suggested dividing startup funds into one-third personal savings, one-third borrowed money, and one-third investors, Potts and his wife relied solely on $50,000 they had saved. Two years after founding the company, a trade show in Atlanta generated orders from 31 new dealers, propelling Scout Boats to surpass $1 million in revenue in 1991, after an initial $260,000 in the first year.
“You have to have a great deal of passion about whatever it is that you’re doing. It’s not a job. It’s a lifestyle and it’s a passion for me.”
Potts attributes his success to thorough planning, resilience, and adapting to unforeseen obstacles. Early disasters included a hurricane that wiped out their first brick facility and a severe snowstorm that collapsed the roof of their temporary pole building. Despite these challenges, he and his team persevered, steadily growing Scout Boats to more than 400 employees, all of whom remain personally and professionally connected to the family-led enterprise.
The COVID-19 pandemic proved an unexpected boon for the industry, as demand for recreational boats surged. Potts views this period as a reminder that entrepreneurial success requires readiness to seize opportunities, even in challenging times.
Boat Boy, Potts’ new book, recounts his journey from Navy brat and introverted middle child to founder of a thriving business. He emphasizes the importance of avoiding stereotypes, valuing individuality, and cultivating a passion-driven work ethic. The book aims to inspire entrepreneurs who face uncertainty, competition, and setbacks, demonstrating that persistence, vision, and people-centric leadership can create lasting success.
Potts maintains an active role in the company today, focusing on inspiring employees, steering strategy, and preserving a legacy designed to continue within his family. His advice to fellow entrepreneurs is clear: treat your work as a lifestyle, surround yourself with the right people, and never lose sight of your passion.
“You have to have a great deal of passion about whatever it is that you’re doing. It’s not a job. It’s a lifestyle and it’s a passion for me.”
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