Consumer shall obtain all required professional licenses and certifications prior to submission of a business plan.

Counselor advises consumer that final selection of self-employment as the vocational goal will be contingent upon the consumer’s completion and submission of an acceptable business plan.

Counselor refers consumer to best available Small Business Development Center (SBDC) or Service Corps of Retired Executives (SCORE) for counseling, basic classes, and completion of a Business Plan. Follow agency guidelines on confidentiality when working directly with SCORE, SBA, and SBDC.

Counselor refers consumers who are SSI/SSDI recipients to Social Security Work Incentive Liaison regarding impact of self-employment on benefits. Counselors should work closely with the DVR SSI/SSDI Coordinator.

Counselor provides ongoing guidance during this process to ensure that each stage of the endeavor is successful. Upon completion of the above requirements, the counselor and consumer will complete the Individualized Plan for Employment (IPE) with self-employment as the final vocational goal.

The completed unsigned IPE, Business Plan, criminal record check, consumer’s resume, signed release, the entire case record, and if required, the independent appraisal, will be forwarded to the Self-Employment Committee for review and recommendations. Counselor should submit a cover letter addressed to the Self-Employment Committee that includes a brief description of the business venture, and counselor’s support and/or reservations regarding the proposal.

The Self-Employment Committee will evaluate the feasibility of the business plan and provide a written response on the Self-Employment Proposal Review Form. The specific planning, negotiation, and approval of expenditures is the decision and responsibility of the counselor and management staff as required under agency policy.

In accordance with recommendations, the counselor and consumer should implement the IPE. The counselor will complete an Items Transfer Agreement (DVR-10) and Security Agreement (DVR-10-A) as appropriate.

It is critical for the counselor to put maximum effort into determining, before referral to workshops and counseling on self-employment, that the consumer has considered all the various aspects of self-employment. Discussion should focus on specific experiences and will provide a starting point for developing the Business Plan. The following are examples of questions that may be explored early in the counseling process with the consumer.

There appear to be some personality traits that are the hallmark of a successful businessperson. Here is a list that has been gleaned from Small Business Enterprises for Workers with Disabilities:

A successful entrepreneur:

The counselor’s responsibility is to review the Business Plan prior to developing the Work Plan. The consumer is responsible for generating the entire Business Plan, with assistance from recommended resources (SBA, SBDC, etc.)

The effective Business Plan should address the following topics:

The Business Plan should start with an Executive Summary, which concisely states key points. This should be written last, although it will be the first portion of the plan the readers sees.

The product or service being offered should be described, including any aspects that make this product or service unique (and therefore marketable).

A realistic assessment of available consumers should be included. Facts about local demographics and market research should be presented to support the estimate of potential consumers.

Competitors already in operation, and planning to establish territories in the local area, should be addressed. The plan should state why this business would be preferred over the competitors.

A plan for marketing should be presented, including schedule, cost/benefit analysis, and alternatives.

Cost of production must be addressed. This includes facility, supplies, salaries, license(s), taxes, insurance, shipping, transportation, and utilities.

The management section should present all persons involved in the business along with the credentials and experience which they will contribute and proposed work schedules and responsibilities.

The finance section should show equity/debt structure. If a loan is taken, it should include a schedule for repayment. Anticipated return on investment should be realistic (any new business will take 1 to 3 years to begin turning a profit). It is important to remember that 90% of funding for small businesses comes from private sources (either investors or lenders.).

See resource section for guidance and information on writing a Business Plan. There is a Business Plan outline to be used in presentations in PowerPoint in Windows 95.

A case should be closed when planned services are completed and the business shows definite signs of stability. Ideally, the revenues from the business venture should equal or exceed operating costs. The financial statement should show that the consumer is making enough money to cover long-term cost without external support. In most cases, this will require a minimum of one year in operation.

During the initial year of operation, the counselor should have quarterly meetings (preferably on-site) that include discussion of adequate cash flow, and monthly telephone contacts with the consumer. The department may review record keeping systems until the case is closed or until liens on any department equipment expire. Referral to appropriate guidance services, such as SCORE or SBDC should be made if signs of instability in the business venture surface.

The counselor will make arrangements for the retrieval of items no longer being used in the business by the consumer. Refer to the Items Transfer Agreement (DVR-10) for life expectancy of the item(s). Reassignment will be made as appropriate.

Small business enterprise owners who receive DVR assistance will be monitored yearly for a five-year period after closure. These yearly reviews will include the following questions:

Is your business still in operation?

If no…

…Why did business close, i.e. death, illness, business too demanding, tax problems, other financial problems, competitors, unforeseen market factors, etc.?

…Are you working in competitive employment?

…Is there retrievable equipment for DVR?

If yes…

…Has the business started turning a profit?

…Have you started drawing a salary?

…Have you expanded the business or planned for expansion?

…What changes has the business experienced in the past year?

What assistance in planning, developing and starting your business…

…Was it helpful and did it adequately prepare you to run a business?

…Was it not helpful?

…Do you wish you had received, based on your experience this past year?

Workshops - at a minimal cost

Service Corps of Retired Executives (SCORE) - counseling is free

Business Environmental Assistance Program (BEAP)

University of Kentucky

227 C.M. Gatton Business & Economics Bldg.

Lexington, KY 40506-0034

(606) 257-1131/FAX: (606) 323-1907

Suggested publications: Check with bookstore chains, who offer assistance to locate and order books by phone and on the Internet.