Self-Employment as a Viable Option for Individuals with the Most Significant Disabilities Abby...

Self-Employment as a Viable Option for Individuals with the

Most Significant Disabilities

Abby Cooper

Kennedy Douglas Consulting

June 9, 2011

TACE Center: Region IV, a project of the Burton Blatt Institute.Funded by RSA Grant # H264A080021. © 2011 All Rights Reserved

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• Perceptions and facts about self-employment• Definitions • Elements to consider that impact vocational

rehabilitation counselors (VRCs) supporting self-employment for persons with the most significant disabilities

• Initial questions to consider• Factors that make self-employment a good fit• Customized self-employment• Useful Resources

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Areas To Be Covered


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• 50% of all businesses fail within the first year.• My state agency does not support self-employment

and/or the policy is too complex.• Self-employment is too difficult for people with the most

significant disabilities.• My clients have never worked how can they be self-

employed?• Individuals on SSI or SSDI should not be self-employed

because of resource limits.• I have to be able to prove the business will succeed with

limited risks because these are public dollars.• Self-employment should only be done as a last resort.

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Self-Employment


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• 24 million people are self-employed

• Self-employment is a great way to build assets

• 77% of Business are small businesses

• Georgia and Florida are two of the top five states in the percentage of their populations being small business owners

• Small businesses contributes 1 billion dollars annually to

the economy 4

Some Facts


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• Self Employment - Owners of unincorporated businesses who get their income directly from their profits selling goods and/or services.

• Entrepreneur - Refers to individuals who pursue business opportunities regardless of the resources they currently control, with confidence that they can succeed, with the flexibility to change course as necessary, and with the will to rebound from setbacks.

• Entrepreneurs choose a level of personal, professional or financial risk to pursue opportunity.

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What is Self-employment


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• Few people come to VRCs knowing they want self-employment• Most people with the most signficant disabilities do not know they

want self-employment• Need to be open• There is a tendency to just think of traditional employment

because: Feel more comfortable with traditional employment Experience with self-employment is frequently limited Managing a self-employment case can take more time There can be fewer community providers that assist with self-

employment Gauging success with self-employment can be complex There are less risks with traditional employment 6

Starting Points


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• What is your image of and attitude towards self-employment?

• One’s image and attitude towards self-employment impacts how self-employment cases are handled.

• Know your agency parameters around self-employment. It is important to lay out what you can provide and what you can not from the start

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Need a positive image of self-employment


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• What will it take to make the business concept feasible? If this will not work what will? Who will assist?

• What supports/resources are brought to the table by: VR ? The potential business owner/ family? Other funding sources/ or resources

• It’s important for the potential business owner to think about what equity he or she will bring to the table Time- how much Money – PASS plan, IDA (match savings account),

low interest loans 8

Basic things to think about initially


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• You need to help the potential business owner to think about potential risks: What are the potential risks; Whose risks are they; Are the risks reversible; and Can the risks be addressed.

• If there is a risk it doesn’t mean the business concept should not be pursued, rather it presents an opportunity for the plan to be further developed.

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RISK


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• There are limitations of earning an income with wage jobs

• The person has a support system that is committed to the person

• It’s what the person wants and there’s a potential market• The business concept highlights the person’s

contributions• Self-employment is one of the best ways to create

assets

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When Self Employment for Individuals with the Most Significant Disabilities Could Makes Sense?


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• The individual has a special interest or talent that they have the potential to receive reimbursement for

• The individual has an innovative idea

• An opportunity to create the ultimate customized job, work tasks designed for the business owner

• Virtually no local wage jobs exist that will fit the skills and abilities of the person

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Reasons that Self-employment might fit for the person


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• It starts from the vantage point that if it fits with who the client is then it makes sense to pursue.

• It will require the questions we ask and how we evaluate concepts to change.

• Less proving and more collaboration.

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A Different Perspective


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• Not just about the business plan and feasibility study.• How does self-employment match with the person’s

contribution and conditions?• Why does this fit with the person’s lifestyle?• What supports does the person need to contribute?• Who wants the business?• How can VR assist, and what will it take to make this

work?

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Think about


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The Difference

• The business concept and design are based more on the interests, skills and conditions of the individual than the needs of the local market

• Discovery is the primary strategy utilized to begin the process of getting to know the individual

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The Process – Customized Self-Employment1. Discovery of Potential Business Owner2. Creation of a written profile3. Discovery Meeting,

Business concepts, Possible Team Recruitment

4. Business Concept Plan and Team Identification5. Research of Potential Business Concepts6. Determination of Business Concept7. Options for development- financial, marketing,

operations8. Business Plan Formulation9. Business Implementation10. Plan, do, act, evaluate, and then repeat the cycle 15


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The Difference

Customized• Based on the potential

business owner (PBO)• Created to fit the person’s

contributions & needs (including $)

• Built on the person’s interests

• Designed to utilize the best of the PBO

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Traditional

• Based on a business need in the community

• Created to make money

• Designed on typical business, similar to franchising


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• Provides a thread to follow in regards to what tasks a person could offer either as a business or an employee

• Good discovery lays the foundation for business concepts

• Identifies what the operational method of the business should look like based on the person’s best environment.

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Discovery


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• Identifies potential team members for the business planning

• Discovery should identify and clarify why the person wants to establish his or her own business.

• How self-employment fits with who the person is

• Business Development is driven by a multi-tiered planning process that utilizes both the strengths of the individual/family and local entrepreneurs

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Discovery (cont.)


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Features of business planning

• A business support team is recruited to offer assistance in developing and/or running the business.

• Specific business duties may be shared between the owner and the business support team based on negotiation.

• The business belongs to the individual or, as appropriate, to a partnership or other legal structure that includes the person as co-owner.

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Customized Self-Employment

• A business support team is recruited to offer assistance in developing and/or running the business.

• Specific business duties may be shared between the owner and the business support team based on negotiation.

• The business belongs to the individual or, as appropriate, to a partnership or other legal structure that includes the person as co-owner.

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How do you know if it counts as self-employment?

• The determination of what comprises a successful business is made in a partnership that includes the individual, the business support team, the service provider and VRC.

• The Potential Business Owner and his/her team must know VR’s parameters prior to planning.

• The individual should determine the degree of personal investment made, earnings sought and meaningfulness of outcomes.

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Information needed from a Customized Self-Employment Meeting• Description of Ideal Employment Situation

Ideal working conditions• Hours to work• Earnings needed• Physical and social environment characteristics• Supports needed

Assistance to do tasks, Leave home, Transportation, Bookkeeping, People that will be/or need to be involved

• Preferences • Contributions: Specific resources, skills,• Connections that the potential business owner brings to

the business


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• Potential Business Task: This a list of job duties or tasks that the business owner will do for the business. Tasks need to be consistent with the Ideal

Employment Situation A translation of those tasks to a possible business

needs to occur

• Business Development /Prospecting list This is a brainstorming activity based on all the

information you have to identify business concepts that personal business owner is interested in pursuing

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Customized Self-Employment Meeting


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Customized Self-Employment Meeting (cont.)

A list is created that identifies:

Business Concept

Resource Connections

Researcher

•Caning •Local Hoppy Shop •Job Coach

•Greeting Cards •Craft Fair Coordinator

•Mom

•Salmon Tee Shirts •Gift Shop Owner •Sister

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Example of Areas to be Researched

• Possible Services or products made including cost• Customers for the business• Competitors• Tasks• Work Characteristics• Costs & potential earnings• Potential partners• Location• Challenges• How does the business concept match with the potential

business owners interests and contributions• What duties will the potential business owner perform 25


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Business Labor Analysis

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Work routines/ Tasks

Task completed Business owner knows=K

To be learned=L

Paid staff =P

Unpaid =U

Contracted Services

Labor cost-Owner

Employee

Contract

Operational cost-

Rent =R

Materials=m

Equipment = E

Daily

Weekly

Monthly

Annual


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Elements that need to be part of the planning• Identification of unpaid and paid supports and their role

in the business• The supports needed to run the business- both supports

to perform the work and personal assistance and/or job supports

• Contracts or MOUs that need to be in place• Legal requirements – licensing, insurance, etc.. • Services and/or products that need to be purchased and

who is purchasing those services• Budget – one for start up and the first six months of

operation• Services to be purchased from a provider


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Business Plan• Business plans are formal documents that provide a

justification for the business to potential funders. Most VR agencies require some form of a business plan

• Some Customized Employment Self-employment cases need a business plan but it should not be the starting point

• Usually the business plan should include: type of service or product, identification of the competition, amount and type of all costs, marketing plan, breakeven point, five year projections.


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Resources• Start UPUSA VR Resources

(http://www.start-up-usa.biz/resources/state_policies/vr.cfm)• IRS Self-employed Individual tac center

(http://www.irs.gov/businesses/small/selfemployed/index.html)• Abilities Fund (http://www.abilitiesfund.org/)

Developer and financial institution targeted exclusively to advancing entrepreneurial opportunities for Americans with disabilities.

• BOLD Business Consultants (http://www.bold-owners.com/) Business persons Overcoming Limitations from Disabilities various entrepreneurial resources and services.


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More Resources• disabilityBiz.org

Resources and counseling to people with disabilities who are starting or running their own business.

• Disabled Entrepreneur (http://www.disabledentrepreneur.com/MPN/index.php) new online community.

• Office of Disability Policy (http://www.dol.gov/odep/programs/promotin.htm) summary information on self employment for people with disabilities.

• Emerging Workforce of Entrepreneurs with Disabilities (http://papers.ssrn.com/sol3/papers.cfm?abstract_id=382587) Research paper: Preliminary Study of Entrepreneurship in Iowa


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And More Resources• Self Employment in Rural Areas

(http://rtc.ruralinstitute.umt.edu/SelEm/RuSelfEm.htm) Research and resources from the Research and Training Center on Rural Rehabilitation Issues.

• Small Business and Self-Employment Service (http://janweb.icdi.wvu.edu/sbses)Information and advice on business development for people with disabilities.

• PWD - Self Employment (http://groups.yahoo.com/group/pwd_self-employment)Yahoo Discussion group on issues of self-employment for people with disabilities

• Training, Resource and Assistive Technology Center (http://trac.uno.edu/staff.htm)


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Comments & Questions


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Contact Information

Abby Cooper

Kennedy Douglas Consulting

Email: [email protected]


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TACE Center: Region IV Toll-free: (866) 518-7750 [voice/tty]

Fax: (404) 541-9002

Web: TACEsoutheast.org

My TACE Portal: TACEsoutheast.org/myportal

Email: [email protected]

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Education Credits DEADLINE: June 22

CRCC Credit - 2.0 Approved by Commission on Rehabilitation Counselor Certification (CRCC)

To earn CRCC credit, you must:• Login to your MyTace Account & score 80% or better in 3

attempts on Post Test.• Complete: CRCC Request and send a copy to the CRCC

office. CEU Credit – Pending

Approved by the University College at Syracuse University• Participants must submit an online CEU Request Form via the

MyTACE Portal.

My TACE Portal: TACEsoutheast.org/myportal

**For CRCC credit, you must reside in the 8 U.S. Southeast states served by the TACE Region IV [AL, FL, GA, KY, MS, NC, SC, TN]. If beyond TACE Region IV, you may apply for CEU credit.

http://tacesoutheast.org/myportal


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Disclaimer

This presentation was developed by the TACE Center: Region IV ©2011 with funds from the U.S. Department of Education, Rehabilitation Services Administration (RSA) under the priority of Technical Assistance and Continuing Education Projects (TACE) – Grant #H264A080021. However, the contents of this presentation do not necessarily represent the policy of the RSA and you should not assume endorsement by the Federal Government [34 CFR 75.620 (b)].


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Copyright Information

This work is the property of the Southeast TACE Region IV

Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the authors. To disseminate otherwise or to republish requires written permission from the authors.

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