EMPLOYMENT PLAN PROGRESS MEASURES
In developing the Employment Plan, the individual and counselor shall include in the Employment Plan progress measures that the individual must take towards self-employment enterprise (SEE) approval. Before the counselor commits in the Employment Plan to funding services required for a SEE (except consultation or training services), the individual and counselor shall complete specific measures. The following measures include:
1. Business Assessment Scale (BAS)
The BAS is a copyrighted tool authorized for DRS use by Goodman, Herzog, and Associates, Inc. Only persons trained and authorized may administer the scale. A core group of counselors, managers, and evaluators in each region are certified assessors.
The Business Assessment Scale is to be used as an early assessment of the likelihood that an individual will be able to establish a successful business enterprise. It addresses five areas of candidate readiness:
- Management Expertise/Skills-expertise to manage people and finances, sales marketing, operations, finance/accounting.
- Commitment/Desire/Persistence-commitment of time, personal resources, and skill acquisition directed towards operating a business; desire to operate a business, initiative to research information, network with individuals and business organizations, seek professional consultation, and persistence in resolving problems.
- Technical Skill/Work Experience- demonstrated technical skills and knowledge of the industry based on work experience and/or training.
- Market Demand- degree to which information supports the need for the proposed business, feasibility in the context of product/service, target market, competition, and market trends.
- Personal Credit/Financial Solvency-degree to which the individual demonstrates the ability to maintain a positive credit rating.
If the individual scores less than 60 on the scale, the individual may need to participate in a business training program, receive counseling about self-employment through the Small Business Administration (SBA), Small Business Development Center (SBDC), or Service Corps of Retired Executives (SCORE), and/or work in the same job in another business. For these individuals, the counselor can authorize the business training and counseling costs. Candidates may be able to improve their ratings by resolving credit problems, gaining work experience, and acquiring management expertise.
If the individual scores 60 or greater, the counselor may authorize business training, counseling, etc., when the individual and counselor agree that such services would be helpful to the individual.
2. SEE Proposal
The customer shall develop a detailed written SEE proposal that meets DRS requirements. The customer will present the proposal in person to the SEE Committee and will need to demonstrate a thorough knowledge of it. The SEE proposal should contain, but is not limited to, the business plan, income and expense projections and a medical release, if warranted. In addition, the SEE proposal should have a stand alone page that addresses disability, why self-employment is justified and how self-employment removes barriers to employment.
The number one reason businesses fail is lack of planning! Instead of making mistakes on paper, business owners too often make them with real money and real customers. That is why many, but not all, business funding institutions and agencies require business plans and may be reluctant to fund business start-ups that cannot provide a well-developed plan.
Business Plan: The business plan is a comprehensive document describing all relevant aspects of the self-employment enterprise whether in the proposal and development stage or fully operational. It is the foundation for planning activities and provides justification for undertaking the endeavor. Please see a sample business plan outline in Appendix A. Samples of business plan outlines are available upon request. Please contact DRS' Grants and Special Programs at 804-662-7605.
The plan shall include:
- Executive Summary. This section generally describes the name and type of business, the business location, the product, the market, and the management and business goals.
- Products or Services. This section describes the product or service line and any proprietary position (patent, copyright, legal, and technical).
- Manufacturing Process (if applicable). This section describes the materials, source of supply and production methods.
- Market Analysis and Marketing Strategy. This section describes the total market, industry trends, target market, competition and the methods of selling, distributing and servicing the product or service line.
- Management Plan. This section describes the business organization, personnel, facilities, and operating plan.
The complexity and comprehensive nature of the business plan will be determined by the scope of the proposed business. The SEE Committee can provide assistance in determining how complex and comprehensive the business plan should be.
Income and Expense Projections: This should be for a minimum of one year and preferably three to five years depending on the complexity and financial projections of the business.
Medical Release: If necessary, a medical release for the individual to perform the proposed activities.
3. Dollar Level Authority
If the customer is seeking DRS financial support within the counselor’s dollar level authority, the counselor may approve the SEE proposal and include it in the Employment Plan. Although the SEE Committee process is not required, the Business Assessment Scale requirement and the requirement to develop a written SEE proposal still apply.
The pre-approval dollar levels are stated in DRS policy. See Chapter 14.1 PURCHASING, Policy 3.
If the customer is seeking DRS financial support in excess of the counselor’s dollar level authority, progress measures regarding professional written review of the SEE proposal, SEE Committee review, and required supervisory pre-approvals must be included in the Employment Plan.
4. Selection of the Consultant
The counselor shall select an appropriate professional who is experienced with enterprise development (i.e., SBDC, SCORE, lending institution, management consultant), to review the SEE proposal in writing. The counselor shall attach the written review to the SEE proposal. The SEE proposal and written review are subject to the SEE Committee process.
