Forms of practice - Revision history

Designing Buildings at 07:04, 30 November 2020

2020-11-30T07:04:14Z

← Older revision		Revision as of 07:04, 30 November 2020
Line 89:		Line 89:
	* Team management.		* Team management.

−	[[Category:Articles_needing_more_work]] [[Category:Cost_/_business_planning]]	+	[[Category:Articles_needing_more_work]] [[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Cost_/_business_planning]]

Designing Buildings at 14:17, 6 May 2019

2019-05-06T14:17:28Z

← Older revision		Revision as of 14:17, 6 May 2019
Line 1:		Line 1:
		+	To help develop this article, click 'Edit this article' above
		+
		+	= Introduction =
		+
	There are three main types of practice:		There are three main types of practice:

Line 69:		Line 73:
	* Dividends taxed.		* Dividends taxed.

−	[[Category:Cost_/_business_planning]]	+	= Related articles on Designing Buildings Wiki =
		+
		+	* Collaborative practices.
		+	* Complex project.
		+	* Consortium.
		+	* Integrated project delivery (IPD).
		+	* Joint venture.
		+	* Limited liability partnership.
		+	* Partnering.
		+	* Partnering and joint ventures.
		+	* Partnership.
		+	* Public Private Partnership (PPP).
		+	* Relationship management.
		+	* Special purpose vehicles.
		+	* Team management.
		+
		+	[[Category:Articles_needing_more_work]] [[Category:Cost_/_business_planning]]

Designing Buildings at 14:16, 6 May 2019

2019-05-06T14:16:05Z

Show changes

JoeB123 at 10:02, 6 May 2019

2019-05-06T10:02:18Z

← Older revision		Revision as of 10:02, 6 May 2019
Line 87:		Line 87:
	* Tax & NI		* Tax & NI

−	~~== Considerations before Changing Practice Legal~~ Structure ==	+	-----
		+	Main factors in Choosing a Structure or changing practice legal structure

−	Weigh up the advantages and disadvantages of various legal structures for the practice and take advice from legal advisers.	+	Weigh up the advantages and disadvantages of various legal structures for the practice and take advice from legal advisers. Assess where the business is now and where the business wants to go and consult the business plan.It is important to choose a company structure that you think may last for the duration of the next 5-10 year business plan. Some aspects to consider are;

−	~~Assess where the business is now and where the business wants to go and consult the business plan.~~	+	# Liability

−	~~It is important to choose a company structure that you think may last for the duration~~ of ~~the next 5-10 year business plan~~. ~~Some aspects to consider are;~~	+	The choice of legal structure will have important implications on your potential legal liability.

−	~~Plans~~ for the ~~Future;~~	+	* Sole trader - Personally liable. If the assets of the business cannot pay off the liabilities of the business then you have to be personally responsible.
		+	* Partnership - Joint and several
		+	* LLP - Limited to investment
		+	* Ltd - Liability is limited to the amount of shares in the company.
		+
		+	In a partnership, partners remain liable for life, and liability is transferred to their estate when they die.
		+
		+	In a company, a considerable advantage is the protection from your personal assets becoming liable from any debts and losses incurred.
		+
		+	2. International Recognition
		+
		+	Perhaps you need to change the structure to be internationally recognised.
		+
		+	* Ltd Companies (private/public) are recognised internationally allowing for international relationships to form
		+
		+	3. Expansion / Plan for the future
		+
		+	Perhaps you need to change the structure to accommodate growth.
		+
		+	* Non-shareholders can be appointed in a Company
		+	* Buying-in in a company is easier
		+	* Young Architects can become directors without the need to buy-in (non-equity director)
		+	* A company can have an unlimited amount of shareholders

	- Size of practice, what is the practices plan for growth and how can this be accommodated for within the practice legal structure.		- Size of practice, what is the practices plan for growth and how can this be accommodated for within the practice legal structure.
Line 101:		Line 124:
	- What is the practices appetite to promote staff both internally and externally. Companies can appoint salaried directors, rather than having to buy into a partnership which may deter architects and staff from reaching the top of a firm.		- What is the practices appetite to promote staff both internally and externally. Companies can appoint salaried directors, rather than having to buy into a partnership which may deter architects and staff from reaching the top of a firm.

−	- If the firm is well established with several members of long term staff who are ~~commited~~ to the business, an Employee Owned Trust may be appropriate to maintain the practice ethos and reward staff for their contribution to the business.	+	- If the firm is well established with several members of long term staff who are committed to the business, an Employee Owned Trust may be appropriate to maintain the practice ethos and reward staff for their contribution to the business.

	- International Work - Companies are internationally recognised therefore it may be easier to develop business relations overseas than it would be with a partnership.		- International Work - Companies are internationally recognised therefore it may be easier to develop business relations overseas than it would be with a partnership.

−	- What is the practices ~~apetite~~ for change with the management of the business - changing from a traditional partnership to an LLP will allow the LLP to be run very much like the a partnership.	+	* What is the practices appetite for change with the management of the business - changing from a traditional partnership to an LLP will allow the LLP to be run very much like the a partnership.

−	~~Client Perception;~~	+	4. Number of people required

−	- ~~Changing structure may affect client confidence. Some clients prefer to trade~~ with ~~particular types of businesses.~~	+	* Sole Practitioner - one person
		+	* A partnership - requires two or more partners
		+	* A company - can be set up with just one director

−	~~- Companies whose turnover exceeds a certain limit are required to have their audited accounts pubilshed~~	+	5. Taxation and National Insurance

−	Risk;	+	You are taxed differently under each legal structure you choose for your business. Choosing the right legal structure can bring some tax benefits to you.
		+
		+	- Sole traders do not pay tax on profits
		+
		+	* Companies have to pay corporation tax
		+	* LLP members pay income tax by self-assessment
		+
		+	6. Bureaucracy
		+
		+	* Companies are formal and have to comply with requirements of Companies House and HMRC
		+	* Architects sometimes struggle to adapt after moving from a partnership, which has little bureaucracy
		+
		+	7. Risk

	- what is the practices ability to cope with risk		- what is the practices ability to cope with risk

−	- If the practice is planning on entering new sectors or embarking on international work, risk increased therefore this should be taken into consideration	+	* If the practice is planning on entering new sectors or embarking on international work, risk increased therefore this should be taken into consideration

−	Succession;	+	Sole trader - Carrying a high level of individual responsibility and risk. Trading under own name, no separation between individual and business assets, no one to consult or collaborate with when making important decisions or when dealing with disputes.
		+
		+	Partnership - trading in partnership name, no separation between individual and business, reliance on other partners, joint and several liability between partners
		+
		+	Companies - Trading in company name, separate legal entity, responsible to other directors/shareholders, reliance on other directors, Directors/shareholders often required to give personal guarantees.
		+
		+	8. Client Perception
		+
		+	- Changing structure may affect client confidence. Some clients prefer to trade with particular types of businesses.
		+
		+	* Companies whose turnover exceeds a certain limit are required to have their audited accounts published
		+	* Some clients will not want to work with a Public/private Limited Company, because the architect is not personally liable.
		+
		+	9. Administration and Set-up
		+
		+	Each legal structure has differing set up procedures, cost and complexities involved. A sole trader is simple to set up and requires few reporting requirements. A company however has strict and difficult record keeping and paperwork requirements. If setting up a company you must ensure you gave the time, people and ability to abide by the strict record keeping requirements that are legally enforceable.
		+
		+	10. Operational Aspects
		+
		+	You may be reorganising your internal functions, to improve the way your business is operating.
		+
		+	11. Control
		+
		+	An important factor to consider when selecting your legal structure is the level of control you wish to have over your business. Control is a crucial factor for the sense of satisfaction and accomplishment that leaders achieve from running their own practice and producing their own work. The ability to influence your own environment and change what you don’t like is crucial to the sense of satisfaction an owner gets form their work. Unfortunately when you are part of a team you surrender some of that control in exchange for the resources and support of your team. Your choice of legal structure will affect what aspects of the practice you will control and what aspects you will legally own.
		+
		+	In an LLC - Members have control in direct proportion to the number of shares of membership they own.
		+
		+	12. Change in management
		+
		+	You may be taking on a business partner, so you decide to change from a sole trader to a partnership structure
		+
		+	13. Financial Reasons
		+
		+	You may be restructuring to meet financial goals and objectives, such as improving cash flow or profitability of the business.
		+
		+	If the business requires huge amount of capital, there might be a need for an external source of finance. This can be from friends, relations, banks or other investor/partners. In this case, entering into a partnership with trusted people that have the money can be a good choice. If this option is not suitable, establishing a private company will be an alternative.
		+
		+	14. Succession

	- Does the practice have a succession plan? It is generally easier to remove an unsatisfactory director from a company than a partner.		- Does the practice have a succession plan? It is generally easier to remove an unsatisfactory director from a company than a partner.

−	- Potential double tax charge when winding up a company	+	* Potential double tax charge when winding up a company
		+	* If you wish for the business to be terminated when you personally wish for it to end then becoming a sole trader is the most appropriate option.
		+
		+	15. Flexibility
		+
		+	LLC offers the flexibility of a partnership and the limited liability of a corporation. It provides more flexibility along with ownership protection. The owner can choose to operate as a single person entity, with minimal formality, or can choose to set up the company similar to that of a corporation.
		+
		+	It is also generally easier to remove an unsatisfactory director from a company than a partner.
		+
		+	LLP offers flexibility because there is no share capital so you don’t have capital maintenance requirements. LLPs are highly flexible entities and, depending upon the terms of [https://www.designingbuildings.co.uk/wiki/Agreement agreement] drawn up to govern such them, facilitate the addition and removal of members in a way which does not apply so readily to the traditional [https://www.designingbuildings.co.uk/wiki/Partnership partnership] [https://www.designingbuildings.co.uk/wiki/Structure structure]. Usually a LLP is governed according to a LLP [https://www.designingbuildings.co.uk/wiki/Agreement agreement]. This [https://www.designingbuildings.co.uk/wiki/Agreement agreement] is similar to a company’s Memorandum and Articles but the key point is that, like in a company a member cannot lose more than they have invested, unless fraud or some other form of wrongdoing is proven.

	Insurance;		Insurance;

JoeB123 at 14:40, 5 May 2019

2019-05-05T14:40:07Z

← Older revision		Revision as of 14:40, 5 May 2019
Line 134:		Line 134:
	Advantages of Staying:		Advantages of Staying:

−	Risk - there would be less financial risk involved staying	+	* Risk - there would be less financial risk involved staying
−		+	* Career and professional development - more opportunities to climb up the ladder within the practice
−	Career and professional development - more opportunities to climb up the ladder within the practice	+

	Disadvantages of Staying:		Disadvantages of Staying:

−	Control - you can’t make decisions	+	* Control - you can’t make decisions

	Advantages of Leaving:		Advantages of Leaving:

−	Financial reasons - better possible financial returns - more profit	+	* Financial reasons - better possible financial returns - more profit
−		+	* Control - more control and decision making
−	Control - more control and decision making	+	* The move from an employee to and employer
−		+
−	The move from an employee to and employer	+

	Disadvantages of Leaving:		Disadvantages of Leaving:

−	Set up procedures, cost and complexities involved.	+	* Set up procedures, cost and complexities involved.
−		+	* Financial reasons - Up front capital - How much money would be needed to set-up a new practice?
−	Financial reasons - Up front capital - How much money would be needed to set-up a new practice?	+	* The logistics of working abroad. Relocation, currency/payment issues, language barrier? Is my qualification recognised abroad?
−		+
−	The logistics of working abroad. Relocation, currency/payment issues, language barrier? Is my qualification recognised abroad?	+

	Questions to ask before starting up a new practice -		Questions to ask before starting up a new practice -

JoeB123 at 14:39, 5 May 2019

2019-05-05T14:39:20Z

← Older revision		Revision as of 14:39, 5 May 2019
Line 128:		Line 128:

	- Seek legal advice and notify PI insurers if changing legal structure		- Seek legal advice and notify PI insurers if changing legal structure
		+
		+	-----
		+	Reasons to consider when deciding whether or not to stay at your current practice or leave and start your own practice
		+
		+	Advantages of Staying:
		+
		+	Risk - there would be less financial risk involved staying
		+
		+	Career and professional development - more opportunities to climb up the ladder within the practice
		+
		+	Disadvantages of Staying:
		+
		+	Control - you can’t make decisions
		+
		+	Advantages of Leaving:
		+
		+	Financial reasons - better possible financial returns - more profit
		+
		+	Control - more control and decision making
		+
		+	The move from an employee to and employer
		+
		+	Disadvantages of Leaving:
		+
		+	Set up procedures, cost and complexities involved.
		+
		+	Financial reasons - Up front capital - How much money would be needed to set-up a new practice?
		+
		+	The logistics of working abroad. Relocation, currency/payment issues, language barrier? Is my qualification recognised abroad?
		+
		+	Questions to ask before starting up a new practice -
		+
		+	* What sort of legal structure?
		+	* Up front capital - How much money would be needed to set-up a new practice?
		+	* What are the future plans of the practice? Will there be future work once this project is finished and what type of projects is the other person interested in. similar/different? Does it align with your project interests?
		+	* What are the project risks?
		+	* What combined resources would we have to get started?

	-----		-----
	[[Category:Cost_/_business_planning]]		[[Category:Cost_/_business_planning]]

146.90.96.155 at 14:17, 5 May 2019

2019-05-05T14:17:39Z

← Older revision		Revision as of 14:17, 5 May 2019
Line 86:		Line 86:
	* Plan for future		* Plan for future
	* Tax & NI		* Tax & NI
		+
		+	== Considerations before Changing Practice Legal Structure ==
		+
		+	Weigh up the advantages and disadvantages of various legal structures for the practice and take advice from legal advisers.
		+
		+	Assess where the business is now and where the business wants to go and consult the business plan.
		+
		+	It is important to choose a company structure that you think may last for the duration of the next 5-10 year business plan. Some aspects to consider are;
		+
		+	Plans for the Future;
		+
		+	- Size of practice, what is the practices plan for growth and how can this be accommodated for within the practice legal structure.
		+
		+	- What is the practices appetite to promote staff both internally and externally. Companies can appoint salaried directors, rather than having to buy into a partnership which may deter architects and staff from reaching the top of a firm.
		+
		+	- If the firm is well established with several members of long term staff who are commited to the business, an Employee Owned Trust may be appropriate to maintain the practice ethos and reward staff for their contribution to the business.
		+
		+	- International Work - Companies are internationally recognised therefore it may be easier to develop business relations overseas than it would be with a partnership.
		+
		+	- What is the practices apetite for change with the management of the business - changing from a traditional partnership to an LLP will allow the LLP to be run very much like the a partnership.
		+
		+	Client Perception;
		+
		+	- Changing structure may affect client confidence. Some clients prefer to trade with particular types of businesses.
		+
		+	- Companies whose turnover exceeds a certain limit are required to have their audited accounts pubilshed
		+
		+	Risk;
		+
		+	- what is the practices ability to cope with risk
		+
		+	- If the practice is planning on entering new sectors or embarking on international work, risk increased therefore this should be taken into consideration
		+
		+	Succession;
		+
		+	- Does the practice have a succession plan? It is generally easier to remove an unsatisfactory director from a company than a partner.
		+
		+	- Potential double tax charge when winding up a company
		+
		+	Insurance;
		+
		+	- Seek legal advice and notify PI insurers if changing legal structure

	-----		-----
	[[Category:Cost_/_business_planning]]		[[Category:Cost_/_business_planning]]

JoeB123 at 11:36, 5 May 2019

2019-05-05T11:36:07Z

← Older revision		Revision as of 11:36, 5 May 2019
Line 88:		Line 88:

	-----		-----
−	~~Main factors in Choosing a Structure~~
−
−	~~# Liability~~
−
−	~~The choice of legal structure will have important implications on your potential legal liability.~~
−
−	* Sole trader - Personally liable. If the assets of the business cannot pay off the liabilities of the business then you have to be personally responsible.
−	* Partnership - Joint and several
−	* LLP - Limited to investment
−	* Ltd - Liability is limited to the amount of shares in the company.
−
−	~~In a partnership, partners remain liable for life, and liability is transferred to their estate when they die.~~
−
−	~~In a company, a considerable advantage is the protection from your personal assets becoming liable from any debts and losses incurred.~~
−
−	~~2. International Recognition~~
−
−	~~Perhaps you need to change the structure to be internationally recognised.~~
−
−	* Ltd Companies (private/public) are recognised internationally allowing for international relationships to form
−
−	~~3. Expansion / Plan for the future~~
−
−	~~Perhaps you need to change the structure to accommodate growth.~~
−
−	* Non-shareholders can be appointed in a Company
−	* Buying-in in a company is easier
−	* Young Architects can become directors without the need to buy-in (non-equity director)
−	* A company can have an unlimited amount of shareholders
−
−	~~4. Number of people required~~
−
−	* Sole Practitioner - one person
−	* A partnership - requires two or more partners
−	* A company - can be set up with just one director
−
−	~~5. Taxation and National Insurance~~
−
−	~~You are taxed differently under each legal structure you choose for your business. Choosing the right legal structure can bring some tax benefits to you.~~
−
−	~~- Sole traders do not pay tax on profits~~
−
−	* Companies have to pay corporation tax
−	* LLP members pay income tax by self-assessment
−
−	~~6. Bureaucracy~~
−
−	* Companies are formal and have to comply with requirements of Companies House and HMRC
−	* Architects sometimes struggle to adapt after moving from a partnership, which has little bureaucracy
−
−	~~7. Risk~~
−
−	~~Carrying a high level of individual responsibility and risk~~
−
−	~~Sole trader - trading under own name, no separation between individual and business assets, no one to consult or collaborate with when making important decisions or when dealing with disputes.~~
−
−	~~Partnership - trading in partnership name, no separation between individual and business, reliance on other partners, joint and several liability between partners~~
−
−	~~Companies - Trading in company name, separate legal entity, responsible to other directors/shareholders, reliance on other directors, Directors/shareholders often required to give personal guarantees.~~
−
−	~~8. Client Perception~~
−
−	~~Some clients will not want to work with a Public/private Limited Company, because the architect is not personally liable.~~
−
−	~~9. Administration and Set-up~~
−
−	Each legal structure has differing set up procedures, cost and complexities involved. A sole trader is simple to set up and requires few reporting requirements. A company however has strict and difficult record keeping and paperwork requirements. If setting up a company you must ensure you gave the time, people and ability to abide by the strict record keeping requirements that are legally enforceable.
−
−	~~10. Operational Aspects~~
−
−	~~You may be reorganising your internal functions, to improve the way your business is operating.~~
−
−	~~11. Control~~
−
−	An important factor to consider when selecting your legal structure is the level of control you wish to have over your business. Control is a crucial factor for the sense of satisfaction and accomplishment that leaders achieve from running their own practice and producing their own work. The ability to influence your own environment and change what you don’t like is crucial to the sense of satisfaction an owner gets form their work. Unfortunately when you are part of a team you surrender some of that control in exchange for the resources and support of your team. Your choice of legal structure will affect what aspects of the practice you will control and what aspects you will legally own.
−
−	~~12. Change in management~~
−
−	~~You may be taking on a business partner, so you decide to change from a sole trader to a partnership structure~~
−
−	~~13. Financial Reasons~~
−
−	~~You may be restructuring to meet financial goals and objectives, such as improving cash flow or profitability of the business.~~
−
−	If the business requires huge amount of capital, there might be a need for an external source of finance. This can be from friends, relations, banks or other investor/partners. In this case, entering into a partnership with trusted people that have the money can be a good choice. If this option is not suitable, establishing a private company will be an alternative.
−
−	~~14. Succession~~
−
−	~~If you wish for the business to be terminated when you personally wish for it to end then becoming a sole trader is the most appropriate option.~~
−
	[[Category:Cost_/_business_planning]]		[[Category:Cost_/_business_planning]]

JoeB123 at 11:34, 5 May 2019

2019-05-05T11:34:34Z

← Older revision		Revision as of 11:34, 5 May 2019
Line 86:		Line 86:
	* Plan for future		* Plan for future
	* Tax & NI		* Tax & NI
		+
		+	-----
		+	Main factors in Choosing a Structure
		+
		+	# Liability
		+
		+	The choice of legal structure will have important implications on your potential legal liability.
		+
		+	* Sole trader - Personally liable. If the assets of the business cannot pay off the liabilities of the business then you have to be personally responsible.
		+	* Partnership - Joint and several
		+	* LLP - Limited to investment
		+	* Ltd - Liability is limited to the amount of shares in the company.
		+
		+	In a partnership, partners remain liable for life, and liability is transferred to their estate when they die.
		+
		+	In a company, a considerable advantage is the protection from your personal assets becoming liable from any debts and losses incurred.
		+
		+	2. International Recognition
		+
		+	Perhaps you need to change the structure to be internationally recognised.
		+
		+	* Ltd Companies (private/public) are recognised internationally allowing for international relationships to form
		+
		+	3. Expansion / Plan for the future
		+
		+	Perhaps you need to change the structure to accommodate growth.
		+
		+	* Non-shareholders can be appointed in a Company
		+	* Buying-in in a company is easier
		+	* Young Architects can become directors without the need to buy-in (non-equity director)
		+	* A company can have an unlimited amount of shareholders
		+
		+	4. Number of people required
		+
		+	* Sole Practitioner - one person
		+	* A partnership - requires two or more partners
		+	* A company - can be set up with just one director
		+
		+	5. Taxation and National Insurance
		+
		+	You are taxed differently under each legal structure you choose for your business. Choosing the right legal structure can bring some tax benefits to you.
		+
		+	- Sole traders do not pay tax on profits
		+
		+	* Companies have to pay corporation tax
		+	* LLP members pay income tax by self-assessment
		+
		+	6. Bureaucracy
		+
		+	* Companies are formal and have to comply with requirements of Companies House and HMRC
		+	* Architects sometimes struggle to adapt after moving from a partnership, which has little bureaucracy
		+
		+	7. Risk
		+
		+	Carrying a high level of individual responsibility and risk
		+
		+	Sole trader - trading under own name, no separation between individual and business assets, no one to consult or collaborate with when making important decisions or when dealing with disputes.
		+
		+	Partnership - trading in partnership name, no separation between individual and business, reliance on other partners, joint and several liability between partners
		+
		+	Companies - Trading in company name, separate legal entity, responsible to other directors/shareholders, reliance on other directors, Directors/shareholders often required to give personal guarantees.
		+
		+	8. Client Perception
		+
		+	Some clients will not want to work with a Public/private Limited Company, because the architect is not personally liable.
		+
		+	9. Administration and Set-up
		+
		+	Each legal structure has differing set up procedures, cost and complexities involved. A sole trader is simple to set up and requires few reporting requirements. A company however has strict and difficult record keeping and paperwork requirements. If setting up a company you must ensure you gave the time, people and ability to abide by the strict record keeping requirements that are legally enforceable.
		+
		+	10. Operational Aspects
		+
		+	You may be reorganising your internal functions, to improve the way your business is operating.
		+
		+	11. Control
		+
		+	An important factor to consider when selecting your legal structure is the level of control you wish to have over your business. Control is a crucial factor for the sense of satisfaction and accomplishment that leaders achieve from running their own practice and producing their own work. The ability to influence your own environment and change what you don’t like is crucial to the sense of satisfaction an owner gets form their work. Unfortunately when you are part of a team you surrender some of that control in exchange for the resources and support of your team. Your choice of legal structure will affect what aspects of the practice you will control and what aspects you will legally own.
		+
		+	12. Change in management
		+
		+	You may be taking on a business partner, so you decide to change from a sole trader to a partnership structure
		+
		+	13. Financial Reasons
		+
		+	You may be restructuring to meet financial goals and objectives, such as improving cash flow or profitability of the business.
		+
		+	If the business requires huge amount of capital, there might be a need for an external source of finance. This can be from friends, relations, banks or other investor/partners. In this case, entering into a partnership with trusted people that have the money can be a good choice. If this option is not suitable, establishing a private company will be an alternative.
		+
		+	14. Succession
		+
		+	If you wish for the business to be terminated when you personally wish for it to end then becoming a sole trader is the most appropriate option.

	[[Category:Cost_/_business_planning]]		[[Category:Cost_/_business_planning]]

Editor: Reverted edits by Archstudent (talk) to last revision by Designing Buildings

2019-05-03T15:27:59Z

Reverted edits by Archstudent (talk) to last revision by Designing Buildings

← Older revision		Revision as of 15:27, 3 May 2019
Line 86:		Line 86:
	* Plan for future		* Plan for future
	* Tax & NI		* Tax & NI
−
−	~~= Setting Up a New Firm =~~
−
−	~~=== Experience ===~~
−
−	Is there an accord between the partners on common architectural goals, background, professional abilities, business experience, and desires to work abroad? Do the proposed partners have the relevant experience required to set up a firm transferable from a practice specialising in X to a Y, based in a foreign country with a different legal and legislative system? Foreign site settings will require expert knowledge of that countries legal and planning process to successfully negotiate the planning stages there, with nuanced differences in business formats.
−
−	~~=== Structure ===~~
−
−	the type of business structure used will be a of major importance. A small firm will require less overheads and rent may not be a consideration, however software licensing, hardware and the expense money for travel abroad will require Initial capital in the form of a loan. Different company formats have different risks associated with them and this risk will affect the initial financing of the company. Banks will not lend easily to inexperienced partners starting up a firm in a new field with a foreign site. The more reduced the liability is to the individual partners, the safer a position they will be in to handle company financing - this can be further expanded upon with business plans.
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−	~~=== Strategy ===~~
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−	a fledgling practice should set goals and targets, and assess how to achieve these. Establishing a business strategy covering a 3 - 5 year period with short term targets established in the initisal projercts budget.
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−	~~=== SWOT ===~~
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−	~~High level PESTLE analysis will place the abilities of the business entity in the market context to establish further Targets, opportunities and risks.~~
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−	~~Ultimately key questions that must be answered will be :~~
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−	* Do the partners have between them the requisite experience in Architecture , Business planning, Financial Management to run a firm
−	* Is the plan to establish a firm for a one off project or continue the practice and find more clients, and what is the winding up strategy for this
−	* Do they have the cash to do so or will financing be required - if so, how & what evidence can be provided.
−	* Partnership is risky: while enjoying the benefits of total control of architectural process; lower taxes ( low NI Contribution and just PAYE on profit with no tax on withdrawals) the partners are not distinguished from liabilities of the company. This means partners are jointly and severally liable for all debts incurred by partners and by the company, and are personally liable for debts.

	[[Category:Cost_/_business_planning]]		[[Category:Cost_/_business_planning]]