Hamish Robertson set up Robertson Technologies to offer full IT cover to firms with up to 100 employees and now aims to have six franchisees up and running by the end of the year.
Robertson, 26, said the business now serviced 50 small companies, employed six staff and had a turnover of about 350,000.
The next step, he said, was to take this "very successful model" down the franchise route.
As part of the expansion drive, the IT firm has secured a five-figure loan from the Prince's Scottish Youth Business Trust (PSYBT), with the funds earmarked for PR and marketing this year.
Robertson – crowned Edinburgh's Young Entrepreneur of the Year and short-listed for the national title in 2008 – said: "In five years, the business has grown out of my flat and developed into a thriving SME.
"The franchise model will allow us to break into other geographical locations and really take off as a national business."
He said he had signed up a potential franchisee in Fife and was in talks with candidates in Glasgow and Exeter.
He added: "The SME sector will create the majority of new jobs and lead the UK out of recession in the months ahead. We aim to be part of that and, in concluding six agreements, we hope to create around 30 jobs."