Contents
• Types of Business
• Mission Statements and Values
• Factors affecting businesses
• Policies
Types of Business
• Sole trader
• Partnership
• Limited Liability Partnership
• Limited Company
• Franchise
• Charity
Sole Trader
A person who is the
exclusive owner of a
business, entitled to
keep all profits after
tax has been paid but
personally responsible
for all losses. E.g. if
run up big debts, might
lose home to pay them
off.
Partnership
•
A partnership exists when two or more persons commence in business
together with a view to making a profit. See When does a partnership
exist?
•
A partnership must be run on a commercial basis.
•
A business is defined by s.45 of the 1890 Partnership Act as a trade,
occupation or profession.
•
There are three types of partnership in the UK, each defined by a
different partnership act.
•
•
•
•
A conventional partnership is not a separate legal entity from its
owners. It is unable to hold land and property in its name.
A limited partnership is a partnership governed by the 1907
Limited Partnership Act. It is not to be confused with a Limited
Liability Partnership (LLP).
An LLP is a corporate version of a partnership. It is also taxed
transparently but it may hold land and property in its name.
Partnerships are transparent for tax purposes. This means that each
individual is taxed as an individual, as opposed to the partnership being
taxed as a body distinct from its owners.
Limited
Liability
Partnership
You can set up (‘incorporate’) a limited liability
partnership (LLP) to run a business with 2 or more
members. A member can be a person or a company,
known as a ‘corporate member’.
Each member pays tax on their share of the profits, as
in an ‘ordinary’ business partnership, but isn’t
personally liable for any debts the business can’t pay.
You’ll need to:
•choose a name
•have a registered address - this will be publicly
available
•have at least 2 ‘designated members’
•have an LLP agreement that says how the LLP will be
run
•register the LLP with Companies House
Limited Company
IF YOU CHOOSE TO RUN
YOUR BUSINESS AS A
LIMITED COMPANY, THE
BUSINESS WILL:
BE LEGALLY DISTINCT
FROM THE PEOPLE WHO
RUN IT;
KEEP FINANCES
SEPARATE FROM THE
OWNER'S PERSONAL
FINANCES;
BE ABLE TO
OWN ASSETS AND KEEP
ANY PROFITS IT MAKES
AFTER TAX
Franchise
Franchising is when an
established business allows
a third party the right to
operate using their tradename, either through their
manufacturing, distribution or
sales channels. This is
usually in return for a one
time franchise fee, plus a
percentage of sales revenue.
This Photo by Unknown Author is licensed under CC BY-SA
Charity
A charity is an organisation
with specific purposes
defined in law to be
charitable – and is
exclusively for public benefit.
An example is the Royal
Horticulture Society (RHS),
whose aims are to enrich
everyone’s life through plants
and make the UK a greener
and more beautiful place.
https://www.rhs.org.uk
This Photo by Unknown Author is licensed under CC BY-NC-ND
Mission statements and Company Values
Most organisations have a mission statement – this is a formal
summary of the aims and values of an organisation. It should
consider the following:
• Key market: the target audience.
• Contribution: the product or service.
• Distinction: what makes the product unique or why the audience should
buy it over another.
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PESTLE analysis
This is a way for organisations to determine the external factors that may
impact on their business
• Political Factors e.g. Brexit affecting supplies of plants
• Economic Factors e.g. People having less money to spend due to
increased unemployment
• Social/Cultural Factors e.g. Are different age groups of people starting
to take an interest in their gardens?
• Technological Factors e.g. Robotic lawnmowers, battery operated
machinery
• Legal Factors e.g. changes in Health & Safety Law, Brexit might also
impact
• Environmental Factors e.g. reducing waste, using rechargeable
machinery
Policies required within an organisation
•
•
•
•
Health & safety
Equality and diversity
Discipline/dismissal
Grievance
Depending on the size of your
organisation there may be many
more policies than this or there may
just be a minimum.
https://www.peninsulagrouplimited.co
m/guides/employment-policies-uk/
This Photo by Unknown Author is licensed under CC BY-NC-ND