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Session
2 - JR
Topic:
Self-Employment and Disability Benefits
Today's article is the second in a series about my business-life
coaching service and how it can help you and your business grow
-- even if you have a disability.
JR, my client, was a 30 year old paraplegic who wanted to start
a business providing an online catalog listing of current trade
shows and their attendees. In our first session JR and I agreed
that he would work on his To Do List before our next session. (click
here to read Session I) After about a week, JR sent me an e-mail
saying that he had completed almost all tasks on his List. He told
me that the possibility of finally starting up his business and
making money was very exciting. It had also, however, brought up
some financial issues for him. Like many who depend on disability
benefits, he had two very important concerns
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| Where
do I get money for my business? |
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JR had already invested his limited resources into buying his computer
and friends and family had pledged $1000. He figured that he still
needed another $5,000 in seed money. His credit rating was not good
so other methods of financing like credit cards and traditional
bank loans were not available.
I e-mailed him that there were two sources of financing available
for him. Both would require a business plan.
Department of Rehabilitation (DR) or Department of Vocational Rehabilitation
(VR)
Because of his disability, DR had been providing him with financial
assistance for his educational expenses so that he could be gainfully
employed. He was unaware that the Department also offered assistance
with business startups. One option was for him to contact his counselor
and request to change his rehabilitation goal to self-employment,
(Click
here for listing of DRs state-by-state)
Another option for JR was a plan for achieving self-support
(PASS). Since he was receiving SSI and had a part-time job, he could
qualify for a plan that would let him use his income or other things
he owns to help him reach his self-employment goal. For example,
he could set aside money to get the items, services or skills he
would need to start his business.
(For
more info on Working While Disabled).
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| Will
making money jeopardize my benefits? |
| Special rules make it possible for people receiving
Social Security disability benefits or Supplemental Security Income
(SSI) to work and still receive monthly payments until they can work
on a regular basis. Work incentives include: |
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continued cash benefits for
a time while you work (for
more information see IRWE) |
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continued Medicare or Medicaid
while you work. |
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If you cannot continue working
because of your medical condition, your benefits can start again
- you may not have to file a new application. |
After checking out his options, JR decided to continue receiving
DR's assistance for his educational expenses. He figured that while
he was taking classes he could develop his business plan -- maybe
he could even make it one of his class projects.
JR agreed to immediately start working on his plan. To help him
stay organized, I sent him our Business Basics worksheets. "They
really helped me to focus on all the things that I needed to look
at," he told me later in an e-mail. We agreed that we would
go over his plan in detail at our next phone session. In the meantime,
JR and I continued to communicate through our e-mails. He worked
very hard on his marketing analysis, cash flow charts, etc. because
he realized that his funding sources wanted to see a viable and
complete business plan. More importantly, having a great plan would
also improve the chances for his business's success.
If you have any questions or comments please contact me at aleaf@seedbiznet.org
or P.O. Box 9637, Laguna Beach, CA 92652 or 949-413-1555 and I will
address them in future articles. For more information on Andy Leaf,
Seed' s founder and president, click
here.
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