Supported Self-Employment Appendix

The following items – in addition to any others not listed – should be discussed with the consumer regarding the advantages/ disadvantages of self-employment.

Advantages of Self-Employment

• Independence - control over work setting and schedule.
• Employment where/when outside opportunities are few.
• Work activities that fit personal interests and capabilities.
• Being the boss.
• Interacting with customers, suppliers, and others.
• Enjoyable work.
• Sense of achievement/satisfaction if the business succeeds.
• Control over job security.
• Control of business decisions.
• Better standard of living.
• Feeling part of the community; connections with other community business members.
• Long-term employment with opportunity for personal growth.

Disadvantages of Self-Employment

• Potential for fluctuating income / irregular paychecks or routines
• Financial risk; may need collateral, a loan or co-signer.
• Pleasing the customer (the REAL boss); must be able to get along well with all types of people (clients or customers, suppliers, family, funding sources, etc.).
• No employer benefit package (no paid vacation or sick time).
• May need to provide own health insurance and retirement plan.
• Might be more work than being a traditional employee
• Unrelenting responsibility.
• Possibility of business failure.
• Stress on family/resources.
• Possible exacerbation of health problems/disability.

For the consumer:

Any advantages or disadvantages not listed above that are specific to you?

Do you have any experience with self-employment? If so, what did you learn from that experience?

Consumers receiving SSI and Medicaid should be aware that for Limited Liability Corporations (LLC), S Corporations, and C Corporations business assets may be considered personal assets.

Working with a work incentives benefits specialist will assist consumers in making an informed choice on pursuing self-employment. If a consumer decides to proceed with self-employment, it will help them understand how the Social Security Administration evaluates work activity, available employment supports, and how to structure their business.

Information regarding Social Security Work Incentives provide an opportunity for individuals on SSI/SSDI to work. Some individuals may be interested in creating a PASS Plan through Social Security.

Understanding Team Roles in the Customized Self-Employment Planning Process

Like the general population, people with disabilities face the same risks and liabilities when owning and operating a business. Successful business owners (regardless of ability) make it a practice to build a “technical assistance team” around themselves for support guidance and feedback. People with disabilities can rely on family members, human service professionals, rehabilitation professionals, and other community members to help them when planning to reduce the risk associated with starting a business.

For supported self-employment, a Business Planning Team should be developed. Most business planning teams have their “core members.” At minimum, these core members should include the potential business owner, important family members, a legal guardian, the DVR counselor, County/MCO Case Manager, and their vendors/service providers. These core team members usually meet every 4 to 6 weeks while developing the supported self-employment business plan, and on a quarterly basis once the business has been launched. Other important team members can have “cameo” appearances at team planning meetings. These team members might include a Benefits Specialist, Occupational Therapist, Assistive Technologist, direct support staff (job coaches or home supporters), friends, family members, experts/consultants, and other community members.

Although each person’s responsibility within each BP Team will have its uniqueness, there are some commonalities in their distinct roles within the planning process. The bullet points below represent a framework for team members to begin clarifying their part in the process.

The Role of the Potential Business Owner:

• Be an active member of the BP Team, which might include attending meetings, discovering and sharing preferences, trying new things, and establishing goals – both short-term and long-term.
• Contribute to the plan financially as much as possible.
• Make owning a business a priority in life.

The Role of the DVR Staff:

• Provide vocational guidance and counseling to the potential business owner throughout his/her involvement with DVR.
• Assist the BP Team throughout the DVR process.
• Assist the potential business owner in identifying the services and supports needed to make an informed choice about the proposed business idea.
• Assist the potential business owner in identifying the long-term services and supports needed to maintain the business (e.g. financial management).
• Work with the consumer to plan for and determine how equipment will be installed, if training on the equipment is needed, or if accessories need to be purchased, etc.
• Provide feedback and guidance to the potential business owner and BP Team regarding the plan that is being developed.
• Monitor the plan’s timely progress toward agreed upon goals.
• Monitor quality of the services being funded by DVR and address concerns that may arise with vendors.
• Help the business owner determine the success of the business after it has been launched, based on the expectations of DVR closure criteria and assess the need for additional services as necessary.

The Role of the Self-Employment Vendors/Service Providers:

• Assist in assessing the feasibility of the proposed business idea, if applicable.
• Assist the potential business owner with developing goals and co-facilitate team-based business planning meetings.
• Organize, sequence and disseminate the information gathered in the meetings into action plans to implement with the BP Team. These might include a visual representation of ideas and processes (e.g., graphs, meeting notes, work plans, etc.).
• Assist the potential business owner in identifying and monitoring the long-term services and supports needed to maintain the business (e.g., financial management).
• Conduct regular follow-up with all BP Team members to ensure accountability and progress.
• Conduct research and tap into community resources for information and business planning guidance.
• Synthesize the information gathered from the planning process into a written business plan.
• Within the scope of the business plan, assist the potential business owner with identifying and justifying equipment, supplies and services needed to launch the business.
• Educate support staff on business items determined necessary for the business’ success.

The Role of the Job Coach:

• Provide direct support as needed to implement action plans to increase the consumers' independence for the business tasks.
• Assist in the development of a task analysis and training plan for the business owner as needed.
• Assist in the development of the consumer’s skills and abilities necessary to the success of the business owner.
• Assess the quality and effectiveness of the long-term supports and services needed to maintain the business.
• Possess the skills and abilities necessary to help the business owner be successful.

The Role of the Case Manager (MCO/ICA):

• Assist the potential business owner and the BP Team in determining the potential business owner’s interests, strengths and challenges toward self-employment.
• Provide information to the BP Team regarding the long-term supports the potential business owner has available and how these supports can be used within the business.
• Assist the potential business owner with discovering their preferences and progress toward goals, both personal and professional.
• Monitor quality and responsiveness of publicly funded long-term supports.
• Encourage and reinforce the importance of community in the potential business owner’s life.

The Role of Community:

• Provide information and guidance developing the business plan. Local communities often offer free business planning services (e.g., SBDC, SCORE, WWBIC, ADVOCAP, etc.). Other business owners like to talk about what they do. Relying on the community makes the business planning process less daunting and more efficient.
• Be a “champion” for the potential business owner. Family members and friends are typically the best advocates for a potential business owner. If a family member is involved, the plan can move faster and is more sustainable.
• Be a source of potential customers. The potential business owner’s target customers most likely exist within the local community. Get feedback from target customers and find natural ways to connect with them.
• Provide opportunities to grow and change. A successful business must learn to adapt and change with the needs of its local community. The more the business owner is connected to the community, the better equipped the business owner and the BP Team will be in making the necessary changes to keep the business successful over time.

This ERQ is designed to help the consumer think about and explain how their skills, abilities, and access to resources may lead them toward a successful self-employment outcome. The questionnaire will assess the consumers' management experience, industry/technical experience, personal credit and financial solvency, commitment/desire/persistence, and family/community support.

The ERQ should be completed by the business planning team along with the consumer. Once the ERQ is complete, it is reviewed by the local Business Assessment Scale (BAS) representative.

The BAS review should be conducted with the entire Business Planning Team and the consumer. The review will also include the self-employment lead and two statewide BAS raters.

Roles and Responsibilities Prior to BAS Review:

VRC:

Attach the following in IRIS, ensuring that personal and private information is redacted, and submit it to the Local BAS Representative:

• ERQ from the consumer and business planning team.
• Credit report with FICO score from the consumer and/or guardian. If the consumer does not have a credit report with FICO score but has a legal guardian, the legal guardian's credit report with FICO score will be used. If the consumer has a credit report with FICO score and a legal guardian, both the consumer and the legal guardian's credit report with FICO score will be used.
• CCAP review from the consumer and guardian if applicable.
• DOJ Criminal Background Check from the consumer and guardian if applicable.
• Personal Finance Worksheet.

If the Local BAS Representative determines the ERQ is not complete, work with the consumer to update the document. Note: If the consumer declines the opportunity to update the ERQ, notify the Local BAS Representative, so the process can move forward.

Review the BAS process with the consumer and give the consumer a copy of the BAS scoring tool.

Note: The consumer should not receive a copy of the BAS rating tool, and they should not score the BAS prior to the meeting.

Local BAS Representative:

• Verify that the ERQ and supporting documents are attached in IRIS and that the ERQ is complete. If not complete, advise the VRC on what items need to be updated.
• Submit the completed ERQ and supporting documents to the Self-Employment Lead.
  • If the consumer does not have a FICO score, the ERQ should not be submitted for review.
  • If the FICO score is below 640, the VRC should inform the consumer and guardian they will automatically receive a Red Light score, but the ERQ can be submitted for full review.

Self-Employment Lead:

• When ERQ and supporting documents have been received, assign raters to BAS review, using BAS Committee Rotation.
• Schedule the BAS review based on the raters and VRC's availability.
• Give the VRC two days and times to offer the Business Planning Team for their BAS review.
• When the time and day are confirmed, send the raters, VRC, and Business Planning Team a meeting invite – including their BAS materials – and mark the invite private.
  Note: Give the raters 10 business days to review the BAS materials.
• Track BAS meetings on the rotation list as well as the data collection document.

Raters:

• Review the ERQ and supporting documents prior to the meeting. Do not score the BAS in advance of the meeting.
• Review BAS Scoring Guidance prior to rating an ERQ.

Roles and Responsibilities During to BAS Review

DVR Staff Member:

• Support the consumer during the meeting and provide prompts as necessary. The DVR Staff Member does not need to score the BAS or take notes.

Self-Employment Lead:

• Facilitate the meeting and take notes.
• Track each attribute's determined score and enter them into the BAS rating tool. Share the overall score and notify the consumer of the score and category (Red Light, Green Light or Yellow Light) at the end of the meeting.

Raters:

• Ask any clarifying questions after reviewing the consumer’s materials.
• Score each attribute of the BAS based on the criteria in the scoring tool and share the rationale for the score.

Roles and Responsibilities After to BAS Review

DVR Staff Member:

• Once informed of the final BAS decision, contact the consumer BEFORE they receive the letter and discuss the final decision and next steps.
• If raters provide next steps for the consumer, monitor that the consumer completes the steps by the deadlines provided. If the items aren't completed by the deadline, redirect the case towards employment or case closure. If the consumer has a justifiable reason to need additional time, submit a request to the WDA Director/Designee.
• Once all steps are completed, contact the BAS raters to determine if the consumer is approved to move forward or if self-employment is denied.

Self-Employment Lead:

Note: This is completed within five (5) business days of BAS Review:

• Add a case note of the meeting to the case management system.
  Note: Notes made to self during the meeting are not part of the case record and do not need to be attached
• Use the letter template to write and send a letter based on the consumer's BAS score. Include appeal rights.
• Attach the letter in the case management system.
• Inform the VRC and Director/Designee of the decision. Remind the VRC they need to inform the consumer of the decision before the letter arrives.
• Enter the review into the BAS tracking form.

Note: Individuals using this toolkit may require additional support in multiple areas of owning or operating their business. The business plan should include any additional support provided by the Business Planning Team. Each section that has additional support required should be clear about what support is being provided and who is providing the support.

Title Page

Business Name, Consumer Name, Address, Phone, Email, Date.

Executive Summary

The executive summary is the first and most important section of a business plan. Its purpose is to convince the audience that this business is worthwhile. This “opening argument” must capture and hold the intended reader’s attention and direct it to a specific purpose. The executive summary should avoid industrial jargon. Make the summary clear, concise, and convincing. Although the executive summary appears first in the plan, usually it is the last section written.

The Business Description

This section discusses the purpose of the business, form of ownership, ownership interest, industry trends, background information about the owners.

• Business History: This section describes the need for a new business. It describes how and why new business is needed. For a new business, it should discuss the industry on a local and regional basis and the projected growth of the business.
• Form of Ownership: This section specifies and discusses the rationale for the type of business ownership. It includes documents or agreements between partners or shareholders. It discusses how the potential business owner determines the appropriate form of ownership for his or her business. The Secretary of State’s office in the state where the consumer wishes to open the business can help. This information is found on the Wisconsin Department of Financial Institutions website. For example, form an LLC by paying $130 and applying on this website. The booklet details the legal steps necessary to start, maintain and/or dissolve a business. A potential business owner should also contact a certified public accountant or a business consultant to discuss the appropriate form of ownership for his or her business.
• Ownership Interest: This section lists all owners, such as major shareholders or partners. It also documents owners’ or shareholders’ willingness to provide personal guarantees for any financing. Visit the IRS website (irs.gov) to obtain a Federal Tax ID Number (TIN) for the business.
• Background Information About the Owners: This section provides information about the owner(s), describing any experience in the industry or with managing a small business. This section also contains information about any business advisors other than lawyers or certified public accountants.

The Marketing Plan Products and Services

This section describes the product or service, the currently unsatisfied market needs or desires, and describes how the product or service will meet those needs / desires.

• The target market : This section describes the market and the customer. Many resources are available at public libraries that provide data on markets and customers.
• Make sure all information sources are referenced and describe the method used to gather target market data; describe the geographic market including its physical size, history, and trends (e.g., growth); and the proximity and relevance of potential customers.

This section should also contain an estimate of the potential market, the number of customers the business expects to serve immediately after opening, the rate of expansion, and possible expansion into other markets.

• Business Location: Describe possible locations explored, why the selected location is the best, and how it will benefit the business.
• Competition: This section describes others who are competing for the same market, what they charge, their weaknesses and strengths, how the product or service differs from theirs, and the features and benefits of the service or product versus the features and benefits of competitors’ service or product. Describe the methods used for gathering this information. Describe how market share will be gained. For example, will people patronize the business because of price, technical sophistication, image, superior product or service, location, sales and/or marketing techniques?
• Advertising and Promotion Strategies:
  This section describes how the message about the product or service will be communicated to the users. It should describe the business owner’s philosophy about customer service, the image to portray about the product through packaging, brochures, letterhead, business cards, displays, and the behavior/dress of employees. It also discusses all promotional activities and answers the following questions:
  • What advertising media will be used – newspaper, radio, television, the Internet, windshield handouts, magazines, mailings, billboards, demonstration sites?
  • What is the frequency of advertising – daily, weekly, monthly, bi-monthly?
  • Will promotions (giveaways, discounts) be used?
  • Who will contact customers – in-store sales staff, sales representatives, telemarketers?
  • How will customers be contacted – by telephone, in-person cold- calls, trade show(s), e-mail?
  • Will a website be created?
• Finally, this section should also discuss how customer satisfaction will be assessed (e.g., through questionnaires, focus groups, repeat business, and/or referrals to others).

The Operations Plan

The operations plan explains how the work will be done, how the business will be managed, and the business’s location. It describes the manufacturing process including materials used in the process and employees and their duties.

• Inputs: “Inputs” are materials, suppliers, and arrangements with suppliers. This section describes them and lists prices, volume discounts, and payment options that might influence the decision to trade with a higher-priced vendor.
• Facilities: “Facilities” include the location of the business and its physical layout. This section describes the location, features of the building and site, ownership, lease arrangement, remodeling needed (and costs), other businesses in the area, and zoning. It discusses why the location was selected and its advantages and disadvantages. It may include a floor plan. Questions that should be answered here include: Is the business located outside of the home? Is parking adequate? Are modifications necessary to accommodate the business owner’s disability or to ensure ADA compliance?
• Operating Costs: This section describes, and lists costs for, all utilities (e.g., heat, light, telephone and water) to be used by the business for production and operation. Licenses, Permits, Zoning, Insurance, Taxpayer Number, Corporation Status. The types of licenses, permits, insurances, and taxes paid vary according to the business. But it is likely that a business will require one or more of these to operate. It depends on the business.
• Capital Equipment: Capital equipment includes permanent items that the business keeps and uses for many years. These include equipment, furniture, and fixtures needed to start and run the business. This section describes each piece, discusses why it is necessary, and lists its cost and supplier.
• Production Methods: If applicable, this section describes both the tools used for making the products or performing the service and the workspace(s), including the amount of room needed for each employee, the labor needed to produce the product or provide the service, methods for monitoring quality, and methods for complying with environmental and safety regulations. If other supports are being used, such as Business Planning Team members, their roles in production should be clearly stated. For example, if a consumer is making soap, and their guardian is pouring the melted product into the molds, this needs to be included here.
• Management Methods: This section describes how the business will be managed and the business owner’s knowledge, skills and experience for completing day-to-day business functions and obtaining specialized services.
• Employees: If applicable, this section describes staffing requirements for both production and business management. It discusses the type of work to be done, qualifications needed for the job(s), plans for filling open positions, wage rates, and benefits package(s).
• Outside Services: This section describes the types and costs of outside services provided by non- employees, such as lawyers, bookkeepers, CPAs, and business managers.

The Financial Plan

This section discusses the investment required, sources of funds for the business, and financial statements. Developing these financial statements is one of the most difficult tasks facing a new business owner, because in most cases there is no history for reference. Unless a consumer plans to purchase an existing business, these statements will be based on projections. Develop the Income Statement, Cash Flow Projections, and Balance Sheet statements for the first three years of business operation. First-year cash flow is projected monthly. Years 2 and 3 cash flow projections are quarterly rather than monthly.

• Need for and Sources of Cash: this statement lays out how much cash the business will need to open its doors and to operate until it is profitable. Most of this information will come from other parts of the business plan.
• Equipment List: This is a list of each item of business equipment and its value. Generally, the items should have a useful life of one year or longer. Consider whether to purchase or lease equipment.
• Income Statement: The income statement shows a business’s financial activity over a period to determine if the business made or lost money. It matches expenses with business revenues. The income statement includes total sales, cost of goods sold, gross profit, indirect expenses, other expenses, pre-tax profit or loss, taxes, and net profit or loss.
• Break-Even Analysis: The break-even analysis helps determine the success of a business before it begins. It describes the number of units of a product or how many hours of a service must be sold to break even or to make a profit or the effect that changing a product’s price or reducing expenses has on profitability.
• Cash Flow Statement:

  Cash is even more important to a business than profits; a profitable business may still be unable to pay its bills. The cash flow statement shows when the cash will be received, cash available to pay bills, and the expenses actually paid. Don’t confuse this with personal cash flow statement completed earlier. The personal cash statement shows the amount of money needed to live and cover monthly expenses. The business cash flow statement predicts when the business will need cash and when cash will be available.

  The cash flow statement has two sections. The top section shows how and when cash will be received by the business. The bottom section shows how and when the money will be used to pay bills. Unlike the income statement, the cash flow statement shows money coming in only when the business receives it and going out only when the business pays a bill.

• Balance Sheet: The balance sheet is a snapshot of a business at a particular point in time. It shows a business’s assets (what the business owns), liabilities (what the business owes), and owner’s equity (what the owner is worth). A new business will initiate its first balance sheet when the business starts. It is updated annually thereafter, usually at year’s end. The balance sheet shows the business’s financial status and stability, and if the owner’s equity is increasing. It consists of two parts: Assets and Liabilities and Owner’s Equity. For many home-based service businesses, or businesses where the owner has no credit rating separating personal and business assets and liabilities is difficult. When this is the case, a personal financial statement may be used in lieu of the balance sheet, or the balance sheet should reflect personal assets, liabilities, and owner’s equity mixed with those of the business.
• Supporting Documents (optional):

This section includes other documents needed to support and validate the business and business plan. These include a cost-of-living budget and personal balance sheet for the business owner(s), resume(s), credit reports, contracts, legal documents, leases, job descriptions, letters of support and reference, letters from potential customers stating they will buy from the business when started, contracts, and other documents that bolster confidence in the proposed business.

Attachment examples include a resume, or other documents pertaining to or clarifying specific sections of the business plan.

Local Business Plan Review Committee (BPRC) Member Role:

• Become familiar with the DVR Self Employment Toolkit.
• Identify local community resources that may assist DVR staff and consumers through the business planning process.
• Act as a resource to the DVR staff as they assist the consumer through the self-employment process.
• Review the business plan and any other submissions utilizing the Business Plan Development Technical Specifications. Ask the consumer questions for clarification as needed.
• Participate in statewide business plan reviews based on rotation.
• BPRC representatives will give action items to the consumer and final approval when the action items have been completed.
• It is recommended that an outside business expert attend each business plan review.
• Note: the role of the committee is to not question the appropriateness or the feasibility of either the consumer or the business as these questions have already been answered in the process.

Self-Employment Lead Role:

• Will serve as facilitator.
• Schedule business plan reviews following the rotation list.
• Provide technical assistance to state-wide team members as needed and consult as needed with Policy Analyst, Deputy BCS Director or others as needed.
• Can review checklist with WDA VRC and local Committee Member prior to submission, if requested.
• If appropriate, include the recommendation that the consumer connect with a business mentor (see DVR Staff Self-Employment Guide and Job Aid for more information).
• Identify in the letter the BPRC representatives will give the final approval when the open action items have been completed.

Self-Employment Lead Responsibilities:

• Self-Employment Lead signs and mails letter to consumer after the business review is completed within five (5) business days after meeting is complete.
• After receiving the business plan from Local BPRC Member, schedule a meeting within fourteen (14) business days to review the proposed business plan. If the committee cannot meet within this time frame, a reasonable extension can be agreed to by all interested parties including the consumer.
• Develop and send the business plan review committee’s formal letter of determination to the consumer. This should be completed within five (5) days of presenting the business plan and include any action items that need to be addressed or completed prior to business plan approval. The plan must be approved before purchasing. The letter should include the consumers appeal rights.

Business Plan Review Committee Member(s) Responsibilities:

• Let the Self-Employment Lead know in advance if they cannot make the date they are scheduled to review a plan. Another statewide member should be arranged to replace them.
• If they can't attend at the last minute, let the Self-Employment Lead know their feedback.
• Share information with WDA staff regarding statewide Business Plan Review Committee meetings and expand staff knowledge of self-employment policies/best practices.
• Encourage WDA staff to share potential self-employment cases with the local Committee Member including information on cases with business plans that will need to be submitted for review in future.
• The WDA Committee Member will review the checklist with staff prior to submission, to make sure the consumer knows business plan and everything is as complete as possible.
• The WDA Committee Member attends the business walkthrough (when site is available) with the VRC and Director/Designee in advance of the business plan submission.

DVR Staff Member Responsibilities:

• Work with the WDA Committee Member to use and talk through the checklist in IRIS to explore self-employment throughout the process, document in IRIS, and save checklist when complete.
• Help the WDA Committee Member coordinate logistics for site visit.
• Support the consumer before and during the Business Plan Review and attend Review.
• Consult with the WDA Committee Member, Self-Employment Lead, and others throughout the process.
• Contact the consumer to make sure meeting location/mode works, determine if the consumer needs others to attend and test remote equipment as needed prior to Review Meeting.
• Review with the consumer if there are any product/service examples to present to the Committee and walk through how it will be presented.
• Possess a working knowledge of how business will operate and generate income.
• Review Regional Business Plan Review Checklist with the consumer, and the WDA Committee Member.
• Work with the consumer to complete follow-up items as identified by Business Plan Review Committee.

Local WDA Director/Designee Responsibilities:

• Support the WDA Committee Member at the local level and staff collaboration/following process.
• Review in advance submission of any business plan that exceeds VRC spending authority.
• Provide feedback to local staff as result of review as to strengths/areas of concern and recommended next steps.
• Attend on-site review in advance submission of business plan for any case that exceeds VRC spending authority.
• Attend BPRC meetings for cases submitted from the WDA that exceed VRC spending authority.
• May attend any on-site review or business plan review at their discretion.
• Provide input and ask questions/points of clarification at prep meeting, during business plan review and after.
• Provide support to staff at WDA level, along with the WDA Committee Member, in implementing business plan review recommendations.
• Provide informal review(s) and represent Administrator at impartial hearing for cases in the assigned WDA, as appropriate.

IPE Example: Yellow Light Feasibility Finding

IPE Example: Green Light Feasibility Finding

IPE Example: Business Plan Review Committee Approved Business Plan

Accounting - The recording, classifying, summarizing, and interpreting of events of a financial nature. These events include income, expenses, and cash flow.

Accounts Payable - Trade accounts of businesses representing amounts owed for goods or services received.

Accounts Receivable - Trade accounts of businesses representing amounts due for goods sold or services rendered.

Amortization - Paying off debt in regular installments over a period of time, or deducting certain capitalized expenditures over a specified period.

Asset - Anything that an individual or an entity owns that has value. Cash, equipment and stocks are all considered assets.

Balance Sheet - A financial statement that includes a company’s assets and liabilities. A company's net worth is equal to its assets minus its liabilities.

Business Within a Business Model- A business within a business provides an additional product or service to the clientele of an existing business. It is a separate legal entity (sole proprietorship or LLC) that operates within an existing business

Business Plan - A planning document that describes a company, its market, management team, potential, competitors and all other relevant information about how it will do business and prospects.

Business Planning Team - The entity that will be responsible for helping the consumer open and operate their business.

Capital – (1) Assets less liabilities, representing the ownership interest in a business, (2) a stock of accumulated goods, especially at a specified time and in contrast to income received during a specified period, (3) accumulated goods devoted to the production of goods, and (4) accumulated possessions calculated to bring income.

Capital Expenditures - Business spending on additional plant equipment and inventory.

Career Profile - A Supported Employment assessment to determine the best job match for the consumer and the consumer's support needs based on their past performance and experience, along with information provided by individuals who know the consumer well.

Cash Flow - An accounting presentation showing how much of the cash generated by a business remains after both expenses (including interest) and principal repayment on loans are paid. A projected cash flow statement indicates whether the business will have cash to pay its expenses, loans, and make a profit. Cash flow can be calculated for any given period, normally done monthly or yearly basis.

Collateral - Something of value pledged to support the repayment of an obligation or loan. Examples include real estate and certificates of deposit.

Corporation - A form of organization that provides its owners and shareholders with certain rights and privileges, including protection from personal liability, if proper steps are followed. Corporations may take several forms, depending on the goals and objectives of the founders. Types include C, S and nonprofit corporations. Corporations are regarded as “persons” in the eyes of the law and may thus sue and be sued, own property, borrow money and hire employees.

Cost of Goods Sold - This term represents the cost of buying raw materials and producing the goods that a company sells. It also includes the cost of the company’s labor force and overhead costs.

Credit Score - A statistical summary of the individual pieces of information on a credit report. A credit score predicts how likely it is that a company or individual will repay debts. Lenders use credit scores to determine whether to extend credit and at what interest rate.

Depreciation - An accounting procedure that spreads the cost of purchasing an asset over the useful lifetime of the asset.

Direct Marketing - The process of sending promotional messages directly to individual consumers, rather than via a mass medium. Includes methods such as direct mail and telemarketing.

Discovery Profile - Discovery Profiles provide an alternative to the Supported Employment Assessment (SEA) in that a qualitative approach is used to determine already-existing information rather than using a comparative, quantitative analysis of performance necessary in approaches such as the Career Profile. The information developed through discovery allows for activities of typical life to be translated into possibilities for employment.

Doing Business As (DBA) - A situation in which a business owner operates a company under a different name than the one under which it is incorporated. The owner typically must file an assumed name certificate with the county in which it is located. Sole proprietorships are often DBA’s (e.g., Sam Jones DBA Sam’s Landscaping).

Employer ID Number (EIN) - An identification number assigned to businesses for taxpaying purposes by the IRS or state taxing authorities. An Employer ID Number is required for partnerships, corporations, and trusts, and it may be required for sole proprietorships that have employees. Also called a Federal ID Number or Taxpayer ID Number.

Entrepreneur - One who assumes the financial risk of the initiation, operation, and management of a given business undertaking.

Equity - An ownership interest in a business. For example, stock in a corporation represents equity in the corporation.

Feasibility Study - A preliminary study undertaken to assess whether a planned project is likely to be practical and successful and to estimate its cost.

Financial Statements - There are 3 main financial statements. They concern the financial aspects of a business:

1. Balance Sheet - A report on the status of a firm's assets, liabilities and owner's equity on a specific date.
2. Income Statement - A report on revenue and expense which shows the results of business operations or net income for a specified period.
3. Cash Flow - A report which analyzes the actual or projected source and disposition of cash during a past or future accounting period.

Financing - New funds provided for a business, either by way of equity infusion, or loans.

Fixed Costs - Costs of doing business, such as rent and utilities that remain generally the same regardless of the amount of sales of goods or services.

Franchising - A relationship in which the franchisor provides a licensed privilege to the franchise to do business and helps in organizing, training, merchandising, marketing, and managing in return for consideration.

GIG Economy – A labor market characterized by the prevalence of short term contracts or freelance work as an opposed to permanent jobs.

Guarantor - A person who makes a legally binding promise either to pay another person’s obligation or to perform another person’s duty if that person defaults or fails to perform.

Income Statement - A record of the financial performance of a company over a period of time. It records all the income generated by the business during the period and deducts all its expenses for the same period to arrive at net income, or the profit for the period.

Independent Contractor - A worker who works on a specific project for a specified period of time. Independent contractors are not subject to tax withholdings and usually don’t receive benefits granted to full-time employees.

Inputs. – A section in the business plan. It refers to materials, suppliers, and arrangements with suppliers. This section describes them and lists prices, volume discounts, and payment options that might influence the decision to trade with a higher-priced vendor.

Interest - An amount paid to a lender for the use of funds, or the cost of using credit or another person’s or company’s money. Interest is usually calculated as a rate per a period, typically a year.

Joint Venture - An agreement between two or more partners to pursue collaboratively a particular project or business, with a share of profits or losses.

Lease - A contract by which a tenant takes possession of office space, furniture, equipment or other property for a specified rent and specified amount of time. At the end of a lease, the property reverts to its owner.

Letter of Credit - A document issued by a bank guaranteeing payment of a customer’s debt up to a set amount over a set period of time. Letters of credit are used extensively in international trade.

Liability - Any debt or obligation due now or potentially in the future. Liability is synonymous with legal responsibility.

Limited Liability Company (LLC) - A flexible business structure, popular with small businesses, offering owners the advantage of limited personal liability and the choice of being taxed like a partnership or a corporation.

Limited Liability Partnership (LLP) - A type of partnership that protects individual partners from personal liability for negligent acts committed by other partners and employees not under their direct control.

Loan Agreement - An agreement for the borrowing of money, typically containing pertinent terms, conditions, covenants and restrictions.

Long-Term Debt - Obligations or liabilities that a company owes in one year or more.

Market Analysis - Marketing research that yields information about the marketplace relative to the service or product.

Marketing Plan - A company plan for marketing products and services and increasing sales.

Market Share - The percentage of a product category’s sales, in dollars or units, that a particular brand, product line or company controls.

Nonprofit Corporation - A form of corporation in which no stockholder or trustee shares in profits or losses and which usually exists to accomplish some charitable or educational function. These organizations are exempt from corporate income taxes, and donations to these groups may be tax deductible.

Operating Expenses - The costs of maintaining a business. Examples include utility expenses and property taxes.

Partnership - A legal relationship existing between two or more persons or entities contractually associated as joint principals in a business.

Pre-Venture Exploration - Involves working with an individual to help them gather information about their general readiness to be an entrepreneur. It requires the entrepreneur to assess their own skills, strengths, weaknesses as well as opportunities and threats in the marketplace.

Prospecting - The process by which a business owner determines whether a business or an individual could qualify as a potential customer.

Return on Investment - The amount of profit based on the amount of resources used to produce it. The ability of a given investment to earn a return for its use.

SBA - The US Small Business Administration, created to help entrepreneurs form successful small business enterprises. A common misconception is that the SBA makes loans to small businesses. Generally, they don’t. Banks make loans that are guaranteed by the SBA.

Sales Tax - A tax on retail products based on a set percentage of retail cost.

Sole Proprietorship - A sole proprietorship is a one-person business that is not registered with the state as a corporation, partnership or LLC.

Sole proprietorships are so easy to set up and maintain that a consumer may already own one without knowing it. For example, a freelance photographer or writer, a craftsperson who takes jobs on a contract basis, a salesperson who receives only commissions, or an independent contractor who isn't on an employer's regular payroll, is automatically a sole proprietor.

Sole proprietors may have to comply with local registration, business licensing, or permit laws to make the business legitimate. These business owners are personally responsible for paying both income taxes and business debts.

S-Corporation - A form of corporate organization where the profits of the entity pass through to shareholders and are taxed on their personal returns under subchapter S of the Internal Revenue Code.

Target Market - A specified audience or demographic group that an ad, product or service is intended to reach.

Telemarketing - Using the telephone to sell, promote or solicit products and services.

Trademark - A name, phrase, logo, image or combination of images used to identify and distinguish a business from others in the marketplace. The term is often used to include service marks, which apply to businesses providing services as opposed to selling products. Trademarks can be either registered or unregistered, with different levels of protection.

Venture Capital - Money used to support new or unusual commercial undertakings, equity, risk or speculative capital. This funding is provided to new or existing firms that exhibit above-average growth rates, significant potential for market expansion and the need for additional financing for business maintenance or expansion. Venture Capital is extremely difficult to secure for a variety of reasons.

Working Capital - The difference between current assets and current liabilities. Working capital finances the cash conversion cycle of a business - the time it takes to convert raw materials to finished products to sell and receive cash.

This appendix includes resources that might be helpful during the self-employment process. This list of resources is not meant to be all inclusive.

Supported Self-Employment Technical Assistance Websites

• Griffin-Hammis Associates
  Griffin-Hammis Associates helps entrepreneurs with disabilities by helping them plan their business, secure funding for their business, and connecting them to valuable resources.

Small Business Development and Information Websites:

• AICCW - American Indian Chamber of Commerce of Wisconsin
  American Indian Chamber of Commerce of Wisconsin (AICCW) promotes economic development in Wisconsin Indian Country by offering targeted services to American Indian entrepreneurs.
• Bwadwét Innovation Community:
  Bwadwét Innovation Community offers a 15-week, cohort-based training program, Ignite, designed to support Indigenous entrepreneurs through education, mentorship, and cultural connection.
• SBA - Small Business Administration:
  Support America's small businesses. The SBA connects entrepreneurs with lenders and funding to help them plan, start and grow their business
• DATCP – Department of Agriculture, Trade, and Consumer Protection :
  The Wisconsin Economic Development and Innovation Center supports the growth and success of local and regional food systems through business, farm, and rural development programs and services.
• SBDC - Small Business Development Center: at UW-Madison provides no-cost consulting and non-credit courses to help businesses from startup through growth.
• WWBIC - The Wisconsin Women's Business Initiative Corporation:
  WWBIC is an economic development corporation providing quality business education and access to capital for entrepreneurs.
• SCORE – Service Corps of Retired Executives:
  "Counselors to America's Small Business" is America's premier source of free and confidential small business advice for entrepreneurs.
• WISCAP:
  A voluntary association of Wisconsin’s 16 Community Action Agencies (CAAs) and 3 special purpose agencies that have state-wide anti-poverty missions. Provide resources and links on business development.
• Ability Funds:
  Has several programs and services available to entrepreneurs, many that are open to any individual in the US with a disability.
• WCCE - Local Chambers of Commerce:
  Local chambers provide networking and mentorship opportunities and play a critical role in strengthening the collective voice of their members by promoting policies at the state and local levels that will help businesses create jobs and grow the economy.
• Center for Community and Economic Development UW-Extension:
  Local Extension offices provide Small Business Support Program aims to provide support services to entrepreneurs and small businesses in their county.

Credit Score and Report:

Credit Score and Report:
Self-Employment FICO Score Request

Financing:

• Wisconsin Department of Commerce:
  Services and assistance to promote economic development.
• Minority Business Development Loan Program:
  Provides financial assistance for the start-up and expansion of minority- owned businesses in Wisconsin.
• WisLoan Loan Program

Government Sites:

• Veterans Business Development
• Wisconsin Department of Revenue: Tax information and forms for the State of Wisconsin.
• US Patent & Trademark Office.
• IRS - Internal Revenue Service
• USDA Rural Development: Promote economic development by supporting loans to businesses through banks and community-managed lending pools.
• Employment Support for People with Disabilities - Social Security: Provides information on employment support and options for individuals receiving disability benefits.

Assistive Technology/ Equipment:

• WisTech: Wisconsin Assistive Technology Program

Introduction: This guide is intended to describe DVR's policy and scope of services related to individuals wishing to pursue work as an independent contractor. An independent contractor typically does not need to market their skills or abilities to obtain outside contracts. An independent contractor is hired to render goods or services to another entity. Sometimes independent contractor work can be considered part of the "gig economy". A gig economy refers to a general work environment where large numbers of people work as independent contractors and freelancers instead of full-time employees.

For individuals wishing to pursue employment as an independent contractor, DVR may support:

• Training for the IPE goal (whether it's via an employer or independent contractor),
• Technical assistance for understanding tax rules for independent contractor work,
• Financial literacy and benefits analysis, State of WI Exam and licensure costs for the occupation (CNA exam and license, CDL license, Class A driver's license) and
• Occupational tools and equipment, which could include computers, following existing fee schedules.

There can be many benefits to Independent Contractor work, along with considerations.

Benefits:

• Allows flexible work schedule (dependent upon needs of disability or other factors).
• Helps to address limited work history.
• Allows method to earn flexible income while pursuing long-range employment goal(s).
• Depending on work, can limit face-to-face interactions.

Counseling Considerations:

• Will need to be responsible for paying taxes (1099) and documenting business deductions.
• Impact of independent contractor income on Social Security or other public benefits.
• May need a checking account (for the deposit of monies earned).
• May need access to a computer, smart phone and/or data plan (and use of app/navigating the app/hand and finger dexterity).
• May require individual resources, including use of personal vehicle, proof of insurance, professional insurance and ability to financially maintain personal vehicle.
  • DVR cannot pay fines to reinstate a license, or insurance costs related to the occupation/Independent Contractor work.
• May need to lease a chair, rent a space, and/or require business insurance, but these are not costs DVR will pay for.
• Discuss a contingency plan if an Independent Contractor work ends.

Examples of Independent Contractor Employment:

Consumer wants to drive for Uber as an independent contractor. The consumer may require technical assistance related to filing taxes and/or bookkeeping and may need assistive technology. The consumer already owns a vehicle and has insurance that meets Uber's requirements. The consumer does not have to advertise and will get all riders from Uber.

Consumer wants to work in a nail salon as an independent contractor. The consumer may require technical assistance related to filing taxes and/or bookkeeping. They may require training and licensure, face masks, a lamp, and occupational tools per the DVR fee schedule (e.g. air brush, files, clippers, nail brushes, small fan, etc.). The consumer will not advertise, and all customers will come through the salon.

Staff are encouraged to work with their supervisors when these cases arise to assist in determining the appropriate process to be used.

Examples of scenarios that require use of the Self-Employment Toolkit:

Consumer offers craft or antique resale on Facebook Marketplace, eBay, etc. They do not have a sole source contract or contracts and need to advertise and promote on these platforms to acquire sales and business.

Consumer wants to work as a massage therapist and must lease a building space, purchase table(s), tools and equipment, requires marketing and advertising, as well as maintain licensure and insurance.

Counseling Considerations for Independent Contract Work/Gig Economies:

Note: Occupational Tools and Equipment and Computer Purchase fee schedules should be used for gig work

• Most gig work requires use of a personal vehicle (e.g., car/truck/cube van/motorcycle/bike). DVR does not purchase vehicles without an exception.
  • Proof of insurance, or other personal resources and professional insurance is required.
  • Must have valid driver's license.
  • DVR will not pay fines to reinstate a license, or insurance costs related to the occupation/Independent Contractor work.
• Most companies require a background check (run by Checker).
• Work occurs when the retailer has the order from the customer (e.g., busy times vs. slow times). No soliciting or marketing.
• Food safety/allergen concerns for driver and customer (e.g., touching food bags, drink containers, packing grocery items, etc.).
• Requirement for some food items to be transported in a food bag/catering bag/cooler.
• Liability concerns (e.g., food safety, vehicle accidents, etc.).
• Car insurance coverage (e.g., personal use vs. delivery driver usage considerations).
• Ongoing vehicle maintenance (e.g., gas, oil changes, repairs, etc.).
• Keeping track of mileage for the tax write off.

Considerations for the consumer:

• Do you own a smart phone?
• Are you familiar with using Apps on your phone? Which ones do you use most?
• Are you old enough and comfortable enough to deliver alcohol or prescription drugs?
• Would you be okay with shop-and-pay work (e.g., grocery items, personal care items, etc.)?
• Are you okay with delivering food (e.g., groceries, fast food, alcohol, frozen and cold foods/beverages, etc.)?
• Are you okay with moving and delivering larger items (e.g., grills, wheelbarrows, lumber, TVs, pallet of topsoil bags, etc.)?
• Are you able to climb stairs, have good night vision, okay to drive during inclement weather?
• Would you feel comfortable with other people in your vehicle, such as Uber/Lyft passengers?
• How are your customer service skills? Would customers potentially be unhappy with your delivery?
• Can you "multi-app" to stay busy? For example, can you conduct food delivery, passenger pick up, package pick-up all in same hour/day)?

Bonnie: Owner of a Car Detailing Business

Bonnie Brown is a consumer with an intellectual disability. She lives with her guardian, dad Brian Brown, and her stepmother, Eleanor. Bonnie has functional limitations in the areas of communication, self-care, self-direction, and work skills. Bonnie's intellectual disability impacts her ability to effectively receive and process written communication. Bonnie relies on Brian and Eleanor to manage her finances, schedule, and transport her within the community. She needs assistance when completing tasks while staying organized and focused. Bonnie requires individualized instruction to learn new tasks, assistance completing any work-related paperwork, and support acclimating to new environments. Bonnie is asking DVR for support in opening her own business detailing cars.

Supported Self-Employment Toolkit, Step 1 – Provide the Nine-Step Overview of Self-Employment with the Consumer / Guardian: Bonnie's goal was brought up in her first IPE development meeting. She currently works as a car detailer for a dealership and with the support of her team would like to be self-employed in the occupation. She works two 4 hour shifts a week, detailing one car each shift. The car dealership decided that they no longer are going to keep her as an employee and provide all the supplies because she only details 2 cars weekly. They are willing to allow her to operate out of the dealership as an independent contractor. She would have to provide her own supplies, marketing, and manage her own scheduling.

Bonnie, her VRC, Brian, and Eleanor discussed the supported self-employment toolkit at this meeting. The VRC gave the family an overview of the toolkit and shared basic information on who the policy applies to, the fee structure, and the Business Planning Team and their importance.

Supported Self-Employment Toolkit, Step 2 – Explore the Occupation, Career / Discovery Profile, and Develop the Business Planning Team: At that same meeting they identified the Business Planning Team members as Bonnie, Brian, Eleanor, the VRC, and her MCO case manager. They discussed that for the VRC to learn more about the appropriateness of the job goal and Bonnie's great 8's, they should start with a WIBA and a career profile. The VRC authorized these services.

After the WIBA and career profile were completed the Business Planning Team (Bonnie, Brian, Eleanor, the VRC, and the MCO case manager) met. They all agreed that based on the career profile and Bonnie's past work history that the job goal is appropriate. They reviewed the career profile as a team. Bonnie can secure work right away, by continuing at her current dealership. The Business Planning Team discussed their roles.

Bonnie will be the sole person detailing the vehicles. She can do so with support from Eleanor. Eleanor doesn't detail the cars, but keeps Bonnie on track and organized, making sure she is being efficient. Brian will handle inventory, billing, bookkeeping, accounting, and inventory. The VRC will work to find Bonnie a job coach that the MCO case manager will continue to support once her DVR case is closed. When Eleanor is no longer needed onsite, she will continue to drive Bonnie to and from the dealership, as well as move the cars for her when she is picked up and dropped off. Eleanor will also handle working with Bonnie on any marketing.

Supported Self-Employment Toolkit, Step 3 – Evaluate the Consumer and Business Planning Team for Self-Employment: To move forward with self-employment, the Business Planning Team needed to submit a background check, CCAP review, personal finance worksheet, credit report with a FICO score, and a startup needs list to determine Bonnie's tier. Because Brian is her guardian, he submitted his credit report with a FICO score, it was 780. A background check and CCAP review were completed on Bonnie, Brian, and Eleanor, there were no records. The personal finance sheet was filled out by Brian and included the household expenses and all incomes. The family is financially solvent. Her start up needs list included cleaning supplies, portable shop vacs and shampooers, a locker, and marketing materials. The estimated cost was $8,000 placing Bonnie in tier 2 of the toolkit.

The VRC shared that a BAS review would need to be completed. Bonnie, Brian, Eleanor, the VRC, and the MCO case manager all met to complete the ERQ together. The MCO case manager understood that they would be providing job coaching long term. Bonnie, Brian, and Eleanor each shared information about the parts of the ERQ that applied to how they were involved in Bonnie's business.

A BAS was scheduled, and the entire Business Planning Team was in attendance. Based on the submitted materials and questions asked during the BAS, the Business Planning Team received a green light.

Supported Self Employment Toolkit, Step 4 – Determine Feasibility of Proposed Business and Next Steps: The VRC shared the business consultant list with the family, and they chose to work with business consultant A for feasibility and business planning. The Business Planning Team and business consultant A had a couple of meetings and completed the feasibility. The feasibility rating was a yellow light. Business consultant A determined this because once she owns her business, after expenses, she is not making enough money to sustain the business. They made recommendations on how she could make more money. She could review her pricing or expand her services to serve more customers.

Supported Self Employment Toolkit, Step 5 – Develop the Individualized Plan for Employment (IPE) to Address Feasibility Action Items: Her IPE is created at this point. It included services from her business consultant to help her reconfigure her business model to make more money as well as business planning services. The business model was reconfigured prior to her business plan being started. The new model consisted of different packages ranging in pricing, allowing customers to have upgrades added in that would bring in more money for Bonnie and add a minimal amount of time to each detail.

Supported Self Employment Toolkit, Step 6 – Develop Business Plan and Amend the IPE to Include Business Plan Development Services: After Bonnie completed the feasibility action items required by her VRC, the Business Planning Team started to work with business consultant A, on a business plan following DVR's technical specification.

Supported Self Employment Toolkit, Step 7 – Review Business Plan: When the business plan was complete, a business plan review was scheduled. All members of the Business Planning Team attended, as well as business consultant A. The business plan review committee asked questions based on their review of her plan.

Bonnie received a letter with action items she must complete from the committee. She needs to update her startup needs list, update her operating costs to include different sizes of cars and how much smaller versus a larger car would cost, and provide more information on her upgrades. The committee also made sure that Bonnie and her VRC connected with her MCO case manager to confirm that the MCO has agreed to the recommended support of job coaching after her DVR case is closed. The VRC also ensured that they gave all required information to the MCO case manager so that they could submit a RAD (Resource Allocation Decision). Once the RAD process is complete, the MCO has agreed to take over job coaching when it is time to transition. If the RAD process determines that other kinds of supports are needed. Bonnie, her MCO case manager, and her VRC should meet to discuss support needs.

Supported Self Employment Toolkit Step 8 – Open the Business: Bonnie, with the help of her entire Business Planning Team, completed the action items required by the business plan review committee. They were submitted to the business plan committee who approved her business plan and requested startup items. Her IPE was updated, and DVR purchased the approved startup items from her business plan. Her VRC recommended that she connect with SCORE so that she has a business mentor to consult with as her business grows and operates.

Supported Self Employment Toolkit Step 9 – Successfully Close DVR Case: Bonnie's Business Planning Team met after all the items were purchased to finalize Bonnie's transition from DVR to long term supports. Her MCO will provide ongoing job coaching. Brian and Eleanor will continue to provide the support they committed to so long as Bonnie's business is open and operating. After the meeting, Bonnie opened her business.

She was able to sell many upgrades, and her business was profitable. Her VRC collected a profit and loss statement at every 30-day contract. After four (4)months, Bonnie had three (3) months of making minimum wage or more. A final transition meeting was held with Bonnie's Business Planning Team. The VRC paid the agency that supplied her job coach for the transition report at the time of transition. The VRC monitored Bonnie's progress for another 90 days and was able to close her case successfully.