Reid Paralegal Service, Corp. will also use an internet based strategy. This is very imperative as many people pursuing local services, such as paralegals, now apply the Internet to conduct their preliminary quests. Miss. Reid will index Reid Paralegal Service. Corp. with online gateways so that possible clients can easily reach the business. The Company will also advance its own online website showcasing the paralegal operations of the business.
Miss. Reid will also contact lawyers/paralegals, and law firms in respects to developing continuing associations for their legal documentation needs.
5.3 Pricing
Miss. Reid anticipates charging modest rates within the first year of operations as she is developing her business and name in the legal industry. Miss. Reid will charge $150.00 per
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7.4 General Assumptions
General Assumptions
Year 1 2 3
Short Term Interest Rate 9.5% 9.5% 9.5%
Long Term Interest Rate 10.0% 10.0% 10.0%
Federal Tax Rate 33.0% 33.0% 33.0%
Provincial Tax Rate 5.0% 5.0% 5.0%
Personnel Taxes 15.0% 15.0% 15.0%
7.5 Profit and Loss Statements
Proforma Profit and Loss (Yearly)
Year 1 2 3
Sales $407,778 $440,400 $475,632
Cost of Goods Sold $40,778 $44,040 $47,563
Gross Margin 90.00% 90.00% 90.00% Operating Income $367,000 $396,360 $428,069
Expenses
Payroll $198,500 $227,115 $257,268
General and Administrative $25,200 $26,208 $27,256
Marketing Expenses $2,039 $2,202 $2,378
Professional Fees and Licensure $5,219 $5,376 $5,537
Insurance Costs $1,987 $2,086 $2,191
Travel and Vehicle Costs $7,596 $8,356 $9,191
Rent and Utilities $20,000 $21,000 $22,050
Miscellaneous Costs $4,893 $5,285 $5,708
Payroll Taxes $29,775 $34,067 $38,590
Total Operating Costs $295,209 $331,695 $370,169
EBITDA $71,791 $64,666 $57,900
Federal Income Tax $23,691 $18,656 $16,642
Provincial Income Tax $3,590 $2,827 $2,522
Interest Expense $8,738 $8,131 $7,468
Depreciation Expenses $4,107 $4,107 $4,107
Net Profit $31,666 $30,944 $27,160
Profit Margin 7.77% 7.03%