Boxlight Electronics Business Plan Proposal Outline (Term Paper Sample)

BOXLIGHT ELECTRONICS BUSINESS PLAN PROPOSAL OUTLINE
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INTRODUCTION
Boxlight Electronics is a retail store that sells virtually all types of electronics and accessories. The store's products are categorized into four main groups: 1) phones and tablets; 2) televisions, audio, and camera; 3) computing; and 4) home and living. Consequently, the business will have at least four primary departments that will be involved in promoting and selling the various electronic products under their respective portfolio. The company will carry out its business operations in one of the commercial buildings in Sioux Falls. The target market for the firm will be the youths aged between 18 and 30 years because this demographic is known to have a significant preference for electronic products and more importantly, have the willingness and ability to make a purchase. The proprietors of Boxlight Electronics are optimistic that the business will be a success. Mainly, this confidence is notably influenced by the positive outcome of the feasibility study that the proprietors conducted immediately the idea of starting the business was conceptualized. As a partnership, the owners plan to grow and expand gradually up to the point where the company enjoys economies of scale and a high competitive advantage in the market. Eventually, the partners wish to change the business structure into a corporation so that it can compete effectively both at the state, national, and international levels. The vision and mission statement of Boxlight Electronics is to deliver high-quality products with high service quality delivery practices.
DESCRIPTION OF THE TYPE OF BUSINESS ENTITY
Boxlight Electronics is primarily a start-up company that will operate as a limited partnership entity. Specifically, there will be a total of two partners who will make an equal contribution of share capital. One of the partners will play the role of a managing or general partner whereas the other will be a sleeping partner. The general partner will take an active interest in the conduct and management of the business, including the administrative oversight of the firm and employee recruitment and hiring (Warner & Clifford, 2008). On the other hand, the major role of the sleeping partner will only be the contribution of the share capital. It is worth to point out that just like the rest of the business structures; there are various advantages and disadvantages of incorporating Boxlight Electronics as a limited partnership.
Subsequently, there are four key benefits that will accrue to Boxlight Electronics for adopting the limited partnership form of business. First, the company will enjoy tax benefits (Warner & Clifford, 2008). Similar to the general partnership, the profits and losses in Boxlight Electronics will flow through the business the respective partners, both of whom are taxed on their individual personal income returns. Second, the partners will enjoy liability limits (Mann & Roberts, 2011). The liability of the partner's debt in Boxlight Electronics will be limited to the value of property or amount of money that the individual partner will have contributed to the business. Third, as opposed other business entities such as corporations, there is less paperwork involved in forming a limited partnership (Warner & Clifford, 2008). It is critical to point out that as a start-up business, the best formation approach for Boxlight Electronics will be choosing a business structure that is less demanding. Finally, the limited partnership business entity will provide Boxlight Electronics a wider pool of investment opportunities (Sulaiman, Ghadas & Khan, 2011). The limited partnership structure will offer investors the chance to benefit from its profits and losses without having to be directly involved in the operations of the business. Thus, the business will have reasonable access to adequate financing for both business growth and expansion. Nonetheless, there are two major demerits that are likely to cause a negative impact on the operation and performance of Boxlight Electronics. First, the general partner will have to carry the debts and obligations of the business even when they are not directly involved in the administrative and operational management of the business (Sutton, 2009). In other words, in case Boxlight Electronics enters into bankruptcy or sued, all the liabilities and debts will be the responsibility of the general partner. Second, as a limited partnership, there is some risk of Boxlight not complying with the partnership agreement. Specifically, since there will only be two partners who are the business investors, it may be difficult to hold an annual general meeting (AGM) as provided under the partnership agreement.
STEPS FOR STARTING BOXLIGHT ELECTRONICS
In the State of Dakota, there are five main steps that should be taken or followed when forming a partnership business (Smith, 2017), a these are the steps that the partners of Boxlight Electronics will follow when establishing the business. First, the initial step is to identify and select the business name for the partnership. Notably, it can be observed that the partners have already settled on using "Boxlight Electronics" as their business name. It is imperative to point out that in South Dakota, the statutes on business formation allows entrepreneurs to use the surnames of the individual partners or can use a factious business name (Smith, 2017). It is evident that the partners in the proposed business have not settled on using their surnames as their business name. Instead, the partners have identified a fictitious business name "Boxlight Electronics." The potential partners will submit this name to the South Dakota Secretary for consideration and subsequent registration. Third, the Boxlight Electronics partners will draft and sign a partnership agreement as required by law. Fundamentally, the partnership agreement will provide a basic framework on how the partners will handle particular business situations.
Subsequently, there seven essential items that the partners will include in their partnership agreement, namely:
The contribution of each partner to the partnership;
The methodology that will be used to allocate profits, losses, and draws of the business;
The authority of each partner and their respective duties and responsibilities in the business;
The voting rules for business decision-making;
The procedure for admitting new partners into the business;
What happens to the business upon the death, withdrawal, or bankruptcy of the partner; and
The dispute resolution mechanisms.
Fourth, the business partners will obtain the relevant permits, licenses, and zoning clearance. In particular, the partners will source all the necessary information for obtaining the permits, licenses, and zoning clearances from the South Dakota Information Gateway. Furthermore, the partners will contract the services of a qualified and reputable attorney to offer legal advice on all the local and federal regulations that business should comply with and the different mechanisms that the business should put in place to ensure that there is persistent compliance to these regulations. Finally, once the necessary permits, licenses, and zoning clearance have been obtained, the partners will get an Employer Identification Number (EIN) from the Internal Revenue Agency for purposes of enabling Boxlight Electronics of making tax returns. The registration for the EIN will be done online at the IRS website. Parenthetically, the other essential steps that the partners will take into account once the partnership has been created include opening a business account and obtaining general liability insurance for the business. The rationale for opening a business bank account is that it will facilitate the partners to keep their personal and business income separate. On the other hand, since the general partner will take the obligations and debts of the business, the Boxlight Electronics partners will obtain the general liability insurance to offer the general partner financial protection form unforeseen events.
A VALID CONTRACT WITH SUPPLIER
The following is a draft of a valid contract between Boxlight Electronics and a potential supplier:
AN AGREEMENT BETWEEN BOXLIGHT ELECTRONICS AND [NAME OF SUPPLIER]
This Deed of Agreement is made and entered into on ____________ day of ___________ 201_
BETWEEN
Boxlight Electronics, a Sioux Falls-based electronics retail store having its headquarter office at Sioux Falls, represented by its managing partner (here in after referred to as “THE PURCHASER” which term shall include its successors and assigns) on the one Part.
AND
__________________________________ having its office at __________
_____________________ (here in after referred to as “THE SUPPLIER” which term shall include successors and assigns) on the other Part.
Whereas THE PURCHASER seeks to purchase ________________________ from THE SELLER for local retailing and distribution purpose.
And whereas THE PURCHASER is willing to purchase ________________ for the purposes mentioned above.
And whereas for this purpose THE PURCHASER desires to appoint THE SUPPLIER to supply ____________________________.
And whereas THE SUPPLIER explicitly express their desire to enter into an agreement with THE PURCHASER for the supply of the product described in Schedule-A.
NOW THIS AGREEMENT DEED WITNESSES THE CONDITIONS AND TERMS AS FOLLOWS:
THAT this deed of agreement shall come into force immediately and it shall remain valid until the final delivery of the product under sale or cancelled by THE PURCHASER.
THAT the product under sale more precisely described under Schedule-A shall be supplied by THE SUPPLIER at________________________________________...