Business Plan – Presentation Prepared by Grace Prepaid Legal Group, Inc. 2009 Privileged &...
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Transcript of Business Plan – Presentation Prepared by Grace Prepaid Legal Group, Inc. 2009 Privileged &...
Business Plan – PresentationPrepared by Grace Prepaid Legal Group, Inc.
2009
Privileged & Confidentialv2
1
Why Prepaid Legal Services?
In America there are an estimated 122 million middle-income Americans who are members of legal service plans. Surprisingly, the Vietnamese market is still untapped.
Attorney’s, in general, are not being properly utilized. People perceive that lawyers cost too much, the act of hiring an attorney can be intimidating, or they simply do not know what type of lawyer to contact.
Direct-mail and other forms of marketing are designed to convince the public that legal services are valuable and that prepayment is the most feasible way to pay legal fees.
The growth of prepaid legal plans has sparked significant interest in the media and the financial community. The vast publicity in major newspapers, national magazines, and the broadcast media has brought the idea of prepayment for legal services to many Americans.
Commercially marketed plans have expanded to credit card holders, bank depositors, credit union and association members, and even people not affiliated with any group.
The reason the Vietnamese market is still untapped is because there is no Vietnamese Lawyer who has the vision to develop the market. Until now…
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Grace Prepaid Legal Has a Competitive Edge!
Vietnamese Market (Initial Target)
Prepaid Legal Sales Expert
Legal Business Run By Lawyers
Closed Network of Providers
Current Economic Timing
National Acceptance
American Bar Association
United States Chamber of Commerce
other National Chambers
3
Reaching the Vietnamese Americans
Attorney and Co-Founder of Grace Prepaid Legal Group, Inc. Tammy Tran is perhaps the only one in the United States that has a valid and dependable list of 2 million+ Vietnamese names and addresses. (See Exhibit 1-20). From these 2 million names and addresses, and based on conservative estimates, we project to create a solid membership base of 100,000+ members within the first 12 months of operation, with an average membership term of 3 years.
Tammy Tran’s circle of influence in the Vietnamese community will be monumental in achieving this membership goal. Tammy Tran also has media access through radio and national television broadcasts that are currently listened to and viewed by thousands.
Performance wise, we have a group of 45 practicing lawyers, along with their firms, who are licensed in 50 states. These lawyers will represent our members throughout the United States. With the influence of our excellent reputations and high expectations of service, the lawyers will provide the best quality of work.
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Grace Prepaid Legal has an Incredible Sales Expert
In order to recruit the top sales associates and to assist with the implementation, Rosa Battle has been retained as a consultant for Grace Prepaid Legal Group, Inc. Ms. Battle has 12 years of direct sales experience, including 7 years with Prepaid Legal Services, Inc. During her tenure with Prepaid Legal Services, Inc. she built an organization of 44 thousand sales distributors in 2 years, which generated approximately 5 million memberships and paid out over $15,000,000 in commissionable dollars over a 7 year period from February 2000 – 2007. Based on the production goals she achieved, Ms. Battle was appointed Regional Vice-
President for the State of Texas by Prepaid Legal Services, Inc. Ms. Battle will bring the depth of her experience and operational “know-how” to Grace
Prepaid Legal Group, Inc. and help aid in a seamless start-up process which will facilitate in meeting and exceeding Grace Prepaid Legal’s production and revenue goals.
Under Ms Battle’s guidance, Grace Prepaid Legal Group, Inc. will recruit a sales force of 5,000+ distributors within the first 24 months.
As a reference, during this period, Prepaid Legal Services, Inc. generated $350,623,000 in 2002; $361,313,000 in 2003; $385,937,000 in 2004; $423,380,000 in 2005; $444,024,000 in 2006; and $457,089,000 in 2007 in revenues. (See Annual Reports for 2002-2007)
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Revenue Projection
Conservatively, we estimate 100,000+ members within the first 12 months of operation, with an average membership term of 3 years.
100,000 members at a $25 monthly fee who prepay a 3-year membership term = $90 million in revenue ( 100,000 x 25 x 36 = $90 million) The initial target market is the American Vietnamese Community which currently has
an estimated population of 2,000,000. However, this number is growing substantially. The city of Houston and surrounding areas alone have a Vietnamese population of approximately 200,000. Additionally, there are over 400,000 Vietnamese throughout all of Texas and approximately 600,000 Vietnamese in California.
The revenue generated will be shared according to the trade. 1/3 will be paid out to Grace Prepaid Legal Group’s investors, 1/3 to the sales force, and 1/3 to the Primary Attorneys’ Law Firms with provisions.
To avoid the problems of substandard legal service that other prepaid legal service companies have had, Ms. Tran suggests that a percentage of the 1/3 funds paid monthly to the Primary Attorneys’ Law Firms be placed in an escrow account, and the total funds shall be released only when the services of such provider firm is triggered/used by the members.
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Membership Plans
5-Year Plan (Premiere Plan) $1,250.00 - enrollment fee is waived plus Platinum Membership privileges.
Platinum Membership privileges: membership includes priority call-in number, additional pre-trial and trial hours, and a 3 day vacation at a hotel resort.
3-Year Plan $900.00 - enrollment fee is waived plus Gold Membership privileges.
Gold Membership privileges: priority call-in number, additional pre-trial and trial hours.
2-Year Plan $600.00 - plus a one-time enrollment fee of $10.00.
1-Year Plan $300.00 - plus a one-time enrollment fee of $15.00.
Month to Month Plan $25.00 per month plus one time enrollment fee of $20.00.
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March 2009 Marketing Campaign
Direct Sales Through Home Based Independent Distributors Direct Mail
We are prepared to send 2 million direct mailers to 2 million potential memberships. 400k in Texas | 500k in California | 100k in Louisiana
Radio Broadcast Through Local Networks Radio advertising will assist Grace PPLG in creating awareness of the membership.
Houston, TX | Austin, TX | Dallas, TX | Beaumont, TX | Port Arthur, TX |Fort Worth, TX | New Orleans, LA | Westminster, CA | San Jose, CA | San Francisco, CA | Los Angeles, CA | San Diego, CA
TV Through Local Channels For years Tammy Tran has had a broadcast show that has aired in 50 states.
Direct TV Saigon Broadcasting Television Network (SBTN) - Direct TV Channel 2072• a Vietnamese television network with a viewing audience of 2 million people.
Additional Advertising on Hon Viet - Direct TV Channel 2078. Additional Advertising on HVN - Direct TV Channel 2073.
Email Advertisement and Web Marketing News Papers and Print Media Reunited Former Sales Force
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Sales Messages to Attract Distributors
1. Distributors can decide when and where. No experience or specific time
commitment required. Spend their time as they choose. Operate in the environment that
meets their needs. 2. They have the Control. Be their own boss. Set their own goals. Huge marketplace. No employees or inventory to
manage.
3. Minimal Out-of-Pocket Expenses. Low initial investment. Little or no overhead.
4. Simple Training System. Company provides Sales & Leadership
training. Company provides product and
services training.5. Lucrative Compensation Plan. Residual Income. Bonuses.
6. Tax advantages.
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There are six reasons to join Grace Prepaid Legal Group, Inc.:
Our Product – Terms of Title I
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Title I - Preventive Legal Services
Legal Consultation & Advice - Unlimited telephone consultation on personal and business matters.
Letters and Phone Calls - Letters written and/or a phone call made on behalf of the Member.
Contract and Document Review - Review contracts and documents up to 20 pages. Contracts and documents are faxed to the Provider for review.
Will Preparation - The member is provided a standard Will once a Will Preparation Kit is completed by the member. The Will is updated annually. This area covers Living Wills and Durable Power of Attorney.
Our Product – Terms of Title II
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Title II - Motor Vehicle Legal Services
Minor Motor Vehicle Legal Expenses - A Provider Attorney will represent the member and/or spouse and covered family member for moving traffic violations. The covered member must have a valid driver’s license and proper registration for the vehicle.
Major Motor Vehicle Legal Expenses - A Provider Attorney will defend the member and/or covered family member if charged with Manslaughter, Involuntary Manslaughter, Negligent Homicide, or Vehicular Homicide.
Personal Injury or Auto Damage up to $2,000.00
Suspended Drivers Licenses up to 4.5 hrs.
Our Product – Terms of Title III
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Title III - Trial Defense Services
Trial Defense- a Provider Attorney will provide assistanceif the member or members spouse is named in a civil or job related lawsuit, up to 350 hours.
Membership Hours: 1st year = 20.5 pre-trial 39.5 actual trial hours = 60 total hours. 2nd year = 60 pre-trial 60 actual trial hours = 120 total hours. 3rd year = 90 pre-trial 90 actual trial hours = 180 total hours. 4th year = 120 pre-trial 120 actual trial hours = 240 total hours. 5th year = 200 pre-trial 150 total hours = 350 total hours.
Our Product – Terms of Title IV
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Title IV - IRS Audit Legal Assistance
Audit Legal Assistance - A Provider Attorney will assist if the member or member's spouse receives notice of an IRS Audit, up to 50 hours.
Membership Hours:
10 hrs. = consultation, advice, and assistance when the member receives written notice of an IRS audit or notice to appear at an IRS office.
20 hrs. = audit representation negotiation, phone conversations, and settlement conferences beginning on the (31st) day after written notice of an IRS audit.
20 hrs. = actual trial appearance if law suit from IRS or members.
Our Product – Terms of Title V
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Title V - Preferred Members Discount
Representation for legal services that are not covered under Titles I -IV. The member and covered family member(s) will receive up to a 50% discount off the standard Provider Attorney’s hourly rate.
First year - 15% discount
Second year - 25% discount
Third year - 33% discount
Fourth year - 40% discount
Fifth year - 50% discount
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High-Tech Call Center at 9999 Bellaire Blvd.The Top Facility Located in the International District Center
With massive media campaigns and advertising efforts through broadcast radio, television, direct mail, newspapers, and magazine advertisements, we will generate interest and an influx of telephone calls to purchase the memberships. We will setup a Call Center located at 9999 Bellaire, Houston, Texas which is in the heart of Houston’s International District. The Call Center will be staffed by trained sales representatives. These experts will be knowledgeable on all types of memberships available. They will be specifically trained to focus sales efforts on the 3 and 5 year membership plans. The 3 and 5 year plans will provide special incentives and benefits to encourage longer term memberships. The representatives will inform the potential members of these additional benefits.
Legal Plan Processing System
Legal Plan Processing System
The Legal Plan Processing System will be required to process membership requests and generate an online processing method. Memberships will be processed through paper applications; however, all applications will be incorporated via the Legal Plan Processing System once paper applications are received.
The Legal Plan Processing System will house all membership data, such as demographic information, membership effective and expiration dates, who’s covered by the membership and the type of membership. It will also contain the information of the Provider Attorneys. For example using Oxbridge Lawyers, we will have 45 law firms throughout the United States to be our Provider Attorneys.
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Sales Associate System
The Sales Associate System will be the central data center for all the independent sales associates. Sales Associates will be able to sign up through paper applications as well, however, they too will be incorporated into the Sales Associate computer program once received and processed.
The Sales Associate System will house all the sales associates, demographic information, start date, running account balances, and the number of membership enrollments.
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Sales Associate System
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Member Case/Encounters Processing System
Member Case/Encounters Processing System
The Member Case Processing System will be the computer program that assigns an “Intake Number (case number)” and logs all telephone calls that are answered through the company’s call center. When the call is placed by a member, it will then be dispatched to the Provider Law Firm, who will take the call and assign his/her Attorney to render the legal services necessary. The Provider Law Firm will be required to enter into the system the particular legal problem of the member. As the case proceeds, a periodic memorandum report will need to be entered into the membership case processing system. This will ensure that our members are satisfied with the service they are provided.
Grace Prepaid Legal Group will have a quality assurance representative that will handle member complaints and concerns.
Budget
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See Preliminary Projected Start-Up Expenses/Cost
Operating Budget
Office $70,600.00 Phone Systems $86,941.50 Hardware $37,900.00 Salaries and Consulting $1,241,000.00
General Marketing and Advertising $2,011,200.00
Software/Database $200,000.00 General Administration $438,500.00
License, Applications, and Legal Fees $864,000.00
Employee Benefits $70,600.00 Accounting and Auditing $100,000.00
Total Capital Needed $5,050,141.50
Conclusion
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Grace Prepaid Legal Group is a unique and beneficial service for the American Vietnamese community through these trying economic times.
Realistic goals. Each competitor currently has a 1+ Million membership base (Annual Revenue =
$400,000,000-$500,000,000). None of them has tapped into the Vietnamese market.
The US National Vietnamese population is estimated at 2 Million. Grace Prepaid Legal has a very attainable and conservative goal of recruiting 100,000 members within the first year. To put that into perspective, out of 2 Million potential Vietnamese Members, Grace Prepaid Legal Group needs only to recruit roughly 8k members per month, for the first year.
Revenue Projection = $90 Million Dollars! $25 per month x 3 year contract in advance x 100,000 members.
According to the Trade, 1/3 to the Investors, 1/3 to the Sales Force, 1/3 to the Performing Attorneys.
Organization Chart
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Co-Founders Adam & Tammy Tran
Consulting Expert Grace OperationIn House Counsel
John Akard
Primary AttorneysLaw Firms in U.S.
Referring Attorneys
Chief Executive Officer
Graphics, Website, & Media Materials Expert Michael Leitner
Assistant to Pete MaiJohn Na
Administrating Attorney
Pete Mai
IT ServicesCorvus
Technologies
Call Center Supervisor
Intake Coordinators / Sales Rep
7-10 Employees
Receptionist
Sales ForceSales Associates
Chief Managing DirectorRosa Battle