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Creating a Self-Employment Proposal
At first, constructing a comprehensive and well-justified Self-Employment Proposal (SEP) can seem an overwhelming endeavor. A great deal of detailed information must be researched, analyzed, and reported in an orderly fashion. However, this process can be made less complicated and more straightforward with the use of a thorough outline. An example of such an outline follows.
1. Executive Summary*
Introduction of the prospective owner(s) and management team
Reasons for participant’s interest in starting the proposed business
Professional profile – Explanation of how the business suits the participant’s experience and education, skills, attributes, and disabilities (Note: Participants that request equipment support for their new business ventures from the Department of Services for the Blind (DSB) must supply evidence in the SEP that they can utilize that equipment.)
Brief description of the product or service
Brief description of the target market(s)
Specific information on the market and how you will promote and sell the product or service
Summary of financial projections, loan/investment requirements, and time-frame for repayment of funds
2. Company Profile
Brief introduction of the type of business, its location, and the product or service it will provide
History and/or start date of the business
Form of Business – sole proprietorship, partnership, etc.
Legal and tax consideration
Business advisors – lawyer, accountant, industry contacts/mentors
Risk factors
Estimation of the capital required to start operations along with the personal capital or resources the participant will contribute
3. Market and Industry Analysis
Description of the industry in which your business will operate, the size of the industry, industry trends, characteristics, and key factors for success
Prediction of industry growth rate
Description of major consumer groups and market climate
Evidence that there is a demand for the product or service
Business or consumer trends that lend to the business’ success, along with references to the changes in demographic, social, economic, technological, and political factors that give rise to these trends
4. Product/Service Analysis
Detailed description of the product or service including its features or attributes and its benefits or selling points
Process of manufacturing the product or administering the service
Competitive advantages of the product or service (e.g. superior quality, better service, better price)
Additional details about the product or service such as prototypes, service plans, menus, consulting services, guarantees, etc.
Explanation of how the product or service will be promoted with an assessment of predicted advertising needs
Pricing strategy of the product or service with a description of how the overhead will impact on pricing for profit
5. Financial Profile
Start up costs
Description of the reasonable accommodations (e.g. low vision aids) needed by the participant to operate the business and their estimated costs
Start up assets
Break-even analysis
Cash flow projection – a three-year sales potential in annual dollar volumes
Estimation of the participant’s hourly wage based on net profit projections
Financial liabilities
Beyond those mentioned above, other pieces of information could be included in the SEP to enhance its message, persuasiveness, and presentation.
For example, at the beginning of the SEP, preceding the Executive Summary, one might include a cover sheet that depicts in an attractive format: the name of the business, names of the principles, address and telephone number, followed by a table of contents page.
At the end of the SEP, following the Market and Industry Analysis, one might include other helpful documents such as:
A formal, personal résumé
Personal balance sheets
Cost-of-living budget
Credit reports
Pertinent quotes or estimates
Letters of reference
Letters of intent from prospective customers
Copies of leases, contracts, and other relevant legal documents
Floor plans of the office building, plant, etc.
Census/demographic data
Participants are solely responsible to create their own SEPs. Incomplete SEPs, requiring clarification or additional information, are returned to them. DSB may provide support for their research and writing, including referral to a business consultant for technical assistance, business-development classes, a work-site assessment, readers/drivers, etc.
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