It has become increasingly common for veterans to start their own businesses upon returning to civilian life after service. It allows them to begin a career doing something that they love while using the leadership skills they gained during deployment.
Although becoming an entrepreneur can be very rewarding, it takes careful preparation and determination. If you are planning on starting your own business after service, use these tips to guide you.
1. Do what you love and know
One of the best aspects of being an entrepreneur is getting to do exactly what you love.
"Veteran entrepreneurs are on the front lines, not unlike they are in the military," Jim Salmon, vice president of business services at Navy Federal Credit Union, told Business News Daily. "They're in charge of their own destiny, taking control of their direction and taking chances when they have to. They can leverage a lot of their military experiences and strengths to succeed [in business]."
You may have spent a large portion of your deployment working with computers or leading a team. Entrepreneurship enables veterans to take these skills and put them toward a career that revolves around their passions and experience. Therefore, instead of catering your skill sets toward an open job position, you are able to create a job that caters to what you know and love.
2. Identify the areas you will need help with
Everyone has certain strengths and weaknesses. Entrepreneur magazine pointed out that when beginning a business, knowing the tasks that you excel in and those that you will need to seek help with is crucial to the success of your company. You will have to take on a number of roles during the development of your business. Once you have determined which parts of the job you struggle with, outsource these responsibilities. Understand when to rely on outside professionals to assist you to avoid major obstacles as your company grows.
3. Take advantage of financing benefits
There are special financing options available for military servicemembers looking to start their own business during life after service. For example, veterans should see if they are eligible for government-backed loans, which provide the extra security that lenders usually require before approving loan applications. Unique financing options for veterans are particularly helpful if their credit scores are bad – there are specialty lenders, community banks and credit unions that are willing to assist retired servicemembers with specialty loans.
The U.S. Small Business Administration also offers its Microloan Program, which will fund a startup company for up to $35,000. The application process is fast, usually taking around 36 hours, so progress is not delayed as veterans begin their companies.
4. Use the resources available
As entrepreneurship becomes an increasingly popular route to take after deployment, the Internet is overflowing with helpful resources and advice for veterans who choose this path.
"There are a growing number of resources for veteran entrepreneurs," CJ Scarlet, a Marine Corps veteran and experienced entrepreneur, told Bank of America's Small Business Community. "You will find a plethora of agencies and programs [online] for entrepreneurs in general and for vets in particular."
According to Scarlet, one frequently used resource is the Veteran Entrepreneur Portal provided by the U.S. Department of Veterans Affairs. The portal includes tools that connect servicemembers to the most relevant information for starting specific companies as well as ideas for accessing resources to finance their businesses. Another effective strategy is reaching out to fellow vets who have successfully launched their own startups for advice and helpful connections.