Presentation on theme: "Self-Employment and Business Plan Development Stephen J. Swain, ATP Rural Rehabilitation Specialist Breaking New Ground Outreach Program Purdue University."— Presentation transcript:
Self-Employment and Business Plan Development Stephen J. Swain, ATP Rural Rehabilitation Specialist Breaking New Ground Outreach Program Purdue University Purdue University New Ventures Team
Overview of Session VR Small Business Enterprise Program VR Process VR Required Business Plan Businesses I have worked with What I have learned – VR and Clients Improvements to the program
Vocational Rehabilitation Services and Business Development in Indiana Vocational Rehabilitation Services has available a small business enterprise program to its clients The program requires a comprehensive business plan
Small Business Enterprise Program It is only for start-ups, you cannot expand an existing business. The program offers up to $30,000 the first year and up to $15,000 the second year for products and modifications to start a business.
Small Business Enterprise Program Vocational Rehabilitation Services will provide up to 75% of start-up costs – Client is responsible for a 25% match of cash or in-kind. The products and modifications include: – Training – Professional, trade, or other certifications
Small Business Enterprise Program –Technical assistance or consultations (for BNG, it is $250 per day plus transportation) –Market analysis –Necessary assistive technology –Initial and turnover stock of raw materials and inventory
Small Business Enterprise Program –Insurance – Liability and Property –Building remodeling –Accounting, bookkeeping, legal counsel –Advertising, Internet –Heating and cooling, electricity, telephone, cell phone –Equipment, including Computers
Purdue University Cooperative Extension New Ventures Team A team of Purdue University Extension Educators and Campus Specialists who assist entrepreneurs through: Individual and Group Consultations Publications Workshops and Conferences Web-Based Business Planner
Vocational Rehabilitation Services Process Apply for services or reopen client case Complete initial Individual Plan of Employment (IPE) Some cases, VR pays for client to attend Small Business Development Center Business Plan Class (NxLevel Training – a 12-week business plan writing course)
Vocational Rehabilitation Services Process Refine Business Plan to VRs outline Submit Business Plan to VR Counselor and Office Supervisor Preliminary Review of Business Plan by VR Counselor and Supervisor If questions about plan, return to client
Vocational Rehabilitation Services Process Resubmit business plan to VR counselor Independent Review Committee (VR supervisor, SBDC supervisor, CPA, business owners, bankers, SCORE) Business Plan Reviewed by VR Supervisor Approval, Refined, or Denied
Vocational Rehabilitation Services Process If Approved, Complete Individual Plan of Employment (IPE) Final Approval Funding Officially Start Business
Vocational Rehabilitation Services Process Typically, there is no cash exchanged between the client and VR for products or modifications. VR is sent an invoice and pays for the product or services. The equipment provided by VR is not the clients until their case is closed and the business is sustainable at the end of 18 months to 2 years. VR can take equipment back which they paid for.
Vocational Rehabilitation Services Process The client reports to the VR counselor monthly and is required to provide a financial report at least quarterly and sometimes monthly. The counselor may make periodic visits to the business to assess its progress. There may be outside consultants asked to assist during the start-up period.
Basic Required VR Business Plan Outline I. Title Page II. Table of Contents III. Introduction A. Executive Summary B. Purpose of the Business Plan C. Statement of Goals and Objectives
Basic Required VR Business Plan Outline IV. Operating Plan A. Ownership and Management B. Other Staffing C. Location D. Operating Schedule E. Operating Procedures
Basic Required VR Business Plan Outline IV. Operating Plan (Continued) F. Tools and Equipment G. Raw Materials/Product Inventory Needs and Suppliers H. Purchased and Contracted Services I. Family, Community, and Professional Supports J. Inventory Control
Basic Required VR Business Plan Outline V. Marketing Plan A. Target Market and Demand B. Assessment of the Competition C. Identify the Market Niche that the Business will Occupy D. Product/Service Pricing E. Advertising Strategies F. Distribution/Delivery Methods
Basic Required VR Business Plan Outline VI. Legal Issues VII. Cost Projections A. For Establishment of the Business Enterprise B. Projected Revenues, Expenses, and Net Income Statements for the First Two Years of Continuing Business Operations
Basic Required VR Business Plan Outline VIII. Monitoring Plan (who will oversee start-up) IX. Appendices: Supporting Documentation (such as resume, cash flow sheets, balance sheets, breakeven costs)
Business Plans Explored Organic Produce* Lawn Care & Snow Removal* Pet Grooming* Metal Detector Sales Livestock Production – contract and independent producer Lawn Mowing and Clean-up (* Businesses Approved for Funding)
Business Plans Explored Wildlife Control* Small Engine Repair Embroidery, Bookkeeping, Tax Preparation* Resale Shop Smoked Turkey and other smoked meats Ultra-Light Aircraft Flying Lessons Technical Graphics
Business Plans Explored Aroma Therapy Soap Welding Shop Petting Zoo Indian Jewelry Agri-Tourism Corn & Soybean Resin Plastics Pet Hay Sign Shop
What I have Learned in the Last 2+ Years From Vocational Rehabilitation Services Each office handles small business enterprise cases different Each counselor handles small business enterprise cases different
What I have Learned in the Last 2+ Years From Vocational Rehabilitation Services (cont.) Some supervisors have told their counselors not to do any small business enterprise plans In some offices, the proposal must be presented in the Required VR Business Plan Outline, others it does not.
What I have Learned in the Last 2+ Years From Vocational Rehabilitation Services (cont.) Some offices ask the client to present their business plan before the review committee and others dont Some offices do not have a independent review committee in place
What I have Learned in the Last 2+ Years From Vocational Rehabilitation Services (cont.) The number of business plans in each office depends on the counselors and their past history with the program and your success with clients on their business plans. Some offices have people that know business and others dont, so we have to guide them.
What I have Learned in the Last 2+ Years From Clients: –Most clients dont have any idea how to write a business plan –Most clients have a business idea but dont know how to develop it into a business
What I have Learned in the Last 2+ Years From Clients: –I dont have any competition. No one makes or sells a product like mine. –Who are they going to sell to, how much do they need to sell, and are there enough people out there to sell to? –Dont know how they are going to market the product?
What I have Learned in the Last 2+ Years Most clients like the production side of the business and ignore or put-off the business side. It is more fun to make something than to put together advertising or sell. It is more work than they expected. Most clients expect to receive cash with little accountability.
What I have Learned in the Last 2+ Years Additional Lessons from Others Ticket-to- Work Trial Work Period Extended Work Period Social Security Benefit Planners Med-Works
What I have Learned in the Last 2+ Years That I am smart enough to know that I dont know all of the rules and regulations and that I have to rely on other professionals so I dont screw my clients benefits up.
Comments There is assistance available to assist clients write a business plan – internet, universities, Small Business Development Centers, etc. There are no grants available that I know of to help with a start-up business except Vocational Rehabilitation Services.
How to Improve System 1.Standardize process between offices and counselors. 2.Utilize a standard review committee 3.Insure that it is an option available to all clients. Not all clients can or will want to take advantage of the program, but at least they will know it is there.