10 Things to Know about Becoming an Entrepreneur

Disability Connection Newsletter

April 2015

10 Things to Know about Becoming an Entrepreneur

1. Making a Dream Reality. Starting your own business is not without risks, but there can be many financial and personal rewards as well. For many people with disabilities self-employment and entrepreneurship offer the chance to become financially independent and to set a more flexible work schedule. So how can you decide if your napkin sketch is destined for success? Start by researching the industry and competition. The Abilities Fund suggests “10 Ways to Research Your Business Idea” and SCORE recommends you ask yourself four key questions. As you come up with your answers, the business model canvas can help you develop a clear plan. This tool doesn’t replace the need for a traditional business plan – rather, it helps you quickly figure out whether your business idea can get off the ground. Find inspiration in the Iowa Department of Human Services’ stories of entrepreneurs with disabilities who have successfully used their skills and creative ideas to turn a business idea into a reality.

2. Finding a Mentor. Yoda and Luke Skywalker. Dumbledore and Harry Potter. Mr. Miyagi and Daniel. Similarly to these famous pairings, a mentor-mentee relationshipwill prepare you for small business success. Connecting with mentors, with years of experience behind them an important step early in the process. How do youdetermine who should be your mentor? A mentor should be someone who can provide you with objective guidance and honest advice. Maybe you know someone who is a successful business owner, or you have a friendly relationship with a former boss. All you have to do is ask. Organizations like SCORE and your local small business development center (SBDC) can also connect you to potential mentors. Amentor relationship should be developed like any other relationship: keep in touch,ask questions and work together.

3. Building Your Foundation. One of the most important decisions you’ll make is how your business will be structured. There are several business structures, but two facts to note when deciding are that more than half of small businesses are home-based, and nearly three quarters are sole proprietorships. Read this Internal Revenue Service factsheet for a quick look at the differences among the most common forms: sole proprietorships, limited liability companies, partnerships and corporations. You should also consider your future needs, choose a business name,register your company and obtain businesses licenses, if needed. With so many things to keep in mind, you may feel more comfortable with experts who can guide you through the process. Get in touch with your local SBDC for help developing your business plan, information about loans and other business advice.

4. Young Entrepreneurs. Age is just a number, especially for youth and young adults interested in starting a small business. In fact, nearly 80 percent of potential entrepreneurs in the U.S. are 18 to 34 years old. Young entrepreneurs can develop life skills, find independence and become self-sufficient. Geared specifically towards youth, the Small Business Administration’s Young Entrepreneurs Essential Guide to Starting a Business is an online course that helps youth start on the path to owning a small business. Find an educational program to learn more about business ownership and management. The Road to Self-Sufficiency: A Guide to Entrepreneurship for Youth with Disabilities provides a detailed roadmap for young entrepreneurs. Just remember to be money-smart by learning how to avoid common financial problems and borrow money wisely. Check out these resources for millennial business owners and read this story about a young man with autism who started his own business.

5. Veteran Business Owners. Veterans’ valuable skills transfer well to self-employment. The Department of Veterans Affairs’ (VA) Veteran Entrepreneur Portalhas tools on starting a business, accessing financing and more. Veterans who are service-disabled have a variety of targeted resources and opportunities for small business ownership. They may also apply for verification to qualify for funds from the VA. Find information on federal government contracting for veteran small business owners. You may also want to take classes through the Entrepreneurship Bootcamp for Veterans with Disabilities, which trains post-9/11 veterans with service-related disabilities. Women veterans may choose to participate in the V-WISE entrepreneurship program. Those who are unable or would prefer not to travel can sign up for Boots to Business classes at their base. The SBA’s Veteran Pledge Initiative intends to assist veterans in finding loans to start or expand a small business. Contact your local SBA office to learn more.

6. Financing Your Business. April is the perfect time of year to brush up on yourfinancial literacy skills and learn more about how to a finance a small business. BusinessUSA’s “Access Financing” wizard guides you to government resources that can help you finance a business. One option is to use bootstrap financing, a fancy way of saying your own money or assets. A growing trend is crowdfunding, which allows entrepreneurs to publicly raise money through a creative campaign. Programs like Plan to Achieve Self-Support and Individual Development Accountscan help by letting you save money toward a specific goal without affecting their benefits. Employment supports, including Property Essential to Self-Support, let you keep some assets and possessions and still be eligible for Supplemental Security Income. Local microenterprise organizations in your state may also be able to help with small loans and other types of funding. Read “Entrepreneurship: A Flexible Route to Economic Independence for People with Disabilities” and “Small Business Finance: Frequently Asked Questions” for more information.

7. Landing Your First Clients: Congratulations on setting up your business! Now it’s time to get to work. Securing your first clients can take some effort, but there are great opportunities for you as a disability-owned business. Depending on what services your company provides, you can explore becoming a certified disability-owned business or a disability supplier through the U.S. Business Leadership Network (USBLN). Not only does certification provide you with a competitive advantage, the USBLN offers many educational, networking, marketing and even bidding opportunities. Another possible avenue is through government procurement and tax incentive programs available for disability-owned business. Landing customers can also be as easy as tapping into your network of friends, family, former colleagues and other acquaintances.

8. Let Your Business Grow. As they say in business, “If you’re not growing, you’re dying.” There are many resources available for you to grow your small business. Just in time is SBA’s National Small Business Week, May 4 through 8. Events featuring information on how to grow your business will take place at locationsaround the country. Not sure where to begin? The “Grow Your Business” wizard has a list of scenarios and industries to explore. SBA has also published numerous web resources to help small business grow in a variety of areas. Read its “Ideas for Growing Your Small Business” for steps to stand out and find success. A writer for the Huffington Post published her favorite spots on the web for small business and entrepreneurs to find information on how to grow their businesses.

9. Self-Employment Is Customized Employment: People with disabilities who are self-employed have the same options for customized employment and accommodations as those in a traditional work environment. The difference is how you develop the plans and where you find the resources, if needed, to fund these arrangements. This LEAD Center webinar discusses how the principles of customized employment can be applied to self-employment. The Department of Labor published an excellent step-by-step guide to developing your own self-employment plan, which includes funding sources for people with disabilities. The Job Accommodation Network’s JAN on Demand service is another resource available at no cost to people interested in becoming self-employed. Your state vocational rehabilitation (VR) office can assist with getting necessary business equipment, vehicle repairs and insurance, adaptive equipment, computers and more.

10. Self-Employment and Social Security: Self-employment still carries the responsibilities of paying Social Security taxes on your net income. Read the fact sheet, “If You Are Self-Employed,” for more details on how to figure your net earnings, and rules that apply if your net self-employment income is less than $400 a year. In addition, having income from self-employment may affect your benefits. The Social Security Administration’s “Working While Disabled – How We Can Help” explains the impact of employment or self-employment income on your disability benefits. And remember, you won’t automatically lose your Medicaid or Medicare benefits just because you go back to work or try to start a small business. Contact your local Work Incentives Planning & Assistance Project if you have questions about how working or being self-employed may affect your eligibility for Social Security or other benefits.

For more information on starting your own business, be sure to check out Disability.gov’s Guide to Self-Employment & Starting a Small Business.”

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