As a young boy in the late 1850s Watson often spent holidays at Inverkip on the Firth of Clyde, where through his friendship the local skipper William Mackie he developed his passion for yachts and resolved to make naval architecture his living.

After practising at J&A Inglis, Shipbuilders, in 1873 (at the age of 22) Watson set out to found the world's first yacht design office dedicated to small craft.

Notable examples include the Coats family of Paisley and the Allan Brothers of the famous Scots-Canadian shipping line.

Watson's yachts were met with a range of successes and competed in typically controversial Cup contests but never managed to win the trophy.

Thistle was sold to Kaiser Willem of Germany; Valkyrie II was sunk in a collision with the cutter Satanita (Joseph M. Soper, 1893) on the Clyde.

As sole partner at the time of his death, Watson entrusted the company to the hands of his Chief Draughstman James Rennie Barnett,[11] who went on to design the firm's largest and most famous luxury steam yachts for the social elite.