CASE STUDY 1 - IT Hardware & Software Ltd (ITHS)

New business breaks turnover targets supported by RBS Fledgling Prestwich based IT business is on course to record an 8m turnover in its first full year of trading more than double its original turnover target. IT Hardware & Software Ltd (ITHS) specializes in the sourcing and sale of IT hardware such as servers, hard drives, keyboards and monitors.

To support the company's rapid growth RBSIF in Manchester provided the company with a 700,000 funding package. ITHS was formed by David Warner and Alan Glazer, both of whom have substantial experience in buying and selling IT systems having worked previously for global organizations in this sector.

David and Alan set themselves a first-year turnover target of 4 million and are well on course to double this projection. Shortly after the launch of the business, the duo were joined by Bernie Kersh, who took up the position of Sales Director. David and Alan source products worldwide to ensure they can secure the best possible price for customers.

All products are manufactured by major IT companies such as IBM, HP,

Cisco and Sun Micro Systems. ITHS sells its products to national IT distributors and large corporate organizations. The business employs eight people and is based on Mount Heath Trading Estate in Prestwich. David and Alan have plans to recruit an additional two new employees in the next few weeks as the business continues to grow. David Warner, Managing Director of ITHS, said:

We launched ITHS because we believed there was a gap in the market for a fast and knowledgeable IT sourcing business in the North West. Our approach of providing clients with quick, cost-effective solutions has been well received by the market. We are very pleased with our initial performance and are confident of further growth in turnover as the business becomes more established.

Jo Jones, Relationship Manager for RBSIF added:

David, Alan and Bernie have a wealth of experience in this sector and have used this to good effect to launch ITHS. Their success is impressive given the challenging economic environment and we look forward to watching the company's future development.

Question:

Background:

(Provide background information, relevant facts, and the most important issues).