How to Create an Organization

Creating an organization takes a lot of work.
Creating an organization takes a lot of work. (Image: business image by peter Hires Images from

An organization is a group of people employed to achieve cooperative goals on an ongoing basis. The Business Dictionary states all organizations have a management structure that matches tasks with different employee positions, and delegates different responsibilities and roles to individuals within the organization. Organizations are flexible in that they define or can be defined by outside forces. According to the “Encyclopedia Britannica,” organizations can take the form of individual proprietorships, partnerships, limited liability companies (LLCs) or corporations.

Decide on a type of organization ownership. Your organization can be a sole proprietorship, general partnership, limited partnership, corporation or an LLC. A sole proprietor is when only one person owns the organization. When two or more people own an organization, that is a general partnership. Limited partnerships are organizations where one person controls the business and the other is the investor. When you form a corporation, the organization is a separate entity with legal rights. An LLC is a separate entity, according to Starting a Small Business, but does not have the restrictions or tax burdens of a corporation.

Name your organization. Choose a name that reflects your organization’s brand, appeals to your target client, is memorable, short and easy to pronounce. Starting a Small Business states that you should register the organization’s name with the state in which the company is located.

Obtain licenses and permits. Every organization needs a license or permit to operate. The type of license or permit you need depends on the type of organization you intend to run and its location. To find out what paperwork you need to file, you can hire a lawyer to help you, or you can call your city, county and state’s business administration government offices for guidance.

Define your target customer. The target market for your organization is people or organizations who are most likely to access your product or services because it satisfies one or more of their needs.

Create a business plan for the organization. This will help you think about the different aspects of your organization and secure funding. In a business plan, include an executive summary, information about the idea behind your organization, the organization’s goals (short and long-term), a description of your products and services, your desired location, information about those who own the organization, a marketing plan, a competitive analysis and financial statements (current and projected).

Attain funding to start your organization. You can gain capital by saving your own money, borrowing money from those you know, securing a business loan, using a business partner’s money, attaining investors or finding a venture capitalist.

Choose a location for your organization. Your organization’s location is one of the most important factors contributing to its success. When choosing a location, consider its cost, your proximity to suppliers, how easy it is to get there, whether it is located on a busy street, the neighboring businesses, your proximity to competitors, the safety of the location and zoning laws.

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