Copyright 2013 SELF-EMPLOYMENT FOR PEOPLE WITH SIGNIFICANT DISABILITIES PRESENTATION FOR THE MEET AT THE MOUNTAIN 2015

INTRODUCTION You Me Burning Questions?

IS IT EVEN POSSIBLE? It is possible! Self employment is a viable option to traditional employment if it is right for the person It is not as hard as you might think, if there are sufficient supports There is support – although we need to get more and more creative to find it! Oregon is relatively new in providing supports for self- employment – the system is evolving to accommodate this

ALSO… “Self Employment offers the only substantial options available under the Social Security and Medicaid/Medicare systems to ACCUMULATE PERSONAL WEALTH and manage income in a way that is predictable and personally adjustable (Griffin and Hammis, 2002).”

PROPERTY ESSENTIAL TO SELF SUPPORT (PESS) PESS is a Social Security provision which allows individuals to exclude from their countable resources certain business resources that are necessary for their means of self-support (e.g. the SSI/Medicaid $2000 resource limit) – for sole proprietorships and partnerships, but not LLCs/LLPs The property that SSI doesn't count can be things like tools, equipment, or permits, and/or it can also be the liquid resources (cash) in your business account. Your business account can accumulate money well over the $2000 you are allowed as your personal resources with no adverse effect on your financial eligibility for SSI or Medicaid

WHAT WE ARE TALKING ABOUT Businesses owned and operated by the person receiving employment services, with supports that are customized to the needs of the person Example – a sole proprietorship WHAT WE ARE NOT TALKING ABOUT Business owned and operated by an entity or person who is not the person receiving employment services, with supports that are created to support group activities. Example – a call center, group cooperative, or group venture

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IS IT RIGHT FOR THE PERSON? Can and will the person do the work? Will there be accounting and marketing support? Is there a committed unpaid family or team supported by paid supports? Is there a financial commitment from the person and/or family? Is there transportation? Does the business increase community integration?

IS IT A REAL BUSINESS? Is the owner and team invested in making a profit? It cannot be a hobby and receive public funding under employment services… Are there a market and customers? Can and will the business grow? Will the business generate income which will increase over time and eventually pay for its own supports? Is there transportation? Does the business increase community integration?

FEASIBILITY STANDARDS IRS: Make a net profit in three of the first 5 years of the business, and/or be able to demonstrate a profit motive SSA: Reduction in public benefits based on countable income State and County Feasibility – what will the funders support? What type of a feasibility assessment do they require? What are their policies?

KEY CONSIDERATIONS Support needs - a mix of DEDICATED paid and unpaid supports Business Planning – spell it out Business structures – keep it simple Licensing – local, county, state Taxes – local, county, state, federal

KEY CONSIDERATIONS Legal review Involvement of the individual in all decision making and as many facets of the business as possible – enhancing independence and skill- building Effect of income on public benefits – get a benefits planner to help plan it out! SSA rules are NOT the same as they are for wage jobs…

RED FLAGS There is little to no unpaid/volunteer support The business idea is NOT something based squarely on the person’s skills, interests, abilities, and strengths The product or service costs too much in time and money than could be recouped through sales to pay a wage/make a profit Business operations which could be harmful or unethical All involved aren’t clear that the purpose of a business is to generate ever-increasing profit

REMARKS ABOUT VR AND OTHER FUNDING SOURCES Involve the VRC and/or other funders from the beginning for their input and expertise, but do not depend on them to get started Fledgling business design and support can be part of a Discovery process Even a small track record helps show funders a profit is possible Start looking at feasibility with a basic cost/benefit analysis to show feasibility - a self employment comparison to competitive wage employment would look like: Gross profit – expenses = net profit (before taxes) Net profit divided by hours worked = wage/hour equivalent

PEOPLE WILL MOST ALWAYS NEED A BUSINESS PLAN when receiving public or private funding – plus it a great starting point for all new business ideas Use generic community resources to assist with business planning Ask experts to help Funders often have specific formats to follow, although there are innumerable business plan formats out there for you to use BUSINESS PLANNING

INITIAL PLANNING Focus on joy and passions, and how one can generate sales and income from these Move from DISCOVERY and Person-centered Plans to creative and customized Person-centered Business Plans Amplify the positives to discover and develop skills Find or create market niches for products and services

INITIAL PLANNING Test the waters – market surveys Take raw ideas and make real business plans Feasibility Studies – rough out profit and loss, show on paper how and why this venture will become profitable Rough out startup cost Look at all available sources for financial and other support Employment service providers, just like with a job, are only able to assist the person as an accommodation to perform the essential functions of the work. Support for management, accounting, legal, and other aspects need to be provided by the team and person

INITIAL PLANNING “Go where the dream makes sense,” Griffin & Hammis – you might not understand it, but someone in the community does Build and maintain SUPPORTS and COMMUNITY MENTORS Find new resources and connections Always return to: profitability, how to increase it, how to maximize sales and decrease expenses while maintaining quality…

THE BUSINESS END REMINDERS Do not create hobby businesses Get licensed and research/follow all regulations Create a financial management system including a separate bank account, a ledger, and tracking/reporting Create simple and effective tracking systems to support operations Get accounting, marketing, insurance, and legal assistance Report and pay taxes properly

ESSENTIALS FOR SUCCESS Create new, high quality products, services, and market niches Enlist the help of professionals Provide outstanding customer service Be flexible and change strategies/products/ services depending on the environment

ESSENTIALS FOR SUCCESS Make sure support professionals do not end up running the businesses Pay attention at all times to respect Do it because it is right for the person Start doing it now, even before any funders are involved – even a tiny track record will bring in future funding

OTHER RESOURCES Griffinhammis.com PASS plans Foundations Loans Grants Small Business Administration (SBA) Service Corp of Retired Executives (SCORE) Volunteers – individuals and businesses Business partnerships Other people and teams doing similar businesses Other local resources BE ABOUT CREATING NEW RESOURCES!

QUESTIONS & ANSWERS Thanks!