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Step 5 - Organizing Your Company

In this part of the business plan you must:

• Register and legalize your new business
• Find out which rules and regulations your business must comply with in your country

Country specific information

Most of the other steps in the business plan focus on the business and its performance. In this step, you must find out how to manage the specific rules your country asks you to follow.

• Read specific about United States
• Read specific about United Kingdom

Business plan questions

Under this item in the business plan template you describe how you will organise the daily work in your new business.

Legal structure of a company

Countries choose different ways of organizing the legal structure of business life. Therefore, you have to contact your local authority in order to find out how your country organises its business sector.

Throughout most parts of the world, 3 predominant types of legal forms are used to run small business organisations. These forms are as follows:

1. Sole proprietorship - where generally only one person funds the business activities
2. Partnerships - where two or more people band together to finance or run a venture
3. Corporations/limited companies - where it is possible for a few friends/family members or up to many thousands to subscribe for a share in business ownership

Which business form suits you best?

Bank

As soon as you register your business you should open a separate bank account for it. Never pay for business expenses from your personal accounts.

If possible, make all your transactions through your bank. It makes your financial administration easy.

Which bank have you chosen?

Accounting

If you start a small company with just one employee, you will probably be your own accountant. The company will grow and you will hire more staff. More activity in the company will be generated. Then it might become difficult for you to do your own accounting.

Will you hire an accountant or do your accounting work yourself?

Administrative routines - paperwork

Many entrepreneurs find the paperwork “a killer” for the business. They prefer to “work” which means build the house, serve the guests in the restaurant or produce biochemical products.
However, in order to “work” properly, the paperwork has to be in order and you ought to build routines to manage your administrative tasks.

How are your routines?

Business policies

Business policies are a set of rules you have decided upon in order to make your company run smoothly.
Brainstorm ideas and formulate policies for at least the following issues:

• Pricing
• Discount
• Terms of payment
• Guarantee
• Customer service
• Environmental issues

Which rules will you follow?

Staff policy

If you have any export expectations, it would be a good idea from the start to focus on your staff policy. Not only the ones in your own business, but also for staff in companies you have subcontracted with.

Many foreign customers will ask if you can present social accountability in your business. The consumers in Europe, USA, Australia and other places ask for products produced with respect for the labour force. So, in order to sell your products you must treat your staff in accordance with international agreements.

How are your staff policies?

Insurance

When running a business, you must take out proper insurance to minimise your risk. Which and how many insurances you need varies from one business to another.

Each type of insurance may have different names at different insurance companies. Insurance can be divided into three categories:

1. Insurance prescribed by national law
2. Insurance for the owner
3. Insurance which minimises the company´s risk

Which insurances do you need?

Location

Where would the appropriate place be to locate your business? Many factors have to be taken into consideration, e.g.:

• Close to home
• At home
• Access to fast internet broadband
• Close to shopping centre or public transport
• Access to well-educated staff
• Access to unskilled workers
• Close to airport, highways or harbour
• Low crime
• Close to market

Business partners /consultants

Being the owner of your own small company can be very lonely experience. If you were one of the staff you would be around colleagues. But you are the owner and have few people around to talk to.

Who will be your strategic partner?

Download business plan template

Go to Download Center and find the template in which you can write your own business plan.

If you think education is expensive, try ignorance.
– Derek Bok, former president of Harvard University