SelfEmployment and Business Plan Development

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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

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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

3
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

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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.

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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

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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

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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

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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

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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)

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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

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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

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Vocational Rehabilitation Services Process

• If Approved, Complete Individual Plan of
  Employment (IPE)
• Final Approval
• Funding
• Officially Start Business

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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.

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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.

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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

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Basic Required VR Business Plan Outline

• IV. Operating Plan
• A. Ownership and Management
• B. Other Staffing
• C. Location
• D. Operating Schedule
• E. Operating Procedures

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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

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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

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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

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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)

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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)

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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

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Business Plans Explored

• Aroma Therapy Soap
• Welding Shop
• Petting Zoo
• Indian Jewelry
• Agri-Tourism
• Corn Soybean Resin Plastics
• Pet Hay
• Sign Shop

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Business Plans Explored

• Custom Kitchen Cabinets
• Woodworking Sculpture
• Wooden Repair Fabrication
• Antique Refinishing Auto/Boat Fabric Repair
• Aquaponics
• Golf Tees
• Medical Devices

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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

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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.

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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

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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.

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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

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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?

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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.

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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

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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.

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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.

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How to Improve System

• Standardize process between offices and
  counselors.
• Utilize a standard review committee
• 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.

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• Questions