Sun 13 Sep 2015 | By:

5 Common Mistakes When Starting a Business in Alaska

Mistakes When Starting a Business

Different businesses make different mistakes, but there are many common mistakes when starting a business in Alaska.

Right from the start of choosing a business structure up to the Alaska incorporation process, something could go wrong that may affect the entirety of your business operations. If you can, you should avoid these mistakes at all cost and protect your business from it.

Below are the five common mistakes when starting a business in Alaska that you can possibly encounter.


Mistake 1) Forgetting to Comply with Business Taxes and Licenses Obligations

Business LicensesThe state specifically states that Alaska business taxes and licenses are mandatory and should be taken care of when starting a business.

Failure to do so would lead to mild to severe penalties from government agencies. If the omission to pay taxes or process business licenses in Alaska is an intentional act, then it can already be classified as a criminal liability punishable by law. (Yikes!)

To avoid any of these scenarios, it’s high time you take care of your taxes and licenses with the help of our Alaska Business Taxes and Business Licenses guide.


Mistake 2) Selecting the Wrong Location for Your Alaska Business

How to Choose a Business LocationChoosing your Alaska business location requires careful planning and consideration as it might influence how your business will thrive once it starts its operation.

You should not only think about the value of the location, but many factors should come into play as well.

When looking for the perfect location when starting a business in Alaska, make sure to also consider demographics, competition around the area, tax and license requirements, and your budget as well. Don’t make the I-fell-in-love-the-first-time-I-saw-it excuse when choosing a business location.


Mistake 3) Writing a Terrible Business Plan

Write a Business PlanWriting a terrible business plan is like writing a business plan at all.

A business plan is the blueprint of your business’ operations. If you follow a faulty blueprint, what then happens to your business? The fact that you don’t know how to write a business plan is not excuse enough to come up with some half-baked business plan.

Resources like LivePlan are available so you still write a clear-cut business plan even if you haven’t written one before.


Mistake 4) Choosing Then Incorporating in Alaska with the Incorrect Business Structure

Business Website

You are given choices of different structures because it is imperative that you choose the right one that suits your business needs and preferences.

If you have no idea as to how go about choosing an appropriate structure, you can refer to this guide. Once you do, you can then incorporate using any of the guides below.


Mistake 5) Hiring the Wrong Employees

25 Questions You Need To Ask When Hiring An EmployeeOne of the challenges that an Alaska startup faces is when she’s about to hire employees.

Let’s face it, hiring an employee while you are still in the early stages of starting a business in Alaska can be tricky. One, because you cannot offer a competitive wage yet and two, because you are still quite inexperienced on how to gauge an employee’s worth.

But all these shouldn’t be reason enough to hire the wrong person. Do your research and plan accordingly!


Wrapping Up and Moving Forward

Note that there are many possible mistakes that a business startup can make. This is all part of the learning experience when starting a new business in Alaska, but if you can avoid it, do so. From taking care of your taxes to the Alaska incorporation process, make it a point to avoid the five mistakes mentioned above.

About Liesha Petrovich

Liesha is a small business owner of 20 years, host of Startup Savant, the owner of a karate dojo in Maine, and creator of Work Mobly. During free time she's with her family and working on a Doctorate in Entrepreneurship.