EXPANDING YOUR BUSINESS.

• Author: PARDES, JOAN

Developing a plan for growth is imperative for success.

Turn on your TV, tune up the radio, pick up a magazine or cruise the Web--the stories of successful businesses are everywhere. In today's thriving economy, it's common for people to be bombarded with news of small start-up companies transforming into multi-million dollar concerns without any apparent growing pains. But, regardless of how the media may portray these "overnight" success stories, most business owners and executives know the road to fiscal good fortune is lined with tough decisions. None of which are more difficult than deciding when and how to expand your business.

"Market research and evaluating your financial situation are crucial steps when you're considering the possibility of expanding your business," said Jean Wall, associate director of Alaska's Small Business Development Center in Anchorage. "People need to develop a business plan of action to ensure that the capital required will be covered and they also need to evaluate how well their employees and management team can adapt to expansion. The two main obstacles to growth are economic concerns, such as shortage of capital funds, and the adaptive capacity of employees."

With that in mind, Wall went on to cite four primary reasons, listed in Paul Hawken's book, Growing a Business, which she believes are good indicators of when a company should consider expansion. "Competitive factors play a very important role--for example, the influx of what we call the 'big boxes,' such as Barnes and Nobles or Costco. Their presence may be an appropriate time for a business to expand into an area that the 'big boxes' don't cover. Perhaps it would be personalized service, repairs or carrying a line that the 'big boxes' don't carry such as top shelf items," said Wall.

"Riding a growing wave of consumer interest is another good time to consider expansion," added Wall. "Hopefully the business can enter into the market when the wave was building. Many trends that are popular in the Lower 48 have not found their way to Alaska yet"

For example, Moose's Tooth Pub and Pizzeria hit Alaska's largest city by storm four years ago. "We had watched the evolution of the brew-pub scene down south and wanted to try it up here. We wanted to create a place where the food was really good but not expensive, the beer was cheap and the atmosphere was low key," said Matt Jones, one of the three owners of Moose's Tooth Brewing Co., Moose's Tooth Pub and...