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 # H264A © 2011 All Rights Reserved 2 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 2 Areas To Be Covered

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 3 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. 3 Self-Employment

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 4 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

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 5 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. 5 What is Self-employment

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 6 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

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 7 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 7 Need a positive image of self- employment

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 8 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

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 9 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. 9 RISK

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 10 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 10 When Self Employment for Individuals with the Most Significant Disabilities Could Makes Sense?

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 11 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 11 Reasons that Self-employment might fit for the person

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 12 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. 12 A Different Perspective

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 13 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? 13 Think about

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 14 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 14

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 15 The Process – Customized Self-Employment 1. Discovery of Potential Business Owner 2. Creation of a written profile 3. Discovery Meeting,  Business concepts,  Possible Team Recruitment 4. Business Concept Plan and Team Identification 5. Research of Potential Business Concepts 6. Determination of Business Concept 7. Options for development- financial, marketing, operations 8. Business Plan Formulation 9. Business Implementation 10. Plan, do, act, evaluate, and then repeat the cycle 15

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 16 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 16 Traditional Based on a business need in the community Created to make money Designed on typical business, similar to franchising

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 17 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. 17 Discovery

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 18 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 18 Discovery (cont.)

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 19 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. 19

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 20 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. 20

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 21 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. 21

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 22 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

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 23 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 23 Customized Self-Employment Meeting

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 24 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 24

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 25 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

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 26 Business Labor Analysis 26 Work routines/ Tasks Task completed Business owner knows=K To be learned=L Paid staff =P Unpaid =U Contracte d Services Labor cost- Owner Employee Contract Operational cost- Rent =R Materials=m Equipment = E Daily Weekly Monthly Annual

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 27 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

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 28 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.

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 29 Resources Start UPUSA VR Resources ( usa.biz/resources/state_policies/vr.cfm) Start UPUSA VR Resources ( usa.biz/resources/state_policies/vr.cfm) IRS Self-employed Individual tac center ( IRS Self-employed Individual tac center ( Abilities Fund ( Developer and financial institution targeted exclusively to advancing entrepreneurial opportunities for Americans with disabilities. Abilities Fund ( BOLD Business Consultants ( Business persons Overcoming Limitations from Disabilities various entrepreneurial resources and services. BOLD Business Consultants (

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 30 More Resources disabilityBiz.org Resources and counseling to people with disabilities who are starting or running their own business. disabilityBiz.org Disabled Entrepreneur ( new online community. Disabled Entrepreneur ( Office of Disability Policy ( summary information on self employment for people with disabilities. Office of Disability Policy ( Emerging Workforce of Entrepreneurs with Disabilities ( Research paper: Preliminary Study of Entrepreneurship in Iowa Emerging Workforce of Entrepreneurs with Disabilities (

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 31 And More Resources Self Employment in Rural Areas ( Research and resources from the Research and Training Center on Rural Rehabilitation Issues. Self Employment in Rural Areas ( Small Business and Self-Employment Service ( Information and advice on business development for people with disabilities. Small Business and Self-Employment Service ( PWD - Self Employment ( Yahoo Discussion group on issues of self-employment for people with disabilities PWD - Self Employment ( Training, Resource and Assistive Technology Center ( Training, Resource and Assistive Technology Center (

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 32 Comments & Questions

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 33 Contact Information Abby Cooper Kennedy Douglas Consulting

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 34 TACE Center: Region IV Toll-free: (866) [voice/tty] Fax: (404) Web: TACEsoutheast.org My TACE Portal: TACEsoutheast.org/myportal

35 Education Credits DEADLINE: June 22 CRCC Credit 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/myportalTACEsoutheast.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.

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 36 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 #H264A 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 (b)].

TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A © 2011 All Rights Reserved 37 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.