Pluck of the Irish: entrepreneur uses U.S. equipment to boost document destruction start-up in Ireland.

After returning from the Middle East, where he worked for a number of years as an accountant, David Walsh became a financial director for a large waste disposal company in the United Kingdom. While with the company in firsthand the growing need for secure destruction of confidential documents.

Then when I returned to Ireland in 1998," Walsh says, "I saw a niche market for a professional confidential date destruction company."

True to his accounting background, after renting an office, Walsh began thoroughly researching the contract shredding industry in the area. "I analyzed my competitors," he says. "I found out who they were operating and what they did that was good and bad. I determined that I could do at least as well, if not better. I did know that if you want to do something better, you need to offer better service. That's what I went for from the beginning."

GAINING ATTENTION. While most c his competitors gave out black plastic bags to customers for collection, Walsh ordered top-quality cabinets from Canada "I knew that the cabinets were a proper way to collect because they were area piece of furniture--they were secure am professional. A plastic bag in a cardboard box just isn't secure."

Still without a shredder, Walsh began marketing his services to customers. H placed several cabinets in the administrative offices of a hotel. "I thought that would be a good trial," he says. "Lo and behold, I got a phone call after a wed saying that the cabinets were full and the company needed more. That was the first test to see if the business would fly, and I saw then that there was a market." This was the beginning of a company now called Datastroy, Summerhill, Ireland. "I ordered more cabinets and rented a factory." As he hadn't yet purchased a shredder, he simply stored the bags of documents, keeping them safe and secure.

He had seen the shredders in use in Ireland and wasn't satisfied with their quality, "If you want a good service," he says, "you need reliable equipment. I didn't want to spend time and money on machinery that would break down. It frustrates the customer and the workers."

He was familiar with Allegheny from previous contacts. "I knew that Allegheny was the most reliable way to go, and I've been proven right," he comments. "It's excellent equipment. I brought a reconditioned 20 hp shredder, and it hasn't given me any trouble. It's as good as a new shredder, in my opinion."

STARTING THE ENGINES. Once Walsh had his equipment, he could start shredding. "I bought a shovel from a grain store and shoveled the paper into the shredder. Then, the shredded paper started making a huge heap in the corner of the factory. I didn't have any way to deal with it, so I just kept shredding, letting it pile up but keeping it secure. All along, I looked for new customers, working seven days a week--picking up paper, shredding, talking with new customers and, of course, meeting with the banks to raise finances."

His facility was 3,000 square feet--good enough, as he says jokingly, "if you don't have any customers or any business." By that time, he had about 30 tons of paper shredded and stored. Clearly, he needed a baler.

With the success he had gathering new customers, he felt that he was in position to meet with a bank and receive a loan to purchase a baler. "I told them that I had determined there was a need for this type of company. I persuaded the bank that it was good business, and I was enthusiastic, which I think was very important. Based on that, they loaned me the money. I bought an Allegheny baler and conveyor, which completed the loop."

He was finally able to bale all the paper he had been shredding. He established relationships with several recyclers that purchased the bales, exporting them to China and Indonesia primarily.

Walsh then began in earnest to grow his business. "The first customer is the hardest. As you get more, you gain credibility. Then when you get big customers, you use them as a base. We were covering Ireland from the north, south, east and west. There were a few companies before me, but they weren't doing things properly and professionally. There's a big difference between collecting waste and collecting confidential paper. I let my customers know what I was doing, and that made the difference."

Eventually, he purchased a sorting conveyor and now separates his paper into three grades. This facilitated his recycling sales. Ireland has a keen and growing awareness of environmental issues, and Walsh uses that to promote his business. He's able to provide data to companies about the quantity of paper they have recycled over the last quarter or six months.

When his 3,000-square-foot space became too cramped, Walsh purchased a 6,000-square-foot factory and plans to add an additional 10,000 square feet very shortly.

Walsh knows that many people in Ireland are trying to imitate what he's done. "But I'm a firm believer that if you offer the best service at a reasonable price, it's hard to compete against. That's the way I operate, constantly upgrading my services. I now destroy whatever customers want--computers, monitors, anything. I try never to turn someone away. Whatever the customer wants, within reason, I'll destroy and whenever possible recycle."

TIPS FOR NEW OPERATORS. Walsh insists that for anyone starting out in this business, it's not easy. "You have to work," he says. "A plane doesn't get off the runway without effort. It takes a lot of commitment at the start. And you need reliable equipment. That's why I decided to go with Allegheny. I operate a fleet of Mercedes vans for pickups and a Mercedes truck for on-site shredding. We roll the Allegheny shredder on and off as we need to. Once you have reliable equipment, you can concentrate on growing the business without worrying about anything breaking down--man or machine."

Walsh has found great success taking a personal approach to his business. "I have my guarantees right on the side of the cabinets," he says. "And I sign my name on the guarantees so people see that they're dealing with someone who will take responsibility, not just a large company that doesn't have anyone's name attached. That gives me credibility, and people take comfort in it."

He advises new companies to make sure present customers are securely in place as additional customers are added. "Always expand your services, both for existing and new customers. It requires persistent effort to keep moving forward, but there's no other way to succeed. This business isn't complicated. Actually, it's quite simple. It all comes down to w-o-r-k. Some people talk a lot about the business. There's only one way to do it--and that's to roll up your sleeves and get it done. It's also worth remembering that when starting, you must first trust in yourself, and then others will trust in you."

This article was supplied by Allegheny Paper Shredder Corp., Delmont, Pa.