I have been out of the Marine Corps for about 1 1/2 years. I am thinking about starting up a small business and I need some advice about that process. Specific areas that I need advice are:
- Methods of securing funding ( any programs directed at veterans)
- Advice for establishing Partnerships - Equity share in the business, determining Salaries, etc
- Tips to survive the first years
There are fairly broad topics, any advice would be greatly appreciated!
Answers
I was going to say EBV. It is a great program. I have not attended it yet but I have applied and hope to be attending soon, I do have a few friends that have gone through the program and spent some time with them at there Conference they just had in Orlando. Its a great program. Now, I am aswell doing a lot of research on starting my own business and I am currently exploring ways to start with low overhead and start up cost. I am wanting to get started with out going and getting a huge SBA loan. A lot of people do this and that is completely ok and a lot of people are very successful at this. I read a lot on David Ramsey. He is a great speaker and very knowledgable, published some really great books like EntreLeader. Was a multi millionaire, bankrupt, and now a multimillionaire again and he talks about the mistakes that he made along the way and how to avoid those same mistake when starting your own business.
Good luck.
If you can, start your business on the side while you are still earning a salary from your job. Put in extra time during evenings and weekends. Get certifications, licenses, and anything else you are going to need when you run your business full time. Cash flow is critical. And a successful company is built on the foundational tripod of sales, technical, and financial skills. Make sure you and your team has skills in all three areas.
Figure out who your competitors, vendors, and customers are. Make contact with them. Go to industry trade shows. Figure out a niche that is undeserved. Take out as many personal credit cards as you can, and put as much money in a savings account as you can. Reduce your monthly personal expenses to a minimum.
As you get ready to start, decide at what point you are going to decide whether it is a success or not. Have a fallback plan to get a job in that industry, or in a different one.
When you have everything all set up and ready to go, do it. After all, what's the worst that can happen? You might run out of money and have to go get a job. The good news is you learn more from the experience more quickly than in any other way.
I have some more lessons learned and articles I wrote here: http://www.prioritycue.org/
J.J.;
I'm not sure what business you're starting. Funding is definitely critical, but it depends on what you're trying to do. General advice? Don't spend a dollar unless you're crystal clear as to how that expenditure brings you a return and fits in your overall plan. Don't delegate any of the finances of your company, do them yourself until you're intimately familiar with how, when and why things happen. Focus on the one or two things that are critical to your company's success and monitor your success in these one or two areas on a daily basis.
NEVER GIVE UP
I'm currently enrolled in the Entrepreneurial Bootcamp for Veterans. I would highly suggest you look into the program if you're interested in starting your own venture.
My husband is a small business owner and the first few years are often pretty challenging as you wait for all the work to pay off. It's important to stay positive and set S.M.A.R.T. (specific, measurable, attainable, realistic and timely) goals for yourself along the way. Depending on the type of business you have, meeting the right people can really propel you forward. You might want to check out networking groups and associations that are related to your business field. I also suggest developing a well thought out business plan and having people you trust and who you consider to be business-savvy to review your plan and make suggestions. If you go to a bank to get funding they're going to want to know that you have a firm plan in place and that your budget is realistic. Of course, your funding needs will largely be determined by what type of business you plan to start. You may qualify for grants, which you can learn about through the Foundation Center. The library is a great place to get books on every subject related to new business, from developing your business cards to what records you need to keep for taxes.
JJS,
There are a LOT of great programs out there, but a good place to start is the Small Business Administration, SBA. They have a number of programs for Vets, including special financing for business loans. Check out:
http://www.sba.gov/content/veteran-service-disabled-veteran-owned
Also, the SBA oversees a number of regional outreach centers where you can get advice on business plans, etc. Here's the list of the centers:
http://www.sba.gov/content/veterans-business-outreach-centers
I'm sure there's more out there, but this is what I found first. Best of luck!
Matt
I see the original question was posted a year ago, but for others who might have the same question...here is my two cents...
I operated a franchise for 3 years following my retirement. Much great advice has been posted...all very relevant. I will add...make sure you have the experience, skills, talents, ability and most of all passion for whatever you decide will be your product or service. I did a good job building my business, but left when it was taking off because I could no longer stand the product. I want to start again with something I'm naturally good or experienced at doing.
Build a team if possible. I did everything myself and it made for extremely long hours. I also had to learn to be good at things for which I had little natural ability. The military prepares us for that, but we are also prepared to work as a team. Team is much better! Choose partners who are all-in with you and have complementary skills, talents and abilities.
Have an exit strategy...know why you are going in and how you plan to get out.
Plan strategically, learn constantly, serve customers relentlessly.
Take advantage of every resource you can find...but the most important one in my opinion is mentorship.
All the best!
Thank you for all this information. I was (am) a pioneer in the Video Teleconferencing market. I got caught up in the falling house of cards when I was a Global Video Account Manager for MCI Worldcomm where one of my accounts was Enron (they were looking at over 2000 Polycom Systems). When our nation was attacked on 9/11, I eventually enlisted in the US Army even though I had just completed my MBA in Telecom from University of Dallas.
Now that we got the bad guy (Osama Bin Laden) and I am now in the US Army Reserves, I am ready to hit the ground running with my company called Cavantel. My sister came up with the name when I graduated with my Telecom MBA and I have kept it throughout the years waiting for this moment. Since I have survived deployments to Iraq and Afghanistan, I figure starting a company should not be that hard? I have the name Cavantel and www.cavantel.com registered and I am trying to figure out how to rekindle my relationship with my old mentor, Jim Cavanaugh, CEO & Founder of Jani-King and owner of my favorite place on earth: www.cavanaughflightmuseum.com. If anyone wants to contact me, I can be reached at cavantel@yahoo.com or @gmail.com. Take Care, LT Eddy Cavanagh, OD, MBA (Disabled Veteran from the minority Island of Ireland)
There is a SCORE Chapter near you which offers Business Workshops where you can learn and do some networking with other aspiring business owners. SCORE provides in person and on-line mentoring by experienced professionals. FRANNET.com is a National Partner of SCORE and comes to you at no charge, they can help with a Veteran discount on franchise fees too.
JJ,
There is a program called EBV (Entreprenural Bootcamp for Veterans). It gives you all the basics you will need. Look into it, its a good program.
Assess market potential
Financing
Business Plan
Advertising and Promotion
Start up assistance
Insurance
Selecting your legal structure, i.e., LLC or Corporation, etc.
Licenses and Permits
Environmental Regulations
Taxes
J.J.
I am a little down the road from you, in Richmond, but I would be happy to lend you a hand. There are occasionally programs called Boots2Business that are conducted at Quantico that you might try to attend. SCORE is a great resource but I am not sure where to contact them as far up in Northern Virginia as you are. Feel free to contact me for some help in locating either of these resources or for other assistance particular to Virginia at JWilson@wilsonlawgroup.net. BTW, I am a retired Navy EA-6B ECMO.
Jim
I recommending doing market research and validating your concept or idea before you look for partnership or investors and funding.
This can be done easily online.
3 questions to ask yourself before you proceed are:
Is the market easily reached?
Do the have money to spend
Are they passionate?
I can go in more detail if you like just let me know
I just completed the Entrepreneur Bootcamp for Veterans' Families at FSU and highly recommend the program. It began as a way to help vetrans and has graduated to include family members as well. Go to http://whitman.syr.edu/ebv/ for more information. They now run several programs throughout the U.S. and I believe they are classing up for June. You do not have to be disabled nor do you have to be a family member of a disabled veteran.
This program gives you a complete overview of everything it takes to start and successfully run a business and is completely free - right down to the airfare. It was an amazing and humbling experience that I, again, highly recommend. Good luck with your business!
My husband and I have run a small business since 1997. Cash flow management is critical. I've seen great businesses that have a good pipeline of revenue fail because their vendors would not wait for payment. We use Quickbooks on line and keep a close eye on cash flow. This way we can see how many months of operating income we need and have and can project out how long we can stay in business. Three months of operating income is ideal to have on hand - that's CASH- to stay afloat through a tough season.
Using the step method, take one month "savings" needed for operating income and put in a 30 day CD. Take second month and buy a 60 day, and 3rd month and buy a 90 day. Every 30 days renew with a 90 day CD. then you always have 1 month of operating income maturing as liquid should you need it.
This is a luxury for most small businesses, but it should be a requirement. If you don't have all of it at first, just keep putting a little more aside until you do, and then pretend you don't have it unless you are out of cash. Best of luck!
I've been involved with several startups and find that creating a comprehensive business plan is the best place to start because it forces you to think through all the facets of the business...thoroughly.
Once completed, you can use your business plan to seek seed capital (funding); partnerships; actually launching and running your business; etc.
I highly recommend:
A non profit organization, Honor Courage Commitment Inc. They recruit, educate, mentor, and guide transitioning military veterans into becoming socially responsible entrepreneurs and community leaders.
Veterans Corp to help and educate Veterans in small business. To accomplish its mission, Veteranscorp.org acts as clearinghouse for ideas and information deemed useful to veteran and service disabled veteran owned small businesses. Veteranscorp.org also acts as a clearinghouse for soliciting and distributing small business information to the general public.
Please get in touch with them.
This bill that was signed in to law, can help small business raise capital.
Go to the small business administration website www.sba.gov. There are free courses offered and reference the patriot pilot loan express for servicemembers and veterans.
What type of business are you interested in starting? Your answer to this can direct much more of the ensuing conversation.
I am a fellow veteran and the coordinator for a new program at the University of Tennessee at Chattanooga called the Veterans Entrepreneurship Program (VEP). This is a FREE program for veterans with a drive, determination, and passion for business ownership. You will learn about all the mechanics of starting and running your own business - funding, accounting, marketing, etc. Read the full details and apply online at http://www.utc.edu/college-business/academic-programs/vep/about-vep.php Space is limited. Application deadline is April 27, 2012!
The UPS Store website has much information to offer.... veterans get a preferred franchise rate, and in some locations the fee is waived. Check out the site. Like all large organizations, nothing happens until you are "on the radar", and the website is the start. If you are interested, after you check out the site, contact me.
there are tons of online resources to get your standard boilerplate basics like business plan, strategy, etc. but I think you should start with this question: What problem am I trying to solve? What need am I addressing? If you are actually attacking a direct problem and coming up with a compelling value proposition for customers based on that solution, you have a higher probability of success than someone who just says, "I want to open up a restaurant."
A couple of people mentioned it but go to your local SBA office and they will assist you without getting into the loan business if you don't need money they will have an SCORE office associated with them - SCORE is made up of retired executives and they will help you do a number of things for no fee that you might otherwise have to pay for. Both organizations are looking for people to help. You can get basic information from the web sites at SBA.gov and SCORE.org. The SCORE site will even provide assistance online. Good luck.
If you do not go to the EBV Program or other entrepreneur programs, start with a business plan. This will help you lay out every aspect about your business and although it is a pain to write, it will save you a lot of money and it will help you tackle how to start your business in order for it to succeed. Best of all, it will allow you to know your strengths, weaknesses and how much start-up money you will need.
Dali R.
Don't overlook franchising. The SBA will guarantee loans for many. Read the book Franchising for Dumbies before anything else. (co-authored by Wendy's founder Dave Thomas.)
SCORE and the SBA have Veterans specific programs.
http://www.score.org/topics/veteran_guards_reservists
https://www.google.com/search?q=sba+veterans
also see:
https://www.google.com/search?q=military+veterans+starting+business
Methods of securing funding ( any programs directed at veterans): SBA Microlenders under $50k, SBA Patriot Express Loans (thru banks like Chase) $50k up to $500k if you can't a standard bank loan (you'll need at least 30% investment (inlcluding cash from partners)
For equity; if you have to, sell shares via an LLC or Sub- S Corporation ; -
Advice for establishing Partnerships: keep control, at least at first until you really know what the value-added a partner(s), inlcuding investors bring to the business
Tips to survive the first years: Always have plan B,C, D ..... at the ready!
I graduated from the EBV Program also and it has changed my life. They way we see our goals, the way we see the challenges of becoming an entrepreneur. The EBV Program is fully privately funded, so all you loose is 9 days from work or school (if you are a student). They pay for the entire program, from travel to the 9 day residency part to the course itself. At the end of graduation you get a pro-bono attorney to help you set up your business the right way and many people to help you with your business plan. You network a lot, which is great and you become part of a very dependable group of entrepreneurs. You are a family member of the EBV Program for life and it has a lot of benefits even after you launch your business.
You can apply at any time. I included the link. Go for it!! You have nothing to loose!! You will not regret it.
http://www.whitman.syr.edu/ebv/Apply/
Dali R.
JJ,
An overload of information is consistently available along with allot of advice on starting a small business. What did we learn about opinions and "..........." everybody's got one...
Filter through the information by asking yourself these questions, Have I made positive Identification of the target engaging specified (economic) activities?
Who, what, where, why and how is the competition???
Most investors lean towards the position of "no competition....huh.... its for a reason!".
Hi JJ
First thing you want is a business plan no matter what you do have a good business plan that is your foundation.
Methods of securing funding ( any programs directed at veterans)
Answer: Get Sponsors it worked for me. Think Sponsorship & Business Fundrasiers & contracts.
- Advice for establishing Partnerships - Equity share in the business, determining Salaries, etc
Answer: interview potential business partners make sure it's someone who shares your vision and that you both are on the same page and in the same room In the same year. If you like it hot and your business partner(s) like it cold then can you find a happy median.... As far as salaries contact the unemployment office and get a list of career fields that show the going rate for certain positions. You can check other job posting and see what the going salary rates are for certain industries. If you pay more than mininum wage that can be attractive to the right candidate.
- Tips to survive the first years
Answer: Plan, Perpare have a safety net in case things don't go the way you want them to go. Have some back up capital for your slow periods. Sometimes it takes time to see a profit. Save for a rainy day. Hope this helps.
Don't forget about social networking - Military.com, Facebook, LinkedIn
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