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Support is plentiful for vets transitioning to the world of entrepreneurship.
Veterans honorably serve our country and often play a valuable economic role. According to the Small Business Administration (SBA), veterans in the United States own over 1.6 million businesses and employ nearly 3.3 million Americans. For vets transitioning from military service to the world of entrepreneurship, a wealth of resources exists, including free training, education, funding and networking events to help ensure their new venture succeeds.
We’ll explain essential steps for veterans starting new businesses and share resources that can help every step of the day.
Entrepreneurship requires a broad skill set, including small business accounting basics and interviewing skills.
The GI Bill has helped cover all or some of the costs of higher education for millions of vets, which is good because education isn’t cheap.
Chris Rawlings is a former Marine who did two tours of duty in Iraq. He’s now the director of climate and environment – Americas for GEODIS, and previously owned Bowerbird Energy and Veteran LED. Rawlings invested in his education after leaving the military, attending the Entrepreneur Bootcamp for Veterans at Florida State University.
“In addition to the education it provided, I tapped into such specialty providers as legal services, marketing and website design,” Rawlings shared. “Those resources helped keep me from feeling overwhelmed about parts of my business that required specialized training.”
Here’s information about programs and resources that help veterans learn essential business skills:
There are educational and financial resources specific to service-disabled veteran business owners, including VA grants and free comprehensive business programs at major universities.
Here are a few resources to help service-disabled veterans get their businesses going:
Veterans are a tight-knit group and professional connections in the business world are just as crucial as they are in the military. Many organizations, both nonprofit and paid, work to connect veterans with business professionals and mentors.
Paul Dillon, a U.S. Army Reserve first lieutenant and service-disabled veteran of the Vietnam War, helped pioneer one such organization. Dillon, who retired from consulting in 2006, started a second career helping veterans start their own businesses.
“My business didn’t start out with the idea of helping veterans,” Dillon explained. “I started out thinking that I was going to provide project management and business development services, but that didn’t work out. I had to pivot several times before I found a niche that worked.”
Dillon created the concept for a business incubator in Chicago, which eventually became Bunker Labs (recently acquired by Syracuse University’s D’Aniello Institute for Veterans and Military Families (IVMF) ), a national nonprofit that assists veteran entrepreneurs.
Here are some other resources to connect veterans with partners in the business world:
As a veteran, you’re already familiar with the federal government. You can continue this relationship as a veteran business owner by becoming a registered government contractor. Securing a government contract means steady work.
The General Services Administration oversees contracts for the federal government and considers veteran-owned businesses for contracts before civilian contractors.
This veterans-first policy levels the playing field for veteran-owned small businesses bidding against larger firms. Here are some resources to help you do business with the government:
If starting a business from scratch seems overwhelming, consider buying a franchise. Franchise costs can vary widely, with some of the cheapest franchises having minimal fees and a low initial investment. Plus, when you buy into a franchise, you get upfront guidance from the franchisor and begin your career owning a business with an already well-established brand.
Jeff Allen, an Army helicopter pilot, had just transitioned to a public affairs job at the Pentagon when a life-changing event altered his perspective.
“On September 11, 2001, I was sitting at my desk when the Pentagon was attacked,” Allen recalled. “My team survived and, while I did take a brief hiatus, I ended up returning to active duty for another 10 years once the war started.”
When he finally did retire, Allen looked for a franchising opportunity that matched the mission he’d chosen for his life. “Protecting people is in my DNA and I took that with me when it came time to start my own business,” Allen shared. “I chose to open Dryer Vent Wizard of Middle Tennessee, a business that helps prevent dryer fires through regular maintenance and inspections.”
Allen saved money during his military career to become an entrepreneur after retiring from active duty. While no longer a franchise owner, Allen is currently studying to enter the culinary industry. Regarding choosing a franchise, here’s his advice: “You have to find the business that fits you and your lifestyle best.”
Here are some resources for veterans considering buying into a franchise:
The following resources are also excellent options for veteran entrepreneurs to explore:
Military veterans are often motivated entrepreneurs eager to get started. While starting a business has many factors, here’s a look at the basic steps involved and where entrepreneurs can find helpful resources for each stage.
All entrepreneurs ― veteran or civilian ― must develop a great business idea. The sky’s the limit for military veterans entering entrepreneurship. For example, high-level businesses like RE/MAX, FedEx, Walmart and GoDaddy were all founded by military veterans. Many successful veteran entrepreneurs attribute their business success to their military experience.
Dave Liniger, co-founder of RE/MAX, said the military gave him the maturity and confidence to meet the realities of starting a company. “The military really gave me the chance to grow up,” Liniger shared. “It also taught me self-discipline and a sense of responsibility.”
If you need help coming up with an idea, consider the following:
After settling on a great business idea, it’s time to create your road map to success via a business plan.
Business plans outline your business goals and how you plan to achieve them. For example, your business plan will include a marketing plan that details your product positioning, target audience, optimal messaging and the best marketing channels, such as social media, direct mail and print advertising. Additionally, you’ll need a business plan when it’s time to seek funding (see below).
Consider the following resources to help veterans write their business plans:
Veterans have more incentives and funding options available than civilian entrepreneurs. Consider the following funding sources. Some, though not all, are specifically for veterans.
Crowdfunding
With crowdfunding, you receive money from individuals who want to donate to your business. This money isn’t a loan, so you typically wouldn’t have to pay it back. [Read related: Is a business loan or crowdfunding best for you?]
Mike Kim, a U.S. Army veteran, used Kickstarter to launch KPOP Foods. He and his co-founder set a $10,000 investment goal for their flagship product, KPOP Korean Chili Sauce. They blew past it, reaching $10,000 in eight hours. In total, they received $37,627 in pledges from 1,219 backers.
Kim said his experience as an Army project manager in Southern Afghanistan taught him resourcefulness and a can-do attitude.
“Launching my own business, I never tell myself I can’t accomplish a task,” Kim shared. “I ask myself instead how I’m going to accomplish a task. Doing this over and over again, you’ll be surprised at your own resourcefulness and creativity.”
Here are some resources to help make crowdfunding work for your veteran-owned startup:
Venture capital firms invest in your startup in exchange for partial control, equity and sometimes a seat on your company’s board. Some VC firms and angel investors work exclusively with veteran entrepreneurs.
Consider the following investment options for veteran entrepreneurs:
Loans
Small business loans for veterans are another excellent option. Here are two resources to consider:
Grants
Business grants aren’t loans; you’re not required to repay them. Here are some veteran-specific resources for grant funding:
Many veterans enter entrepreneurship equipped with the soft skills necessary for business success. “The military excels at teaching transferable ‘soft’ skills of critical thinking and multitasking, teamwork and leadership, integrity and motivation, among others,” said Edward Slavis, a former U.S. Marine infantry officer who served in Iraq. “I apply these skills to my real estate business but they could be employed in any field.”
When it comes to starting a business after your military career has ended, aside from financing your business, the biggest investment you’ll make as an entrepreneur will be in your knowledge and skills.
Starting a business is a challenge, but just like in the military, you can rely on the advice and support of other service members. Contact the organizations listed in this guide and you’ll see the passion and expertise of people devoting their lives to helping veteran entrepreneurs. You’ll know that you aren’t fighting this mission alone.
Julie Thompson and Donna Fuscaldo contributed to the reporting and writing in this article. Source interviews were conducted for a previous version of this article.