Outside, there is a white van bearing the logo of The Disco Company. The entertainment firm run by Steve Burley has become a familiar sight at events such as weddings, balls and parties in the Bristol area for the past five years.

So it's no surprise that the sound of ABBA's disco classic hit Dancing Queen can be heard from inside Frenchay House. However, the guests at this show are not showing off their footwork on the dancefloor. Just getting into the room in which Steve has set up his turntables has been an effort for some of them. For Frenchay House, which overlooks Frenchay Common, is a retirement home for elderly ladies and gentlemen.

It is a different audience to those Steve has entertained as a DJ over the past 25 years, in a career which has included working at Bristol's Mauritania nightclub, and running a DJing business in Dubai. But he has risen to the challenge by using the magic tricks that have been popular with his children's discos, together with music and quizzes.

"I started The Little Disco Company and began entertaining at children's parties about two and a half years ago, thanks mainly to my nine-year-old daughter, Gina.

"Interestingly, I've found the sort of very visual comedy that goes down very well with children is also very popular with elderly audiences."

Steve's act is clearly going down well in the sitting room of Frenchay House, where there has been plenty of laughter from the assembled residents. "This is a very expensive wand – don't break it," Steve informs Ron Hoare during his magic act, passing him a wand which promptly falls apart in his hand. Ron, 91, looks astonished, and the other residents roar with laughter. There are more tricks, including one in which balloons turn into a string of brightly coloured scarves when placed in Steve's magic bag.

Then it's time for music. Hands that were trembling on the arms of easy chairs begin clapping in time to the rhythm, and feet that had shuffled into the room start tapping on the carpeted floor.

Steve doesn't simply play a succession of familiar tunes. He also holds a quiz, asking which musicals they came from.

Rita Woods, 76, dressed elegantly with a scarf carefully tied around her neck, quickly provides the answers such as My Fair Lady, Pirates Of Penzance and Oliver! to a succession of questions.

"You're the queen of the quiz!" Steve tells her, and she beams at his compliment.

It's all a contrast to Steve's previous job. He was regional sales manager for a fireplace manufacturer, but at weekends he also ran his entertainment firm DiscoCo – which includes The Disco Company and, children's entertainment business The Little Disco Company. However, a few months ago he decided to give up his job and concentrate full-time on his disco business, which has a fully equipped sound and lighting system.

But wasn't he taking a risk by setting up a new business just as the credit crunch began?

"Yes, it's unusual to set up a business in a recession," Steve replies. "But on the basis that possibly no one has a safe job at present, and I had the bones of a business here anyway, there wasn't that much to lose.

"I worked out a business plan based around my success in management of sales and marketing, and my passion for entertaining."

Steve, who lives in Nailsea, already knew he would have no problem getting work at weekends.

"I have only a handful of Saturday nights free this year. My 50th birthday was in January, and haven't managed to book time out to celebrate it until June," he says. "The main problem was that although I've built up a very good reputation and nearly all bookings for events such as parties, weddings and birthdays are by recommendation, the bulk of the work is at weekends.

"So in order to maintain my income, I realised I had to find ways of adding to the available working days."

That was when Steve's wife Lisa – whom he met when he was DJing at the Mauritania – came up with the idea of providing entertainment for retirement and nursing homes. Initially, Steve approached homes with the idea of organising tea dances, which attracted a lot of interest and some bookings. However, he quickly discovered a fundamental problem.

"Some of the residents were physically unable to dance – so it was back to the drawing board," he says. "I now provide a complete entertainment package with music-based quizzes, magic, and themed singalongs.

"The response has been better than I imagined, and I'm now averaging three or four bookings a week."

At Frenchay House, which is part of the AbleCare Homes group, manager Jacqui Woodman says: "We took over the home in January and before then the residents didn't really have any regular entertainment.

"We've started bringing in entertainers, so this is all new to the residents and they've really enjoyed this."

For Steve, the shows at residential homes have been a fascinating experience. "Usually someone falls asleep during my show, which quite disconcerted me the first time it happened. But then I realised that the guy was in his 90s and probably needed his kip.

"At one home I was doing a themed quiz for Valentine's Day, and I asked them who wrote 'Shall I compare thee to a summer day?' One lady who looked as if she was dozing off suddenly lifted up her head and said: 'Shakespeare', and then preceded to recite the entire sonnet. Then she said: 'I don't know where that came from', and went back to sleep."

The only real problem Steve has encountered is the name of his company, DiscoCo.

"I was finding the word 'disco' gave the impression that the entertainment I would provide wouldn't be suitable for a retirement home. It was a reasonable enough concern, so I've set up Memory Lane Entertainments for the work I do with more elderly audiences."

Steve certainly has no regrets about giving up his job to set up his own business.

"In these current times I know I have a challenge, but I remember the last recession," he said.

"When things got tough, guess where I rode the storm? That's right... people still wanted a party!"

For further information about The Disco Company and The Little Disco Company, contact 01275 880427 or 07796 958164, or email: thediscoco@hotmail.co.uk