Common Pitfalls

No one can start a business alone. Luckily, there are many organizations in Georgia that help people start small businesses, and some of these organizations are specifically aimed at helping people with disabilities. For help researching and planning your business, as well as writing a business plan, reach out to one of the following organizations:

• Your local Small Business Development Center (SBDC) at the University of Georgia. SBDCs partner with the US Small Business Administration (SBA) to provide assistance and resources to people who have or want to start small businesses. The University of Georgia SBDC offers free workshops for potential entrepreneurs and has a team of advisors who can help you with finances and getting loans.
• SCORE, a nonprofit that provides education, mentorship, and tools to help small businesses get off the ground
• Synergies Work, an Atlanta-based nonprofit organization that helps people with disabilities start small businesses
  
• The Georgia Micro Enterprise Network (GMEN), a nonprofit association in Georgia that supports and funds microenterprises
• The Georgia Vocational Rehabilitation Agency (GVRA), which can help you plan your business and get you training if you qualify for its services

For questions about your personal disability and situation, like what will happen to your benefits if you start a business, you should speak to a benefits expert.

You should also start building a team of advisors who can help you with running your business. Even if you're the only employee, there will probably be aspects of owning a business that you don't know much about, like marketing, accounting, and legal paperwork.

The people you need on your support team will depend on your personal situation and business. Some examples of experts and advisors are:

• Accountants or tax professionals
• Lawyers
• Disability benefits planners
• Marketing experts
• Bankers or credit experts

A business plan is a very important step in starting a small business—and if you don't write one, your business is much more likely to fail. Your business plan will help you figure out if your business idea can actually make money, how much funding you need, and what some realistic goals are for your business. Don't start spending time and money on your business without figuring out all the steps you need to take first.

If you plan to use a Plan to Achieve Self-Support (PASS) to save money or want help from the Georgia Vocational Rehabilitation Agency (GVRA), you will need a business plan. Your business plan can also be used to convince other people to work with you, help you, or give you a loan, because it will show them that you have a clear, realistic plan to make money.

Read more about writing a business plan.

Even if you don't qualify for a small business loan from your bank or credit union, there may be a way to get a loan for your business. Some options are:

• Microcredit loans
• Loans from Community Development Financial Institutions (CDFIs)
• SBA-guaranteed loans
• Online marketplace lending or alternative lending
• Georgia's Alternative Financing Program for assistive technology
  

Some of these options are run by nonprofit organizations or work with the State of Georgia to give business loans to people who wouldn't normally qualify, so the interest rates of these loans may be low (meaning it is relatively cheap to take out the loan). If you get a loan from an alternative lending platform, the interest rate will probably be higher and there may be extra fees.

Before you try to get a loan on your own, you can also ask for help from the University of Georgia Small Business Development Center (SBDC). The SBDC has a team of advisors who help small businesses that don't have access to traditional loans. These advisors can help you with financial planning and applying for loans, and they also host online and in-person workshops to teach people about accounting and funding. Learn more about how the SBDC can help you get loans.

Learn more about getting a loan for your business.

Supplemental Security Income (SSI) has a resource limit of $2,000 ($3,000 for a married couple). Usually, if you save up more money than this resource limit, you'll lose your benefits. However, there are programs that let you save money for your business without losing your SSI benefits. They are:

• The Plan to Achieve Self-Support (PASS) program
• Property Essential to Self-Support (PESS)

A PASS lets you save money for a work-related goal in an account that isn't counted by Social Security when they calculate your benefits, so your benefits will go up as you set money aside to start your business. You can also claim any resources you use for your business, like inventory or cash in a business account, as PESS, which means that Social Security will exclude them when they figure out your benefits. (You must keep your business account separate from your personal account in order to claim it as PESS.) These programs let you own more resources than the resource limit so that you can start your business.

ABLE accounts are another way to save money without it being counted by Social Security. The money in your ABLE account can be used for most self-employment expenses and may be helpful to you if you are trying to save money to start a business.

Learn more about keeping your benefits when you start saving money for your business.

Your credit score is a measurement of how likely you are to pay back a loan, based on your history of paying back other loans and bills. For example, if you have a credit card, you borrow money whenever you use your card and pay it back when you pay the bill. If you pay your credit card bill on time every month, you probably have a good credit score. If you don’t pay your bills on time, don’t make the minimum payments, or go over your credit limit, your credit score will go down.

Your credit score is very important when trying to get a loan for your small business, because it helps lenders, like banks, decide if you are a "good risk" (if they trust you to give back their money). If you plan to get a loan to start your business, you must have a good credit score. If your credit score is low, you can sign up for a free class at the University of Georgia to understand and improve your credit score.

Learn more about credit and loans.

If you go into business by yourself, you may have to pay many additional expenses, including insurance, taxes, and licenses. You may have to collect sales tax, pay payroll taxes, and pay business fees. This is another reason to have a good team helping you with your business. If you have mentors, see if they can help you deal with these expenses and responsibilities.

Learn more from IRS resources for small businesses and self-employed people. You can also take a look at the IRS small business tax responsibilities information sheet.