Expanding your business' footprint can be tricky. After all, what works in one geographic area may not succeed in another. That's why it pays to be extra careful when entering new markets, say small business experts. The wrong move could spell disaster.

"You have to be careful because bigger isn't always better," explains Lucille Wesnofske of the Small Business Development Center at Farmingdale State College. "The wrong choice could drain the existing resources of your business."

So before you take on any expansion, she says it's important to do your homework. Start by looking at the information that's readily available, like your own customer profiles. If you understand who your customers are, she says, you can start to target areas that offer a similar customer base.

"If you really truly know your demographic, then you are in a very powerful position," notes Sean O'Halloran, president of GeoMarketing Research, a business location specialist based in Oreland, Pa. He advises that you ask yourself who's buying your product and how far they are willing to drive to get it. And, he adds, it's important to understand what you are.

"Think of nature," says O'Halloran. "At one extreme is a rat, which can really live anywhere . . . and at the other extreme would be a panda that needs to be in a certain environment to survive."

A McDonald's could pretty much survive anywhere, for example, while a Cartier jeweler couldn't succeed in every neighborhood.

By understanding what you are, and who your target audience is, you can better assess where you may do best. And once you have a location or market in mind, you'll need to find out more about it.

"If you have done thorough research before you geographically expand your business, the challenges should be less of a surprise - if not expected - and more easily overcome," says Frances McGuckin, chief executive of SmallBizPro.com Services in Langley, British Columbia.

You can hire a market research firm or location specialist to assist you, but you can also do research on your own. Try reaching out to regional players such as the local chamber of commerce, economic development office or government agency.

You want to enter a market well prepared, says Kevin Wert of Sunshine Solar Technologies in Jericho, which did a good amount of research before its recent expansion into the Boston area. The company, which sells and installs solar panels to heat water for homes and swimming pools, enlisted the help of a market research firm. "We looked for an area that not only had good pool density, but also good population density," says Wert.

A colleague living in the Boston area was willing to serve as the company's territory manager. "I think with any business, if you're going into a new area, you've got to try and have a presence there," he notes. "That person who is managing the territory is a critical piece."

It's also important to have a marketing plan for the region you've chosen, he says.

In fact, it makes sense to revisit the marketing portion of your business plan, advises Wesnofske.

Develop your marketing plan by evaluating the media that will best reach your target audience, suggests Kim T. Gordon, a small-business expert and president of National Marketing Federation Inc. in Key West, Fla. Reach out to the major media outlets responsible for selling advertising and ask them for any Scarborough research, which provides insight into shopping patterns, media behaviors and demographics.

You also want to have an idea of what it's going to cost to enter the market. The last thing you want to do is underestimate the costs and start draining your core business.

That's a mistake you can't afford to make.

DOS and DON'TS

Common pitfalls to avoid when entering a new market:

Choosing a rental space for a store that is cheap because of a poor location.

Expanding with the idea that "more locations mean more money." If the planning isn't done, it could well mean losing more money.

Expanding to get out of a current bad cash-flow situation.

Getting overexcited about this project and not doing the required research and homework.

Underestimating and not differentiating your business from the competition.

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