SME Focus: The experience of David Eastlake, who runs specialist interiors company The Eastlake Group, suggests that those who hold their nerve when things look scary can reap big rewards.

The Bank of England's decision to leave interest rates on hold at 5.75% on Thursday caused widespread disappointment in Scotland.

Small business champions say a rate cut could have provided real help for firms at a time when many are feeling the pinch of rising costs and the economic outlook is increasingly uncertain.

Economists' predictions that rates will fall to 5% will provide scant consolation to those who are feeling the pinch.

Against that backdrop many who have been considering starting firms might think again. The experience of David Eastlake, the subject of this week's SME Focus, however, suggests that those who hold their nerve when things look scary can reap big rewards. Sometimes it may pay to follow your gut instinct whatever apparently wiser counsel may advise.

Name: David Eastlake.

Age: 44.

What is your business called?

The Eastlake Group.

Where is it based?

GSO Business Park, East Kilbride, Lanarkshire.

What does it produce?

We are a specialist interiors company, providing workplace services and products across a range of business sectors.

What services does it offer?

We provide complete solutions for commercial interiors, everything from workplace strategy, interior and spatial design, furniture, interior fit out and relocation and facility services, which allows us to help businesses improve efficiencies in their office space and to improve the way people work.

To whom does it sell?

Our target market is really anywhere where work is done but primarily large corporates and financial organisations. We work with any organisation looking to improve its offices and the way its staff make use of the space they work in. We have just established an educational division with a view to taking corporate thinking into the classroom to improve the way our children learn.

What is its turnover?

Our projected turnover for this year is just over £30m, up from £23m last year following a major group restructure and an acquisition in the north of England.

How many employees?

The group employs 170 staff across our offices in East Kilbride, London, Cardiff, Leeds, Manchester, Newcastle, Belfast and New York.

When was it formed?

The company existed as Georgesons, formed in 1975, but became the Eastlake Group in 2003, following an MBO led by myself.

Why did you take the plunge?

I had worked in the business for two years as Georgesons' managing director, and I recognised great potential that in my view wasn't being fulfilled. I felt I had the vision to take it national and international, and, in order to do that, I had to take the risk.

How did you raise the start-up funding?

I had massive support from Royal Bank of Scotland, for which I'm still grateful, and they continue to work with the business today in a significant way. I also mortgaged every single thing I owned. The support I received from my advisers Tenon and Semple Fraser LLP was fantastic, and most importantly the people in the business. I decided to invest everything I owned into the business and I was risking my family's livelihood and they couldn't have been more supportive.

What was your biggest break?

In September 2004, Hurricane Ivan struck the Cayman Islands, damaging 85% of the buildings there. One of them belonged to a business that we work with all across the UK. They called out of the blue, and gave me six weeks to get the job done, involving the provision of design, furniture, fittings and equipment to the corporate office of a large financial institution. Without hesitation, I said we could do it, hung up and then broke out in a cold sweat. We had never really worked outside Britain before, and I had promised to carry out a major contract on a devastated island on the other side of the Atlantic. But after the panic subsided, we planned the job, sourced the materials, arranged transport for our team, and met his deadline. Suddenly, I knew I had an international business, and we now have clients in New York, Atlanta, Beijing, Shanghai, Hong Kong, Sydney, Dubai, Qatar, Monaco, Gibraltar, Singapore and virtually every country in Europe.

What was your worst moment?

Strangely enough, it came right after the best. I had just signed the paperwork on the MBO deal, and was elated. Then I found myself standing alone at 9.20pm, in the dark, outside my lawyer's office in Glasgow city centre, having put my family's financial well-being on the line. You find out a bit about yourself in that kind of situation. I remember thinking "well this is it, you'd better just get on with it".

What do you most enjoy about running the business?

Knowing that you've achieved success, and feeling that you're doing it right. It's great to have success in all different avenues of the business, from knowing that you have created an inspirational design to winning a small order and receiving great feedback from clients.

What do you least enjoy?

Having to let people go. When a company grows as we have you have to learn that your people need to grow and develop with you. Situations arise where senior people can become what I'd call road blocks to the development of the company and talented people who work there. It is vital your senior team are capable and with you on the journey and not holding back talented people in the business, and if they are then sometimes you have to accept that you have to let people go for the benefit of the business and the people in the business. Also, as your company grows, you find out that it is impossible to know all your staff personally, and I do not like that.

What is your biggest bugbear?

Some of the unfairness of business in relation to people's efforts, for example when a member of my staff loses an order because of client misunderstanding or misleading information and isn't given the opportunity to do their best efforts. I find that very frustrating as it means the client does not get a fair comparison. Also, consultants who give you poorly thought-out advice because the text book says it should be done that way, without understanding your business. At the time of the MBO, I was told by management consultants that I must cut costs and drastically reduce the staff because the business was in such a poor financial state. I knew that was wrong, and fortunately went with my own gut feeling. Keeping my staff was the best decision I ever made. We managed the takeover to ensure that everyone felt that they had a future with the Eastlake Group, which is great as I genuinely believe we have the best staff in the business.

What are your ambitions for the firm?

When I first set out with the business, I wanted us to be recognised as the best-in-class provider of office interiors in the UK. Now that we are working nationally and internationally, my ambition is to make the Eastlake Group into a global player and to crack America in some small way - it is, after all, a big place!

What are your top priorities?

To own a healthy, wealthy and happy company that continually delivers beyond customer expectation, and to be recognised as the best at what we do by customers and suppliers alike.

What was the most important lesson you learned?

I've learned to try to always be a nice guy and a fair guy. I was once told that in order to succeed in business you need to be a real boooood, but experience has taught me otherwise. Also I've learned that you can say "yes, but " to a client, but you must never say "no".

What single thing would most help?

A big loan to fund our expansion plans. This would allow us to capture the opportunity that exists now within our industry.

What could the Westminster/Scottish Government do that would most help?

It would be fantastic if it was actually easier to do business with the government, however tender red tape significantly hinders us in this, even though we are one of the most proactive and leading organisations in our marketplace. Simplifying the tendering process would make doing business easier as approximately 50% of our market potential is in the public sector.

How do you relax?

As I spend so much time being at the forefront of things in the business, I find taking a back seat and watching other people enjoying themselves very relaxing. I like to watch movies or play a bit of golf. Anything that means I don't have to hear the sound of my own voice.