copyright 2013 self-employment for people with significant disabilities presentation for the meet at...
TRANSCRIPT
Copyright 2013Copyright 2013Copyright 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).”
www.griffinhammis.com
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 supportsthat 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, withsupports that are created to support group activities.
Example – a call center, group cooperative, or group venture
DOC DESTRUCTION
STEPPIN’ OUT SALON
TONJA’S TREASURES
PALM TREE ENTERPRISES
SPECIAL FRIENDS EMBROIDERY
LET’S GET THE DOGS OUT
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 FLAGSThere 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 SOURCESInvolve 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 REMINDERSDo 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 plansFoundationsLoansGrantsSmall Business Administration (SBA)Service Corp of Retired Executives (SCORE)Volunteers – individuals and businessesBusiness partnershipsOther people and teams doing similar businessesOther local resourcesBE ABOUT CREATING NEW RESOURCES!
QUESTIONS & ANSWERS
Thanks!