Business start-up essentials: what entrepreneurs need to know and do to succeed.

• Author: Barbour, Tracy
• Position: SMALL BUSINESS

When Debra Lindsay-Hudgins, fifty-eight, decided to purchase Art-works Gallery & Glass Studio in 2015, it was a bold move. She had been a part-time employee of the downtown Eagle River shop for about eight years and loved working there. But she had never operated a business before and would need help taking the leap into business ownership.

The transition went smoothly, thanks to the assistance provided by the Alaska Small Business Development Center (SBDC). The center coached Lindsay-Hudgins through the process of developing a marketing strategy, preparing a business plan, and even building a new website. "They have a wonderful staff," she says. "They're super helpful and are so willing to share their expertise."

Because of the hands-on guidance and resources of the Alaska SBDC, Lindsay-Hudgins is doing well in her role as a business owner. Her "funky" art gallery--which features the work of about thirty different artists and offers a variety of handcrafted items, supplies, and even classes--is thriving. And Lindsay-Hudgins is steadily adding new offerings to appeal to customers and further enhance the business.

Becoming a business owner like LindsayHudgins is a basic element of the American dream. But there are numerous aspects of operating a business that entrepreneurs need to know to be successful in Alaska's economy. There are also many pitfalls and problems that would-be business owners can avoid with the right knowledge and preplanning. This article covers some of the most common information entrepreneurs should have before they start or purchase a business.

Research and Planning Essential

Unfortunately, starting a new business is a challenge that a significant number of entrepreneurs fail to overcome. Statistically, from 2010 to 2015, Alaska had between 75 to 80 percent one-year survival rates for new businesses, according to the federal Bureau of Labor Statistics. The national average for the same time period was around 79 percent.

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That's why Britteny Cioni-Haywood, the director of the Alaska Division of Economic Development, urges prospective business owners to take the steps to do proper due diligence and preplanning before launching a new venture. There are five basic steps that entrepreneurs should take--before they start a business--to increase their chance for success, according to Cioni-Haywood. The steps are: examine ones motivation for business ownership, select a suitable business, evaluate the feasibility of the chosen business, consider start-up requirements, and develop a business plan.

The five steps are the building blocks for success. And skipping basic steps, such as creating a business and marketing plan, increases the risk of failure, Cioni-Haywood says. "Entrepreneurs should have developed a strong business plan and be comfortable discussing their proposal," she says. "They need to understand their market, including current market share, advantages of...