PLP403PD – Assignment
Section D (Wednesday 12:35 – 13:30, Friday 12:35 – 14:25 )
Led by Professor Linda Pasternak
Word Count: 1379
2015-02-18
Practice Management and
Business Communication
Justin Hedden,
ID: 015476146, jhedden@myseneca.ca
Jo-Anna Hines,
ID: 039089149, jmhines@myseneca.ca
Table of Contents
Cover Letter ............................................................................................................ 1
Executive Summary ................................................................................................. 2
a.
The Firm ............................................................................................................... 2
b.
Mission and Vision ................................................................................................ 2
c.
Management/Principals......................................................................................... 2
d.
The Opportunity ................................................................................................... 3
e.
Service and Markets .............................................................................................. 3
f.
Summary of Marketing Efforts ............................................................................. 4
g.
Funding Requirement ........................................................................................... 5
h.
Credit Proposal ..................................................................................................... 5
Appendix 1: Annual Projected Expenses Spreadsheet ............................................. 6
Justin Hedden, Jo-Anna Hines
Hedden & Hines Legal Services
1760 Finch Avenue East
Toronto, ON M2J 5G3
(905) 680-1234
February 18th, 2015
BY COURIER:
Ms. Erin Lambert
Branch Manager
Canadian Imperial Bank of Commerce (Transit # 00872)
22 King Street,
Welland, ON L3B 3H9
Re: Loan Request for $29,500
Dear Ms. Lambert:
We are requesting a small business loan of $29,500 to start a paralegal firm. We are both
licensed paralegals with experience in this field and will be acting as a general
partnership.
We believe that the market conditions in the Niagara region are favourable to start a
paralegal business. We have observed that there is a pressing need for our legal services
in this region. Adding to the favourability of the market is the limited competition we
face, and our close proximity to our target demographic. We also intend to offer a wide
range of legal services available to the entire region which will ensure that we capture a
significant portion of the legal market in Niagara.
We have reviewed your loan packages, and determined that we would like to apply for a
$20,500 “CIBC Small Business Loan”. In addition to this loan, we are also applying for a
$9,000 government sponsored loan under the “Canada Small Business Financing
Program” regarding our estimated equipment costs.
Our business proposal supporting the loan request is enclosed with this letter. If you
require any further information, please contact Mr. Hedden at (905) 680-1234 or his email address justin@justinhedden.com.
Sincerely,
__________________________________
__________________________________
JUSTIN HEDDEN
JO-ANNA HINES
__________________________________
__________________________________
DATE
Encl.
DATE
Business Proposal
Justin Hedden, Jo-Anna Hines
Page 1
Executive Summary
↓ The Firm
Firm Name: Hedden & Hines Legal Services
Office Location: 597 King Street in Welland, ON L3B 3L3
Website Address: http://HHlegal.ca
Telephone: (905) 680-1234
Firm e-mail address: admin@HHlegal.ca
↓ Mission and Vision
There is a pertinent need for affordable legal representation in the Niagara region. The goal of
Hedden and Hines Legal Services is to meet this short fall, and provide the residents of the region
with the legal services they require, broadening their access to justice. We will achieve this by
building our reputation within the various communities which we will serve through advertising,
taking part in community based initiatives and focusing on providing exemplary client care.
As part of fulfilling our long term goal of meeting the regions demands. The practice will eventually
expand to include another partner, who is fluent in both French and English, in order to handle the
increased client intake and to better serve the significant French speaking community in the region.
↓ Management / Principals
Justin Hedden [ Partner, P1 ]
Justin Hedden is a licensed paralegal and graduate of the Paralegal Diploma Program at Seneca
College. He has a certificate in Alternative Dispute Resolution. He also has a Bachelor of Arts
degree in Political Science from Brock University. Mr. Hedden will be responsible for handling
administrative tribunal matters, and small claims court matters.
Justin Hedden, Jo-Anna Hines
Page 2
Jo-Anna Hines [ Partner, P1 ]
Jo-Anna Hines is a licensed paralegal and graduate of the Paralegal Diploma Program at Seneca
College. She has a certificate in Alternative Dispute Resolution. She also has a Bachelor of Science
degree in Political Science from the University of the West Indies. Ms. Hines will be responsible for
handling administrative tribunal matters, and all provincial offence, and criminal summary
conviction matters.
↓ The Opportunity
Our office is located in a central region of Niagara, in the heart of downtown Welland. It is within
walking distance of the Welland Courthouse, Justice Niagara, the Welland Library, several banks and
a Canada Post office. It is also adjacent to the Welland Hospital and is surrounded by a variety of
small businesses.
There are also few competitors in the Niagara region; there is 1 paralegal for every 6211 people in
the region. There is also an ageing lawyer population in the region, with the mean lawyer age being
57.5 years. Finally, the overhead costs for doing business in the area are relatively low.
↓ Service and Markets
Hedden and Hines will cover a majority of the Niagara Region including the following areas: Fort
Erie, Grimsby, Lincoln, Niagara-on-the-Lake, Niagara Falls, Pelham, Port Colborne, St. Catharines,
Thorold, Wainfleet, Welland and West Lincoln. The main demographic group of this region is
notably elderly. In 2011, census statistics indicated that over 47% of the popular is over the age of
45. Furthermore, in 2006, Niagara was named the 2nd oldest population in all of Ontario (and
growing).
Justin Hedden, Jo-Anna Hines
Page 3
Given this data, the firm will primarily focus on providing the requisite legal services this
demographic group may need, such as Canada Pension Plan appeals and matters involving the
Ontario Disability Support Program and Ontario Works assistance. The firm will offer legal services
focused on dealing with providing assistance with administrative tribunals, small claims court
matters, and provincial offences. We will also assist with provincial offences, and criminal summary
convictions. Our target market is individuals 45+ who cannot afford a lawyer, but have too high an
income to receive legal aid from Justice Niagara. If should be noted that of the few competitors in
the region, most focus exclusively on matters relating to provincial offences and the Highway Traffic
Act.
We will offer an hourly fee rate for our services of $85/hr plus disbursements. For some matters we
may offer a flat rate plus disbursements. All legal fees and some disbursements will be subject to the
applicable taxes of the day.
↓ Summary of Marketing Efforts
We will concentrate our marketing effort on the internet. We have reserved a shared-hosting website
and the domain name, “HHlegal.ca”. We will use the internet as a platform to network via social
media; we will set up company profiles on LinkedIn, Facebook, Twitter and Instagram and Kijiji.ca;
all of which are free of charge. The second phase of our marketing effort will focus on utilizing
referral services. We will register with the Law Society referral service and with JusticeNet. Finally,
we will focus on community centric marketing; we will create and distribute brochures and business
cards at various locations, including areas with large senior populations. We will also purchase 14 ads
per month in the 3 largest local papers in the region and after 5 months we will reduce this to only 5
ads per month. Finally, our business location will bear a commercial light box banner and painted
window sign to attract foot traffic from the adjacent hospital and other businesses.
Justin Hedden, Jo-Anna Hines
Page 4
↓ Funding Requirement
We are intending to borrow $29,500 total for an estimated $29,201.77 in overall annual costs. We are
seeking a $20,500 loan for our operating costs of an estimated $20,463.71. We are seeking a $9,000
loan for our equipment costs of an estimated $8,750.06. * Note: Many of our day-to-day tasks such as
matter management and general accounting will be performed in Excel and legal research will be conducted with
CanLii in order to reduce unnecessary costs.
↓ Credit Proposal
We are applying for a “CIBC Small Business Line of Credit” of $20,500 for our overall operation
costs. Under this plan we are intending to borrow $20,500, unsecured, for prime (2.85%) plus 3 to
9% (fixed rate dependent on credit approval) over 5 years. We estimate our monthly principle plus
interest payments will amount to $424.00. The interest paid over the term of this loan is an
estimated $4,493.00.
In addition, we are also aware that our startup equipment costs qualify for a reduced lending rate
under the government sponsored “Canada Small Business Financing Program”. Under this plan, we
are also seeking to borrow $9,000, unsecured, for prime (2.85%) plus 3% (fixed) over 5 years along
with an additional 1.25% ($100) administrative fee added to the principal and payable to the
government. We estimate our monthly principal plus interest payments will amount to $173.00 (in
addition to the one-time $100.00 admin fee). The interest paid over the term of this loan is an
estimated $1,402.00.
Justin Hedden, Jo-Anna Hines
Page 5