Approved Date: June 17, 2016
- GREEN FLAGS (Traits that support success in self employment.)
- Goal oriented behavior
- Business experience/management experience
- Bookkeeping/record keeping skills
- Support system
- Demonstrated personal initiative
- Computer skills (including basic typing)
- Ability to identify and access resources
- Stable financial history (has stable income and plan for transition to FT business, credit score, personal budgeting skills, etc.)
- Stable physical/emotional situation (interpersonal skills, soft skills, physical/emotional stamina needed for managing business)
- RED FLAGS (Traits that would make success questionable.)
- Lack of persistence/follow through (tasks agreed upon not done in timely manner, changing plan/goals, unable to see goal/task to completion)
- Unwillingness to accept immediate feedback (separating idea from self, ability to work with people of varied backgrounds)
- History of credit/financial issues (recent bankruptcy, no reliable source of income)
- Demonstrated unreliability (missing/late appointments, related to follow through, weak work history)
- Poor problem solving skills
- Unwillingness to ask for and utilize assistance
- Unclear vision of business idea
- Lack of stability (related to income, physical/medical condition, minimal time demonstrated sobriety)
- Ask the client to write answers to each of the questions on this form and assist as necessary.
- Discuss the answers with the client as a first time assessment of the business idea and how the client’s impairment might affect performance of the required duties.
- Go to the next step unless you have concerns about issues identified, especially related to disability.
Refer client to NebraskAbility for a Self-Employment Orientation and Consultation. Nebraska VR has a service agreement with NebraskAbility.
- Complete the Self-Employment Referral Form.
- Send a copy of the completed Self-Employment Discussion Questionnaire.
- Send a copy of the VR Evaluation/Assessment Report.
- Send any other relevant information.
- Authorize “up to” 15 hours at $40 per hour for Referral/Orientation. Enter Assessment Support Service-Self Employment Consultation in QE2.
- If more hours are required on any service, it is up to the Office Director and VR Specialist to determine if needed. Enter a task note that states the reason more hours are needed.
- Travel (gas) may be authorized as needed throughout the process. (State rate from provider’s primary work location to Service Delivery site in excess of 25 miles round trip.)
- Email all referral information and authorization to:
PO Box 394
Plattsmouth, NE 68048
ph: 402-296-2146 ext 102
PO Box 394
Plattsmouth, NE 68048
ph: 402-296-2146 ext 101
Refer Social Security Benefits Recipients to Easter Seals for benefits planning and analysis. (Mandatory-This must be completed before starting feasibility.)
Before making a decision to use sources other than NebraskAbility for consultation contact the Program Director of Community Services.
NebraskAbility will schedule a meeting (in person) with the client and VR to discuss the venture. (Videoconference an alternative)
Client must provide his financial information for review. This may include taxes, credit scores, loans.
NebraskAbility reviews and assesses all information. Recommends a Feasible Assessment study if warranted and client and VR agrees.
Develop the IPE if the above criteria are met and the client and VR staff member agrees with the Business Plan.
Email authorization to NebraskAbility.
- NebraskAbility will send a standard outline of services provided during the Feasibility Assessment to the VR Specialist.
At the completion of the Feasibility Assessment, NebraskAbility will send a written FA report to the referring staff member and the client as well as schedule a meeting (in person or videoconference) to discuss the FA. In the report a recommendation is made on whether the idea appears feasible or not. In addition, it will include the Target Net Monthly Income Goal (TNMIG) set by the client. TNMIG is used to determine grounds for successful case closure. Maintain this report in the case file.
- If the business idea is not feasible, NebraskAbility should be included in relaying the recommendation to the client. The meeting should be face-to-face.
If all parties agree, VR authorizes “up to” 25 hours at $40 per hour for Business Planning.
Email voucher to NebraskAbility.
- Refer client to ATP if accommodations may be required. Reason for referral is marked Self-Employment Consultation.
- NebraskAbility will send the VR Specialist a standard outline of services and timelines followed during the development of the Business Plan.
- Upon completion of the BP, NebraskAbility will provide a written copy to the VR Specialist and arrange for a meeting with the VR Specialist and the client to review the plan and funding.
- After this meeting, NebraskAbility will provide a written recommendation to the VR Specialist regarding funding and steps to implement the BP.
- The VR Specialist must review and approve the plan and funding before NebraskAbility will proceed.
- Ensure the following criteria are met:
- 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.
- Maintain a copy of the business plan and the written recommendation in the case file.
- Develop the IPE if the above criteria are met and the client and VR Specialist agrees with the Business Plan.
- In QE2, enter the Community Service: Small business – Technical assistance. Move the client to Services Initiated - VR Services milestone/activity upon IPE Approval.
- Authorize to NebraskAbility “up to” 25 hours at $40 per hour for Business Support and follow-up.
- Email authorization to NebraskAbility.
- Authorize the appropriate business start-up cost, skill training and/or or disability related costs as described in the Business Plan.
- When the business start-up items have been purchased and the business is operating, place the individual in Services initiated-Employment Follow-up milestone/activity.
- Monitoring of the business by NebraskAbility will occur until the business is stable and the client is self-sufficient or moving in that direction. A final report will be submitted to the VR Specialist.
- NebraskAbility will determine when the individual has reached their Target Net Monthly Income Goal (TNMIG) by using monthly financial information supplied by the client. VR Specialist will be notified and provided with information regarding the amount of income the business is producing. A successful employment outcome may be considered at that time.
- If the individual is unable to reach TNMIG but stabilizes at a lower income level for a minimum of 3 months, NebraskAbility will notify the VR Specialist in writing. A successful employment outcome may be considered at that time.
- For reporting purposes in QE2 never exceed 40 hours for the number of hours the individual is working during a the week.
The following planning, client and funding requirements are essential to achieving a successful self employment/small business venture.
Program financial assistance is available for:
- 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 including, but not limited to, legal and accounting services.
Program financial assistance cannot be used for:
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.
- Nebraska Alternative Financing Program (Administered by Easter Seals)
- Nebraska Telework Loan Program (Administered by Easter Seals)
The Director of Counseling may grant exceptions to the limit on new business start up expenses after considering the following factors:
- Modification of a vehicle used in the business is an example of a disability related expense.
- Technical assistance would include use of a consultant including an accountant or attorney to obtain information necessary during the feasibility study or during the business plan development. The monitoring fee paid to the business consultant is also considered to be technical assistance.
- Skill training might be provided to an individual who needs to acquire accounting principles to do bookkeeping for the business
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.
- 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
- Product, Services and Markets
- Location of business
- Operational Plan
- Management and Organization
- Marketing Plan
- 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
$5,000 and up—3 estimates
- Samples of Forms, agreements, business organization papers,
- logos, etc.
- Photos of products, business location, etc