Top 6 Challenges Veteran Entrepreneurs Face and Solutions

Veterans transitioning to entrepreneurship face unique challenges. Here’s a quick summary of the top hurdles and solutions:

1. Translating Military Skills to Business: Veterans excel at leadership, adaptability, and problem-solving but may struggle to connect these skills to business needs. Tools like the SBA’s Boots to Business program and Resume Engine can help bridge this gap.

2. Securing Funding: Access to capital is tough, with only 9.8% of veteran businesses receiving startup loans. Explore programs like the SBA’s SDVOSB, FedEx Entrepreneur Fund, or regional grants for veterans.

3. Building Networks: Lack of mentorship and connections is a major roadblock. Join veteran-specific groups like 10X Vets or attend events like the Veteran EDGE Conference to expand your network.

4. Navigating Regulations: Business permits and compliance can be overwhelming. Utilize Veterans Business Outreach Centers (VBOCs) and local Small Business Development Centers (SBDCs) for guidance.

5. Finding Customers: Understand your audience, build trust, and maintain a strong online presence. Use tools like Five Star Vets’ marketing software to streamline customer acquisition.

6. Managing Stress: Entrepreneurship can be stressful. Delegate tasks, practice self-care, and connect with other veteran entrepreneurs for support.

Key Takeaway: Veterans bring valuable skills to the business world but need targeted resources, funding, and mentorship to succeed. Programs like VBOCs, SBA initiatives, and veteran-focused grants can make the transition smoother.

Navigating Business Challenges as a Veteran

1. Military to Business Skills Transfer

Starting a business after military service involves turning military experience into business know-how. This shift draws on skills like leadership, strategic thinking, and problem-solving. Military service instills abilities that align closely with running a business. For example, veterans are five times more likely to have technical skills than non-veterans [3], and they own about one in ten businesses in the U.S. [5].

Mark Rockefeller, co-founder and CEO of StreetShares, highlights the unique strengths veterans bring:

Turning Military Skills into Business Assets

The challenge lies in understanding how military skills connect to business needs. Here's a breakdown:

These connections show how military skills can directly support business growth. Programs like the Boots to Business (B2B) initiative, offered by the SBA through the Department of Defense's Transition Assistance Program, help veterans and their spouses learn entrepreneurship fundamentals [7].

Veterans also thrive in franchising. About 97% of franchisors say veterans excel as franchisees [4]. This success comes from veterans' respect for established systems and their ability to follow operational guidelines while staying flexible.

Here’s how veterans can make the most of their military experience in business:

• Document achievements: Use tools like Resume Engine to translate military accomplishments into business terms [8].

• Highlight leadership: Share specific examples of military leadership that apply to business settings.

• Show technical skills: Demonstrate how military training gives an edge in operations.

• Prove adaptability: Provide examples of handling diverse situations that mirror business challenges.

The discipline and structured approach learned in the military provide a solid base for business success. Veterans should use these strengths while adjusting their communication and decision-making for civilian business environments. These skills lay the groundwork for overcoming challenges like securing funding.

2. Finding Business Funding

Getting the funds to start or grow a business is often a major challenge for veteran entrepreneurs. While military service builds strong skills for running a business, turning those skills into funding opportunities requires tapping into resources designed specifically for veterans.

The Small Business Administration (SBA) plays a key role in supporting veteran-owned businesses. For example, the Military Reservist Economic Injury Disaster Loan Program (MREIDL) offers financial assistance to businesses when employees are called to active duty [9]. Another option is the Service-Disabled Veteran-Owned Small Business (SDVOSB) Program, which reserves 5% of federal contracting dollars for service-disabled veteran entrepreneurs [11]. Beyond these, there are other funding opportunities tailored to veterans.

One veteran entrepreneur put it well:

In 2022, Mills’ startup won $100,000 in The Veteran Fund's pitch contest and later joined the PenFed VEIP spring 2023 cohort, showcasing the potential of veteran-focused funding programs.

Veteran-Specific Funding Sources

Many organizations offer financial support tailored to veteran entrepreneurs. For instance, the FedEx Entrepreneur Fund, in partnership with Hello Alice and the Global Entrepreneurship Network, awards $300,000 annually to 30 veteran and disabled entrepreneurs, with $10,000 granted to each recipient [11].

For veterans entering specific industries, options like the Farmer Veteran Fellowship Fund provide grants ranging from $1,000 to $5,000 to support agricultural businesses [11]. Women veterans in Texas can apply for $5,000 grants through Texas Woman's University's Veteran Woman Entrepreneur Grant program [11].

Here’s a breakdown of some key funding programs:

Veterans looking to secure funding should:

• Register on the System for Award Management (SAM) website and get a DUNS number.

• Create an account on Grants.gov to explore federal funding options.

• Use the SBA’s Lender Match tool to connect with approved lenders [9].

• Join regional initiatives like the Michigan Veteran Entrepreneur-Lab, which combines training with funding opportunities [11].

Veterans Business Outreach Centers (VBOCs) are another excellent resource. They offer workshops on business planning and mentorship programs, helping veterans create stronger funding applications and increase their chances of success [9].

3. Growing Business Networks

Building strong networks is often a challenge for veteran entrepreneurs, yet it's crucial for business success. Research shows that 22% of Veteran Owned Businesses (VOBs) identify the lack of mentorship as a major obstacle to growth [13]. Establishing meaningful connections is just as important as securing funding or translating military experience into business skills. Together, these elements create a solid foundation for long-term success.

At the March 2020 Veteran EDGE Conference, entrepreneurs Mike Etheridge, Eve Baum, Claude Burns, Thom Theriault, and Eric Gates formed a support network that helped their businesses navigate the pandemic [13]. Eve Baum shared her experience:

Practical Steps for Building Networks

Networking is essential, especially since 70% of opportunities are secured through word-of-mouth [12]. Effective networking requires both planning and consistent effort.

Several organizations offer structured networking opportunities tailored for veterans:

• 10X Vets: This program includes monthly meetings, annual in-person events, and access to peer circles and investor syndicates. The cost is $1,000 to join plus $250 per month, making it a strong option for growth-focused businesses [14].

• DAV Patriot Boot Camp: Programs like Caffeine Connect and Patriots Pitch help veterans build connections while honing their business skills [16].

Claude Burns, a veteran entrepreneur, highlights the value of such events:

Veteran entrepreneurs can maximize their networking efforts by:

• Engaging daily on social platforms to connect with industry leaders

• Attending veteran-specific job fairs and business events

• Joining regional chapters of groups like the National Marine Corps Business Network (NMCBN) [15]

• Using platforms like LinkedIn to leverage military connections

• Scheduling regular meetings with potential mentors and collaborators

The Institute for Veterans and Military Families (IVMF) at Syracuse University also offers programs that guide veterans from business ideas to scaling their ventures [17]. These initiatives combine education with networking opportunities.

As Thom Theriault puts it:

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4. Business Regulations and Permits

Veteran entrepreneurs often navigate a complex web of licensing requirements at federal, state, county, and local levels [18]. Meeting these requirements is crucial for running a successful business.

The specific permits needed depend on the type of business. For instance, beverage companies must secure permits from the TTB and local Alcohol Beverage Control Boards [18]. Transportation businesses, on the other hand, require permits from the U.S. Department of Transportation [18].

Take Rob Galloway, for example. In 2023, he worked with the Arkansas SBTDC to simplify regulatory compliance for his business, The Nurserie. This collaboration led to a 20% increase in customer acquisition and a 15% revenue boost within just six months [20].

Business Setup Resources

Once regulatory hurdles are addressed, veterans can turn to specialized resources for additional support. The Office of Veterans Business Development, through Veterans Business Outreach Centers (VBOCs), offers tools like:

• Help with developing business plans

• Guidance on regulatory compliance

• Assistance with permit applications

• Long-term mentorship [20]

In 2022, April and Matthew Fedrick expanded Ape's Housekeeping and Cleaning Services, LLC with help from the Arkansas SBTDC. They secured a $50,000 small business loan, which enabled a 30% increase in service capacity and the creation of three new jobs [20].

To stay on top of compliance, veterans should:

• Check their Secretary of State's website for required permits [18]

• Form a legal business entity before applying for licenses [19]

• Get an Employer Identification Number (EIN) through the IRS [19]

• Consult with licensing specialists or local economic development agencies [19]

The Small Business Administration (SBA) also supports veterans through programs like Boots to Business and the Service-Disabled Veteran Entrepreneurship Training Program (SDVETP) [20]. To keep their businesses running smoothly, veterans should regularly renew licenses and permits. Organizations like VBOCs and SBDCs are available to assist with evolving regulatory needs [20]. These resources help veterans build a strong foundation for their ventures.

5. Finding and Keeping Customers

Winning over and keeping customers is a common hurdle for seasoned entrepreneurs. Start by defining buyer personas to align your products or services with your audience's needs. Prioritize market research, build trust, and polish your online presence to both attract and retain customers effectively.

Here are three key areas to focus on:

Marketing Tools for Veterans

To bring these strategies to life, use marketing tools tailored for veterans. A mix of digital and traditional tactics works best. For instance, Alex, who owns a rental business, uses Five Star Vets' automated tools. Their "Missed Call Text Back" feature alone brings in around $3,000 in new monthly revenue [21].

Strengthen your online presence by:

• Keeping your website updated, maintaining active social media, and ensuring directory listings like Google Places and Yelp are accurate.

Boosting Customer Retention

Here are a few ways to keep your customers coming back:

• Simplify the Purchase Process: Make checkout easy with clear steps and multiple payment options.

• Build Personal Connections: Engage with your community and collaborate with local businesses to create meaningful relationships.

• Use Analytics: Track metrics like visit duration, bounce rate, and conversions to fine-tune your marketing efforts.

These strategies not only help in attracting customers but also ensure they stay loyal to your brand.

6. Managing Business Stress

Starting and running a business can feel overwhelming, especially in the early days. For veterans, the resilience developed during military service can be a powerful tool to handle the unique pressures of entrepreneurship.

Common Stress Points and How to Address Them

Addressing these stressors helps balance the demands of running a business with personal well-being.

Business-Life Balance Tips

Josh Martin of Cream City Home Buyers emphasizes the importance of connecting with others:

Physical Well-being
Regular physical activity can help clear the mind. Zach Tetley, founder of Nexus Homebuyers, shares:

Mental Resilience
Cameron Herold offers a fresh perspective on stress:

To build mental strength, try short meditations, the WOOP framework (Wish, Outcome, Obstacle, Plan), or daily gratitude exercises.

Practical Stress Management
Jason Ault from Element Homebuyers highlights the value of delegation:

Additional Stress Management Practices

• Professional Support Network
  Surround yourself with experts in finance, legal matters, and marketing. Their guidance can ease decision-making and ensure your business is set up correctly [22].

• Daily Stress Relief
  Aaron Steed, CEO of Meathead Movers, offers a simple tip:

• Strategic Planning
  Doug Conant, former CEO of Campbell Soup Company, shares his approach:

Conclusion

The challenges faced by veteran entrepreneurs shape their unique path in the business world. While veteran-owned businesses play a key role in the American economy, access to traditional bank funding often remains limited. By blending the discipline gained through military service with focused business strategies, veterans can tackle these hurdles. This includes applying military leadership skills to business operations, exploring veteran-specific funding options, building strong networks, practicing disciplined financial management, and seeking guidance through mentorship.

Experts provide valuable advice for navigating these challenges. Jenny DuFresne highlights the importance of financial discipline:

Kevin Rosenberg underscores the adaptability veterans bring from their service: