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What is Feasibility First?
An assessment by the University of Montana Rural Institute suggests that when given the option, up to 20-30% of vocational rehabilitation (VR) clients will choose self employment as a vocational goal.
To accomodate this demand, The Abilities Fund has developed an effective and cost efficient method to facilitate the business planning process. This approach is designed to maximize the effectiveness of the partnership between you and your local microenterprise development organization by moving prospective entrepreneurs through incremental stages of business planning. At the same time, it educates individuals with infeasible business ideas to pursue different vocational goals.
The Feasibility First© methodology includes:
1. Introduction to Self Employment Workshops
Microenterprise development organizations are uniquely positioned to host workshops for VR clients who have expressed interest in owning a small business. These workshops explain the reality of what it takes to start and operate a business, the process of training and technical assistance, what a business plan looks like, the impact of self employment on Social Security benefits, and various funding sources specific to individuals with disabilities. This training is an opportunity for VR clients to gain an initial understanding of what is involved in starting and sustaining a successful business.
2. Feasibility Planning
Before investing time and money into full scale business planning, it is necessary to assess the feasibility of the idea and the entrepreneur. The result of this activity is a comprehensive look at the potential of the business idea from financial, competitive, technical, legal, and market perspectives. The written document is a feasibility assessment, produced by the microenterprise development organization with content input by the client. The feasibility assessment serves as an objective appraisal of the possibilities and potential barriers for the business and ultimately, the client’s ability to achieve the vocational goal.
3. Feasibility impacts the Individual Plan for Employment (IPE)
Once feasibility is established, it is recommended that self employment be written into the IPE as a goal. In addition to defining the level of training, technical assistance, and financial assistance the entrepreneur will need, the microenterprise practitioner will also help identify additional supportive services. These services may include legal counsel, accounting assistance or marketing resources.
4. Business Planning
With the support of the microenterprise program, the client expands upon the feasibility assessment and creates a comprehensive business plan. This document will include all relevant information necessary to justify that the business venture will likely generate a level of profit that will meet the financial and lifestyle goals of the individual as well as offset business debts. Included in the plan will be a comprehensive market analysis, financial plan including a 24 month cash flow projection, and all other standard components of a business plan.
5. Business Start Up
With the completed business plan, the entrepreneur, counselor and microenterprise organization will determine the best strategy for adequately funding the enterprise at an acceptable risk level for the entrepreneur. This can involve writing PASS applications, seeking commercial and/or microloan funds- including loan and grant programs administered by The Abilities Fund.
6. Monitoring
Even the best plans require ongoing assistance. As a result, the microenterprise organization will remain aware of the entrepreneur’s progress ensuring proper supports and ongoing technical assistance as needed. This monitoring can be summarized in a report that is delivered to the client's VR counselor on a regular basis.
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