(1)“Business plan” means a document that describes the organization and operation of the proposed business. It is prepared by the individual, with assistance, as needed, from the counselor and/or Small Business Development Center at a local community college, a micro-enterprise organization, private business consultant, consultant from the Service Corps of Retired Executives (SCORE) or other similar source(s). The business plan shall be used by the counselor and the individual, in consultation with a qualified expert, to evaluate the viability of the business, as well as provide the individual with a blue print for the business. The business plan shall outline the financial projections of the business, the business marketing plan, and the method and schedule of ongoing record keeping and analysis that shall be used to evaluate the progress of the business. If the plan is viable, it can also be used to apply for any needed funding.
(2)“Self-employment” means working for oneself, in a business that sells goods or services. Self-employment may be a sole proprietorship, partnership, or corporation. If the business plan includes a partnership or corporation, and OVRS funding is requested, the individual must be the owner, controlling partner or controlling shareholder of the corporation.
(3)“Start-up costs” mean those costs as described in the business plan required in order for a business to begin operation. Start up costs that are considered reasonable and necessary shall only be considered for funding by OVRS after all comparable services and benefits have been applied. Reasonable and necessary start-up costs required to establish the business may be provided by the OVRS in accordance with applicable purchasing rules and regulations.
(4)“Viable” when used with “business plan” means a business plan that has a reasonable chance of success leading to self sufficiency, based upon a market feasibility study; financial review of projected revenue, expenditures and assets; and the demonstrated technical and business management skills and abilities of the individual. An analysis of the ongoing costs required for the operation of the business and the resources that will cover those expenses will also be necessary to determine whether the projected resources will be sufficient to cover ongoing operational costs of the business. In order to be “viable” the individual’s technical skills must be commensurate with those required of the self-employment venture. A business plan, to be viable, has been reviewed, in consultation with the individual and the OVRS counselor, by an individual or organization with a credible background in business planning. Although OVRS does not require that an individual utilize loan funds as a comparable benefit, a business plan may require loan funding or additional funding sources other than OVRS (e.g., family, friends) in order to be considered viable.
Rule 582-070-0042 — Definitions,