4 tips for choosing a format for your business plan

When you decide you want to start a business, one of the most important things to do first is to choose a format for your business plan.Without a format, you will be unorganized and have a much more difficult time planning all the necessary steps to your business.But how to choose which format would be best?There are so many options out there, many of which would be great if you simply knew how to use them.But some formats might work better for certain types of business or companies.How do you know what type of business status you should start with?Well, you're in luck.This article will teach you a few tips for choosing a format for your business plan and hopefully get you started down the right track of business planning.

1. First, you need to decide what kind of legal status you want your business to have, since this will directly impact the format you choose for your business plan.There are many options.Here is a brief overview of the main ones:

- Sole proprietorship: this is the most common form of all business organizations.It is simple to create and offers complete managerial control to the owner.The advantage of this plan is that the owner has complete control.The disadvantage is that the owner is personally liable for all financial obligations of the business (which could be bad if your business suffers financial strife).
- Partnership: this involves two or more people who agree to completely share in the profits and/or losses of a business.The advantage of this method is that it does not experience the same tax burden of profits or the benefits of losses.However, each partner is also liable for the financial obligations of the business (just like in a sole-proprietorship).
- Corporation: this is a legal entity created to conduct business.It is separate from those who founded it; the corporation handles the responsibilities of the organization, not the founders.The corporation can be taxed like a person and can also be held legally responsible for its actions.It can also make a profit and suffer losses. The greatest advantage of a corporation is that it avoids personal liability.However, there is a high cost to form a corporation and it requires extensive record keeping.
- Limited liability company (LLC): this is a "hybrid" form of partnership.It allows owners to reap the benefits of both the corporation and partnership form of business.The major advantage is that profits and losses can be passed to the owners without taxing the business itself, while owners are shielded from personal liability.
2. Next, find a computer program that will guide you through the process of setting up a business.This is the easiest way to choose a business format.There are many programs available that are easy to use and straightforward.Simply do an internet search for "business plan formats" or go to a computer store and ask for business plan software.
3. Third, do some research on the specifics of your business.What do other similar businesses do?Ask around-other companies may be able to offer suggestions on the best kind of format for your specific business.
4. Finally, you can write up your business plan in the format you have previously chosen.When you have finished, it is usually normal to bind your business plan in booklet form with high-quality materials and resolution.They should have quality report covers and be labeled on the front.Binding services are usually available at your local copy center.