The business box is the framework of starting a business and maintaining the systematic structural compliance requirements, a concept founded by Cynthia Rhodes Porter, a business development strategist in 2019 after the Covid pandemic created an increase in those wanting to start a business and take advantage of Small Business Administration economic relief funds.
Much like a franchise is considered a Business in a Box, The Business Box concept addresses the founder or start-up entrepreneur of a business. Ms Cynthia Rhodes Porter argues while the elements that make up the framework of business are important for compliance, they should take a back seat to business development and logistics, validating business at its planning phase. “Without sales order revenues and logistics process for fulfillment do you really have a business?”
A business idea should be validated through proving the targeted customer values and actually wants to buy what the founder is selling whether that is a product or service. The Internal Revenue Service changed its guidance on the difference between Hobby and Business as well as the deduction threshold for tax purposes. The most important change is a business must have the intent to not only generate revenue but to also make profit
Components of the Business Box
Bank, Accountant, Insurance, Lawyer, Marketing and Real Estate professionals are systematically involved to create the components of the business box that outlines the start of a business and its legal compliance requirements. While starting a business without these specified industry professionals can be done, oftentimes navigating the proper legal paperwork for a unique business idea per the North American Industrial Classification System (NAICS) code in which it will be compared can be frustrating. The following are the components of the the business box structure and the correlating industry professionals:
- Picking a Business Location – Real Estate / Marketing (Website for E-Commerce businesses)
- Choosing a Business Structure LLC/S-C Corp – Lawyer/Attorney
- Choosing a Business Name (Branding Intellectual Property) – Marketing and Lawyer/Attorney
- Registering a Business – Government – Lawyer/Attorney
- Obtaining Federal Employer Identification (FEIN) and State Tax Identification – Tax Accountant/Payroll
- Business Licenses and Permits – Lawyer/Attorney/Accountants
- Obtaining Business Insurance, Cyber Protection and/or Performance Bonding – Insurance
- Opening a Business Bank Account – Banking/Financial Institution
- Funding a Business – Banking/Financial Institution
Why Sales and Logistics are in the center of the Business Box
At the center of the business box is sales and logistics which in industry terms is called the supply chain. These two areas put the revenues in the box called a business. The business development create the product or service sales model and logistics management develops the efficient process to fulfill the order. The goal to the business strategy is to ensure the difference between the revenue generated and fulfillment expense creates a profit to the business. At Rhodes Porter we call this the R-P Effect
None of the other aforementioned industry professionals actively add to top line of the profit and loss statement. One might argue Marketing increases revenue; especially in the digital world of social clicks. Marketing does assist sales through targeted awareness and mostly creates the leads that lead to sales revenue.
Rhodes Porter drives growth and fuels economic opportunity and that is why we are the professionals at the center of the Business Box. Aligning sales, marketing and logistics to generate revenue, enhance communication and effectively fulfill orders. We create efficient solutions for performance process so business organizations can minimize losses and generate positive profits.