Self-Employment Orientation and In-Depth Self-Employment Exploration and Discussion.

1. Provide general information on the Self-Employment Process when a client expresses interest so a client can make an informed choice.  If client wishes to pursue Supported Self Employment all steps apply. (See: Checklist 1; Use the Self-Employment tools - Advantages & Disadvantages of Self-Employment and Green Flags/Red Flags {located in Forms & Tools.} )  (If client is requesting Supported Self Employment, use Supported Self Employment Checklist in conjunction with the others.)
2. If the client wishes to pursue the in-depth exploration of Self-Employment, refers her/him to the Self Employment VR Specialist. 
3. Document discussion results in QE 2 including the specific red flags and green flags identified.
4. The client completes the Self Employment Questionnaire with or without assistance. Authorize to a DD provider of client's choice if client is choosing Supported Self Employment.  The VR Specialist and the Client discuss and analyze the Questionnaire.  The purpose is to provide guidance and to address disability and vocational issues that impact the business idea.
5. The VR Specialist refers the client to a VR evaluator to assess bookkeeping and business skills (See: Checklist 2)
6. If the client is a Social Security recipient, complete necessary releases and refer to VR Benefits Specialist for a general benefits orientation.
7. The client completes the personal finance sheets.
8. If the Client and VR Self Employment Specialist agree to the next step of Feasibility Assessment, contact the Program Specialist for Self Employment to review the self employment packet.
9. Program Specialist for Self Employment sets up a meeting to review all of the materials for feasibility with the Self Employment Team and the VR Specialist.
10. Program Specialist for Self Employment completes a TASK entry in QE2 summarizing the basis for the decision of the above meeting.
11. Self Employment Specialist refers for a Feasibility Assessment. The referral includes all the required information and the authorization for services including mileage over 25 miles.  Enter in QE 2 as Assessment Support-Self-Employment –Consultation (See provider information under forms & tools)
12. If the client and VR Self Employment Specialist choose not to pursue self-employment at this time, refer the client back to the originating VR Specialist to explore other services. Task note basis of decision and why in QE-2.

Conduct the Feasibility Assessment

1. The Business Consultant will conduct a Feasibility Assessment.  It will include: a determination if the business concept is feasible:  determination of sufficient demand for a product or service; determination if client possesses the technical, interpersonal and managerial skills to run a business and other information.  It will also include development of: a general market concept feasibility: a general market feasibility; a financial analysis and a SWOT (strengths, weaknesses, opportunities and threats) analysis. 
2. Business Consultant sends copy of feasibility assessment and an invoice to the VR Self Employment Specialist and to the Program Specialist for Self-Employment.  
3. The Program Specialist for Self-Employment coordinates a meeting with the Business Consultant, the VR Self Employment Specialist and the Client.  Preferably, the meeting is face-to- face.  If face-to-face meeting is not possible, set up video conferencing or another method of communication
4. A meeting is required whether the Feasibility Assessment is positive or negative to review the results of the feasibility. 
5. If the Feasibility Assessment is positive and everyone agrees, authorize to the Business Consultant for development of a business plan.  The Self-Employment Program Specialist  discusses next steps with the client. 
6. If a decision is made for Business Plan development, the VR Self Employment Specialist meets with the client to provide options for selection of Benefits Planning vender and a referral is then made for Benefits Planning and Analysis.
7. Client will provide information to the Self-Employment Program Specialist and the Business Consultant in a timely manner.
8. If the Feasibility Assessment is negative, discuss alternatives with the client and the VR Self Employment Specialist and refer back to originating VR Specialist.

Develop the Business Plan

1. Business Consultant, Program Specialist for Self Employment, VR Self Employment Specialist and Client will develop a business plan.   
2. VR Self Employment Specialist authorizes for up to 18 hours for Business Plan Development and milage in excess of 25 miles.
3. While Business Plan is being developed, the VR Self Employment Specialist refers to ATP if accommodations will be needed.  Reason for referral is marked Self-Employment Consultation.
4. The Business Consultant submits the completed plan
5. The Program Specialist cordinates a meeting with the Business Consultant , the client and the VR team and other providers as appropriate to ensure the following criteria are discussed during the meeting:

• The business idea or concept is sound, based on an appraisal of similar ventures and their result.
• There is a market for the goods or services to be provided by the business based on an appraisal of the market for the goods or services, market competition, and the recipient’s market strategy.
• The business venture is financially sound based on an assessment of initial start-up costs, credit and financing availability, and pro forma cash flow and profit/loss statements.
• The recipient will be able to manage and operate the business based on the consistency between the requirements of the business and the recipient’s unique strengths, resources, priorities, concerns, abilities, capabilities, and interests.

       6. The VR Self-Employment Specialist develops the IPE if the above criteria are met and the client and VR agree to business plan. Both agree on a targeted net monthly income. 

       7.  VR Self-Employment Specialist agrees with the Business Plan.  VR responsibilities are specified on IPE.  Client responsibilities are outlined on the IPE including submitting recipts and the required monthly targeted income information with the VR Program Specialist. Move the client to services initiated-VR Services in QE 2.

       8.  VR Self-Employment Specialist authorizes the appropriate business start-up costs, skill training and/or disability related costs as described in the Business Plan and the ATP report if appropriate.  Submits to High Cost Fund if an individual item costs over $2000.

     9.  Upon completion of purchase of start-up items and the business is operating at the targeted monthly income, place the individual in Services Initiated-Employment follow-up milestone.

Business Plan Implementation

1. The Self Employment Program Specialist will support the client and monitor the client’s progress during the implementation process.
2. The Program Specialist will refer and advocate for the client to other business funding sources.
3. The Program Specialist will problem solve with the client any barriers encountered.
4. The Program Specialist will coordinate with the VR specialist any ATP accommodations.
5. The Program Specialist will ensure any training or supports needed are implemented.
6. The Program Specialist will coordinate with the client and Benefits Planner, if appropriate.
7. The Program Specialist will coordinate with the VR marketing team to ensure the new business is marketed to appropriate customers.
8. The Program Specialist has a minimum of weekly contact during this period.
9. All of the above services will be documented in QE 2 as they occur.

Business Monitoring

1. The Program Specialist follows up with Business owner to review business process to provide assistance, to address problems and to ensure the new business is progressing as planned.
2. The Program Specialist has monthly communication with business owner.
3. Client reports the monthly income business is producing.
4. Monitors the Target Net Monthly Income Goal. This targeted income goal can be revised if agreed upon by the client, VR Specialist and Self Employment Program Specialist.
5. The monthly contact is recorded in the file along with the copy of the financial reports.
6. The Program Specialist notifies VR Specialist of progress.
7. Document all progress in QE 2.

Successful Closure

1. The client submits the monthly financial statement. When the client reaches the Target Net Monthly Income Goal, an outcome may be considered.
2. If a client is unable to reach the Target Net Monthly Goal, but stabilizes at a lower income level for a minimum of 3 months, a successful outcome may be considered if the client is in aggrement.
3. For reporting purposes in QE2 never exceed 40 hours for the number of hours the individual is working during the week.

Self Employment Definition:

• Generate excess cash flow from profitable operations by providing specific goods, products or billable services through at least 51% ownership of the business; earn income directly from one's own trade or profession.
• Attain financial independence by maximizing earning capacity based on individual disability.

Definitions:

• Professional Technical Assistance - any training required to start up or maintain a business. Examples include; accounting/Quickbooks, equipment operation, etc. All professional Technical assistance is funded as part of the start up costs and provided by non-contract venders.
• Self Employment Consultation - services provided by a contracted consultant to complete a feasibility assessment or the development of a written business plan. 
• Business Plan Implementation/revision — services provided ONLY by contracted consultant for  capability statement, business plan revision and business expansion/stabilization.  
  • Capability Statement - statement required by businesses desiring to acquire federal contracts. Federal contractors are being required to submit a Capability Statement as part of the competitive screening process. 
  • Expansion/stabilization Report - clients already operating a business and in need of support in the growth or stabilization of the business.
  • Business Plan Revision - utilized when revision to a business plan are determined necessary and agreed upon by client and self employment team. 

Nebraska VR Self-Employment funds will not be used for the development of the following business models:

• Multi-Level Marketing
• Speculative ventures
• Illegal or "under the table" business
• Real Estate
• Passive ownership (Business Investment-no active management)
• Commission based sales
• Hobbies (non-income producing)
• Dealers of rare coins and stamps
• Pornographic or illicit business
• E-Bay sellers
• Serial plaintiffs (Litigation)
• Gambling Activities
• Churches and organizations promoting religious objectives
• Non-profit or charitable organizations

The following planning, client and funding requirements are essential to achieving a successful self employment/small business venture.

Planning Requirements

• Expert Consultation: Use expert technical consultation when a client is considering self-employment as a vocational option. Private consultants who have the required expertise and have a agreement with the agency provide technical consultation. The amount of consultation varies depending on the complexity of the venture.
• Business Plan:  Clients are required to develop and submit a written self employment Business Plan. In most cases individuals will be working with the business consultant listed below. The Business Plan is developed by the client with help from the consultant and submitted by the business consultant. The business plan must contain information presented in the Business Plan Outline.
• Legitimate Employment Outcome: Self employment is an acceptable outcome within the federal definition of ‘employment outcome’ and is encouraged in federal regulations. This outcome is not restricted to only those situations when a person’s disability precludes competitive employment and it should not be considered only as a last resort.

Client Requirements

• Maximize Potential: The intent of self employment is to maximize the individual’s potential based on disability and to become self-sufficient.
• Own Business: The client must own or be the majority partner (51%) in the business. Non-profit organizations are not owned by the individual and therefore not supported by the agency.
• Provide Financial Information: The individual must provide monthly financial information as requested by Nebraska VR Self-Employment Program Specialist .

Funding Requirements and Assistance

•  Technical assistance and other consultation services to conduct market analysis, to develop business plans, and guidance to  secure resources from sources other than the program for the establishment and operation of the small business enterprise.
• Expansion of a business. The Program Director of Counseling must approve any request for expansion of an existing business. Approval will be based on whether expansion of the existing business is required to enable the recipient to earn a living wage.  A minimum of three years (3) years of the most recent business federal tax returns must be submitted as part of the approval process. If approved, the requirements below for new business start up expenses, expenses not allowed, and application of resources apply. If business is less than one (1) year old, it is considered a new business start-up.
• Maintaining an Existing Business. Program financial assistance is available for assistive technology, adaptive devices, specialized equipment, and /or job site modifications which compensate for limitations resulting from a disability and to assist the individual to maintain their self employment.  Most recent full year of business tax returns must be submitted and reviewed to see if business viable.
• New Business Start-up Expenses. Expenses related to starting a new business include the following and are limited to an establishment period not to exceed six (6) months.
  • Occupational licenses, franchise fees, and business permits including those required by any unit of state or local government.
  • Tools and equipment.
  • Stocks and supplies.
  • Operating costs such as rent, utilities, business liability insurance and advertising.
  • Vehicle acquisition.
  • Professional technical support 

Program financial assistance cannot be used for:

• Purchase of land or buildings; or
• Construction, renovation, or remodeling of buildings or space to be used.

The recipient must first apply personal and/or family resources and all financing available through grants or loans to the required business start-up expenses.

• Program assistance is available for the remaining business start-up expenses, up to the limit in Rule 72. Examples of specific loans available to individuals with disabilities include
  • Nebraska Alternative Financing Program (Administered by Easter Seals)
  • Nebraska Telework Loan Program (Administered by Easter Seals)
  • Small Business Administration  (SBA)
  • Rural Enterprise Assistance Project (REAP)
  • GROW Nebraska
  • Farm Service Agencies
  • US Department of Agriculture
  • Veteran's Administration

Exceptions

The Program Director of Counseling may grant exceptions to the limit on new business start up expenses after considering the following factors:

• The availability of financing from the Nebraska Department of Economic Development, the Small Business Administration, programs administered United States Department of Agriculture, or other programs and entities experienced in the financing of start-up small businesses;
• The reasons for the availability or non-availability of financing from the programs and entities listed above;
• The limit for business start up expenses in Rule 72 along with other resources are insufficient to establish the small business enterprise; and,
• The availability of other employment options consistent with the recipient’s unique strengths, resources, priorities, concerns, abilities, capabilities, and interests.

Other Considerations

• Authorize agency funds for business start-up costs to vendors when possible since the state pays no state sales tax while the client would.
• Assistive technology services (disability related expenses), self employment consultant and business Plan Implementation/Revision are not considered small  business start up items and are not included in the funding limit in Rule 72 for small business start up expenses. 

Business Plan Outline

Use the following outline to prepare a written Business Plan. The Business Plan provides detail for the business start-up. It includes a chart showing all start-up costs and the recommendation on how those will be met. Part of that recommendation will indicate that assistive technology or disability related costs are included and the amount of expected contribution by the agency in the actual business start-up costs.

• Cover Sheet including; business name, owner name, business address, phone, email, website
• Description of Business/Executive Summary: limit to 1 page, include:
  • General Business Description
  • Mission Statement/Business Philosophy
  • Goals/Objectives—including Target Net Monthly Income Goal (TNMIG)
  • Target Market
  • General Industry Description--business strength, competitive edge, reason it will succeed
  • Legal Form of Organization
• Industry Background
  • Product, Services and Markets
  • Competition
  • Location of business
  • Operational Plan
  • Management and Organization
  • Marketing Plan
• Financial Data
  • Sources and Uses of Funding Table—sources (business owner, Nebraska VR, loans, other), uses (equipment, inventory), etc.
  • Capital Equipment List—include short rationale of need for each item
  • Cash Flow Projections—2 years
  • Break-Even Analysis
  • Projected Profit and Loss\Balance Sheets—2 years
  • Owner Financial Information—Personal Financial Statement
  • Risk Mitigation/Contingency Plan
  • Accounting issues—how records will be kept and who will be responsible *Supporting Documentation
  • Written cost estimates for equipment, services, etc. for which Nebraska VR funds will be used, according to the following guidelines:

    $1,999.99 or less—1 estimate
    $2,000--$4,999.99—2 estimates
    $5,000 and up—3 estimates

  • Samples of Forms, agreements, business organization papers,
  • logos, etc.
  • Photos of products, business location, etc