IN this week's SME Focus a leisure entrepreneur explains how work in his family's fairground business prepared him for an eventual move into the licensed trade.

Name: Steve Graham.

Age: 42.

What is your business called?

Manorview Hotel & Leisure Group.

Where is it based?

Howwood, Renfrewshire.

What does it produce, what services does it offer?

Manorview specialises in the restoration and transformation of what might be considered tired, under-developed properties into luxury boutique hotels and venues. The portfolio includes hotels and licensed trade premises across the Central Belt of Scotland.

This year we also launched a new company called Manorview Pub Partnership. This company enables us to purchase and lease back properties to both existing and new tenants, with an option to purchase at some point in the future.

Who does it sell to?

We have a broad spectrum of customers, reflecting the diversity of the Manorview group. With the hotels, we have a lot of UK and international guests visiting Glasgow for business or leisure, however the local West Central Belt market is equally as important to us. We think all our properties have a very strong food and beverage offering. Venues such as the Lynnhurst in Johnstone and the Busby Hotel in Glasgow are popular for weddings and events. The Commercial Hotel in Wishaw includes a nightclub facility, popular with local students, and the leisure facilities at the Bowfield Hotel & Country Club in Howwood attract more than 1500 local members of all ages.

What is its turnover?

£8 million last year, and on track for £10m in the current financial year.

How many employees?

Currently there are more than 400 staff working in our business.

When was it formed?

2007.

Why did you take the plunge?

After several years in property development, I was looking for a fresh challenge and the move into licensed commercial properties was a natural progression.

What were you doing before you took the plunge?

Like my father and his father before him, I started out in the fairground industry, in what was effectively a 100-year-old family business. I started working in the business at a young age and my involvement in it grew from there. I had some success and at the age of 30, I decided on a career change into property development. I started out purchasing, developing, and letting various properties, before investing in my first licensed premise in 2002 by purchasing shares in Centrepoint Venues Limited, a bar and nightclub complex situated in Coatbridge.

I would not be where I am today without the discipline and hard work that the fairground business required. Not only is it physically demanding, but you needed a solid engineering understanding to ensure all the machinery was working smoothly and safely. Logistics management was also crucial. During the busy summer months we'd have multiple sites in operation, with the fairgrounds rarely staying on one location for more than two weeks. We'd be at big events across the whole of the UK and Ireland, from T in the Park to the Galway Arts Festival, but also went further afield too. Along with trips to Scandinavia, each year we'd also ship the machinery to the UAE for four months touring around Dubai and Abu Dhabi. Some people have their preconceptions of the fairground industry and it is sometimes frowned upon, but I'm incredibly proud of what we achieved and our business success.

How did you raise the start-up funding?

A combination of profits generated from my fairground enterprise, together with support from the bank.

What was your biggest break?

Securing the first Manorview property. The Commercial Hotel Bar & Club seemed very tired and in need of major refurbishment and investment. I was able to purchase the venue at a reduced price and have sufficient funds remaining to completely restore and transform it. Its subsequent success provided the equity to fund our next acquisition, The Lynnhurst Hotel, in 2008. This set the business model for all future Manorview developments - seeking out properties that seem tired, distressed, or are in administration and developing them to their full potential.

What was your worst moment?

In 2012 I was forced to place Centrepoint Venues into administration. In hindsight I had overpaid for the existing goodwill of the business created by the previous shareholders.

What do you most enjoy about running the business?

The process of seeking out potential new investments, and subsequently transforming them into new exciting developments, is incredibly rewarding. We try to make each and every venue unique. That stretches beyond the bricks and mortar. It's about excellent customer service, good food and creating an environment where your staff want to work hard and do their best.

What do you least enjoy?

The paperwork.

What are your ambitions for the firm?

To continue to grow and develop the Manorview portfolio, while striving to maintain high standards across the properties together with excellent customer service. My ambition for all our venues is that customers find them a relaxed and welcoming place to spend their time whilst still being value for money.

What are your top priorities?

Maintaining a high standard and quality across the whole group; securing steady and manageable expansion that does not over-stretch the business; retaining and investing in good staff; trying not to cut corners - it's a better investment in the long term; always reviewing and refining the group's existing offering as there is always room for improvement.

Cash flow remains king and the one thing that lets you grow your business and invest in your staff. The financial investment deal from Barclays, which we agreed 18 months ago, has gone a long way to help support Manorview's expansion. As part of the company's move to Barclays, they provided a debt facility and a financial investment of about £7m. Their ongoing support and enthusiasm for our long-term business aspirations has been refreshing.

What could the Westminster and/or Scottish governments do that would help?

Reduce VAT rates for leisure and hospitality businesses similar to that adopted in some other European countries. A more balanced VAT approach would enable businesses like Manorview to expand faster, creating more jobs and paying higher wages.

What was the most valuable lesson that you learned?

Never to overpay for business goodwill.

How do you relax?

I really enjoy my cycling and will be out on my bike as often as possible. With all of the Manorview properties in relatively close proximity, it's also a handy way to drop by for a surprise visit.