When creating a business plan template for a small business, the Legal Plan is extremely important.
In this section we look at the legal elements of your business. Obviously the contents of this part will vary depending on which country you live in, so I cannot go into too much detail. However, what is below is a guide for what you will need to research in your own country.
TRADING ENTITY
One of the important things that you must decide upon is what the structure of your business is going to be. Are you going to be a sole trader, a partnership or a company etc. The legal implications of each of these trading entities will vary from country to country, so you will need to do your research.
Click on the Business Structure link to look at some of things that you will need to consider when deciding on your business structure.
Once you have made your decision, put it in your legal plan and explain why you chose the options that you did.
BUSINESS OWNERSHIP
You will need to put into your legal plan the list of the owners and any relevant business addresses, as well as a profile of each owner. For the profile, the owners CV’s can be retyped into the business plan (this looks better) or appended to the plan.
In table form, in regards to your business set up, you want to write down:
- Each of the key steps needed to set up your business.
- For each step, put in the proposed completion date.
- How much each step is going to cost you.
- Which person is responsible for completing that task.
KNOWING THE LAW
As you will be aware, every business that operates has to abide by its countries Legislation. All legislation that applies to you will need to be considered and written down in your plan.
Click on the above link for some things that you may wish to consider when looking at legislation.
INSURANCE
Look at whether or not any insurance is needed to fully protect you and your business.
In this instance it is worth talking to a specialist in this field who will be able to advise on what is best for your needs.
TO SUMMARIZE
To sum up, at the end of the day you need to know the law that will affect you and your business.
If your knowledge on the law is not extensive, it may well be worth seeking the advice of somebody whose profession it is.
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Legal Plan
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Writing a Business Plan
