If you’ve been wanting to try out that new sandwich shop down the street, better act fast. Statistics show that about half of new businesses close within their first five years. Many factors play a part, but skipping critical pre-launch steps is often a key culprit.
To beat the odds and build a thriving business, here are 10 vital steps to take before opening your doors:
1. Secure the necessary licenses and permits
In Alaska, almost every business needs a state business license, and LLCs and corporations must also register with the state. Your city or borough may require its own permits or sales tax registration. Running without them risks penalties, shutdowns and damage to your reputation.
2. Understand employer obligations
If you plan to hire, register as an employer with the Alaska Department of Labor for unemployment insurance, report new hires, have each employee complete a Form W-4 and Form I-9, and carry workers’ compensation insurance. Starting with 2026 W-2s, employers must also report qualified tips and overtime pay separately, so set up payroll to track them from the first paycheck.
3. Know your tax responsibilities
Get a free IRS Employer Identification Number (EIN), and find out which federal, state and local taxes apply to you. Alaska has no state personal income tax, but you may owe federal income and payroll taxes, Alaska corporate income tax, and local sales taxes. Collect a W-9 from every contractor; for payments made in 2026, a 1099-NEC is generally required once you pay someone $2,000 or more in the year.
4. Seek professional advice early
Advice isn’t just for when you’re in trouble. Talking with an attorney and a tax professional before launch helps with your entity choice, liability protection, tax planning and worker classification, and can save you costly mistakes.
5. Create a solid business plan
A business plan is your roadmap. It helps you attract lenders and investors and keeps your strategy on track. Include an executive summary, company description, financial projections, marketing strategy and organizational structure.
6. Do thorough market research
Answer the critical questions: Is there demand for your product or service? Who are your competitors? What sets you apart? How will you reach customers? Good research is the foundation for good decisions.
7. Build a high-quality website
Customers, and now AI assistants, look you up online before they call. A professional, mobile-friendly website, a complete Google Business Profile and active social media help people find and trust you before they ever walk in.
8. Secure adequate funding
Cover more than your startup costs: plan for enough cash to keep the business running until it turns a profit. Overestimating early sales is a common mistake, so plan conservatively.
9. Set up your books from day one
Open a separate business bank account and start tracking every sale and expense in accounting software right away. Clean books let you see whether you are profitable, make tax time easy, and help you claim every deduction the new tax rules allow.
10. Learn from others, and do a gut-check
Seek guidance from experienced owners in your industry. And be honest with yourself: do you have the passion, patience and resilience for the road ahead? Success rarely comes overnight.
By following these 10 steps, you’ll position your business for success and stand a much greater chance of turning your dream into a lasting reality. Need help with the licensing, setup, books or payroll? See how we help new businesses.