IN this week’s SME Focus we hear from an office equipment specialist who found the time and money he invested in a management buyout was well spent.

Name:

David Forsyth.

Age:

37.

What is your business called?

Document Data Group.

Where is it based?

East Kilbride.

What does it produce, what services does it offer?

We are an office equipment hardware and software retailer.

Selling copiers and printers is our core business and we offer a software-based solution which ties up all the elements of the office environment. We manage the full process of a document through a business. From controlling how the document is first created to storing securely for future retrieval. Tasks such as invoice processing, which previously would have taken a staff member up to a week, can be completed in a few hours using our systems.

Whom does it sell to?

Mainly the SME marketplace, although we have a good client base in corporates, government-funded bodies and Third Sector organisations. Most of our clients are in the central belt of Scotland, but we have an office in Dunfermline driving sales in the east and north. We also deal with large businesses in the wider UK and Ireland and we are moving to a custom-designed new office in Eurocentral, on the M8 corridor, to facilitate continuing growth.

What is its turnover?

£3.3 million in the year ending December 2015, up from £2.2 million the preceding year and £1.6 million the year before. Targeting £4+million 2016.

Printing has reduced in recent times but not as much as you may think. For example when email first came to the market instead of reducing paper it increased printing dramatically as people printed their emails!

How many employees?

Up from five in 2013 to 26 now and at least 35 soon.

When was it formed?

In 2007, though Document Data Group has been operating in its current form since 2012.

Why did you take the plunge?

I felt if I didn’t take the plunge I’d regret it. I joined a telecoms business which was selling Panasonic phone systems, Resource Business Solutions. It wanted to develop a photocopier arm, which I took on. I was a minority shareholder and began to feel that I could do a lot better if I was on my own. So in 2012, along with operations director Justin Longmuir, we staged a management buyout which worked reasonably well for both parties. Since we took control we have tripled the company in size.

What were you doing before you took the plunge?

I started my working life programming mobiles with a mobile phone company. I saw the sales guys coming in and I thought: "I could do that", which changed the direction of my life. I moved to Nelcom at Hamilton, which was bought out by Concept. I then spent a year with Orange.

How did you raise the start-up funding?

The MBO was essentially an earn-out, so it self-funded. We have no outside investment at the moment and all growth has been funded by retained profits. We have an excellent relationship with manufacturers, and BNP Paribas, our main lease funder, has helped us out a lot.

What was your biggest break?

The opportunity to set up the photocopier arm of the telecoms business let me get my foot in the door.

What was your worst moment?

The period leading up to the MBO was very emotionally draining. I had three young children at the time, and I didn't see much of them. There was a lot of pressure on all of us.

What do you most enjoy about running the business?

We are well in control of the day-to-day business of money in, money out, and we can concentrate on growing the business to the scale that we have envisaged. We have a great team and are now in charge of our own destiny.

What are your ambitions for the firm?

Our move to Eurocentral will allow us to double our sales team from the current eight to 16 by the end of 2016. It will be a world-class facility, sited next to household names such as FedEx and Next and will give us a presence which will allow us to attract and retain the best possible talent. As the saying goes, “build it and they will come”. We had a number of offers from big names to share office facilities - many of them very attractive - but we want to control our environment ourselves.

What are your top priorities?

To enjoy my family and my work. The pressures of business can be overwhelming and it is very easy to lose sight of the work/life balance. I become absolutely engrossed when I am in the office and I have to be reminded that there are other more important things in life. In the West of Scotland in the past, there has been a culture of hard-nosed businessmen, but I have seen too many of them lose their friends and their families because they become consumed by it. It is possible to be successful in business and make time for the family.

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

We have had a lot of support at local government level, from South Lanarkshire Council particularly, and it would be good if Holyrood could increase efforts to facilitate funding and advice at a local, easily accessible level and help councils to get the word out about what can be done for SMEs.

What was the most valuable lesson that you learned?

People make your business, so treat them well and you will get it back tenfold!

How do you relax?

The important thing is spending time with my family. When you have four children, there is a time-consuming role as a taxi driver. I still enjoy my golf. I used to be a very keen player , but I'm more of a corporate golfer now.