Young's gear: from drivetrains to distinction: owners Doug Coon and Justin Herrin, SBA Small Business Persons of the Year.

• Author: Hollander, Zaz

The 2013 Small Business Person of the Year for Alaska is actually two people: Doug Coon and Justin Herrin, co-owners of Young's Gear LLC in Anchorage, which specializes in automotive drivetrain parts, sales and service.

Coon and Herrin oversee the thriving business on International Airport Road from side-by-side desks in an aging but tidy office. Asked about their strategy, both answer quickly.

"Just winging it as it goes, on the fly," Herrin says.

"Common sense," adds Coon.

Don't let that easygoing style fool you. These guys know how to run a business.

The U.S. Small Business Administration cited Coon and Herrin's combination of business savvy, enticing employee perks, customer service and well-organized books.

"They really care about doing the right thing--for their customers, for their employees," says Tom Flanagan, a former Small Business Development Center adviser who nominated the pair for the award. "And making it better."

Young's Gear specializes in automotive drivetrains, the parts that connect the transmission to the axles in two-and four-wheel drive vehicles. Coon and Herrin bought the business from a former boss ready to retire--maybe close up shop altogether--in October 2007.

Within months, they added 100 percent employer-paid health insurance coverage for workers and set up a simple IRA for their employees. Several years later, they purchased two additional vehicle lifts--for a total of four-and more than doubled their workforce from six employees to 13, 10 of them full time.

It was only this year, after five years in business, that the co-owners allowed themselves to take lunch breaks.

"Usually lunch was right here," Herrin says, patting the corner of his desk. "We kind of had to force ourselves. I'll make sure he goes to lunch. He makes sure I go to lunch."

'Shining Star'

All those practices impressed Alaska representatives with the U.S. Small Business Administration.

Officials weighing the final choice for Small Business Person of the Year evaluate many factors: a history as an established business; growth in employee numbers; sales or unit volume increases; contributions to the community; and balance sheets.

Given the relative weakness of the economy, many older business owners are opting to close their doors rather than go through the trouble of selling, says Scott Swingle, SBA's Fairbanks-based senior area manager.

Young's Gear, which Swingle described as "a shining star" among other applicants, bucked that trend. They took a business that could have closed in other circumstances, kept it open, and built from there to add employees and boost customer relations.

"Part of being a good part of the community is being consistent...