Business Opportunities for Veterans
Not everyone who leaves the military wants to go to school to learn a trade or start in a new career field. Some want to start their own businesses instead, and there are many opportunities for veterans and military retirees to leverage their military careers into a new opportunity in the private sector.
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Business Opportunities for Veterans
The best business ideas often stem from the skills and passions an individual already possesses. Military service provides a deep well of experience that can form the foundation of a successful company.
Government Contracting is one of the most direct ways to turn military experience into a business advantage. The federal government awards contracts to veteran-owned businesses.
Companies certified as a Veteran-Owned Small Business (VOSB) or a Service-Disabled Veteran-Owned Small Business (SDVOSB) gain a competitive edge through set-aside contracts, where only businesses with these designations can compete. Opportunities exist in areas like security services, logistics, construction, IT support, and consulting.
Consulting, IT, and Adventure Business Opportunities
Consulting Services are an option. An officer with a background in logistics can advise companies on supply chain management. A non-commissioned officer who led teams can offer leadership training and development. Those with experience in intelligence or cybersecurity can provide consulting to protect corporate assets.
Some veterans choose to go into business via buying into a franchise. There are many opportunities for veterans in this business arena, but there are startup costs to deal with and you may need to consider funding via a business loan or SBA loan (see below.)
Many service members develop advanced skills in information technology, network security, and communications. A cybersecurity firm that helps small and medium-sized businesses protect themselves from digital threats is a growing and vital field. Other tech-focused ideas include managed IT services, software development, or data analysis.
Veterans understand how to move people, equipment, and supplies efficiently and reliably. This experience is the perfect foundation for a trucking company, a local moving service, or a third-party logistics (3PL) firm that manages warehousing and shipping for other companies.
Skills in survival, navigation, and physical fitness can be channeled into an adventure-based business. This could involve leading guided hiking or hunting trips, teaching survival courses, or running outdoor team-building exercises for corporate clients. This allows veterans to use their fieldcraft in a new context while sharing their passion for the outdoors.
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Securing Funding Through the SBA
The U.S. Small Business Administration (SBA) is an important resource for any entrepreneur, but it offers particular advantages for veterans. It’s important to understand that the SBA rarely provides direct loans, opting in many cases to guarantee a portion of a loan made by a traditional lender instead.
To get an SBA-backed loan, a veteran entrepreneur must first prepare a strong business case. This includes a detailed business plan outlining the company’s mission, market analysis, financial projections, and management team. You will also need to gather personal and business financial statements.
The primary SBA loan programs include SBA 7(a) Loans are offered via the Small Business Administration’s loan program. The funds can be used for working capital, purchasing equipment or inventory, or to refinance existing debt. The maximum loan amount is $5 million.
Streamlined Applications
For veterans needing capital more quickly, the SBA Express Loan program offers a streamlined application. The maximum loan amount is $500,000. As a benefit, the SBA waives the upfront guaranty fee for veteran-owned businesses on loans up to this amount.
504 Loans provide long-term, fixed-rate financing for major fixed assets, such as real estate or large equipment. For those who need a smaller amount of capital, the Microloan program offers loans up to $50,000. These are provided through nonprofit, community-based intermediary lenders and can be used for working capital, inventory, or supplies.
The process involves finding an SBA-approved lender, submitting your application and business plan, and working through the lender’s underwriting process.
Resources for Veteran Entrepreneurs
- Office of Small & Disadvantaged Business Utilization (OSDBU), the primary office within the Department of Veterans Affairs, focused on veteran entrepreneurs. Its main function is managing the Vets First Verification Program, which certifies businesses as VOSB or SDVOSB. This certification is necessary to compete for VA set-aside contracts and is highly valuable for those pursuing federal contracting.
- Veteran Entrepreneur Portal (VEP) is a one-stop shop that connects veterans to federal services and best practices for starting and growing a business.
- SBA Office of Veterans Business Development (OVBD). This office is the SBA’s central point of contact for veteran entrepreneurs. It oversees all of the SBA’s veteran-focused programs.
- Boots to Business (B2B) is an entrepreneurial education program offered by the SBA as part of the military’s Transition Assistance Program (TAP). It provides an overview of business ownership and is available to service members transitioning out of the military and their spouses.
- Veterans Business Outreach Centers (VBOCs) provide services such as business training, counseling, and mentorship to eligible veterans. They can help with everything from developing a business plan to navigating SBA loan applications.
- SCORE is a nonprofit organization that provides free business mentoring from a national network of volunteer experts. Veterans can be paired with a mentor who has experience in their industry to receive confidential advice and guidance.
- Institute for Veterans and Military Families (IVMF) offers a suite of best-in-class entrepreneurship training programs for veterans and their families at no cost.
- Bunker Labs is a national nonprofit organization built by veteran entrepreneurs for veteran and military spouse entrepreneurs. It provides community, business incubators, and other programs to help launch and grow businesses.
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About the author
Editor-in-Chief Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter/editor for Air Force Television News and the Pentagon Channel. His freelance work includes contract work for Motorola, VALoans.com, and Credit Karma. He is co-founder of Dim Art House in Springfield, Illinois, and spends his non-writing time as an abstract painter, independent publisher, and occasional filmmaker.
