The
following steps represent a recommended self-employment process for counselors
and consumers.
Step
1: The consumer expresses interest
in self-employment.
Step
2: Counselor and consumer discuss
advantages and disadvantages of self-employment.
Step
3: Self-employment assessment.
Step
4: Counselor and consumer access
available local resources (comparable benefits). Consumer gathers information
about self-employment and funding options.
Step
5: Identify resources for preparing
for self-employment, training and education.
Step
6: Counselor and consumer work with
consultants to develop plan, marketing and funding strategies, as well as
determine parameters of VR contribution. Counselor assists the consumer in
developing a support system for the business.
Step
7: Counselor and consumer, in
consultation with the local expert, evaluate business plan drafts, and determine
viability of plan.
Step
8: The business plan is finalized
and approved by counselor, consumer, and local expert.
Step
9: The business plan is submitted
to potential funding sources for start up funds.
Step
10: Develop IPE, which includes
outline of VR contribution.
Step
11: Monitor the IPE and business
through closure.
For
supplemental forms see VRDNet Forms Warehouse.
Self-Employment
in the Vocational Rehabilitation Process
1.
Assessment
Assessment
of a consumer's potential for self-employment can include an evaluation of
skills, interests, personality and aptitudes, as well as evaluations of their
background and business knowledge. A vocational evaluation, medical evaluation,
or psychological assessment may be needed or useful.
In
addition to formal evaluations, assessment can also include observation and
assessment of the consumer's planning skills, degree of enthusiasm and
initiative, and how he or she follows through on deadlines in the rehabilitation
process.
There
are consumer tools that can be utilized as a resource for counselors when
assisting a consumer with a self-employment plan.
a.
Development of the Business Plan
The
business plan will be the most important component of success to a consumer
obtaining funds from other resources. In general, a business plan will outline
the financial projections of the business, the marketing plan, the method and
schedule of ongoing record keeping and analysis that will be used to evaluate
the progress of the business. OVRS does not have a specific outline or criteria
for the contents of the plan, however there is a general outline available in
the counselor tools. It will be up to the consumer, counselor, in consultation
with the local expert to determine the contents of a business plan.
The
Division can pay for consultation and other services necessary to assist a
consumer in the development of a business plan. This may include services
available through a local resource for technical assistance, course work,
training, education, and business information. Resources may include Small
Business Development Centers, private business consultants, Oregon Economic
Development, Small Business Administration, micro enterprise programs, internet
sites, SCORE, and community colleges.
b.
Determining the Viability of the Business Plan
It
is the responsibility of the counselor and consumer, in consultation with the
chosen business expert, to determine the viability of a consumer's business
plan. Expert critique of the business plan should be used as a tool for
determining viability, and not be the sole factor in determining whether VRD
should approve the plan. The counselor will still be responsible to evaluate the
appropriateness of the vocational goal, and that the self-employment plan will
assist the consumer to meet their objective of rehabilitation. In determining
the viability of a business plan, there should be consideration that the
successful outcome will contribute to the individual becoming self-sufficient
and independent.
c.
Application for Financial Assistance
OVRS
recommends the consumer apply for at least two sources of funding prior to OVRS
funding of business start-up costs. A consumer may not be required to borrow
money as a condition of their plan; however, the consumer may not be able to
develop a viable business plan without obtaining additional funding to assist
with the capitalization and ongoing expenses intrinsic to the business.
In
cooperation with the expert, OVRS will assist consumers with identifying
potential resources for financial assistance. To the extent possible, the
consumer should be expected to contribute from their own resources towards the
capitalization and ongoing expenses for the business.
Sources
of small business funding may include but are not limited to:
Conventional
Bank Loans
Small
Business Administration Loans or Loan Guarantees
Grants
Finance
Companies
Social
Security PASS Plans
Programs
for Women and Minorities
Family
and Friends
Economic
Development
2.
Development of the
Individualized Plan for Employment
a.
Vocational Goal
If
the counselor and consumer agree that self-employment is a feasible goal, the
next step is to develop an individualized plan for employment. The plan should
state the specific work or occupational goal according to the type of business
that the consumer is seeking to start. It is not sufficient to state
self-employment as the goal.
b.
Objectives and Criteria
The
stated objectives and criteria of measurement should be individualized and
include criteria that will be used to determine a successful employment outcome.
These should be listed in the intermediate objectives portion of the IPE, and
indicate to both the consumer and counselor how to measure progress throughout
the plan, as well as when to close the case. This would include responding to
questions including:
What
is the expected earnings of the consumer?
How
will those earnings be determined?
c.
Case Reviews
As
in any other case, case reviews will be a useful measurement tool to identify
that the IPE is preceding as planned, as well as an opportunity to ensure that
the business is proceeding as outlined in the business plan.
A
review of the individual's earnings should be documented in the case file.
d.
Follow up and Financial Monitoring
One
of the important functions of the intermediate objectives is to identify the
business progress. The counselor, in partnership with the consumer should
closely monitor the business progress. The counselor and consumer should
consider including, as a condition of the plan that the consumer will provide
the following financial records:
1.
Quarterly report of self-employment tax
2.
Financial report of expenditures or earning capacity sales as Quarterly
report of earnings/sales
3.
Agreed upon by the counselor and consumer
e.
Case Closure in Self-Employment
A
case cannot be closed as successful in self-employment until the consumer has
achieved and maintained the vocational goal in self-employment for at least 90
days. The Division does not specify how to determine income for successful
self-employment closures. Counselors usually use an average to determine net
income in these cases. Counselors have discretion in choosing the time frame to
use in averaging income, as long as the time frame ends at time of closure.
Business or tax records should be used to determine net income levels.
REFERENCE:
OAR
582-070-0033 General Provisions
OAR
582-070-0036 Funding Requirements for a Viable Business