The cornerstone to the successful self-employment endeavor is an effectively developed business plan. The business plan is the responsibility of the customer in consultation with the counselor and other individuals, when appropriate or necessary. The benefits that the customer derives from writing a business plan are invaluable in achieving a successful business endeavor.
The preliminary business proposal, which is also considered a preliminary business plan, will be presented to the counselor's immediate supervisor for review and approval. If approved, the immediate supervisor will forward the proposal to the deputy commissioner for services delivery. The deputy commissioner for service delivery and the vocational rehabilitation (VR) program director (the screening committee) will review each self-employment proposal. They may invite the regional manager, counselor, customer, Business Enterprises Program (BEP) coordinator, or any other individual deemed appropriate to participate in the review and discussion of the self-employment proposal. In most instances, participation by such individuals will be accomplished via a teleconference call. Upon review of the information, one of the following actions will be taken:
There are three situations when a formal self-employment plan is not required to be written. They are:
The business plan is the process of gathering, compiling, and analyzing information and helps the customer accomplish the following:
There are resources available in the community to assist with developing and planning for small businesses. One important resource is Virginia's Small Business Development Center Network (VSBDC) consisting of approximately 25 centers throughout the state. The VSBDC is a federal, state and local partnership to help current or prospective small business owners by providing business management counseling, site location analysis, licenses and regulation information, cash flow and tax counseling information, technical assistance and training, etc. VR may pay associated fees for the prospective business owner to participate in special workshops presented by VSBDC.
If there is not a VSBDC available, the customer in consultation with the counselor, could use other community resources, such as the Small Business Administration's program, commonly called SCORE, to help in the development of the business plan.
VR Status
When an individual is interested in a self-employment enterprise and is not in an active VR status, then the case will not go beyond status 10 until the self-employment program is approved. If the individual is in an active status (status 12 and above), the vocational goal will not be changed to a self-employment goal until the self-employment program is approved.
Financial Participation
Funding for a self-employment enterprise proposed by an individual in the required business plan will come from one or more resources - financial investment in the business by the customer, VR funds, small business administration loans, bank loans, etc. The business plan must identify the customer's financial contribution to the enterprise thus permitting the customer to share in the risk of going into business. The Self-employment Screening Committee will also require evidence that the customer has been allowed or denied funding from other sources. The type of business enterprise, along with the justification outlined in the business plan, will determine if VR funds are available for the business enterprise. VR will not contribute more than 50% of the cost exceeding $10,000 to establish a business.
The Customer
The customer has the responsibility of reading thoroughly "How to Set Up Your Own Small Business" published by the American Institute of Small Business. This book is set up in two volumes and has 23 chapters. This book will be available in print and/or tape in each of the regional offices for use by the customer. The titles of the chapters are:
Once the self-employment enterprise has been approved, the customer will receive the needed VR services. The VR customer will remain in status 22 for a minimum of six months and be placed in post-employment services for 12 months. This allows for a comprehensive follow-up program which will enable more supervision, periodic inspection of the business, inspection of records, and an annual inventory inspection, which is the responsibility of the VR counselor.
The customer has the primary responsibility for the business plan in reading "How to Set Up Your Own Small Business." The VR counselor provides support and consultative services. Support and consultative services may also be provided by the VR program director and the BEP coordinator.
The Counselor
The counselor, when necessary, will assist the customer in developing the business plan. The counselor will be the primary person to review the business plan once it is completed and discuss it completely with the customer. When the customer is satisfied with the business plan, it is reviewed with the counselor and the immediate supervisor. The preliminary business plan (proposal) is then forwarded to the screening committee for action.
The VR Program Director
The VR program director, or his designee, will interpret VR federal regulations, provide resource information to the counselor, when necessary, and coordinate the program activities with the appropriate committee members.
BEP Coordinator
The BEP coordinator will act primarily in an advisory capacity. When requested by the committee, the coordinator will thoroughly analyze the business plan. Then the coordinator will send the screening committee written recommendations from the business plan that might determine the business location, projected profits from the program, marketing or sales potential, projected cost of the proposed business endeavor, etc.
The Business Can Succeed
Businesses can and do fail, but there is no reason why a customer should fail if they know how to successfully run a business. Remember--success will come through knowledge, proper preparation, and perseverance.
Suggested Outline of a Business Plan:
Cover Sheet: Name of business, principals, address, and phone number
Statement of Purpose
Table of Contents