| Supported Self-Employment at Challenge
Industries
By Steve Lawrence, Coordinator of Supported
Self-Employment at Challenge Industries, Ithaca, NY
The Supported Self-Employment program was launched
at Challenge Industries in Ithaca, New York, in September of 2000.
In the ensuing two years, many individuals who have chosen to
participate in our program have stepped outside the boundaries
of their traditional vocational rehabilitation experience and
launched their own small businesses. Along the way, we have created
a “toolbox,” if you will, that we open regularly to
help our program participants choose a self-employment venture,
be diligent in their efforts to make it a reality, and nurture
and shape it to meet their needs. We hope this handbook provides
some insight into some of these tools and how best to utilize
them. Of course, we welcome any suggestions you might have, as
we are continually seeking ways to sharpen our tools. These suggestions
are meant to take the reader “off the beaten path;”
after all, there are many books and articles explaining the ABCs
of traditional small business management. Given that the field
of Supported Self-Employment is relatively new, we are excited
to do our part to contribute to its growth and refinement.
First, a little history: Several years ago, Ceil B., a service
recipient who was disabled in an automobile accident, decided
to pursue her lifelong dream of self-employment. Ceil believed
that there was a need for a centralized source for products designed
for people with disabilities, and she called her new business
“Higher Ground.” She envisioned a catalog through
which customers could purchase books, tapes, assistive devices,
and other products designed to make living with a disability less
inconvenient. She utilized her impressive research skills (honed
during her collegiate days prior to her disabling injury), drew
from many resources, and wrote a thorough and meticulous business
plan.
Ceil’s business plan was solid enough to secure funding
through VESID (New York State’s Vocational and Educational
Services for Individuals with Disabilities), and the Higher Ground
catalog was taken from concept to reality. The finished product
was a professional-looking, glossy publication. The products featured
were affordable and of a high quality. The future seemed bright.
Like many rookie entrepreneurs, Ceil then expected the phone to
ring off the hook, the credit card authorization unit to be humming
“round the clock,” and her bank account to reach meteoric
heights. None of these things happened.
After the conceptualization, formulation, and implementation of
her business, Ceil met with Judi H., a member of Challenge’s
Community Relations and Development staff. Judi, herself a recipient
of mental health services, is by any measure a dynamo. Rather
than wait for her ship to come in, Judi will sprint to the end
of the pier, dive into the water, and swim furiously out to meet
it. As Ceil’s business floundered, and her frustration mounted,
Judi saw an opportunity to deliver better service in the future.
Judi realized that had Ceil been connected to any of Challenge’s
existing programs, she would have received ongoing supports and
follow along services, and her business would have had a much
better chance of succeeding. After all, in the world of vocational
rehabilitation, the job placement is but one stepping stone on
the path to fulfillment. Once a job is secured, or a business
is established, the real work begins.
Judi researched the availability of support services for individuals
choosing to add self-employment to their menu of vocational options,
and found that such programs were rare. The Rural Institute at
the University of Montana had done some ground-breaking work,
and Cary Griffin, the Institute’s Director of Special Projects,
has been quoted as saying, “People with disabilities are
as qualified as any to take their rightful place in free market
enterprise, regardless of IQ score, mood swings, or ability to
walk.”
With oversight and encouragement from Shawn Galbreath,
who was at that time Challenge’s Director of Development
and Community Relations, Judi wrote a grant proposal so that Challenge
might add a Supported Self-Employment program to its lineup of
services. Ten proposals were sent out, resulting in two responses.
After the grant proposal was revised and refined, Challenge was
informed that the Joseph P. Kennedy Jr. Foundation would fund
the program on a three-year, Development Project basis. Certain
program criteria would be agreed upon, the Foundation would send
in a consultant to assess the agency’s progress in meeting
the criteria, and funds would be made available on a year-to-year
basis upon successful compliance with said criteria.
Since the implementation of the program, we have seen many success
stories. At this point, none of the businesses founded have evolved
into full-time, self-supporting ventures, but program participants
have been very pleased with the opportunities now available. Our
business owners have been given a chance to be included in the
community, to choose work they love, and to schedule their work
around their lives.
Here are some suggestions relating to various
components of a Supported Self-Employment program:
Intake
It has been our experience that while the intake
process can be intimidating, it need not be. The simple act of
adjusting one’s terminology can make a big difference in
determining a potential program participant’s comfort level.
For example, some vocational counselors and Employment Specialists
have brought a new participant in for an initial information session,
and have asked, “So, tell us why you want to start and run
your own business?” On other occasions, the question has
been phrased this way: “So, what can you tell me about your
hobby, or your passion, and would you like to learn how we might
be able to help you make some money while doing what you love
to do?”
Obviously, these are two very different approaches.
For many of the individuals we have served, the idea of starting
and managing a business is terrifying. They have heard ominous
statistics such as, “Three out of every four businesses
fail within a year,” or “It takes a master jack-of-all-trades
to write a business plan, a marketing plan, a bookkeeping plan,
understand pricing and insurance, and manage all the aspects of
a business.” Anyone who approaches a self-employment venture
with such an outlook will understandably tread cautiously, and
may well expect to fail. It should be made very clear at the outset
that “Supported Self-Employment” means just that.
Support is provided wherever and whenever necessary to help piece
together the puzzle.
When we were in the process of establishing the
Supported Self-Employment program here at Challenge, a considerable
amount of outreach was undertaken to publicize the program and
to recruit mentors. During these outreach presentations, it was
not uncommon to hear a comment such as this: “Running a
business is a very complex endeavor. How can a person with a developmental
disability or a mental illness be expected to do what is necessary
to manage a self-employment venture?” Interestingly, when
presentations were given to service groups consisting primarily
of business owners (such as Rotary or Kiwanis), the perspective
was different. These individuals were aware that few people can
“do it all,” and recalled that while they themselves
might have been competent at accounting, they were clueless in
regard to marketing. Or, perhaps they were highly skilled in the
area of advertising, but could barely balance their own checkbook,
never mind manage the books for a business.
When discussing possible self-employment ventures,
it is advisable to frame the conversation in familiar language.
Focus more on the aspects of the endeavor the potential entrepreneur
is comfortable with, and assure her or him that supports will
be put in place to help address the areas that might be more challenging.
Ask questions that remind the individual that he or she does indeed
have some of the pieces of the puzzle already in place. Assure
the person that there are many resources available, many in your
community, others at the click of a mouse. Empower the individual
to focus on his ability rather than his disability. And remember,
a negative attitude is the biggest disability.
Publicity
Self-employed individuals would be wise to heed
this piece of advice: “Do not spend one dime on advertising
until you have exhausted all sources of free publicity.”
Many new entrepreneurs are timid about seeking free publicity,
and a slight attitude adjustment can serve them well. Many of
these shy individuals are under the impression that a newspaper
editor, radio talk show host, television producer, or other media
figure is doing them a favor by providing exposure. In this day
and age of 200 channels, satellite radio, and vast reservoirs
of internet news, the fact is that many in the media are scrambling
for material. Remind entrepreneurs that there is so much time
and space to fill that he or she might be doing them
a big favor by giving them something new, local, and relevant
to cover. View it as a win-win situation. The media gets something
to inform, entertain, and enlighten their audience and the business
owner gets the publicity he or she needs.
Patience is indeed a virtue in this case. While
an editor may not have room to write a story about your venture
this week, she might be grateful for the opportunity to fill a
gaping space next week. The local radio talk show host might be
booked until next month, but when the time comes, he is relieved
to be able to avoid yet another interview with an over-exposed
guest who has been on the show ten times in the past year.
Encourage those you support to work through their
shyness, to the greatest degree possible. Remind them that if
they are not convinced that their product or service can truly
help their potential customers, perhaps they should reconsider
their decision to go into business. Convey to them something along
the lines of, “If these people will indeed benefit from
their efforts, then you owe it to them and to yourself to get
the word out.”
Mentors
A mentor is a person who can, by sharing his
or her expertise, assist you in understanding and implementing
various business essentials. For example, some individuals may
have wonderful people skills, and may be willing and able to do
their own marketing, but their bookkeeping skills may be insufficient.
Others may be very competent in managing their money, but be very
uncomfortable in handling publicity. Remember, it is the rare
person who is competent in all aspects of business management,
and “Supported Self-Employment” is thus named for
a reason. It is the duty of the support staff to identify the
“weak spots” and help the potential business owner
“fill in the blanks.” While it is often tempting to
perform some tasks for a business owner, encouraging the greatest
possible degree of independence will serve her better over the
long run.
When seeking out mentors, keep in mind the strategy
employed in the Publicity section. While acknowledging that you
may be required to pay some mentors, refrain from doing so until
you have searched for volunteers. Many service groups like Rotary
or Kiwanis have within their ranks retired business owners who
would be happy to mentor an aspiring entrepreneur. Being retired,
many of these individuals find themselves missing the days when
they were active in the business world, and they welcome a chance
to “get back into the game.” Perhaps they have ten
hours to spare each week, perhaps they have an hour a month. Maybe
they would like to accompany a new business owner to her booth
at the Farmers’ Market every day for an entire season, or
maybe they can spare two hours to help set up a functional bookkeeping
system. These individuals spent many years accumulating skills
and knowledge, and it would be a shame to let such valuable resources
go to waste.
Colleges and trade schools are also likely to bear fruit in the
search for mentors. Many curriculums require Field Work study,
and these students benefit greatly from the opportunity to help
individuals with disabilities start and operate a small business.
We at Challenge have been very fortunate in that
we are in close proximity to two colleges, and by extension, to
many motivated and qualified mentors. In one instance, a program
participant expressed a desire to become a personal fitness trainer
for other disabled individuals, but he lacked the necessary credentials.
We were able to locate an Ithaca College undergraduate student
studying Therapeutic Recreation, and set up an arrangement whereby
she was assigned to help oversee the fitness program operated
by our program participant. She received Field Work credit and
valuable experience, the entrepreneur realized his long held ambition,
and the class members received some useful wellness information.
Another mentoring agreement has paid dividends
in the area of business plan writing. A team of students from
Cornell University’s M.B.A. program has taken on as their
senior project the development of a business plan module. The
BizPal is designed to assist support staff in their efforts to
create viable business plans, and is designed to be replicable
and therefore useful to other Supported Self-Employment programs
or projects. (The BizPal is available
to other Supported Self-Employment programs by writing to: Supported
Self-Employment—Challenge Industries—402 E. State
Street—Ithaca, N.Y. 14850.)
In the search for mentors, it is beneficial to
keep in mind that not every match is a good one. Just because
a student needs Field Work credit does not necessarily make him
or her a good mentor. Personalities do not always mesh, and trying
to “fit a square peg into a round hole” will likely
be counterproductive for everyone. Don’t be afraid to look
around until you find a mentor who has the right combination of
motivation, ability, and attitude. Through diligent recruiting
and careful “matchmaking,” it is possible to set up
mentoring partnerships that will benefit all parties.
Individual Development Accounts (IDAs)
We have been extremely fortunate in that the
funding for Supported Self-Employment includes matching funds
for Individual Development Accounts. When an IDA is opened by
a program participant, he or she is then able to deposit as little
as ten dollars per month, or as much as fifty dollars per month.
These deposits are then matched on a 2:1 basis, so that ten dollars
becomes thirty, twenty becomes sixty, and so on. The purpose of
an IDA is to accelerate the process of saving for small business
expenditures. There are rules built in to prevent misuse, for
example, lump sum deposits are not allowed (participants may deposit
between $10.00 and $50.00 per month), and if withdrawals are made
for purposes not related to the business, the matching funds are
forfeited.
In addition to the necessary funds, it is important
to find a financial partner capable of administering the IDAs.
In Ithaca, we have the good fortune to partner with the Alternative
Federal Credit Union (AFCU), an institution nationally recognized
for its work with under-served populations. AFCU also administers
IDAs for educational and housing purposes, and has been helpful
in assisting our program participants with a wide array of financial
matters.
To illustrate an IDA can be utilized to jump-start
a business, I will share the story of Cari, the owner of “Cari’s
Creations.” Cari has been an artist for most of her 28 years,
and her drawings of dinosaurs and unicorns are colorful and fanciful.
After matching Cari up with an art mentor, her drawings were refined
to the point where she created a batch of holiday cards, and sold
hundreds.
Cari decided that she could create more appealing
artwork if she had regular access to a computer, and set about
the task of saving to purchase one. She opened her IDA, diligently
deposited forty to fifty dollars per month, and when her balance
reached $250, applied for the 2:1 match. A check for $250, made
out to the computer vendor, was withdrawn from Cari’s account,
and another check for $500 was withdrawn from the matching funds
account. Given that the money was never actually in Cari’s
account, it created no complications in regard to her Social Security
benefits. Cari was able, with the $750, to purchase a Compaq computer,
a monitor, and a printer. She then saved for and purchased a scanner.
Her artwork has improved immensely.
IDAs are extremely valuable tools, and if matching
funds can be procured, and competent fund administration can be
arranged, a small business owner’s financial goals can be
reached much sooner than would be otherwise possible.
Thus far, Supported Self-Employment has assisted
in the development and operation of the following businesses:
• Glassical Creations—Stained glass
clocks, window hangings, garden stones, night-lights, jewelry
boxes, and mirrors.
• Gerry’s Beadwork—Beaded
necklaces and bracelets
• RJM Images—Photographs, note cards,
and custom photographic services.
• Cari’s Creations—Greeting
cards, day planners, and various art work.
• ArtPoem—Computer generated greeting cards.
• Nancy’s Fancys—Handmade
purses and vests.
• Can-Do Fitness—Wellness instruction
to individuals with disabilities.
• Johanna’s Dog Walking and Pet Sitting Service—Self
explanatory
These businesses have operated on a part-time
basis, as most of the business owners do not wish to undertake
the task of full-time business operations.
As vocational rehabilitation agencies add Supported
Self-Employment to their list of services, they will likely find
that several factors must come into play before a business can
be successful.
Foremost, of course, is the simple fact that a business idea must
be a viable one–regardless of who will be “in the
driver’s seat.” A thorough business plan–such
as the plans written with the help of BizPal–can
help to ascertain whether a particular idea has merit. Considerable
“front end” research will assure that a business proceeds
at a reasonable pace.
It is also important to ascertain whether the
motivation to try self-employment is internal or external. If
a program participant is truly motivated, the plan has a chance
to succeed, but if the motivation comes primarily from support
staff, friends, or family, success is far less likely.
Business Plans
It seems appropriate at this point to cover in
more detail the importance of a solid business plan. Lenders tend
to see business ideas in terms of risk and return. Let’s
envision a potential business owner standing on the bank of a
swiftly flowing river, and let’s call that bank “Risk.”
She is peering across to the other bank, which we shall call “Return.”
Of course, she wants to get to the other side, but there are a
number of stepping-stones which must be put in place before she
can do so. These stepping-stones are called:
• Legal Structure,
• Description of Business,
• Location,
• Management,
• Personnel,
• Pricing,
• Product Design,
• Market Entry Timing,
• Industry Trends,
• Projected Income Statement,
• Projected Cash Flow Statement,
• Breakeven Analysis, and
• Loan Fund Dispersal Statement.
As each of these stepping-stones is researched, developed, and
put in place, the distance separating “Risk” and “Return”
narrows. Lenders begin to see the viability of the idea. More
importantly, the potential business owner gains insight into the
complexities of starting and operating a small business.
Whether a vocational rehabilitation agency obtains
funding to set up its own Supported Self-Employment program, or
chooses to offer self-employment as an option for a particular
service recipient, it is my hope that some of the suggestions
in this article are found to be helpful. In our experience, it
has been extremely fulfilling to assist individuals with disabilities
in their efforts to participate in the “American Dream”
by starting their own small businesses. In addition, the presence
of our program participants in community-based locations such
as the Ithaca Farmers’ Market has elevated our profile and
resulted in favorable community relations. It is therefore safe
to say that by establishing and operating the Supported Self-Employment
program, Challenge Industries has created the proverbial “win-win”
situation.
Contact Information
Steve Lawrence
Coordinator of Supported Self-Employment
Challenge Industries
402 E. State Street
Ithaca, N.Y. 14850
(607) 272-8990
stevel@aboutchallenge.org
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