This phenomenon is not just related to watch work. I have seen countless times in other hobbies and avocations the same thing. A guy is good at repairs and mods..word gets out, and then is overwhelmed.
Then you have the type of people that need almost hourly updates, and no patience....they grew up on instant gratification and think they have ordered something from Amazon...and it all crumbles. I have seen it in electronics, guitars, firearms. just tons of things. The Zigmeister had it right, and if I had the skills to develope a small cottage business I would study the way he worked. I really feel bad for Mike now and hope he really is able to get back to his business.
There is a guy I know that makes guitar amplifiers. His terms: You gotta play for him and prove your worthy, 20k down as deposit, two years until completion, and if you call, email, or in any way try to contact him for an update.....you lose your deposit, amp, and he will never build one again for you. He is well known in the pro world and his used amps go for 80k plus.....and yes, I had one in the early 80's
Many have scoffed at this, made fun and said horrible things about this man. The fact is, he got good at something..got overwhelmed, and made a decision to qualify customers, and make terms that worked for him. He's been successful since the 70's.