My name is SFC Todd Pernell and I am retiring from the army in 2 days. I am interested in starting my own treatment center for drug and alcohol. I am doing drug and alcohol counseling now at a prison but I want to go into business for myself. How do I get the funding to start? I know how to obtain the license from my city and I have found a building.
Answers
Todd many people like you have the burning desire to start their own business without a clue as to what is involved. I believe you would be far better off partnering with an established business that would like to expand their services by offering what you do. This will overcome one of the biggest problems every start up has "acquiring new clients and building a solid professional reputation". Without a steady stream of new patients you will starve to death no matter how much money you have. This is why 95% of all businesses fail after 5 years. Then you begin circling back to the staring point looking for someone to hire you because you have reached that point of desperation. You are far better off partnering and then beginning to build a reputation of satisfied patients who you can use as referrals. You will also gain the knowledge and experience of running that segment of the business that will allow you to validate what you think you know. You will also find out all the things you don't know that could possible drag you under. I wanted to start a business three years out of college. Thank God I couldn't get the funding. I then spent the next 20 years in corporate America doing all kinds of things that better prepared me to eventually start my own company. I built a transition plan and only left corporate America when I had a signed contract for $275,000. I knew I could pay all my expenses and get my business off the ground without the burden of worrying about going bankrupt in the early years. I know many people who tried to start their own businesses by borrowing every nickel they could get their hands on from family, friends and with loans. They ended up with a ten year hole they had to dig out of. You will be far better off finding the right partner as you can avoid some of the major pitfalls.
Instead of attempting to get a business grant, I would suggest Street Shares. It is a loan program set up for veterans and funded by veterans who want to start a business. I am currently an investor as well. Here is the link https://streetshares.com/public/veteran-small-business-loans
I would also get a business plan drafted as well; it does not have to be 100 or so pages. I have seen business plans only 20 pages. This is where I suggest you begin. I wish you well.
It is trivial to create a company, just select a name, register as an LLC, and get a DUNS number. Extra steps are to register an EIN (employer identification number) and register with SAM (System for award management), formerly CCR (Central Contractor Registry).
The tough part is getting money for marketing and operations. The VA is helpful in getting loans and grants. Better yet, use ongoing revenue to cover these costs. That is what running a business is all about.
Make yourself known to VR&E (vocational rehab and education). Part of the rehab process is education, and part is drug rehab. I love that organization.
Hi, Todd,
Check out The Foundation Center (http://foundationcenter.org/). It's a treasure trove of grant info, including a huge database of funders, tutorials re how to get grants, etc. Most likely, you would want to find a fiscal sponsor and service their grant. Again, the Center can help you with that. They are located in many cities, as well as being online.
Much success,
KK
Hi Todd,
Grants are tough, they are possible for startups in some states. Check in with your state Department of Economic Development. Also loans are available for startups from some banks - I volunteer for SCORE have arranged them and procured start up grants in Connecticut. I would check out the EBV program ( I teach there), it will help you startup - many vets have had success there.
Best of luck, contact me if you want to talk.
William Orr mentioned the Entrepreneurship Bootcamp for Veterans with Disabilities (EBV). Once you graduate, you are eligible for business plan competitions with significant opportunities to be awarded a grant. Depending on the type of business and location, you may find possible opportunities with incubators or accelerators. You may also want to look into the SBIR program offered by many federal government agencies. Keep in mind, you'll need a business plan and it helps to have measurable traction. You should be familiar with the "lean startup" or "evidence based entrepreneurship" to have success with accelerators.
I am also in the process of looking into purchasing a franchise or start my own start. There are no grants for new business start up. However, you have several loan options, 1. borrow using your TSP or 401K as leverage, 2. borrow using your home as leverage (providing that your home has enough equity value), 3. use your own money.
Also, when you borrow please remember that you must pay 30% as a down payment. Make an appointment with your SBA and they can provide you with all this information.
Hi Todd. I've got a venture capital backed startup company focused on informing our fellow military vets that we can use a no-money-down VA Loan to buy and be resident landlords in 2-5 unit residential or mixed-use income producing properties. If your plans might or could include having resident clients -- say with Section 8 or VASH vouchers -- this might be an interesting way to accomplish your business goals and possibly subsidize your living costs, pay down your mortgage, get an operating profit, and get wealthy through property value appreciation. I'd be happy to discuss this with you further. We're looking for poster child examples to understand all the issues in our various market niches, so helping you would help us. I'm a former USMC 0302 located in Michigan. Reed. reedmbenet@gmail.com.
Thanks for your service SFC Pernell. I founded Veterans Counseling Veterans INC for veterans like yourself. As I mentioned in my email, grants are normally not awarded to a nonprofit until they are operational for 3 years. Second, grants are competitive. I suggest you identify those who already have a grant and talk to them. Where do you plan to provide your services (location).
If you have a service-connected disability, this program may be your ticket to launching your business...http://ebv.vets.syr.edu/. Check it out.
Todd..
There is no chance for you to obtain a grant or get a loan to start a business. Grants are usually provided for charitable or research purposes. Loans are provided by lenders who do so in the context they expect to be paid back. With no business history and no revenue no lender will work with you..
One idea you can investigate is Kickstart. This is a program where you describe your business, your hopes and dreams in an e-mil that gets sent to millions of people around the globe who are of a mind to give a helping hand to people like you. Go to Kickstart.com on the web and check it out. Lots of business startups have obtained funding through Kickstart.
I suggest partnering with an existing agency/organization and do some (private sector) work for them first. Meet the locals in your field & get your own stellar reputation going first. Striking out on your own is a grand plan, but you will have a much better chance for sustained success if you partner with an existing nonprofit for a grant. And to do that, you will need a track record and good connections. Which takes us back to the idea of working with an established provider first.
Hi Todd - do you have a business plan ? If not, please download a template from score.org and fill the blanks. Thanks, JG
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