How to Start a Veteran-Owned Business

The Rise of Veteran Entrepreneurs

Veteran entrepreneurship has become a growing trend in recent years, with more veterans transitioning from military service to business ownership. Veterans bring a unique set of skills and experiences that make them natural leaders and problem solvers, which are critical attributes in the world of business.

Many veterans seek the independence and control that comes with owning a business, allowing them to apply the discipline and strategic thinking they honed during their time in service. In fact, veterans are twice as likely to start a business compared to their civilian counterparts, and this number continues to grow as more veterans explore entrepreneurship as a post-military career.

The impact of veteran-owned businesses on the economy is substantial. Over 2.5 million veteran-owned businesses in the U.S. collectively generate more than $1 trillion in revenue and employ millions of workers. These businesses not only contribute to the national economy but also strengthen local communities by providing jobs and fostering innovation. Veteran-owned businesses can operate with a strong sense of integrity and commitment to service, which makes them trusted members of their communities.

In this way, veterans continue to serve the country, albeit in a different capacity, by creating economic opportunities. If you are a former service member, this guide will help you leverage your unique experiences to continue bringing value to your networks and pursue a new and exciting mission.

Steps to Start a Veteran-Owned Business

1. Identify a Business Idea

The first step in starting a veteran-owned business is identifying an idea that leverages your unique skills and interests. Veterans often have extensive experience in leadership, logistics, operations and technical skills, which can translate into many different industries. It’s important to think about what you are passionate about and how your military experience can give you an edge. For example, if you have experience in logistics and supply chain management, you might consider starting a transportation or freight company. Alternatively, if you were in a technical field, you could explore business opportunities in cybersecurity or even an innovative home inspection company like WIN.

– Leveraging Military Experience

One of the greatest advantages that veterans have is their ability to apply their military training to the business world. Leadership, discipline, and the ability to make decisions under pressure are all highly valued in entrepreneurship. Veterans can draw on these skills to build successful businesses. Additionally, the ability to work in diverse teams, manage complex projects and adapt to changing situations is a significant asset in running a business. Leveraging this military experience allows veterans to approach problems with a unique perspective and find innovative solutions, giving them a competitive edge in the marketplace.

– Market Research and Opportunity Assessment

After identifying a potential business idea, the next step is to conduct market research to assess the feasibility of your idea. This involves studying the target market to understand consumer needs and identify your competition. Market research helps ensure there is sufficient demand for your product or service and provides insights into how you can differentiate your business. Veterans are often excellent at conducting thorough analysis, making this step particularly suited to their strengths. Identifying gaps in the market or unmet needs can provide opportunities for your business to succeed where others have not.

– Matching Skills with Market Demand

It’s essential to match your skills with the current market demand to ensure your business idea is not only viable, but also sustainable. Certain industries may be experiencing growth and require the very skills you developed during your military career. For example, industries such as logistics, technology and home services often need organized, disciplined, and strategic thinkers, traits that veterans often naturally possess. By identifying areas where your skills align with market needs, you can position your business for long-term success and growth.

2. Create a Business Plan

Once you have identified your business idea and assessed the market, the next step is to create a comprehensive business plan. A business plan serves as a roadmap for your business, outlining your goals, target market, revenue projections and strategies for growth. Veterans are no strangers to detailed planning and execution, and this experience can be extremely valuable when developing a business plan. Your plan should include a marketing strategy, operational plan and financial projections. Having a well-thought-out business plan is also essential for securing financing, as lenders and investors will want to see how you intend to make your business profitable and sustainable over time.

3. Secure Funding

One of the biggest challenges for any new business is securing funding, but fortunately veterans have access to a wide range of financial resources specifically designed to help them succeed. Understanding the various funding options is crucial to finding the right solution for your business.

– Understanding Funding Options

There are several ways to secure funding, including traditional bank loans, SBA (Small Business Administration) loans, and personal savings. Veterans may also qualify for specific loan programs that offer more favorable terms, such as lower interest rates or longer repayment periods. In particular, the SBA offers loan programs tailored to veteran entrepreneurs, such as the Veterans Advantage Loan Program. It’s essential to explore all available options to ensure you find the best financing arrangement for your business.

– Veteran-Specific Grants and Loans

In addition to traditional loans, there are many grants and loan programs specifically designed for veteran-owned businesses. For example, organizations like the StreetShares Foundation offer grants to veterans through competitions, while other programs like the Patriot Express Loan provide quick access to funding for those starting small businesses. These veteran-specific grants and loans can help former servicemembers obtain the capital they need without taking on excessive debt. Many of these programs are designed to support veterans in the critical early stages of their business, where capital can make all the difference between success and failure.

– Crowdfunding and Community Support

Crowdfunding has become an increasingly popular method for raising capital, especially for veterans who can tap into a community of supporters who want to back veteran-owned businesses. Platforms like Kickstarter, GoFundMe and Indiegogo allow you to share your business idea with a wide audience and attract financial contributions from people who believe in your mission. Veterans often find that their service resonates with potential backers, making crowdfunding a viable option for raising the funds needed to launch a business.

» Also Read: How to Get a Small Business Loan for Veterans

4. Set Up Your Business

Before officially launching your business, it’s important to address the legal aspects of setting up your company. This includes choosing the right business structure, registering your business with the appropriate authorities, and obtaining any necessary certifications.

– Choosing a Business Structure

Choosing a business structure is one of the first legal decisions you’ll need to make. Common options include sole proprietorships, partnerships, limited liability companies (LLCs) and corporations. Each structure has different tax implications, liability considerations, and management requirements. Veterans should carefully consider their long-term goals and consult with legal or financial advisors to choose the structure that best fits their needs. For many small business owners, LLCs offer a good balance between liability protection and ease of management.

– Registering Your Business

Once you’ve chosen a business structure, the next step is to register your business with the appropriate state and federal authorities. This typically involves applying for an employer identification number (EIN), registering for state and federal taxes, and obtaining any required licenses or permits. Properly registering your business ensures that you are operating legally and can help avoid potential fines or penalties down the road. You may also want to explore programs that expedite business registration for veteran-owned enterprises.

– Getting Veteran-Owned Business Certifications

Veterans can also apply for certifications that provide access to certain benefits, such as government contracts or special funding opportunities. For example, the Veteran-Owned Small Business (VOSB) and Service-Disabled Veteran-Owned Small Business (SDVOSB) certifications allow veteran-owned businesses to compete for contracts set aside by the federal government. These certifications can provide a significant competitive advantage in industries where government contracting plays a major role. The certification process can take some time, but it’s worth the effort for the long-term benefits.

5. Market and Network

Effective marketing and networking are essential for growing your business and building a customer base. Veterans can tap into their community and use their unique story to build a brand that resonates with customers.

– Building a Brand

Your brand is more than just a logo or tagline. It’s the identity and values of your business. For veteran-owned enterprises, incorporating your military background into your brand can be a powerful differentiator. Customers often appreciate and support operations that are owned by veterans, so don’t hesitate to highlight your service as part of your brand story. A strong brand will help you build trust with customers and set your business apart from the competition. Veterans have a built-in story of discipline, service and dedication, which can be a compelling part of their branding efforts.

– Utilizing Digital Marketing

In today’s digital world, having a strong online presence is crucial to reaching potential customers. This includes building a professional website, maintaining active social media profiles, and even utilizing digital marketing strategies such as search engine optimization (SEO) and paid ads. These tools allow you to connect with a broader audience and generate leads. Digital marketing can also help you compete with larger, more established businesses by reaching customers where they spend most of their time—online.

– Networking within the Veteran Community

The veteran community is a powerful network that can offer valuable support and mentorship. Joining veteran-focused business organizations, attending networking events, and participating in online forums can help you connect with fellow veterans who are also entrepreneurs. Organizations such as Bunker Labs, American Corporate Partners, and VETRN offer networking opportunities and mentorship programs specifically for veterans looking to start or grow their businesses. By leveraging these networks, veterans can gain valuable insights, build partnerships, and access new business opportunities.

6. Manage and Grow the Business

Once your business is up and running, the focus shifts to managing day-to-day operations and planning for growth. Veterans are well-suited to this task, as their military experience has trained them in leadership and strategic endeavors.

Effective management involves overseeing employees and monitoring financial performance to ensure operational efficiency. Veterans often excel in these areas because of their attention to detail and ability to make decisions under pressure. Additionally, veterans are skilled in motivating teams, which can help create a positive workplace culture that drives performance.

Growth is another critical aspect of long-term business success. This may involve expanding your product or service offerings or entering new markets. Veterans should continually seek opportunities for growth and stay informed about market trends and customer needs. Regularly revisiting your business plan and adjusting your strategy as needed can help ensure your business remains competitive and profitable over time.

Best Resources for Veterans Starting a Business

1. Online Educational Resources

Veterans have access to several online educational resources designed to help them start and grow their businesses. Programs like Boots to Business, offered by the SBA, provide entrepreneurship training specifically for veterans. This program helps veterans transition from military life to business ownership by covering key topics such as business planning, market analysis and funding options. The Veteran Entrepreneur Portal is another valuable resource that offers a wealth of information on business development and government contracts.

2. Government Programs and Support

The SBA’s Office of Veterans Business Development offers a wide range of services designed to help veterans succeed in business. This includes loans and training programs that are tailored to meet the needs of veteran entrepreneurs. Additionally, SCORE is a nonprofit organization that provides free, confidential business mentoring and training to entrepreneurs, including veterans. These government programs offer invaluable guidance and support, helping veterans navigate the challenges of starting and growing a business.

3. Veteran-Focused Networking and Mentorship Platforms

Networking and mentorship are critical components of business success, and veterans have access to several platforms that offer these resources. Bunker Labs, a national nonprofit, helps veterans and military spouses start and grow businesses by offering educational programming and access to a network of veteran entrepreneurs. VETRN offers a free training and mentorship program designed to help veterans grow their small businesses. Additionally, American Corporate Partners provides one-on-one mentorship from corporate executives to clients looking to build their businesses.

4. Financial Resources and Grant Opportunities

Several organizations provide financial support to veteran-owned businesses. The Second Service Foundation (formerly StreetShares Foundation) provides grants to veterans through its Veteran Small Business Award program, which helps veterans secure the funding they need to start or grow their businesses. Patriot Boot Camp is another resource that provides mentorship, education and investor access for veterans in the tech industry. These financial resources can help veterans overcome the challenges of securing capital and provide a solid foundation for long-term business success.

5. Legal and Certification Support

Veterans can access legal guidance and certification support through programs like the Institute for Veterans and Military Families (IVMF), which offers resources to help veterans navigate legal issues and obtain business certifications. Additionally, Veterans Business Outreach Centers (VBOCs) provide business training and mentorship specifically for veterans looking to start or expand their businesses. These resources can help veterans navigate the legal and regulatory challenges of entrepreneurship, ensuring they are well-positioned for growth.

Conclusion

Starting a veteran-owned business is a challenging but rewarding journey that allows veterans to apply their unique skills and experience to new ventures. Veterans have access to a wide range of resources, like educational programs, funding options, mentorship networks and certification assistance. By following the steps outlined above, veterans can create success stories that not only provide financial stability but also continue their service to the nation by contributing to the economy and their communities. The path to business ownership may not always be easy, but with determination, proper planning and the right support, veterans can build thriving businesses that leave a lasting impact.