Customer satisfaction will be the main motivating factor of the business hence the company will be very proud to provide a variety of the best quality flooring products whereby all brands and types of flooring materials from the major manufacturers will be provided.
The flooring materials (Products) that will be provided include floor tiles like granite, hardwood, imported tiles, carpeting, and granite. The company will have an the on-site warehouse will be stocked with the flooring materials while the company’s trucks will be always ready to transport them as after-sale service. Together with that, the business will provide a private appointment to a private showroom which will be well-stocked with samples of the latest products.
The management will make sure that all the products will be stocked in their different styles and different price ranges to take care of the needs of all the customers. All types and styles of carpets ranging from builder grade to the high-end wools grades will also be provided. Resilient flooring which includes luxury vinyl tile, sheet vinyl, and tile, VCT, and cork will be stocked too. Variety of wood-like laminate floors, engineered wood which is currently used in the fast-growing radiant market, and unfinished and finished solid wood will also be provided.
Services: The services that will also be provided include, renovating floors, fixing all types of floor tiles, and installing new floors. The business will also specialize in remodeling, pavers, hardwood floors, retaining walls, fences, and decks.
The main activities in the business will involve servicing and merchandising. Minor activities that will have to be taken care of by the business include getting a license for the business and other required registrations and deciding on the form of the organization.
Target clients: The target market includes designers and builders in both commercial and residential projects, the architects from the high-end residences, artistic and historic renovations and remodelings, and all the new construction sites.
Strengths and weakness: The form of business organization which this business is best suited is the limited liability company which operates as a separate legal entity. When working like this there will be no federal corporate taxes imposed on it. The main information needed when this company is being incorporated are the Date of incorporation and the management of the business (Small Business Solutions, 2001).
The merits for this business to operate as an LLC is that the members will be protected due to the limited liability of the company. Its members will draw agreements enabling flexibility and management of the company. When operating as a company the business will be in a position to distribute more returns to the members than when operating as a corporation. The other advantages are that: Its easy for an LLC to access loans/ attract funds for expansion thereby giving it a bigger market base.
Some of the demerits of operating as an LLC are that the federal requirements and the formalities involved in the information of a limited liability company are huge and time-consuming. It is also a fact that it is very hard for a limited liability company to go public relative to a corporate business entity. Another big demerit of an LLC is that for major decisions to be effected, it takes time since it has to be discussed at the annual general meetings of the shareholders. The pioneer members of the company may also not feel in total control, as there will come in other decision-makers. This is unlike in the scenario of the sole proprietorship or partnership where there are few decision-makers in the business.
If the business were to be operated as a general partnership, there would be the merit that it is easy for several partners to raise funds when they put their hands together. Since the partners share financial responsibilities, the risk is also evenly spread out among the partners thereby reducing risk significantly. The partnership would also bring in more experience from different people thereby enriching the management of the business and its human resource assets.
A recurrent problem in partnerships is the difference between the partners in the objectives of the business which most of the time bring about disputes. Some partners in the business may give the others a raw deal by not giving the partnership enough time and less financial contributions. In partnership, there is no limited liability and therefore all the partners are liable to the liabilities of the business. This is a demerit. All the partners are liable to the consequences of the decisions made by other partners in the partnership. Decision-making is another most difficult part of the partnership, as all the partners must agree before a conclusion on anything is reached. (Small Business Solutions, 2001). This is time-wasting.
Global and legal environment: When operating in the global environment, the organizations will have problems with the exchange rates of different currencies in different countries. The exchange rates for some countries fluctuate regularly and this can lead to huge losses for the company. The company can decide to receive its payments in stable currencies like the dollar or the sterling pound to avoid these losses.
Laws and regulations that govern businesses in different countries are very vital while doing business in a global environment. For example, an American company that is doing business in different countries like France and Germany is required to contend with three jurisdictions which are the US, Germany, and France, three tax systems, three legal systems, and a supranational European Union regulations and laws which provides a set that may override France and the Germany commercial laws.
International businesses are required to know and to be aware of all the legal requirements that their business needs to take care of in each country since there is no international commercial law that is uniform and that can govern all the international foreign businesses. Some of the requirements that the business will have to take into consideration are taxation, registration, and employment requirements.
The business will have to understand the taxation of the various countries it is working in to avoid conflicts with the government. Registration of the business in the countries in which it will be operating will also be taken into account whereby licensing and other registration procedures will be done. The company will take with them the senior management to the countries where it will be operating but the other employees who will be the majority will be sourced from the local country to encouraging good relations with the local people as the company promotes the products and services it provides to the community.
Necessary forms that are required in registering the business include the corporation form whose main aim is to take care of all lawful activities and acts that the business may be organized under the General Corporation Law of the state.
Another important form is the statement and designation by the foreign corporation. All these forms are attached at the end of the paper.
References
Limited liability company vs. sole proprietorship. (2006). assortment. Web.
University of Pittsburg. (1979). Small Business Bibliography. Pittsburg: Ayer.
Bowen, Debra (2008). California Business Portal. Web.