Enterprise - Company structures

Our next area of interest is the structural basis a company can take.

Whatever its size, someone has to own a business. This can be as a sole trader, or a number of like-minded people might sign a deed of partnership and agree a mission statement outlining how the company should be run.

Larger companies are more likely to be defined as corporations, and may be private limited companies; or public limited companies that float on the stock exchange.

Ownership has many ramifications including the limited or unlimited liability that key stakeholders will be accountable for should the company struggle financially.

If you get your company structure right, you might be able to sell your model as a franchise. If you get it wrong, your shares will invariably plummet in value.

Next: From horizontal integration to vertical integration, find the right direction with our guide to building a business.