Growing Up

Ideally, the decision to expand doesn't come about spontaneously; it's been part of a company's business plan from the outset. "A good growth strategy is in focus with what the business owner has in mind for the company," says Taylor. In other words, the best growth strategy is a well-planned one.

"Rapid growth without planning can be devastating," Reimer agrees. In his line of work, Reimer sees a lot of small-business owners who don't plan for expansion. The pressures of daily operational concerns often leave little, if any, time for the entrepreneur to address the big picture. That's why experts recommend planning for growth before you even open your doors. Make it part of your business plan, but don't be too rigid. "The plans you have must be flexible enough to respond to opportunities that present themselves," says Reimer.

When Carolyn and Randy Gibbs chose to open their second Pet Food Savemart superstore, it was not a spur-of-the-moment decision. Their original business plan called for as many as five stores. Two years after the first location opened in Shawnee, Kansas, the Gibbses had outgrown the facility and were more than ready to expand. For them, there was no question the time was right to open a second location.

This article was originally published in the July 1996 print edition of Entrepreneur with the headline: Growing Up.