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Winner of the HSBC Start-Up Star Award 2006 Gavin Wheeldon numbers among his clients Primark, Nike, Eriksson, United Nations and Robbie Williams.

Initially a one-man operation, Applied Language Solutions now has 55 staff, translates into 140 languages, and has offices in California, Paris, Barcelona, Sofia and Guatemala City.

You started your translation business in your bedroom. Now you provide translation services for Robbie Williams. How does that feel?

Gavin: Pretty good; it’s not bad going in less than three years.

What made you go into this industry?

Gavin: I come from a technology background and starting working with a language company, so that gave me a view of the translation industry as a whole.

I found it so archaic – I couldn’t believe it. I thought, well, if you put some solid processes in, get a decent sales structure and use technology properly, then this market is ripe for a new type of company. We were really bringing technology to an academic-based industry.

And what have you introduced to the industry in terms of technology?

Gavin: The main thing is process automation.

For example, you can now go on our website and get a tattoo translated into most languages for £6. Prior to that, if someone wanted to go to an agency, they’d be paying at least £40 because of the sheer cost of inputting the order, the project manager finding the translators, and the management of the process.

Now every step of that process is automated except for the human translation element. We’re able to make a profit on £6, whereas the other agents are barely able to make one on £40.

Better technology also allows the staff flexibility, such as home working. I can stay at home and do exactly what I can do in the office, for example answering the phone because we are all on VOIP.

And are your competitors getting wise to the benefits of technology?

Gavin: Companies are getting more technology-savvy now – but that’s to be expected. We just need to keep ahead in the race.

Apart from your utilisation of technology, what other reasons do you think there were for your success in the HSBC Start-Up Star Awards?

Gavin: The sheer growth we’ve had in three years, all three of which were extremely profitable – which for a start-up, I think, is quite impressive.

We also have what I would call a hybrid model: we have the front end of the business – customer services, process design, ISO – in places like the UK and US, and the back end in places like Bulgaria and Guatemala; so that means programmers, project managers and administrative staff.

This makes us extremely price-competitive. It means we can go up against emergent nations almost on an equal footing, but we have the front-end quality processes in place as well.

How important have your staff been in the success of the business?

Gavin: Absolutely paramount – especially in a service industry such as this.

So we do a lot of things to keep them happy: free healthy lunches; duvet days; all the offices are fitted out with daylight bulbs; we give them high-quality regatta jackets – the list of things we do is endless. Happy staff means happy customers.

How much market research did you do?

Gavin: I did the traditional in-depth research into the size of market, where the potential opportunities were, the competition – what they were doing, how they were doing it.

Did you hire any experts – solicitors, business organisations…?

Gavin: No, not really. I did make an initial call to Business Link, but I didn’t feel like I was going to get anything there. Having said that, since I set up, Business Link has been really useful, really helpful.

Was it expensive to start up?

Gavin: Yeah, very! I took out a second mortgage on the house, ran up credit card debts – almost gave my wife a heart attack!

Have things calmed down now?

Gavin: Yeah – definitely.

And I have financial freedom. It’s pretty intense the first year to 18 months. But then it does taper off after that and you can start getting some reasonable remuneration.

So can you afford a good holiday now and switch off from the business a more?

Gavin: When I go away I always take a notepad in case I get new ideas. It’s a time when I’m relaxed, when I am not in the day-to-day business. I can actually think more strategically, in terms of long-term growth.

And I have a fantastic team at the office, so I know that things are running smooth when I’m gone.

Did it cost you more than anticipated?

Gavin: I didn’t have any preconceptions about what it would cost, and the rate I grew it at, it was unsurprising what it cost me. I didn’t grow it gradually – I went hell for leather.

And was that your plan from the start, or were you overwhelmed by the sheer demand?

Gavin: It was my plan to expand quickly. I don’t tend to things in half measures!

How much do you think your considerable experience working in sales helped you start up?

Gavin: In the early days, probably a lot. In the early days people don’t think it’s as good as other services – but you have to convince people that it is.

What are the best bits about running your own business?

Gavin: Freedom. The passion when you get up in the morning of knowing you are doing it for yourself.

If I decide that something has to be done a certain way then I have the final say.

It’s that freedom to drive it in the direction you believe is right.

And the worst bits?

Gavin: The first 18 months – in terms of the financial element, the risk. It’s pretty scary when you have enormous credit card bills and no income yet.

We had a break-in quite early on and lost a load of equipment.

And how much of an impact did that have on your business?

Gavin: The insurance covered everything in the medium term – but it doesn’t replace everything the next day. So you have to react, get out there and get back on your feet.

It’s more the loss of data and equipment that caused hassle. Rebuilding the accounts system probably cost us £50k in total.

It was stupidity on our part. The server and the back-up were in the office. Both were stolen so we had to rebuild our entire accounts from scratch, from paper invoices. It was a nightmare.

We don’t have anything in the offices now. It’s all hosted at a centralised server that all the banks use. It’s bombproof, fireproof – everything imaginable!

Do you do face-to-face interpreting as well as translation?

Gavin: We do, but that’s a recent addition; we started doing it only a couple of months ago.

What other plans have you got for the business?

Gavin: The list is endless.

We’re currently developing plug-ins for Microsoft Messenger and Yahoo so you can send a message to someone in Germany, and the message will be translated into German and vice-versa. It’s not 100% accurate, but you can have reasonable conversations in pretty much any language.

What do you want to achieve out of the business? Do you have a five-year plan, a ten-year plan?

Gavin: A six-year plan. We’re going to float around 2013 because I have a whole host of other ideas that need money up front.

And finally, what one piece of advice would you give to anyone setting up their own business for the first time?

Gavin: Just stop talking about – and do it. It might not work out first time, but if you don’t do it you’ll be sat in your rocking chair when you’re 65 talking about what could have been.