What is the best business to start in Alaska, USA?

Alaska, although separated from the rest of the USA, is still one of the most industrious states with oil and gas as well as fishing and shipping as the best businesses to start in Alaska. This state borders Canada by land and Russia by sea. To the north is the Arctic Ocean, while the Pacific Ocean lies to the south and southwest and is the largest US state by area. This state has everything a company needs to run a profitable business.

Due to Alaska’s abundant resources, this area has witnessed major changes beyond expectations in many of its cities and industries. Despite being one of the smallest state economies, Alaska has among the highest per capita income in the US, which attracts long-term investors. On top of that, business licensing and registration can be easily done without having to deplete the bank account.

Downtown Anchorage - Alaska

There are many ways to establish a profitable company in the long term. Generally, it is recommended that locating a company in the metropolitan area be the better option as the environment can provide multiple support than in the rural one.

With the rise of technology and international trade, an offshore business is also one of the best businesses to start in Alaska . Many companies have generated decent income from their overseas work. Operations can be managed remotely, whereas the company still receives benefits from the nature of this state as well as the business-friendly policies.

With that being said, here are top 5 best businesses to start in Alaska:

Oil and Gas Business

This is a very lucrative opportunity and perhap the best businesses to start in Alaska, but it may require the necessary funds, documents, location as well as licenses to tap into this area’s natural resources. It is better to incorporate a company in the oil and gas field by using a corporation service provider like One IBC to navigate the bureaucracy. There are many types of companies in this field, from gathering resources to energy, refining as well as commerce.

Fishing and Frozen Food Business

Due to the long coastal line of this area, fishing is one of the best businesses to start in Alaska. In addition, the only one way to go from the Arctic sea down to the Pacific sea is to pass by Alaska, making it the gathering area for a huge variety of sea creatures.

Fishing port in Alaska

This is a prominent business in Alaska also because of how scalable it is. A company can start with just one ship in the beginning then slowly expand by adding more vessels later on. Another related business is exporting seafood to other markets. Alaska alone exports a large quantity of seafood and generates around $3.2 billion for the U.S. economy each year. Salmon and crab are two main products of Alaska’s fishing industry.

Aside from seafood, the frozen food business is also one of the best businesses to start in Alaska. Due to the local climate as well as the long distance between each settlement, preserving food is a dire necessity in this area. Not to mention, agriculture in Alaska, especially farming is not easy and is limited to certain areas only. Frozen food is the best solution for the state’s constantly cold and frosty weather.

Shipping Business

Located on the coast, anything related to marine business is up for a good start in Alaska. The shipping business, be that transportation, building ships or other services for ships do require some capital. However, the Alaska government, knowing the importance of the shipping industry, provides financing support for this business. Additionally, due to the local geography, demand for shipping services and the state being one of the largest commercial producers of seafood, shipping will remain low risk in the long run.

Sitka - Alaska

Ship building is the long term, big investment and big return option. It also requires mechanical knowledge and skilled laborers. Other complementing services such as producing or selling shipping machinery and equipment have lower entry barriers. Transportation of seafood for exportation is also a business that can yield huge profits and has a stable future.

Sales of Fishing Equipment

Though it seems like the best businesses to start in Alaska all revolve around fishing, an entrepreneur can also look at the other side of the equation to find out that there is another big market to exploit: fishermen. To ensure the fishing industry is constantly growing, they need a stable supply of equipment for fishery. Producing or selling fishing equipment is a very stable and profitable business in Alaska.

Having products that cater to all types of fishery ready when the season comes around will ensure that the company will have good sales for the rest of the year.

Online Business

This is not only the best business to start in Alaska but in fact the best in any location in the world. However, due to how thin the population in Alaska spread out on its massive surface area, companies need a way to connect with their customers. Although the internet speed is not a strong point, Alaska has very high internet coverage with more than 90% of the population connected to the internet. Offshore businesses can also operate entirely online, which makes it more convenient for international investors.

Good online businesses including small scale B2C ecommerce sites selling anything from food, cloth to fishing equipment and B2B digital integration service helping other companies setting up their own online presence like website building, international communication for exporting and so on.