Customized Self-Employment (CSE)

Description of Service Category

The customized self-employment process unites person-centered planning strategies with the development of a business plan. The goal of the planning process is to develop an individualized, profitable, and sustainable microenterprise. This process does not require the individual to get ready to go to work but, instead, focuses on the talents, interests, and assets of the individual.

For many consumers with disabilities, including consumers who need long-term or ongoing supports, self-employment can be a great option to meet their employment needs. This service is not intended to support or establish a hobby, but should be delivered to support the establishment of a business to meet required competitive integrated employment verifiable wages.

Self-employment allows for:

• Choice and control
• The use of natural skills and talents
• Expanded work opportunities
• Accumulation of wealth
• Independence and creative freedom

Service Provider Staff Approved to Deliver Customized Self-Employment Services

Shared Roles and Responsibilities in DVR Services

Service(s): An Authorization for Services is required from DVR before any services can begin.

Service	Purpose	Timeframe(S)	Deliverables	Payment***
CSE Feasibility of Proposed Business and Support Needs	Identify and detail customized support needs and business feasibility to assist with development of the IPE and serve as the basis for additional services.	Within 90 days of authorization.	Individualized Service Plan provided.	$2,400 outcome payment. Monthly reports required. Activity Code: 048
CSE Business Plan/Reporting - Meeting and Report	Creation of a business plan to include marketing and other costs as well as financial projections.	A final business plan and report completed within 180 days of authorization, meet as soon as possible after the report is issued.	Business Plan (Includes support, marketing, and two years of financial projections).	$3,000 outcome payment. Monthly reports required. Activity Code: 048
CSE Business Plan Implementation	Implementation of the business plan, delivery of needed supports and coordination.	Monthly reports due within five business days of the conclusion of the last contact with the consumer and team.	Business Plan revisions as needed. Business is operative and generating income.	$3,000 outcome payment. Activity Code: 048
CSE Follow-Along	Delivery of needed supports, fading as possible, coordination and monitoring of business for sustainability.	Monthly reports due within five business days of the conclusion of the last contact with the consumer. Final report must include wage documentation based on gross wages.	Outcome report provided with earning potential leading to Successful Closure.	$900 outcome payment. Monthly reports required. Activity Code: 048

Note: Expected service timeframes have been developed and are intended to keep the consumer moving through the customized self-employment process. These timeframes should be adhered to as much as possible, unless agreed to by all parties. There will be some differences in completion times for each step based on the individual needs of the business and the DVR consumer. Communication with all partners is important to the successful delivery of the service.

*** If over 100 miles, the Service Provider can charge 75 cents per mile for actual miles driven over 100 miles round trip (to and from the closest site where the services can be provided). The 75 cents per mile charge begins with mile 101. Service Providers must submit a travel log detailing mileage. Approval from DVR for traveling over 100 miles is required prior to travel. Due to the nature and complexity of the service, different transportation funding can be individually negotiated to meet the needs of the consumer at the discretion of the WDA Director.

Additional details about the Customized Self Employment Process can be found in the Customized Self-Employment Toolkit. (Note -This toolkit is scheduled to be updated)

Additional helpful disability and business resources can be found in the DVR Self-Employment Toolkit.

Service Provided – Feasibility of Proposed Business and Support Needs – Required Elements

• Meetings and informational interviews are held with consumer, support professionals and key family members/friends to identify business goals, the person’s assets, and barriers toward self-employment while assembling the business team.
• Rehabilitation technology, accommodations, and feasibility testing as needed.
• Work Incentive Benefits Assessments (WIBA) are necessary, the hours worked, and income expectations must be discussed and identified with the team.
• Develop a support plan outlining tasks for the business to be operational, stating roles of the business owner, supports team members and business expenses related to services needed for business sustainability, to include
• Number of hours the consumer anticipates working.
• Detailed discussion of DVR Self-Employment Fee schedule with the consumer and/or guardians.
• A review of the expectation that business brings in equivalent of gross income wages (IRS definition) for hours worked.
• Identification of accommodations/assistive technology that could assist consumer in the business planning and running of the business.
• Draft of a long-term support plan including the provider/funder of long-term support, after DVR closure.

Reporting Required Elements:

The provider should use the criteria below to provide a report to DVR and the CSE team. All areas should be addressed for the report to be considered complete.

Feasibility Plan/Reporting Required Elements
Support plan The support plan outlines tasks for the business to be operational, stating roles of the business owner, supports team members, and business expenses related to services as needed for sustainability, to include detailed discussion and documentation of: Explanation of why self-employment is being recommended as a vocational path. Include what other options may have been explored. The nature of the time commitment - Pro/Cons and impacts on other commitments such as other jobs, family, community activities, etc. The consumers wage/impact on economic and other benefits (WIBA results). Work hours expectations, (hours per week worked should be calculated by taking all labor costs (including creating products), marketing, selling, and travel time deducted from the sales of products. Reaction to and remaining questions to the DVR Self-Employment Fee Schedule -This may be done in partnership with the DVR Vocational Rehabilitation Counselor (VRC). Expectation and understanding that business brings in equivalent of gross income wages (IRS definition) for hours worked. Discussion of any accommodations/assistive technology that could assist consumer in the business planning and running of the business long-term supports after case closure.
Determine Business Description Description of business concept. Description of product or services to be delivered. Overview of concept, background, and market factors.
Operational Analysis and Description Qualifications/skills in field and/or business operations. Skill deficiencies and recommendations to address including skill building or other services. Equipment/supplies and other supports needed to operate the business. Licenses and/or permits needed and required insurance(s) coverage and associated costs.
Facilities Daily operation of business (hours of operation, who will complete tasks such as bookkeeping, marketing, sales, etc.). Employees/managerial needs. Phase-in schedule of business elements (accounting, space, etc.). Suitability of identified space for business purpose.
Market Analysis Target market - demographics, location, geography. Market size - now and future, value of market. Market demand and value for service/product. Test market if appropriate. Identify reason for recommendation, including disability related. Competition - direct and indirect (include name, location, estimated annual revenues, market share performance/penetration). Market share estimates. What does it take to succeed in industry or what makes competitors successful? How the business will be marketed, including the first six-months of detail and costs?
Financial Analysis What the business needs to bring to meet or exceed the consumers desired wage for anticipated hours of work, and successful employment outcome requirements. Start-up costs (first six months). Recommended schedule for phases of purchase/attainment of required start-up items. Forecast of gross revenue. Determine if consumer will take an owner's draw or salary and a projected timeline for income. Need for cashflow to operate business in early and later stages. Projected profit/loss for the first five years. Projected breakeven point and timeframe. Identification of potential funding sources or other resources available. Accounting plan to include roles and responsibilities of team members. Potential barriers or items needing consideration for each section above. The ability of the consumer to meet DVR Self-Employment fee schedule requirements and the ability of the business to bring in equivalent of gross minimum wage for anticipated hours worked and method of verification.

Service Provided – Business Plan – Required Elements

• Monthly Business Planning Meetings and reports to include any additional details related to:
• Business description
• Product/services description
• Operational Analysis-How prepared is the individual to operate the business?
• Marketing Analysis
• Financial Analysis
• Information on similar businesses.
• Outcomes that meet the DVR definition of successful case closure and outcome.
• Any suggestions to additions for accounting or marketing plans.
• Connect with community resources to assist with business goal validation.
• Identified areas of concerns for any of the above areas.

See Customized Self-Employment Checklist (Appendix 10) in the Customized Employment Toolkit.

Reporting Required Elements:

The provider should use the criteria below to provide a report to DVR and the CSE team. All areas should be addressed for the report to be considered complete.

FINAL BUSINESS PLAN REQUIRED ELEMENTS
The Executive Summary (summary of the entire business plan) Business Description Business History Form of Ownership Ownership Interest Industry Trends Background Information About the Owner(s)
The Marketing Plan Products and Services The Target Market Business Location Competition Advertising and Promotion Strategies to include the first six-month detail and costs
The Operations Plan Inputs Facilities Operating Costs Licenses, Permits, Zoning, Insurance, Tax Number, Corporation Status Capital Equipment Production Methods Management Methods Employees if applicable Outside Services
The Financial Plan Need for and sources of cash, including other financial resources (loans, grants, etc.) the consumer has applied for. Equipment List Income Statement Break Even Analysis, including DVR outcome definition Cash Flow Statement Balance Sheet (or Personal Financial Statement) Supporting Documents (optional) Accounting plan including roles and responsibilities for operational use of plan including how state, federal and local taxes will be filed and paid. Detailed breakdown of expenses including any consignment fees, equipment rental, etc.
Support plan The final support plan outline tasks for the business to be implemented and fully operational and include: The final role of the business owner Supports team members roles Business expense related services as needed for sustainability Cost comparison quotes per DVR policy and fee schedule Long-term supports after DVR case closure

Service Provided – Business Plan Implementation – Required Elements

• Develop promotional materials.
• Coordinate business banking, sellers permit (as needed), liability insurance, bonding, and tax resources (can also happen in other phases).
• Develop bookkeeping strategy and educate on tracking and reporting business income.
• Locate vendors for start-up equipment.
• Coordinate work incentive counseling, implementation of WIBA plan and/or PASS Plan as appropriate.
• Coordinate resources to address barriers as they arise.

Service Provided – Business Plan Supports, Follow-Along– Required Elements

During Follow Along the Self-Employment Coordinator assists the team to enact the support plan (and refine as necessary) to ensure business sustainability. Monthly reports are issued during this time and meetings can be held with the team if coordination of resources is needed. The final report must include wage documentation based on legal definition of gross income.

Required Wage Documentation for Self-Employment Closure:

Case closure occurs 90 days after all equipment including assistive technology that DVR has agreed to provide has been received, is operational, and the consumer has stability in performing their essential work task(s). DVR is required to collect and report wage/hour at closure.

• Advise the consumer of their responsibility as a business owner to independently plan for future business needs, including maintenance, replacement, business expansion, etc. and provide the business resource document. Document this discussion in IRIS.
• Remind the consumer they are responsible for reporting their annual earnings and expenses to the Internal Revenue Service (IRS), Wisconsin Department of Revenue and the Social Security Administration if applicable.
• The business has been in operation for at least 90 days after stability.
• Document the wage by obtaining one or more of the following documents for income verification:
• A recent financial statement verifying revenue and expenses.
• Self-statement verifying the hours worked per week during the last 90 days
• Copies of business bank statements covering at least 90 days of operation.
• Document all extended long-term supports and services.
• Inform the consumer that federal regulations require DVR to report wages for the second and fourth quarter after the consumer exits the program as part of the RSA 911 Report, and they may be contacted in the future for this.

**Hours per week worked should be calculated by taking all labor costs (including creating products), marketing, travel time, deducted from sales of products.

Reporting Requirements

There is a monthly report to document meetings and next steps. This report is required monthly during the CSE process. This report does not replace any of the formal plan submissions required and identified above. The self-employment coordinator will decide for the transition to long term supports following stability of the consumer as agreed by the CSE team. The provider should submit the Transition to Long Term Support Report and wage verification as described above.

Reports are due within five (5) business days of the end of the service or previous month if the service is continuing.

Billing Requirements

Invoices for services should be submitted as described on the Authorization for Services, also referred to as the purchase order. Invoices must be received by DVR within 60 days of completion of the service. Properly submitted invoices will be paid within 30 days of receipt when reports and services have been delivered and accepted as specified.