How to Start a Business as a Veteran: Complete Entrepreneur Guide

Bottom Line Up Front

Veterans have excellent conditions for entrepreneurship: strong leadership skills, discipline, access to capital through VA programs, and preferred contracting status. However, 90% of veteran businesses fail in first 5 years because they skip critical planning steps. This guide walks you through business planning, accessing veteran-specific funding and support, and executing your business launch systematically.

Why Veterans Make Great Entrepreneurs

Veteran Advantages:

Leadership and management experience
Crisis decision-making skills
Ability to manage complex operations
Discipline and work ethic
Access to VA small business programs and funding
Preferred vendor status in government contracting
Veterans business loans with favorable terms
VOSB (Veteran-Owned Small Business) certifications

Why Veterans Struggle:

Skip strategic planning
Undercapitalize business
Try to do everything themselves
Don't leverage veteran business resources
Don't apply for government contracts (big opportunity)
Lack civilian business experience/knowledge
Don't seek mentorship or advisors

Step 1: Validate Business Idea (Weeks 1-2)

Before quitting your job, validate your business idea.

Validation Process:

Step 1A: Define Your Business Concept

Answer these questions:

What problem does your business solve?
- Specific problem
- Who has this problem (target customer)
- How big is the market for this problem
What's your solution?
- Product or service
- Why you're uniquely qualified (veteran advantage?)
- Competitive advantage vs. competitors
Who's your customer?
- Target customer profile
- Where do they buy this solution today
- Why would they buy from you
What's your pricing model?
- What will you charge
- How does this compare to competitors
- Is pricing profitable

Step 1B: Research the Market

Don't rely on hunches. Research your market.

Market Research Checklist:

Identify 5-10 competitors (existing businesses solving same problem)
Analyze competitor pricing, positioning, and marketing
Survey 20+ potential customers on problem importance
Research market size (total addressable market)
Check if market is growing, stable, or declining
Identify industry trends affecting your business
Research regulations/licensing requirements

Question 20 Potential Customers:

"Do you have this problem?" (Yes/No)
"How often do you need this solution?" (Frequency)
"What do you currently do to solve this?" (Current solution)
"What would you pay for a better solution?" (Price validation)
"Would you buy from me?" (Basic commitment)

Step 1C: Calculate Basic Economics

Create simple math to see if business is viable.

Example: Veteran-Owned Consulting Business

Factor	Calculation	Value
Service: Project management consulting
Hourly rate	$150/hour	$150
Billable hours per month	160 hours	160
Monthly revenue	160 × $150	$24,000
Annual revenue	$24,000 × 12	$288,000

Operating costs per month
Office/Software/Insurance	$2,000	$2,000
Marketing/Sales	$1,000	$1,000
Admin/Overhead	$500	$500
Total monthly costs		$3,500

Monthly profit (revenue - costs)	$24,000 - $3,500	$20,500
Annual profit	$20,500 × 12	$246,000
Net profit margin	$246,000 / $288,000	85%

Question: Can you realistically achieve 160 billable hours/month starting year 1? If yes, business is viable. If no, reduce assumptions or reconsider.

Step 2: Create Simple Business Plan (Weeks 2-4)

Veterans often skip business planning because it feels like military planning (tedious). But business planning is just strategic thinking on paper.

One-Page Business Plan Template:

BUSINESS CONCEPT
[1 sentence describing your business]
Example: "Providing project management consulting to small technology companies transitioning to agile methodology"

PROBLEM & OPPORTUNITY
[What problem does your business solve? Why is this opportunity important?]

TARGET CUSTOMER
[Who is your ideal customer? What's their size, industry, challenge?]

YOUR UNIQUE ADVANTAGE
[Why you? What's your unfair advantage (veteran status, specific expertise, relationships)?]

SOLUTION OFFERING
[What specifically are you selling (product/service)? What outcomes does customer get?]

REVENUE MODEL
[How do you make money? Pricing structure?]

MARKETING & SALES STRATEGY
[How will you get customers? Primary marketing channels?]

COMPETITION & DIFFERENTIATION
[Who are competitors? How are you different?]

FINANCIAL PROJECTIONS
[Year 1 revenue, costs, profit? Break-even point?]

FUNDING NEEDS
[How much capital do you need to launch? How will you use it?]

YOUR TEAM
[Who's on your founding team? Skills/Experience?]

MILESTONES
[Key business milestones: first customer, break-even, revenue targets?]

One-Page Business Plan Example: Veteran Consulting Firm

BUSINESS CONCEPT
"Project Management Consulting for Financial Services Companies Implementing Digital Transformation"

PROBLEM & OPPORTUNITY
Financial services companies struggle to implement digital transformation projects on time and budget. Average project overruns: 30% over budget, 6 months late. Market need: $3B annual opportunity for PM consulting in financial services.

TARGET CUSTOMER
Regional and mid-market financial institutions (banks, credit unions) with $1-10B in assets, launching digital transformation initiatives.

UNIQUE ADVANTAGE
Former Army Operations Officer with 12 years managing $50M+ budgets and complex multi-site operations. Understand financial regulations and change management in risk-averse environments.

SOLUTION
End-to-end project management consulting including: project planning, team coaching, stakeholder management, and risk mitigation. Specializing in financial services regulations and compliance requirements.

REVENUE MODEL
$150/hour consulting rate, or fixed-project fees ($50K-$200K typical). Year 1 target: 50% of time billable (800 hours), generating $120K revenue.

MARKETING & SALES
Direct outreach to CFOs/CIOs at target banks, referrals from industry contacts, speaking at financial services conferences, LinkedIn networking.

COMPETITION
Large consulting firms (Accenture, Deloitte), boutique PM consultants. Differentiation: Veteran-specific understanding of operations, scalability, and risk management.

FINANCIAL PROJECTIONS
Year 1: $120K revenue, $30K costs, $90K profit. Break-even: Month 3.

FUNDING NEEDS
$10K startup capital for: LLC formation, insurance, marketing, software, initial operating costs.

TEAM
Self (PM/Operations founder) + relationships with 3 sub-contractors for additional capacity as business grows.

MILESTONES
Month 1: Business formation, market validation. Month 2: First client. Month 3: Break-even. Month 6: $50K revenue. Year 1: $120K revenue.

Step 3: Determine Funding Needs & Access Veteran Resources

Veterans have unique funding advantages. Use them.

Funding Sources for Veteran Businesses:

Funding Option 1: VA Loan Programs

Veteran-Specific SBA Loans:

Guaranteed business loans up to $5M
Favorable terms for veterans
Some veteran-focused lenders specialize in vet businesses
Interest rates: 6-9%
Can use for: Equipment, inventory, working capital, real estate

How to Access:

Create business plan (see above)
Research SBA-approved lenders
Apply for SBA 7(a) loan or 504 loan
Typical approval: 4-8 weeks

Funding Option 2: VA-Backed Grants & Support

VOSB (Veteran-Owned Small Business) Certification:

Provides access to government contracting preferential treatment
Free or low-cost certification
Can unlock $100K+ government contracts
Process: Apply to VA Office of Small and Disadvantaged Business Utilization

Veteran Business Grants:

Service-Disabled Veteran-Owned Small Business (SDVOSB) set-asides
Government contracting preferences
Regional veteran business development centers (free)
State-level veteran business grants (varies by state)

Funding Option 3: Personal Capital & Bootstrapping

Use What You Have:

Personal savings
Home equity loan (if homeowner)
Business credit cards
Reinvest early profits back into business

Minimum Funding Needed:

Sole proprietor service business: $2,000-$5,000
LLC with employees: $10,000-$25,000
E-commerce business: $5,000-$15,000
Retail location: $50,000+

Funding Option 4: Investor Capital

Not Usually Recommended for First Business:

Requires giving up equity (partial ownership)
Investors expect returns (30-50% over 5 years)
Only appropriate for high-growth ventures seeking $250K+
Creates obligation to investors before profitability

Step 4: Register Your Business (Weeks 4-5)

Simple legal steps to officially launch.

Business Formation Checklist:

Choose business structure: Sole Proprietor, LLC, or S-Corp
Choose business name (check availability)
File LLC formation documents ($50-$150, varies by state)
Obtain Employer Identification Number (EIN) from IRS (free, online)
Open business bank account (separate from personal)
Get business insurance (liability, E&O, property)
Register for state taxes
Apply for VOSB certification (if pursuing government contracts)

Typical Cost: $500-$1,000 for basic registration and insurance

Professional Help:

LegalZoom: $100-$200 for LLC formation
Local Small Business Development Center: Free advice
Business attorney: $1,000-$2,000 for setup (optional)

Business Structure Decision

Structure	Liability	Taxes	Complexity	Cost
Sole Proprietor	Personal liable	Personal tax return	Simple	$0-$200
LLC	Limited liability	Pass-through tax	Moderate	$50-$300
S-Corp	Limited liability	Corporate + personal	Complex	$1,000+
C-Corp	Limited liability	Double taxation	Complex	$1,500+

Recommendation for Most Veteran Businesses: LLC (limited liability + simple taxes + low cost)

Step 5: Develop Your Marketing & Sales Plan

Most veteran businesses fail due to lack of customers, not product issues.

Marketing Plan Basics:

Where Will Customers Come From?

Identify Your Top 3 Customer Acquisition Channels:

Direct Referrals (highest ROI)
- Leverage military and professional network
- Ask past colleagues for referrals
- Offer referral bonus ($500-$1,000)
- Cost: Low
- Effort: Medium
- Result: High-quality leads
LinkedIn & Social Media (scalable)
- Build professional network on LinkedIn
- Share content related to your expertise
- Connect with target customers
- Cost: Time investment
- Effort: Medium
- Result: Consistent lead generation
Direct Sales (immediate, labor-intensive)
- Call/email target customers directly
- Schedule meetings/demos
- Follow up systematically
- Cost: Your time
- Effort: High
- Result: Quick customer acquisition if done well
Speaking/Events (builds credibility)
- Speak at industry conferences
- Sponsor local business events
- Host webinars on your expertise
- Cost: Medium
- Effort: Medium
- Result: Brand building, lead generation
Content Marketing (long-term)
- Blog posts, YouTube videos, podcasts
- Provide free valuable content
- Drive traffic to your website
- Cost: Low
- Effort: High
- Result: Inbound leads over time

Sales Process:

1. Lead Generation (get prospects)
2. Initial Contact (email/call/meeting)
3. Discovery Call (understand their needs)
4. Proposal (write formal proposal with pricing)
5. Negotiation (agree on terms)
6. Close (get commitment and payment)
7. Deliver (provide service/product)
8. Follow-up (ask for referrals, repeat business)

Step 6: Set Up Operations (Weeks 5-6)

Don't overcomplicate operations. Start simple.

Essential Setup:

Business phone line (Google Voice: free)
Email address (professional domain)
Website (Wix, Squarespace: $10-20/month)
Accounting system (QuickBooks: $15-30/month, or Wave: free)
Time tracking (Toggl: free, or built into accounting software)
Project management (Asana, Monday.com: free for small teams)
Customer relationship management (Salesforce, HubSpot: free starter)
Insurance (liability + professional E&O: $500-$1,500/year)

Avoid: Expensive office, multiple employees, and complex systems in Year 1. Start lean.

Step 7: Find Mentor & Advisors

One of most valuable investments you can make.

Where to Find Business Mentors:

Small Business Development Centers (Free)
- SBDC.org - Find local center
- Free business coaching from experienced business owners
- Assistance with business planning, marketing, financials
Service Corps of Retired Executives (SCORE) (Free)
- SCORE.org - Veteran mentors available
- Free mentoring for small businesses
- Online or in-person
Veteran-Specific Programs:
- Bunker Labs (veteran entrepreneur community)
- Team RWB Business Network
- Hiring Our Heroes
- Veteran business development centers
Your Network:
- Former colleagues or leaders with business experience
- Family members who've started businesses
- Other veteran entrepreneurs
- Industry experts in your field

Ideal Mentor Profile:

Has started successful business in your industry (or similar)
10+ years business experience
Willing to meet monthly
Direct feedback style (doesn't sugarcoat)
Network you can leverage

Step 8: Launch (Week 6-8)

Don't wait for perfect conditions. Launch when business plan validates and you have initial funding.

Launch Checklist:

Business formally registered
Insurance in place
Website/marketing materials ready
Initial funding received (or personal capital committed)
First 3 potential customers identified
Marketing plan in place
Operations systems set up
Mentor/advisor identified
30-day action plan created

Accessing Veteran-Specific Funding & Support

Federal Programs

SBA Veteran Small Business Programs:

VOSB Certification (Veteran-Owned Small Business)
SDVOSB Set-Asides (Service-Disabled Veterans)
Federal government contracting preferences
Surety bonding programs

VA Resources:

VA Center for Veterans Enterprise (CVE) - certification
Office of Small Business (OSB) - programs and support
Veteran Business Outreach Centers - training and mentoring
eBenefits.va.gov - access programs

State Programs (Varies by State)

Common Veteran Business Programs:

State veteran business grants
Preferential business licensing
Tax incentives for veteran businesses
Veteran contracting preferences
Low-interest business loans

Find Your State Programs:

Contact your state's Veteran Services Office
Search "[Your State] Veteran Business Programs"
Check state economic development agency

Non-Profit Resources

Veteran-Specific Organizations:

Bunker Labs (veteran entrepreneur network)
Team RWB (veteran community + business network)
Institute for Veterans and Military Families (IVMF)
Hiring Our Heroes
Operation Homefront

General Small Business:

SCORE (free mentoring)
Small Business Development Centers (free)
Women's Business Centers (even if not woman-owned, some services available)

Common Mistakes to Avoid

Mistake 1: Starting Without Market Validation

Wrong: Launch business without talking to 20+ potential customers Right: Survey market, get customer feedback, validate demand

Mistake 2: Undercapitalizing Business

Wrong: Start with $500 and hope to bootstrap Right: Calculate actual funding needs; secure adequate capital

Mistake 3: Not Focusing on Sales

Wrong: Spend time perfecting product, not getting customers Right: Sales first, product refinement second

Mistake 4: Doing Everything Yourself

Wrong: Trying to handle sales, operations, accounting, marketing alone Right: Focus on your core strength; outsource the rest (or hire contractors)

Mistake 5: Pricing Too Low

Wrong: "I'll start cheap to get customers" Right: Price at market rate; adjust later if needed

Mistake 6: Not Tracking Numbers

Wrong: Running business in your head, no bookkeeping Right: Simple accounting system from day 1 (cost control)

Mistake 7: Skipping Mentor/Advisor

Wrong: Trying to figure everything out yourself Right: Find experienced mentor to guide you

Mistake 8: Overcomplicating Startup

Wrong: Website, office, multiple employees in Year 1 Right: Lean startup: laptop, phone, yourself; scale as revenue grows

Real Veteran Business Examples

Example 1: Operations Officer → Project Management Consulting

John's Story:

Background: 12 years Air Force Operations Officer
Business: Project Management Consulting for Technology Companies
Startup Cost: $5,000
Year 1 Revenue: $150,000
Year 3 Revenue: $450,000
Growth: Hired 2 part-time contractors; now serves 8-10 clients quarterly

Success Factors:

Clear target market (tech companies)
Leveraged military project management skills
Direct sales to target customers
Reinvested profits into growth
Found mentor in Year 1

Example 2: Supply Officer → Supply Chain Consulting

Sarah's Story:

Background: 10 years Army Supply Officer
Business: Supply Chain Optimization Consulting
Startup Cost: $3,000
Year 1 Revenue: $120,000
Year 3 Revenue: $350,000
Growth: Became VOSB certified; won government contracts; $200K+ annual recurring revenue from federal agencies

Success Factors:

Government contracting focus (veteran set-aside preference)
VOSB certification (unlocked government contracts)
Deep expertise in supply chain optimization
Personal network in federal agencies
Invested in marketing to government

Example 3: IT Specialist → Cybersecurity Services

Mike's Story:

Background: 8 years Air Force Cybersecurity Specialist
Business: Cybersecurity Services for SMBs
Startup Cost: $8,000
Year 1 Revenue: $200,000
Year 3 Revenue: $650,000
Growth: Hired 3 employees; recurring revenue model; $500K+ annual revenue

Success Factors:

High-demand field (cybersecurity)
Recurring revenue model (managed services)
Recurring revenue = predictable business
Built partnerships with IT resellers
Focused on sales early

Action Items with Deadlines

Task	Deadline	Priority
Validate business idea (surveys + research)	Week 2	High
Create one-page business plan	Week 4	High
Calculate funding needs	Week 4	High
Research veteran funding sources	Week 4	High
Register LLC/business entity	Week 5	High
Obtain EIN and business insurance	Week 5	High
Create marketing plan (3 customer channels)	Week 5	High
Set up basic operations (phone, email, accounting)	Week 5	High
Find business mentor/advisor	Week 6	High
Identify first 3 target customers	Week 6	High
Launch business	Week 6-8	High
Make first sales contacts	Week 7	High

FAQ: Starting Veteran Business

Q: Do I need a business degree to start a business? A: No. Many successful businesses started by people without business degrees. Military experience provides much of what you need (leadership, operations, discipline).

Q: How much money do I need? A: Depends on business type. Service business: $2-10K. Product business: $10-50K. Retail: $50K+. Start with minimum viable amount.

Q: Should I quit my job to start the business? A: No. Validate idea and get first customers while still employed. Quit when you have $10K+ monthly revenue.

Q: How long until profitable? A: Service businesses: 3-6 months. Product businesses: 6-12 months. Depends on funding and execution.

Q: What if my first business fails? A: Most successful entrepreneurs have failed businesses. Learn from it and try again. Many veteran business grants have failure forgiveness programs.

Q: Is VOSB certification worth it? A: Only if you plan to pursue government contracting. If yes, absolutely—government contracts can be 30-50% of revenue.

Q: Do I need employees immediately? A: No. Start solo or with contractors. Hire first employee only when workload justifies cost.

Q: What's most important for success? A: Sales. Best product in world fails without customers. Focus on sales first.

Next Steps

Week 1: Validate business idea (survey customers, research market)
Week 2: Create one-page business plan
Week 3: Calculate funding needs, research sources
Week 4: Register business, set up operations
Week 5: Develop marketing plan, find mentor
Week 6: Launch and acquire first customers

Key Takeaways

Validate business idea before committing full-time
Military experience is significant advantage (leadership, operations, discipline)
Create simple one-page business plan focusing on customers and sales
Access veteran-specific funding (SBA loans, VOSB certification, grants)
Start lean: solo or with contractors, not immediate employees
Focus on customer acquisition from day 1
Find experienced business mentor to guide you
VOSB certification unlocks government contracting (major revenue opportunity)
Track numbers from day 1 (accounting/bookkeeping essential)
Most important success factor: Sales and customer acquisition

Ready to launch your veteran business? Use this guide to validate your idea, plan strategically, and execute your launch. Veterans have excellent advantages in entrepreneurship—use them.

How to Start a Business as a Veteran: Complete Entrepreneur Guide

Bottom Line Up Front

Why Veterans Make Great Entrepreneurs

Veteran Advantages:

Leadership and management experience
Crisis decision-making skills
Ability to manage complex operations
Discipline and work ethic
Access to VA small business programs and funding
Preferred vendor status in government contracting
Veterans business loans with favorable terms
VOSB (Veteran-Owned Small Business) certifications

Why Veterans Struggle:

Skip strategic planning
Undercapitalize business
Try to do everything themselves
Don't leverage veteran business resources
Don't apply for government contracts (big opportunity)
Lack civilian business experience/knowledge
Don't seek mentorship or advisors

Step 1: Validate Business Idea (Weeks 1-2)

Before quitting your job, validate your business idea.

Validation Process:

Step 1A: Define Your Business Concept

Answer these questions:

What problem does your business solve?
- Specific problem
- Who has this problem (target customer)
- How big is the market for this problem
What's your solution?
- Product or service
- Why you're uniquely qualified (veteran advantage?)
- Competitive advantage vs. competitors
Who's your customer?
- Target customer profile
- Where do they buy this solution today
- Why would they buy from you
What's your pricing model?
- What will you charge
- How does this compare to competitors
- Is pricing profitable

Step 1B: Research the Market

Don't rely on hunches. Research your market.

Market Research Checklist:

Identify 5-10 competitors (existing businesses solving same problem)
Analyze competitor pricing, positioning, and marketing
Survey 20+ potential customers on problem importance
Research market size (total addressable market)
Check if market is growing, stable, or declining
Identify industry trends affecting your business
Research regulations/licensing requirements

Question 20 Potential Customers:

"Do you have this problem?" (Yes/No)
"How often do you need this solution?" (Frequency)
"What do you currently do to solve this?" (Current solution)
"What would you pay for a better solution?" (Price validation)
"Would you buy from me?" (Basic commitment)

Step 1C: Calculate Basic Economics

Create simple math to see if business is viable.

Example: Veteran-Owned Consulting Business

Factor	Calculation	Value
Service: Project management consulting
Hourly rate	$150/hour	$150
Billable hours per month	160 hours	160
Monthly revenue	160 × $150	$24,000
Annual revenue	$24,000 × 12	$288,000

Operating costs per month
Office/Software/Insurance	$2,000	$2,000
Marketing/Sales	$1,000	$1,000
Admin/Overhead	$500	$500
Total monthly costs		$3,500

Monthly profit (revenue - costs)	$24,000 - $3,500	$20,500
Annual profit	$20,500 × 12	$246,000
Net profit margin	$246,000 / $288,000	85%

Question: Can you realistically achieve 160 billable hours/month starting year 1? If yes, business is viable. If no, reduce assumptions or reconsider.

Step 2: Create Simple Business Plan (Weeks 2-4)

Veterans often skip business planning because it feels like military planning (tedious). But business planning is just strategic thinking on paper.

One-Page Business Plan Template:

BUSINESS CONCEPT
[1 sentence describing your business]
Example: "Providing project management consulting to small technology companies transitioning to agile methodology"

PROBLEM & OPPORTUNITY
[What problem does your business solve? Why is this opportunity important?]

TARGET CUSTOMER
[Who is your ideal customer? What's their size, industry, challenge?]

YOUR UNIQUE ADVANTAGE
[Why you? What's your unfair advantage (veteran status, specific expertise, relationships)?]

SOLUTION OFFERING
[What specifically are you selling (product/service)? What outcomes does customer get?]

REVENUE MODEL
[How do you make money? Pricing structure?]

MARKETING & SALES STRATEGY
[How will you get customers? Primary marketing channels?]

COMPETITION & DIFFERENTIATION
[Who are competitors? How are you different?]

FINANCIAL PROJECTIONS
[Year 1 revenue, costs, profit? Break-even point?]

FUNDING NEEDS
[How much capital do you need to launch? How will you use it?]

YOUR TEAM
[Who's on your founding team? Skills/Experience?]

MILESTONES
[Key business milestones: first customer, break-even, revenue targets?]

One-Page Business Plan Example: Veteran Consulting Firm

BUSINESS CONCEPT
"Project Management Consulting for Financial Services Companies Implementing Digital Transformation"

PROBLEM & OPPORTUNITY
Financial services companies struggle to implement digital transformation projects on time and budget. Average project overruns: 30% over budget, 6 months late. Market need: $3B annual opportunity for PM consulting in financial services.

TARGET CUSTOMER
Regional and mid-market financial institutions (banks, credit unions) with $1-10B in assets, launching digital transformation initiatives.

UNIQUE ADVANTAGE
Former Army Operations Officer with 12 years managing $50M+ budgets and complex multi-site operations. Understand financial regulations and change management in risk-averse environments.

SOLUTION
End-to-end project management consulting including: project planning, team coaching, stakeholder management, and risk mitigation. Specializing in financial services regulations and compliance requirements.

REVENUE MODEL
$150/hour consulting rate, or fixed-project fees ($50K-$200K typical). Year 1 target: 50% of time billable (800 hours), generating $120K revenue.

MARKETING & SALES
Direct outreach to CFOs/CIOs at target banks, referrals from industry contacts, speaking at financial services conferences, LinkedIn networking.

COMPETITION
Large consulting firms (Accenture, Deloitte), boutique PM consultants. Differentiation: Veteran-specific understanding of operations, scalability, and risk management.

FINANCIAL PROJECTIONS
Year 1: $120K revenue, $30K costs, $90K profit. Break-even: Month 3.

FUNDING NEEDS
$10K startup capital for: LLC formation, insurance, marketing, software, initial operating costs.

TEAM
Self (PM/Operations founder) + relationships with 3 sub-contractors for additional capacity as business grows.

MILESTONES
Month 1: Business formation, market validation. Month 2: First client. Month 3: Break-even. Month 6: $50K revenue. Year 1: $120K revenue.

Step 3: Determine Funding Needs & Access Veteran Resources

Veterans have unique funding advantages. Use them.

Funding Sources for Veteran Businesses:

Funding Option 1: VA Loan Programs

Veteran-Specific SBA Loans:

Guaranteed business loans up to $5M
Favorable terms for veterans
Some veteran-focused lenders specialize in vet businesses
Interest rates: 6-9%
Can use for: Equipment, inventory, working capital, real estate

How to Access:

Create business plan (see above)
Research SBA-approved lenders
Apply for SBA 7(a) loan or 504 loan
Typical approval: 4-8 weeks

Funding Option 2: VA-Backed Grants & Support

VOSB (Veteran-Owned Small Business) Certification:

Provides access to government contracting preferential treatment
Free or low-cost certification
Can unlock $100K+ government contracts
Process: Apply to VA Office of Small and Disadvantaged Business Utilization

Veteran Business Grants:

Service-Disabled Veteran-Owned Small Business (SDVOSB) set-asides
Government contracting preferences
Regional veteran business development centers (free)
State-level veteran business grants (varies by state)

Funding Option 3: Personal Capital & Bootstrapping

Use What You Have:

Personal savings
Home equity loan (if homeowner)
Business credit cards
Reinvest early profits back into business

Minimum Funding Needed:

Sole proprietor service business: $2,000-$5,000
LLC with employees: $10,000-$25,000
E-commerce business: $5,000-$15,000
Retail location: $50,000+

Funding Option 4: Investor Capital

Not Usually Recommended for First Business:

Requires giving up equity (partial ownership)
Investors expect returns (30-50% over 5 years)
Only appropriate for high-growth ventures seeking $250K+
Creates obligation to investors before profitability

Step 4: Register Your Business (Weeks 4-5)

Simple legal steps to officially launch.

Business Formation Checklist:

Choose business structure: Sole Proprietor, LLC, or S-Corp
Choose business name (check availability)
File LLC formation documents ($50-$150, varies by state)
Obtain Employer Identification Number (EIN) from IRS (free, online)
Open business bank account (separate from personal)
Get business insurance (liability, E&O, property)
Register for state taxes
Apply for VOSB certification (if pursuing government contracts)

Typical Cost: $500-$1,000 for basic registration and insurance

Professional Help:

LegalZoom: $100-$200 for LLC formation
Local Small Business Development Center: Free advice
Business attorney: $1,000-$2,000 for setup (optional)

Business Structure Decision

Structure	Liability	Taxes	Complexity	Cost
Sole Proprietor	Personal liable	Personal tax return	Simple	$0-$200
LLC	Limited liability	Pass-through tax	Moderate	$50-$300
S-Corp	Limited liability	Corporate + personal	Complex	$1,000+
C-Corp	Limited liability	Double taxation	Complex	$1,500+

Recommendation for Most Veteran Businesses: LLC (limited liability + simple taxes + low cost)

Step 5: Develop Your Marketing & Sales Plan

Most veteran businesses fail due to lack of customers, not product issues.

Marketing Plan Basics:

Where Will Customers Come From?

Identify Your Top 3 Customer Acquisition Channels:

Direct Referrals (highest ROI)
- Leverage military and professional network
- Ask past colleagues for referrals
- Offer referral bonus ($500-$1,000)
- Cost: Low
- Effort: Medium
- Result: High-quality leads
LinkedIn & Social Media (scalable)
- Build professional network on LinkedIn
- Share content related to your expertise
- Connect with target customers
- Cost: Time investment
- Effort: Medium
- Result: Consistent lead generation
Direct Sales (immediate, labor-intensive)
- Call/email target customers directly
- Schedule meetings/demos
- Follow up systematically
- Cost: Your time
- Effort: High
- Result: Quick customer acquisition if done well
Speaking/Events (builds credibility)
- Speak at industry conferences
- Sponsor local business events
- Host webinars on your expertise
- Cost: Medium
- Effort: Medium
- Result: Brand building, lead generation
Content Marketing (long-term)
- Blog posts, YouTube videos, podcasts
- Provide free valuable content
- Drive traffic to your website
- Cost: Low
- Effort: High
- Result: Inbound leads over time

Sales Process:

1. Lead Generation (get prospects)
2. Initial Contact (email/call/meeting)
3. Discovery Call (understand their needs)
4. Proposal (write formal proposal with pricing)
5. Negotiation (agree on terms)
6. Close (get commitment and payment)
7. Deliver (provide service/product)
8. Follow-up (ask for referrals, repeat business)

Step 6: Set Up Operations (Weeks 5-6)

Don't overcomplicate operations. Start simple.

Essential Setup:

Business phone line (Google Voice: free)
Email address (professional domain)
Website (Wix, Squarespace: $10-20/month)
Accounting system (QuickBooks: $15-30/month, or Wave: free)
Time tracking (Toggl: free, or built into accounting software)
Project management (Asana, Monday.com: free for small teams)
Customer relationship management (Salesforce, HubSpot: free starter)
Insurance (liability + professional E&O: $500-$1,500/year)

Avoid: Expensive office, multiple employees, and complex systems in Year 1. Start lean.

Step 7: Find Mentor & Advisors

One of most valuable investments you can make.

Where to Find Business Mentors:

Small Business Development Centers (Free)
- SBDC.org - Find local center
- Free business coaching from experienced business owners
- Assistance with business planning, marketing, financials
Service Corps of Retired Executives (SCORE) (Free)
- SCORE.org - Veteran mentors available
- Free mentoring for small businesses
- Online or in-person
Veteran-Specific Programs:
- Bunker Labs (veteran entrepreneur community)
- Team RWB Business Network
- Hiring Our Heroes
- Veteran business development centers
Your Network:
- Former colleagues or leaders with business experience
- Family members who've started businesses
- Other veteran entrepreneurs
- Industry experts in your field

Ideal Mentor Profile:

Has started successful business in your industry (or similar)
10+ years business experience
Willing to meet monthly
Direct feedback style (doesn't sugarcoat)
Network you can leverage

Step 8: Launch (Week 6-8)

Don't wait for perfect conditions. Launch when business plan validates and you have initial funding.

Launch Checklist:

Business formally registered
Insurance in place
Website/marketing materials ready
Initial funding received (or personal capital committed)
First 3 potential customers identified
Marketing plan in place
Operations systems set up
Mentor/advisor identified
30-day action plan created

Accessing Veteran-Specific Funding & Support

Federal Programs

SBA Veteran Small Business Programs:

VOSB Certification (Veteran-Owned Small Business)
SDVOSB Set-Asides (Service-Disabled Veterans)
Federal government contracting preferences
Surety bonding programs

VA Resources:

VA Center for Veterans Enterprise (CVE) - certification
Office of Small Business (OSB) - programs and support
Veteran Business Outreach Centers - training and mentoring
eBenefits.va.gov - access programs

State Programs (Varies by State)

Common Veteran Business Programs:

State veteran business grants
Preferential business licensing
Tax incentives for veteran businesses
Veteran contracting preferences
Low-interest business loans

Find Your State Programs:

Contact your state's Veteran Services Office
Search "[Your State] Veteran Business Programs"
Check state economic development agency

Non-Profit Resources

Veteran-Specific Organizations:

Bunker Labs (veteran entrepreneur network)
Team RWB (veteran community + business network)
Institute for Veterans and Military Families (IVMF)
Hiring Our Heroes
Operation Homefront

General Small Business:

SCORE (free mentoring)
Small Business Development Centers (free)
Women's Business Centers (even if not woman-owned, some services available)

Common Mistakes to Avoid

Mistake 1: Starting Without Market Validation

Wrong: Launch business without talking to 20+ potential customers Right: Survey market, get customer feedback, validate demand

Mistake 2: Undercapitalizing Business

Wrong: Start with $500 and hope to bootstrap Right: Calculate actual funding needs; secure adequate capital

Mistake 3: Not Focusing on Sales

Wrong: Spend time perfecting product, not getting customers Right: Sales first, product refinement second

Mistake 4: Doing Everything Yourself

Wrong: Trying to handle sales, operations, accounting, marketing alone Right: Focus on your core strength; outsource the rest (or hire contractors)

Mistake 5: Pricing Too Low

Wrong: "I'll start cheap to get customers" Right: Price at market rate; adjust later if needed

Mistake 6: Not Tracking Numbers

Wrong: Running business in your head, no bookkeeping Right: Simple accounting system from day 1 (cost control)

Mistake 7: Skipping Mentor/Advisor

Wrong: Trying to figure everything out yourself Right: Find experienced mentor to guide you

Mistake 8: Overcomplicating Startup

Wrong: Website, office, multiple employees in Year 1 Right: Lean startup: laptop, phone, yourself; scale as revenue grows

Real Veteran Business Examples

Example 1: Operations Officer → Project Management Consulting

John's Story:

Background: 12 years Air Force Operations Officer
Business: Project Management Consulting for Technology Companies
Startup Cost: $5,000
Year 1 Revenue: $150,000
Year 3 Revenue: $450,000
Growth: Hired 2 part-time contractors; now serves 8-10 clients quarterly

Success Factors:

Clear target market (tech companies)
Leveraged military project management skills
Direct sales to target customers
Reinvested profits into growth
Found mentor in Year 1

Example 2: Supply Officer → Supply Chain Consulting

Sarah's Story:

Background: 10 years Army Supply Officer
Business: Supply Chain Optimization Consulting
Startup Cost: $3,000
Year 1 Revenue: $120,000
Year 3 Revenue: $350,000
Growth: Became VOSB certified; won government contracts; $200K+ annual recurring revenue from federal agencies

Success Factors:

Government contracting focus (veteran set-aside preference)
VOSB certification (unlocked government contracts)
Deep expertise in supply chain optimization
Personal network in federal agencies
Invested in marketing to government

Example 3: IT Specialist → Cybersecurity Services

Mike's Story:

Background: 8 years Air Force Cybersecurity Specialist
Business: Cybersecurity Services for SMBs
Startup Cost: $8,000
Year 1 Revenue: $200,000
Year 3 Revenue: $650,000
Growth: Hired 3 employees; recurring revenue model; $500K+ annual revenue

Success Factors:

High-demand field (cybersecurity)
Recurring revenue model (managed services)
Recurring revenue = predictable business
Built partnerships with IT resellers
Focused on sales early

Action Items with Deadlines

Task	Deadline	Priority
Validate business idea (surveys + research)	Week 2	High
Create one-page business plan	Week 4	High
Calculate funding needs	Week 4	High
Research veteran funding sources	Week 4	High
Register LLC/business entity	Week 5	High
Obtain EIN and business insurance	Week 5	High
Create marketing plan (3 customer channels)	Week 5	High
Set up basic operations (phone, email, accounting)	Week 5	High
Find business mentor/advisor	Week 6	High
Identify first 3 target customers	Week 6	High
Launch business	Week 6-8	High
Make first sales contacts	Week 7	High

FAQ: Starting Veteran Business

Q: How much money do I need? A: Depends on business type. Service business: $2-10K. Product business: $10-50K. Retail: $50K+. Start with minimum viable amount.

Q: Should I quit my job to start the business? A: No. Validate idea and get first customers while still employed. Quit when you have $10K+ monthly revenue.

Q: How long until profitable? A: Service businesses: 3-6 months. Product businesses: 6-12 months. Depends on funding and execution.

Q: What if my first business fails? A: Most successful entrepreneurs have failed businesses. Learn from it and try again. Many veteran business grants have failure forgiveness programs.

Q: Is VOSB certification worth it? A: Only if you plan to pursue government contracting. If yes, absolutely—government contracts can be 30-50% of revenue.

Q: Do I need employees immediately? A: No. Start solo or with contractors. Hire first employee only when workload justifies cost.

Q: What's most important for success? A: Sales. Best product in world fails without customers. Focus on sales first.

Next Steps

Week 1: Validate business idea (survey customers, research market)
Week 2: Create one-page business plan
Week 3: Calculate funding needs, research sources
Week 4: Register business, set up operations
Week 5: Develop marketing plan, find mentor
Week 6: Launch and acquire first customers

Key Takeaways

Validate business idea before committing full-time
Military experience is significant advantage (leadership, operations, discipline)
Create simple one-page business plan focusing on customers and sales
Access veteran-specific funding (SBA loans, VOSB certification, grants)
Start lean: solo or with contractors, not immediate employees
Focus on customer acquisition from day 1
Find experienced business mentor to guide you
VOSB certification unlocks government contracting (major revenue opportunity)
Track numbers from day 1 (accounting/bookkeeping essential)
Most important success factor: Sales and customer acquisition

Ready to launch your veteran business? Use this guide to validate your idea, plan strategically, and execute your launch. Veterans have excellent advantages in entrepreneurship—use them.