Did you know that 24 million Americans are veterans? That’s approximately 10 percent of the U.S. population. Of those veterans, nearly one in 10 is a small business owner.
By Laura Jaramillo
From our experience working with veteran entrepreneurs, we know these men and women are proven leaders, and they have the demonstrated skills and experience needed to be successful business owners.
Nonetheless, we also know that veterans can face obstacles in getting a business started and established. Many are not aware of what’s available to help them plan, finance and operate a new business. We want to share a few tips on up-front planning and financial preparation, as well as a few resources available to veterans.
Before You Start
One of the first considerations in becoming a business owner is to make sure you have a solid business plan. Make sure you thoroughly research the startup costs for your business and have your financial plan reviewed by your financial advisor to ensure you have the funds needed for the first years of operation. Before you apply for credit, take time to understand what your business needs to do to be considered credit-ready and in the best position to secure financing. As a general rule, business owners should keep these credit practices in mind:
- Separate business and personal finances.
- Keep business and personal credit records.
- Track and maintain positive cash flow.
- Develop a banking relationship.
- Build a strong credit profile.
Resources for Veterans
There are many resources available to assist veterans who want to start their own small business or become self-employed. Here are several places to start:
U.S Small Business Administration (SBA): Each year hundreds of thousands of veterans are assisted by SBA, helping them start and grow their small businesses.Its website, SBA.gov, is full of information and resources for veterans. The SBA’s Office of Veterans Business Development page includes links to various government programs. The Small Business Development Center also offers outreach to veterans.
In addition, the SBA oversees federal loan programs that provide offers for veteran-owned small businesses. SBA loans have a government guarantee and are made to small businesses through banks and other lending institutions. Veterans who are approved for an SBA loan through Sept. 30, 2015 are eligible to obtain the loan at a reduced fee or with no upfront fee, depending on the product. The SBA is seeking to increase lending to veteran small business owners and, in 2013, introduced a Veteran Pledge Initiative with participating lenders to boost SBA lending to military veteran business owners by five percent annually over a five-year period.
U.S. Department of Veteran Affairs: This site helps small businesses become certified as veteran-owned or service-disabled veteran-owned. Once certified, the businesses may be eligible for procurement programs
Hands on Banking for Veterans: This free, online program teaches people in all stages of life about the basics of responsible money management, including how to establish a small business and how to create a budget, rebuild credit, save and invest and borrow responsibly.
Service Corps of Retired Executives (SCORE): This non-profit association is dedicated to helping small businesses get off the ground and includes specialized mentoring programs and online workshops for veterans and their families.
LinkedIn has several active veteran discussion groups, including National Veterans Small Business Engagement and Service Disabled Veteran Owned Business (SDVOB).
America’s veterans make great contributions to our nation. With the right tools and guidance, more veterans can achieve success as entrepreneurs and small business owners.
Laura Jaramillo is the community development manager for Wells Fargo in Houston.