When an avocation becomes a business - turning hobbies into business opportunities - Column

Drive any highway in America, and you'll get an idea of what people are passionate about by reading the bumper stickers on their cars.

Most likely, the object of such a passion-- displayed like a badge of honor--is not the way the driver makes a living.

I, on the other hand, have spent most of my business life pursuing my passions, turning hobbies into livelihoods. For a while I booked club appearances for Chicago-area bands; later I parlayed an interest in photography into a photo-processing company.

My latest venture is salvaging the name and tradition of Burger Boat Co., the

131-year-old yacht builder in Manitowoc, Wis. It has been my greatest passion and risk.

I enjoyed considerable success in the photo business. Ray Ehlert and I started Ross-Ehlert Photo Labs in 1973, and we built it into a $13 million business before selling to a British conglomerate some 16 years later. I was then able to return to my first love--boating--buying a 50-foot Italian-built cruiser. At the same time, I started searching for a new venture.

While inquiring about purchasing a Burger--long considered among the best in boating--I learned that the company had gone out of business. Crippled by the recession and by a luxury tax on boats over $100,000 (the tax was repealed in August 1993), Burger had sunk into bankruptcy. It was shuttered in 1990.

Fourteen months after learning of Burger's fate, my partner, James Ruffolo, and I struck a deal to buy the Burger shipyard and company name. With an initial investment of less than $1 million, including purchase price, the shipyard reopened in February 1993 and delivered its first yacht in September 1994. We've just delivered our second, have three others under construction, and have contracts for three more, bringing sales to more than $25 million since reopening. Our work force, mostly second- and third-generation Burger employees, stands at 125. The company should turn a small profit this year.

It hasn't been easy sailing, however, and anyone thinking of turning a passion into a business should not start out expecting a joyride:

First, take time to find your niche. I threw myself into photography in 1971, but it wasn't until the end of 1973 that I went into business. During that time, I discovered my strength was in creating negatives, not in artistic composition, which convinced me I would be more successful in the processing end of photography.

Once you've found the basis for a business, put it to the test. Passion aside, I wasn't going to throw away everything I had. I developed a business plan to determine if and how Burger could be profitable. When passion is involved, hard-core business realities can easily be viewed through rose-colored glasses.

It's just as easy to lose your passion if business falters and you aren't prepared. Developing the plan led me to analyze the industry, the labor pool, the production costs, and the competition, ultimately showing Burger's potential viability.

Realize your shortcomings and secure strong partners. I'm neither a detail person nor a boat builder. To return Burger to prominence, I needed a team of experts: My partner, James Ruffolo, who serves as Burger's vice president, chief operating officer, and plant manager, enjoys and excels at managing details and day-to-day operations, while I prefer working with customers and handling creative direction. Our chief architect has been designing and engineering luxury yachts for more than 30 years. I even hired the former secretary of Henry E. Burger (the last Burger to run the company) to help come up with administrative guidelines.

Give workers incentive to share your passion. Your love for the business doesn't mean your employees feel the same way. At Burger, we need craftsmen who add their vision to the product; to keep them motivated, we created a profit-sharing and benefits package. It's not enough for employees to love the work; they have to feel that they have a stake in the company's success as well.

It has been three years of struggles and 80-hour weeks, and it's still my passion. This one's here to stay.

David Ross is president and CEO of Burger Boat Co., in Manitowoc, Wis. He prepared this account with Nation's Business Contributing Editor Susan Biddle Jaffe.

Readers with special insights on meeting,the challenges of starting and running a business are invited to contribute to Entrepreneur's Notebook. Write to: Editor, Nation's Business, 1615 H Street, N. W., Washington, D.C. 20062-2000.

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