1. Exploring Entrepreneurship
Is Self-Employment Right For You?
Iowa Vocational Rehabilitation Services & Department for the Blind

2. Iowa Vocational Rehabilitation Services & Department for the Blind
Before We Begin
Release and Exchange of Information
Housekeeping Issues
About the Partnerships
Iowa Vocational Rehabilitation Services & Department for the Blind

3. Iowa Vocational Rehabilitation Services & Department for the Blind
Introduction
This program for Self-Employment has been developed under an agreement between Iowa Vocational Rehabilitation Services and the Iowa Department for the Blind.
It is available to active clients of Iowa Vocational Rehabilitation Services (IVRS) or Iowa Department for the Blind (IDB ) who are able to become self-sufficient establishing, maintaining, expanding or acquiring a small business.
Iowa Vocational Rehabilitation Services & Department for the Blind

4. Iowa Vocational Rehabilitation Services & Department for the Blind
WHAT IS IVRS?
Iowa Vocational Rehabilitation Services is a state agency within the Department of Education.
IVRS has been serving individuals with disabilities since 1920.
Individuals served by IVRS are made eligible for employment-related services, including Self-Employment.
The ultimate goal of IVRS is to help individuals with disabilities become successfully employed.
Iowa Vocational Rehabilitation Services & Department for the Blind

5. IVRS Mission and Vision
Our Mission
We provide expert, individualized services to
Iowans with disabilities to achieve their independence through successful employment
and economic support.
Our Vision
To be a respected leader that delivers
innovative services to better the lives of Iowans
with disabilities.
Iowa Vocational Rehabilitation Services & Department for the Blind

6. Roles and Responsibilities
CLIENT – must have an open file with IVRS/IDB and be eligible for services prior to pursuing IVRS Self-Employment Program services.
IVRS/IDB COUNSELOR – serves as the primary point of contact for a client interested in IVRS Self-Employment Program services.
IVRS BUSINESS DEVELOPMENT SPECIALIST – provides guidance to eligible clients throughout the business planning process.
IVRS/IDB SUPERVISOR – may participate in meetings or make recommendations related to a client’s business proposal.
IVRS/IDB ADMINISTRATION – helps ensure individuals in Self-Employment are equipped to manage and operate successful businesses that have long-term viability.
Iowa Vocational Rehabilitation Services & Department for the Blind

7. Self-Employment Stats
New business developed every 10 seconds, 8,000 per day,
3 million a year!
60% fail the first three years, primarily because of under-capitalization.
Many of the problems encountered usually involve funding a business niche, as well as determining the feasibility of an idea.
U.S. Census data (2000) indicates self-employed individuals constituted 7% of the labor force for individuals between the
ages of
People with disabilities are self-employed at a higher rate than those without; a rate of 12.2% vs. 7.8%.
Iowa Vocational Rehabilitation Services & Department for the Blind

8. IVRS Self-Employment Program
Must be a client of IVRS or IDB.
Application available through your counselor.
Goal must be self-sufficiency, getting off benefits, and working at or above 80% of Substantial Gainful Activity (SGA).
Excess cash flow from profitable business operations is the intent.
Majority-owned (51% of business or more) by IVRS or IDB client.
Iowa Vocational Rehabilitation Services & Department for the Blind

9. IVRS Self-Employment Program
FINANCIAL ASSISTANCE
Up to $10,000 with:
Dollar-for-dollar client match.
Approved business plan.
1/3 distribution of grant (fund allotted in thirds).
Agree to provide monthly financial statements.
Follow-along for up to two years upon successful case closure to ensure continued business viability and provide documentation regarding ISE program.
TECHNICAL ASSISTANCE
Up to $10,000 for:
Accounting.
Legal Consultation.
Other professional service fees.
Iowa Vocational Rehabilitation Services & Department for the Blind

10. Self-Employment Process
Initial Planning (three checklists you will review with your counselor)
Pre-Feasibility Application (provided by your counselor for you to complete and return)
Feasibility Assessment
Business Planning
Business Implementation
Business Monitoring
Iowa Vocational Rehabilitation Services & Department for the Blind

11. Overview: Where are we going?
Part One – The Life Of An Entrepreneur
Part Two – Identifying The Right Business Idea For You
Part Three – From Idea To Reality: Steps To Starting Your Business
Iowa Vocational Rehabilitation Services & Department for the Blind

12. PART 1: The Life Of An Entrepreneur
Entrepreneur: “A person who’s willing to accept and manage risk in order to establish a business.”
Reasons why people choose Self-Employment:
Flexibility to determine your work schedule
Be your own boss
Increase income / make money
Do something enjoyable
Why are YOU considering self employment? What rewards will you gain as a small business owner?
Iowa Vocational Rehabilitation Services & Department for the Blind

13. I want freedom from the 8-5 grind
Most entrepreneurs work more than 40 hours a week to be successful.
Expect to Live your business.
Many times, you will work when it is right for your customer.
Iowa Vocational Rehabilitation Services & Department for the Blind

14. Iowa Vocational Rehabilitation Services & Department for the Blind
I want to be my own boss
A business owner has many bosses – they are called customers.
Are you self-motivated?
Do you manage yourself well?
Will you have to be a boss to someone?
Iowa Vocational Rehabilitation Services & Department for the Blind

15. I want to make a lot of money (fast)
Success does not happen overnight; it can take months before your business earns enough profit to pay you at all.
Most business owners need to keep putting their initial profits back into the business as it grows.
As you begin to work and make money, any benefit program you may be on will be affected. Discussion with a Benefits Planner will occur for individuals receiving Social Security.
Iowa Vocational Rehabilitation Services & Department for the Blind

16. I want to turn my hobby into a business
Producing a product is only a small part of the business.
You may end up needing to spend more time on sales than on creating the product.
You need to have both passion and profitability to run a business.
Will you still enjoy your hobby when it is your business?
Iowa Vocational Rehabilitation Services & Department for the Blind

17. Iowa Vocational Rehabilitation Services & Department for the Blind
What is a business?
Two words: REWARD
RISK
A business is a risk; you are investing your time, energy and resources into an activity with the goal of earning a reward.
There are no sure things in business; many successful entrepreneurs have failed at business before, primarily due to a lack of business planning.
Iowa Vocational Rehabilitation Services & Department for the Blind

18. What are the Risks/Rewards? Exercise: Discussion of risks
Career risk and rewards
Family/friends risks and rewards
Psychological risks and rewards
Financial risks and rewards
Exercise: Discussion of risks
Iowa Vocational Rehabilitation Services & Department for the Blind

19. Iowa Vocational Rehabilitation Services & Department for the Blind
Mitigating Risks
Career Risk – leaving a secure job with benefits needs to be weighed out. Also, if you’ve been unemployed for some time or been your own boss, it’s more difficult to return to traditional employment.
Family / Friend Risk – Talk to the people in your life about this decision and how the time commitment will affect them.
Psychological Risk – Understand that success does not happen overnight and that there may be setbacks along the way. Prepare yourself for the stress and worry that is common for entrepreneurs.
Financial Risk – Organize your finances, understand benefit implications and structure a business idea that matches the amount of money you can access and safely risk.
Iowa Vocational Rehabilitation Services & Department for the Blind

20. Organizing Your Personal Finances
Ask your counselor to help you with benefits planning if you receive Social Security.
Determine your total income.
Create a spending plan and stick to it.
Identify your household monthly spending habits.
Find ways to save money to use for your business.
Set some realistic money goals to achieve with your business.
Iowa Vocational Rehabilitation Services & Department for the Blind

21. Iowa Vocational Rehabilitation Services & Department for the Blind
Credit and Debt
Make a list of who you owe.
Determine what your debt terms are and what your repayment status is.
Don’t ignore bills.
Consider credit counseling.
Obtain a copy of your credit report and FICO score.
Almost all businesses need some form of credit. How solid your personal credit is will determine how much credit your business can obtain.
Iowa Vocational Rehabilitation Services & Department for the Blind

22. Exercise: The Self-Employed YOU
What are your entrepreneurial characteristics?
What roles will you play in your business?
Where will you need help?
What will be a “typical” day in business?
What will be the biggest challenges and how will you overcome them?
What are your goals?
Iowa Vocational Rehabilitation Services & Department for the Blind

23. Iowa Vocational Rehabilitation Services & Department for the Blind
Review of Part 1
Are you willing to work hard?
Do the rewards outweigh
the risks?
Can you prepare yourself
financially for the uncertainty?
Are you emotionally prepared?
Are your goals realistic?
Iowa Vocational Rehabilitation Services & Department for the Blind

24. Part 2 – The Right Business Idea
The idea must make:
 Personal sense
 Business sense
 Market sense
 Financial sense
Overall, the idea must make money
to achieve self-sufficiency!
Iowa Vocational Rehabilitation Services & Department for the Blind

25. Iowa Vocational Rehabilitation Services & Department for the Blind
Personal Sense
Do your personal finances allow you to pursue Self-Employment at this time?
What is your experience in the industry?
Will you need more training or education?
Does the idea accommodate any limitations presented by your disability?
What will you need help with to successfully operate this business?
What are the time commitments for this business?
How will this business affect your benefits?
Iowa Vocational Rehabilitation Services & Department for the Blind

26. Iowa Vocational Rehabilitation Services & Department for the Blind
Personal Sense
Skills for Success
Evaluate your skills to succeed with this idea:
Product and service development
Operations
Sales
Marketing
Banking
Accounting / Finance
Taxes / Legal Issues / Insurance
Human Resources Management
Iowa Vocational Rehabilitation Services & Department for the Blind

27. Iowa Vocational Rehabilitation Services & Department for the Blind
Business Sense
Where do business ideas come from?
Most ideas come from a prior job, hobby, family/friends, personal experiences.
Brainstorm a number of ideas and narrow down the one that makes the most sense in all areas.
Iowa Vocational Rehabilitation Services & Department for the Blind

28. Business Sense What is going on in the industry?
Is there money to be made with this business?
Is this an appropriate and legal venture?
Iowa Vocational Rehabilitation Services & Department for the Blind

29. Examples of ideas that IVRS/IDB cannot support:
Business Sense
Examples of ideas that IVRS/IDB cannot support:
 Hobbies (non-income producing)
 Speculative business ventures (multi-level marketing)
 Franchise/real estate purchases
 Non-profit activities
 Vehicle purchases 
Iowa Vocational Rehabilitation Services & Department for the Blind

30. Iowa Vocational Rehabilitation Services & Department for the Blind
Market Sense
Are there enough customers willing to purchase your product / service?
How much competition is there?
What will be your advantage in the marketplace?
Iowa Vocational Rehabilitation Services & Department for the Blind

31. Iowa Vocational Rehabilitation Services & Department for the Blind
Financial Sense
Can you access the capital needed to properly start, grow and sustain this business?
How long will it take to generate excess cash flow from profitable operations? (Difference between cash flow and profitability.)
Will this idea generate enough net income to meet your goals and achieve self-sufficiency?
Iowa Vocational Rehabilitation Services & Department for the Blind

32. Iowa Vocational Rehabilitation Services & Department for the Blind
Review of Part 2
What do you think of
your business idea?
Does it make sense in
all areas?
What can you do to refine or change your idea so that it does make sense?
Iowa Vocational Rehabilitation Services & Department for the Blind

33. Part 3 – From Idea to Reality: Steps to Starting Your Business
How the IVRS Self-Employment Process Works
Step 1
INITIAL PLANNING
Checklist 1 – Self-Employment Information
Checklist 2 – Disability Analysis
Checklist 3 – Is Small Business Right For You?
Iowa Vocational Rehabilitation Services & Department for the Blind

34. Part 3 – From Idea to Reality: Steps to Starting Your Business
How the IVRS Self-Employment Process Works
Step 2
PRE-FEASIBILITY APPLICATION
Description of Business
Marketing Your Business
Financial
Counselor Justification
Iowa Vocational Rehabilitation Services & Department for the Blind

35. Determining Feasibility
Step 3
Evaluate to document that your business idea makes sense.
Parts of a Feasibility Assessment:
Personal Feasibility
Business Feasibility
Market Feasibility
Financial Feasibility
Iowa Vocational Rehabilitation Services & Department for the Blind

36. Iowa Vocational Rehabilitation Services & Department for the Blind
Personal Feasibility
Step 3
Is this an appropriate business for you to pursue?
Are you willing to aggressively seek self-sufficiency through business ownership?
Is your family prepared to accept the strain that comes with running your own business? Are you?
Iowa Vocational Rehabilitation Services & Department for the Blind

37. Iowa Vocational Rehabilitation Services & Department for the Blind
Business Feasibility
Step 3
What are the regulations and requirements for this type of business?
Do you have the necessary skills to perform the work and run the business?
Is the chosen location adequate?
What factors need to be considered to make this business a reality?
Iowa Vocational Rehabilitation Services & Department for the Blind

38. Iowa Vocational Rehabilitation Services & Department for the Blind
Market Feasibility
Step 3
What is going on in the industry?
Are there enough people willing to spend enough money for you to make a profit?
What is the existing and potential for competition?
What will be your sustainable, competitive advantage(s)?
Iowa Vocational Rehabilitation Services & Department for the Blind

39. Financial Feasibility
Step 3
How much money do you think it will take to start this business?
What will be the operating budget of this business?
What is the break-even point and is it realistically achievable?
Will the business generate excessive cash flow for profitable business operations?
Iowa Vocational Rehabilitation Services & Department for the Blind

40. What if my business idea is not feasible?
Can you modify the idea?
Is there another Self-Employment opportunity that is appropriate?
Is Self-Employment your best option?
Iowa Vocational Rehabilitation Services & Department for the Blind

41. The Business Plan The Narrative (words) and The Financials (numbers)
Step 4
Business
Planning
The Business Plan
Building from the information gathered in the
Feasibility Assessment, you will create a document
that will include:
The Narrative (words) and The Financials (numbers)
The Narrative: Executive Summary, Business Description, Marketing, Operations, Management and Supporting Documents.
The Financials: Capital Request, Projections (Balance Sheet, Income Statement, Cash Flow) and Historical Records.
Iowa Vocational Rehabilitation Services & Department for the Blind

42. Organizational Information
Step 4
Business
Planning
The Business Plan
Your business plan will be scored using a 100-point system based on:
Feasibility
Market Plan
Financial Plan
Organizational Information
Iowa Vocational Rehabilitation Services & Department for the Blind

43. Why write a business plan?
Step 4
Business
Planning
Why write a business plan?
Makes you consider the entire process and evaluate the soundness of your idea.
Helps you analyze the market in order to develop a sustainable, competitive advantage.
Tells you how much money you need, when you will need it, how you’re going to get it, and how you are going to pay it back.
Leads you to an informed “Go” or “No Go” decision.
Helps you develop the confidence you need to take the appropriate action.
Provides you with a “roadmap” – an operating tool – to help manage your business by keeping you focused and on-track in order to maximize your chance of long-term success.
Iowa Vocational Rehabilitation Services & Department for the Blind

44. Iowa Vocational Rehabilitation Services & Department for the Blind
Review of Part 3
Assessing the feasibility
of your business idea
 PERSONAL
 BUSINESS
 MARKET
 FINANCIAL
Iowa Vocational Rehabilitation Services & Department for the Blind

45. Iowa Vocational Rehabilitation Services & Department for the Blind
NEXT STEPS
Contact Your IVRS/IDB Counselor
Discuss what you have learned in the Exploring Entrepreneurship training.
Determine if Self-Employment is an appropriate vocational goal.
Discuss where you are at within the Self-Employment process.
Iowa Vocational Rehabilitation Services & Department for the Blind

46. GOOD LUCK!  Reminder: Complete the training evaluation form. 
Now is the time for any additional questions you may have.
 Reminder: Complete the training evaluation form. 
Iowa Vocational Rehabilitation Services & Department for the Blind

47. Thank you for coming today !
We look forward to working with you should you choose to explore Self-Employment.
Contact: Lee Ann Russo, Program Supervisor
Phone:
Iowa Vocational Rehabilitation Services & Department for the Blind