How to lay a strong business structural foundation

Another area you should make your wise decision concerning your business is on its structures. These structures have several areas of attentions—Registration, licensing and visibility. All those things that will make you boldly answer the owner of that your business and those that will enable your business to stand a taste of time are what we refer to as the business’ structural foundation.

 It is about further paperwork apart from business plan. That can be open, involve other people outside the business. With this you attract people’s interest into your business. And its major objective is to bring in confidence into the administrative and management channels. The major aspects of this foundation are:

Registering your business

Registering your business then you would have determined the size, form and worth of your business, through the well prepared business plan. That plan also presents the scope, objectives, missions and visions of your business. For instance, what you will like your business to have achieved before some years can go by—that’s your general statement of mission. 

Add where you will want it to reach across the world by that time frame. The kind of people you will like to associate or work with in order to achieve your objectives. 

Though these things might perhaps been in your business plan, you will also add them into the documents you will use to register, sell shares, license and do advertisement. 

The only information that can be eluded from the above listed documents is your productive and management strategic information. This strategic information is the cornerstones of your business, and it was our last section’s topic. 

The structural foundation of your firm can be changed as the business grows; but the strategic foundation (business foundation) can never be changed or altered as long as the business exists. 

It is built from the beginning of it from beginning, for the people who own and manage the business. But the structural foundation is laid for anyone the business can ever come in contact with, to gain the basic information concerning the system.

So, while registering your business, you will be expected to choose your business structure or size, along with you already written (intra-company) business plan. 

You will have to choose between sole trader, partnership, company or Trust. 

You know what they are; TRUST is a business that holds money for people or for other businesses. 

Choosing a business structure while registering your business helps you to determine: 

Your responsibility as a business owner.

Tax liability—ability to pay tax required of you as an individual, company, bank or trust respectively.

Personal liability: how much you as a person can help yourself on your daily needs before running to the government for help.

Cost and volume of required paperwork during planning, registration and other structural activities you will want to do.