Law Times

Law TiMes • May 25, 2009 FOCUS PAGE 11 It's time to unleash the entrepreneur within BY JUDY VAN RHIJN For Law Times a legal practice, and economic realities forcing members of the legal profession to look for that extra edge, it's time for law- yers to consider whether they have the makings of a modern entrepreneur. Th ose who can create an in- W novative practice style or service or legal product may also need to fi nd an innovative, alterna- tive funding technique. Grants, subsidies, low or no-interest loans, tax refunds or credits, ith technology open- ing up the options for how to conduct a maximum of $350,000. Th e Business Development Bank of Canada also off ers loans to small and medium-sized enterprises. Applicants can obtain 125 per cent funding for the purchase of existing businesses and assets, with the extra component for the training and transition costs inherent in the purchase. For smaller business pro- posals, micro-credit fi nancing is the way to go. Th e Canada- Ontario Business Service Cen- tre lists current sources on its web site. Th ey range from orga- nized bodies such as the Com- munity Futures Development Corporations in Ontario to registered community venture "Lots of our young entrepre- neurs start with that," she confi rms, "then they develop a credit rating through us which they can leverage with a bank or the BDC or a venture capi- tal business." White says that loans are much easier to obtain through the CYBF than through tradi- tional sources because they are based on character, not collat- eral. Th e CYBF also off ers the services of its entrepreneur-in- residence to help applicants develop a robust, dynamic business plan and to provide pre-launch coaching. Another mandatory aspect of the pro- gram is the hand-matching Young people come in and say they don't need a mentor, they only want the money, but at the end of the two years they say the mentor was the most valuable thing . . . that's why we have a 95-per-cent repayment success rate. and repayable contributions are all out there for the asking if you know where to look. Th e usual practice of bud- ding entrepreneurs is to fall into the welcoming arms of a venture capital fi rm or an "an- gel," a wealthy individual who invests in small fi rms owned by others. Richard Rémillard, who is the executive director of the Canadian Venture Capital As- sociation, has yet to see a legal business come across his table, but he says that a legal software product would be something he would be interested to see. "If there is a lawyer out there who is tech-friendly and has a brilliant idea that will make life easier for lawyers, that's a start- up. Come and see us!" But he does have a warning. "Th e key thing that distinguishes venture capital from banking is that the investors tend to take an own- ership stake in the company. A condition of advancing capital to companies is that they get a seat on the board and play a fairly active role in the manage- ment of the portfolio." Without some kind of hi- tech angle, lawyers may have diffi culty fi nding a willing ear for their business proposal. Bryan Watson, executive di- rector of the National Angel Capital Organization, says that service-based businesses are hard to invest in. "Th ere is a less clear path to exit. Investors ide- ally wish to sell the investment in fi ve to 10 years. Th e attrac- tion would not be in the fact that it's a legal partnership, but in some other underlying as- pect of the business model that makes it scalable and develop- ing. I've seen it in accounting, where there is almost a franchise model of outsourcing." For medium-sized and larger proposals that don't raise ven- ture capital interest, Industry Canada off ers the Canada Small Business Financing Program. It provides government guaran- teed loans (up to 85 per cent of losses) to purchase fi xed as- sets such as land, equipment, or leasehold equipment up to Cox_Criminal Evidence 2010 (LT 1-3x4).indd 1 capital pools such as the AC- CESS Riverdale Community Loan Fund; the Stepping Stone Loan Program in the City of Greater Sudbury; the Ottawa Community Loan Fund; the Venture Creation Program in Waterloo/Wellington regions; and some Northern Ontario and aboriginal-oriented funds. If you have not yet reached your 34th birthday, the Ca- nadian Youth Business Foun- dation is a value-added place to shop for fi nance. Katrina White, the vice president of marketing and communica- tions, explains that the foun- dation will provide start-up fi - nancing up to $15,000 which is then matched by the BDC. of a mentor for the business for the fi rst two years. "Young people come in and say they don't need a mentor, they only want the money, but at the end of the two years they say the mentor was the most valuable thing," says White. "Th at's why we have a 95-per-cent repay- ment success rate." Lisa Neil of Neil Law Offi ce in Haileybury is one of the few lawyers to have accessed this funding. She received $30,000 in January to establish a solo practice in her hometown. "I was at a point where I wanted to try a lot of diff erent types of law and be my own boss," she explains. With a "tremendous amount" of student debt and very little credit, she needed to research alternative sources of funding. Her fi rst application was for a provincial Northern Ontario grant but she was re- jected because of her age. "Th e grants were for applicants who were 29 years and under." Neil then had to look for a loan, and at 32, she was still eligible for the CYBF loans. She was satisfi ed that the com- bined CYBF and BDC funds were suffi cient to purchase the furniture, computers, and soft- ware she required, and to pay herself and a part-time assis- tant a modest wage during the start-up period. She considers the terms to be much better than she could have received from a bank. "Th ey are more than palatable," she says. White describes the terms as "forgiving." Some recipi- ents pay the almost negligible amount of $50 to $100 per month over a three to fi ve-year period at the rate of prime plus one for the fi rst year and then at prime for the remainder. "Our entrepreneurs only pay interest in the fi rst year," says White. "We know the fi rst year is the worst year for cash fl ow, and our terms are very reasonable and eff ective." Neil says that the applica- tion process was very detailed but believes she learned a lot of skills from it. "I use the fi gures from the two-year cash fl ow sheet as a reference point all the time to see how I'm doing." When Neil opens a satellite of- fi ce in Newliskead, she intends to apply to a community- funding program for assistance or she may access the $10,000 'I use the figures from the two- year cash flow sheet as a refer- ence point all the time to see how I'm doing,' says Lisa Neil. of expansion funding that the CYBF off ers after two years. For even smaller needs, Em- ployment Ontario provides a gateway to a number of pro- grams. Th e Ontario Self-Em- ployment Benefi t Program is specifi cally designed to provide income and entrepreneurial support to the recently unem- ployed, including those return- ing from maternity or paternity leave. A number of job-creation programs provide wage sub- sidies for the employment of people with barriers to employ- ment. It has been used in the past to employ law clerks, book- keepers, and offi ce assistants. No matter what its size, there is help available for a busi- ness plan that is exciting and a legal entrepreneur that has the enthusiasm to carry it out. LT Cox's Criminal Evidence Handbook, 2009-2010 Quick access to the rules of evidence you need, the second you need them This book codifies the whole body of criminal evidence in one convenient resource. Inside you'll find all of the cases that have shaped the law of evidence. Each point of law is summarized as a precept, followed by a list of relevant case law so you can review an entire topic in a matter of seconds. Cox's Criminal Evidence Handbook, 2009-2010 includes more than 2,500 cases and more than 2,750 precepts including many new cases and topics. New precepts include topics such as: • Criminal Profiling and Crime Scene Analysis • Negative Impact on the Justice System • In Court Behaviour and Appearances • Requirement of Contemporaneity • Dying Declarations Once Admitted – Right to Attack Declaration • Expert Evidence – False Confessions • Statements Obtained by the "Mr. Big" Strategy • Failure to Electronically Record • Weighing Inculpatory versus Exculpatory Admissions • Material Gathered during Other Investigations Published every other year, subscribers to the 2009-2010 edition will receive a free supplement in 2010. Order your copy today! Hardbound • 724 pp. • May 2009 • Standing order $105 • P/C 0265140999 Current edition only $115 • P/C 0265010002 • ISSN 1201-253X For a 30-day, no-risk evaluation call: 1.800.263.2037 Canada Law Book is a Division of The Cartwright Group Ltd. Prices subject to change without notice, to applicable taxes and shipping & handling. www.lawtimesnews.com 5/20/09 3:30:42 PM LT0525 H arold J. Cox, Gregory Lafontaine and Vincenzo Rondinelli

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• Students In Good Shape
• The Dirty 30s
• Focus On Running Your Practice