7 Essential Steps to Start a Veteran-Owned Business

Veterans own over 10% of U.S. businesses, generating $1.22 trillion annually and employing nearly 5.8 million people. If you're a veteran looking to start your own business, here’s a quick roadmap to get started:

• Choose Your Business Focus: Match your military skills to market needs and test your idea.

• Write a Business Plan: Create a detailed roadmap covering goals, operations, finances, and market analysis.

• Secure Funding: Explore veteran-specific loans, grants, and SBA programs.

• Set Up Your Business: Select a legal structure, register your business, and get necessary permits.

• Get Certified: Apply for Veteran-Owned Small Business (VOSB) or Service-Disabled Veteran-Owned Small Business (SDVOSB) certifications for federal contracts.

• Build Your Network: Join veteran business groups and find mentors to expand opportunities.

• Launch and Grow: Market your business, leverage your veteran status, and pursue government contracts.

Key Tip: Use resources like Veterans Business Outreach Centers (VBOCs), SBA programs, and SCORE for guidance. Veterans are 45% more likely to succeed as entrepreneurs - your military skills are a strong foundation for business success.

Starting a Veteran-Owned Small Business? | Help from Small ...

Step 1: Choose Your Business Focus

Find the intersection of your military skills and market opportunities to kickstart your business.

Leverage Your Military Experience

Your time in the military has given you skills that can be directly applied to running a business. Leadership, strategic thinking, and problem-solving are just a few examples. For instance, a squad leader's experience can translate into strong project management or consultancy skills. Similarly, technical expertise gained in service can lead to success in areas like IT, communications, or engineering. The goal is to channel your expertise into addressing specific market needs.

There are plenty of examples that show how effective this approach can be. Take Black Rifle Coffee Company, started by a former Green Beret, which has grown into a national brand while supporting veteran causes [2]. Another example is Rumi Spice, founded by veterans, which connects Afghan farmers to the global saffron market. Both businesses demonstrate how military experience can inspire creative and impactful solutions [2].

Once you’ve identified how your military background can meet market demands, the next step is to dive into customer research.

Understand Your Market

Research is crucial to understanding your target audience, their pain points, and the competitive landscape. Here’s how to get started:

• Identify customer pain points: Talk directly to potential customers to learn about their challenges.

• Analyze your competition: Study businesses already succeeding in your chosen field.

• Assess market size: Ensure there’s enough demand to support your business.

Test Your Business Idea

Before fully committing, test your idea using targeted methods to gather feedback and gauge interest:

You can also start a blog or online community focused on your product or service to see how much interest it generates [3]. Running targeted ads is another effective way to measure interest - track click-through rates and time spent on your landing page to gather concrete data.

For a more hands-on approach, consider pre-selling your product or service. This not only validates demand but also generates initial revenue and provides valuable feedback to refine your concept.

Step 2: Write Your Business Plan

Now that you've defined your business focus, it's time to create a detailed plan. Think of it as your roadmap, connecting your market insights with the operational discipline you honed in the military. A well-structured business plan not only outlines your path but also highlights how your military skills and leadership experience translate into business success.

Business Plan Essentials

Make sure your plan includes these key sections:

Veterans are 45% more likely to be self-employed [6]. Use this to your advantage by showing how your service equips you to succeed in business.

Tools and Resources for Planning

Take advantage of veteran-specific resources to build a strong plan:

• Veterans Business Outreach Centers (VBOCs): These centers provide support for developing five-year plans, including:

  • Legal structure analysis

  • Equipment needs assessment

  • Strategic planning

  • Market research

  • Financial projections

VBOCs help translate your military background into business strengths that resonate with investors and lenders [4].

• SCORE: This organization offers templates and tools tailored for veterans, covering financial projections, market analysis, strategic planning, and business models.

Step 3: Find Business Funding

Once your business plan is ready, the next step is securing the funding needed to bring your veteran-owned business to life. Luckily, there are funding options specifically designed for veterans.

Veteran Funding Programs

The Small Business Administration (SBA) offers programs tailored to veterans, featuring lower fees and better terms. For example, the Veterans Advantage Program provides reduced interest rates and fees compared to standard loans [7].

You can combine these veteran-specific programs with other funding sources to strengthen your financial foundation.

Standard Funding Options

• Traditional Bank Loans
  Many veterans pair these loans with veteran-focused programs to secure the best funding package.

• Alternative Lenders
  Companies like Bluevine and OnDeck offer quicker approvals, though typically at higher interest rates [7].

Grants for Veterans

If you're looking for funding that doesn't need to be repaid, grants are an excellent option. Several organizations offer grants exclusively for veteran entrepreneurs:

• Second Service Foundation: Awards between $4,000 and $15,000 through the Military Entrepreneur Challenge [8].

• FedEx Entrepreneur Fund: Provides $10,000 grants to 30 military-connected entrepreneurs each year [8].

• Hiring Our Heroes: Offers five $10,000 grants to veteran business owners. Applications are open until February 15, 2025 [9].

Success Story: Rick Page, a veteran entrepreneur, used an SBA 504 loan through the Capital Regional Development Council and Bank of NH to buy a new building for his business, R.A. Page Farmhouse Furniture, based in Laconia, New Hampshire [7].

While the Department of Veterans Affairs (VA) doesn’t offer direct business loans, it connects veterans with helpful resources and partners [7]. Additionally, the SBA sets aside 5% of federal contracting funds annually for Service-Disabled Veteran-Owned Small Businesses (SDVOSB), creating valuable opportunities for qualified veterans [8].

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Step 4: Set Up Your Business

After securing funding, it's time to legally establish your business. This involves choosing the right structure and obtaining the necessary permits.

Pick Your Business Structure

The structure you choose impacts taxes, liability, and management. Here are some common options for veteran-owned businesses:

Veteran Business Outreach Centers (VBOCs) can offer advice on choosing the right structure [10]. Once that's sorted, focus on obtaining the permits needed to operate.

Get Required Permits

Meeting licensing and permit requirements is essential for running your business legally.

Federal Requirements:

• Reach out to federal agencies for regulated activities.

• Register for an Employer Identification Number (EIN).

• Apply for federal licenses for industries like agriculture, alcohol, aviation, firearms, fishing, or broadcasting.

State and Local Requirements:

• Apply for a business license through the Secretary of State.

• Get a sales tax permit.

• Obtain any required professional licenses.

• Secure health, fire safety, and zoning permits.

• Check if environmental permits are necessary for your operations.

Tully Rinckey PLLC, a veteran-owned law firm, emphasizes the importance of setting up your business legally to ensure long-term success [12].

Pro Tip: Use the SBA's website to find a state-specific database of licensing requirements. It includes direct links to business licensing agencies across all 50 states [11].

Step 5: Get Veteran Business Certification

Getting a veteran business certification can open doors to federal contracts and boost your business's reputation. With a solid foundation in place, certification makes you eligible for federal opportunities. Since January 1, 2023, the Small Business Administration (SBA) has been responsible for handling all federal veteran business certifications [13].

VOSB and SDVOSB Programs

Veteran entrepreneurs can apply for two primary certifications:

This certification helps translate the discipline gained in the military into success in federal contracting. In fiscal year 2023, certified SDVOSBs secured nearly $27 billion in federal contracts [14].

How to Get Certified

To apply, you'll need the following documents:

• Government-issued ID

• DD214 or other proof of veteran status

• Current business license

• Complete payroll records

• Detailed business plan

• Service-connected disability rating letter (for SDVOSB)

Here’s how to get certified:

1. Register your business on SAM.gov.

2. Verify that your business meets SBA size standards.

3. Gather all required documents.

4. Submit your application through the MySBA Certifications portal.

5. Respond promptly to any additional requests.

Pro Tip: If you’re a service-disabled veteran who cannot manage daily operations due to permanent or total disability, your spouse or a designated permanent caregiver can take over management without affecting your eligibility [13].

The KWV, Inc. v. United States case upheld the company’s eligibility for the Veterans First Contracting Program, ensuring its contracts and certification status remained intact [14].

Step 6: Connect with Others

Once you've established your business structure and secured necessary certifications, the next step is expanding your network. Building strong connections is key for veteran entrepreneurs looking to find opportunities and grow their businesses.

Veterans' Business Groups

Joining veteran-focused business organizations can open doors to valuable connections and resources. These groups are designed to help veteran entrepreneurs thrive by offering targeted networking and growth opportunities.

The National Veteran-Owned Business Association (NaVOBA), for instance, connects veteran business owners with corporate opportunities through initiatives like their Operation Matchmaker program.

Here are a few key veteran business organizations to consider:

Success Story: Matt Dyer, owner of Amerikaa and a NaVOBA-certified Veteran Business Enterprise (VBE), gained a spot in Chobani's One Chobani Supply Chain program [15]. Programs like these often lead to mentorship and other growth opportunities.

Find a Business Mentor

Expanding your network is just the start - having a mentor can make a big difference. Mentors offer personalized guidance, and their support is crucial, especially since 22% of veteran-owned businesses report challenges without it [18].

One veteran entrepreneur shared:

If you're looking for mentorship, consider:

• SCORE for free business guidance

• VBOCs for specialized counseling

• Veteran Business Project for hands-on support [16][17]

Pro Tip: Look for a mentor who not only understands business but also has experience transitioning from military to civilian life. This combination can provide insights that are especially relevant to your journey.

Step 7: Start and Expand

Launch your veteran-owned business and grow it effectively. Your background as a veteran can be a powerful advantage as you scale your operations.

Market Your Business

Did you know that 70% of Americans prefer supporting veteran-owned businesses [19]? Use this to your advantage with these marketing strategies:

To further extend your reach:

• Partner with veteran organizations to strengthen credibility.

• Share content that highlights veteran entrepreneur success stories.

• Advertise on platforms tailored for veterans, like Military.com or VetTix.

• Offer special deals to encourage loyalty among veteran customers.

In addition to marketing, taking advantage of federal opportunities can help your business grow even faster.

Win Government Contracts

Once you've established your market presence, focus on securing government contracts by following these steps:

1. Get Certified

Apply for the Veteran Small Business Certification (VetCert) through the SBA's MySBA Certifications portal. This certification allows access to set-aside and sole-source contracts.

2. Access Resources

Take advantage of the Federal Surplus Personal Property Donation Program through the GSA. Reach out to your State Agency for Surplus Property (SASP) to explore available federal resources [13].

3. Build Capacity

Expand your operations while maintaining high-quality standards. Veteran-owned businesses already employ 6 million Americans and generate over $1 trillion in annual revenue [20].

Success in the long term comes from fostering strong connections within the veteran business community and consistently delivering excellent service and products.

Conclusion

Your military background gives you a strong foundation for business success. Veterans are twice as likely to start businesses, contributing over $1 trillion in revenue annually in the U.S. The leadership, discipline, and decision-making skills you’ve honed set you apart in today’s competitive business world [21].

Here’s how you can take action right now:

By tapping into these resources and strategies, you can set your business on the path to success. Experts in the field recognize the unique strengths veterans bring to entrepreneurship:

Your military training, paired with focused entrepreneurial tools, positions you to thrive as a business owner. By following these steps and leveraging the resources available, you can join the community of veteran entrepreneurs driving economic growth across the country.