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I'm not a manufacturer though. :-S
The big name endorser is key I think. I remember reading how Paul Reed Smith would get backstage at gigs with people like Santana in his early days and put his guitars in front of them.
By the time he started factory production Santana had been playing one for years, and I think the guy from Heart had been playing an early hand built one as well.
The difference with PRS and what Jaden said above is that Paul Smith does the manufacturing and marketing stuff well (or employs good people to do it for him). He's not just a craftsman, and the craft isn't his only interest.
I don't think he was an overnight thing though. I think he started with himself, but I think he'd expanded to have 2 or 3 other people working with him before they started "factory" production.
Devon seems to be quite a hotbed of guitar stuff relatively speaking. You have BKP and Brook as well.
Brook are a little bigger than the usual 1 man operation, Last I heard there were 4 of them. There seems to be more of a market for UK built acoustics though. You also have Fylde, Atkin, Eggle, Northworthy, Dave King, David Antony Reid, Moon, Lowden all making good instruments. I'm sure I've forgotten one or two.
Sid Poole had name endorsees (okay Bernie Marsden and the Hamsters come to mind...) and he never became a household name either. The collaboration with Westone and Status was a financial flop at the time.
Ahh, Status - surely the most succesfull UK guitar brand ever? Although they could never really sell many guitars, just basses. Perhaps being endorsed by the tiny fella out of Musical Youth wasn't quite enough...
Our M-Series guitars are all manufactured in our Czech Republic factory but do not get into your hands until they have been to the Works! Here our luthier team checks every single guitar, resets the action once again and carries out a further final inspection, then the guitar is either readied for Works action or packed into a quality Manson Gig-Bag for shipping to your available dealer.