A GUIDE TO THE BENEFITS OF VETERAN-OWNED BUSINESSES

A Guide to the Benefits of

VETERAN-OWNED BUSINESSES

Veteran-owned businesses have access to a variety of benefits not available to other business owners.

Every person defines the American dream differently. For many, owning a home or property embodies the American dream. For others, creating wealth and starting a business is their American dream.

One thing most Americans dream of is becoming their own boss. Owning a business is one of the best ways to achieve that goal. However, not everyone can handle the responsibilities of business ownership.

Veterans are twice as common to be entrepreneurs than other individuals. Their experience serving taught them tenacity and grit you cannot learn anywhere else. Overcoming obstacles and staying on course are necessary ingredients for a successful business owner. According to the SBA, veterans own 2.52 million out of the 27.9 million businesses in the United States. Vets employ nearly 6 million employees and generate over $1.2 trillion in sales. Clearly, veteran-owned businesses are critical to the U.S. economy.

So, how do you get started earning your share? As a veteran, you have two primary resources with benefits unique to you: the VA and the SBA.

Business-startup does not have to be complicated. Still, the SBA has tremendous resources to help smooth your transition. This article provides an overview of veteran-owned business resources, the advantages veterans have as entrepreneurs and other veteran-owned businesses' success stories.

VETERAN-OWNED BUSINESS

While serving in the military, many members leave service and start their own businesses.

Often, they identify a need during service that was not met by the military or private company. Other times, veterans start businesses to serve their community's needs, such as bakeries, lawn management, or construction.

The federal government is famous for its acronyms. Here are 2 you should know: • VOSB - veteran-owned small business • SDVOSB - service-disabled veteran-owned small business

VETERANS MAKE GREAT BUSINESS OWNERS

Veterans are equipped with a toolbox spanning technical skills to interpersonal skills. They have a depth of knowledge the average civilian does not have access to until they have been in business for many years.

Leadership – All veterans have seen effective leadership at work, and many have participated in it.

Veteran-owned businesses can lean on their military role models and apply similar techniques to their business development. g

Veterans with leadership experience obtained it through formal training in the service. Effectively leading and motivating employees is a critical factor in successful business models.

Risk Management – Veterans had experienced situations when they had to take a risk to be successful. Or they determined action was too risky to move forward. Every military plan involves risk assessment, so analyzing risks becomes automatic to veterans. This advantage prepares them for business decision-making. Every business venture involves risk, particularly financial risk. Veterans are equipped to analyze them and find ways to minimize exposure.

Veterans' Benefits – the VA offers excellent resources to help veterans be successful in civilian and business life. The VA helps service members transition to civilian life by making plans and providing health care, mental health, career, and business support.

GI Bill - helps veterans pay for college to learn new skills.

DoD SkillBridge – learn skills and get experience in new industries where you plan to start your business.

A Solid Start – provides resources to get started after separation. VA OSDBU – Office of Small & Disadvantaged Business Utilization guides you in starting your veteran-owned business.

VR&E – Veterans Benefits Administrations Vocational Rehabilitation and Employment offer training for new careers or starting businesses regardless of disability. VR&E can also help you write a business plan, learn about marketing and business management.

WHAT ADVANTAGES DO VETERAN-OWNED BUSINESSES HAVE?

Veteran-owned businesses can receive advantages and help that civilian-owned enterprises do not have.

Skillset – Veterans separate from service with skillsets key to running successful businesses: leadership, creative thinking, resourcefulness, and often, technical abilities.

Access to Government Contracts – The federal government budgets money for contracting with veteran-owned businesses with veteran status, disabled status, or women-owned status.

Search Engine Badges – Google helps veteran-owned businesses with a "Veteran Led" badge on your business profile. Loans – The Small Business Administration offers favorable borrowing terms in the 7(a) Veteran's Advantage Loan program. You can access up to $5 million with up to 10-year terms.

Franchising – Veteran franchising entrepreneurs are preferred in some organizations because of the training and skills they learn serving their country.

Tax Benefits – Businesses that hire veterans may receive up to $1,500 income tax credits through the Work Opportunity Tax Credit Program.

Veteran-focused Workshops – Many organizations like the SBA or Boots to Business offer specialized workshops to assist veterans in starting their own businesses.

Veteran-owned Business Week – In November of each year, the SBA celebrates veteran-owned businesses and their accomplishments. They also provide resources, webinars, and other assistance to guide veterans to success. g

SBA Office of Veterans Business Development – The SBA dedicates a portion of its work to providing business and personal resources, grants, loans, and education. Veterans, servicedisabled veterans, reserve members, dependents, and survivors can all access the SBA OVBD.

Surplus Equipment – The Veterans Small Business Enhancement Act opens the door for veteran-owned businesses to acquire unused federal surplus supplies and equipment for free.

ARE GOVERNMENT BENEFITS AVAILABLE?

Veterans can open millions of dollars’ worth of new business through government contracting. However, it is not an easy process.

As a veteran, particularly a disabled veteran, your business could be preferred for eligible federal contracts and subcontracts.

To qualify, you must register the business through Vets First Verification, certifying you are a veteran-owned business.

VETS FIRST VERIFICATION (VFV)

VFV opens access to government contracts. Veteran-owned businesses complete a verification process through the VA's Office of Small and Disadvantaged Business Utilization. The OSDBU maintains a directory of veteran-owned businesses. Their role is to help veteran-owned businesses network and gain government contracts.

WHO IS ELIGIBLE FOR VFV?

To qualify for Vets First Verification, you must register your VOSB with the OSDBU and meet all their requirements.

They identify you as a veteran if you meet all requirements: Served active duty for any amount of time for the Air Force, Army, Coast Guard, Marine Corps, or Navy, and did not receive a dishonorable discharge or you served as a member of the National Guard or Reserves, and you were called to federal active duty and disabled in the line of duty or in training status.

You or another veteran at your company must maintain control of the daily operation, decision-making, and management of the business. Own 51% or more of the business or work full time at the business. You hold the highest position in the company and/ or possess leadership ability to manage the business. Be the highest-paid person in the company (or affirm why your lower pay helps the business). Because government contracting can be a convoluted exercise, many vets are not interested in pursuing this avenue. Conversely, advertising your Veteran-owned business status on your social media, website, and storefront is sufficient to bring in business. As such, you do not need to waste time getting a VFV certification. SBA The Small Business Administration is a government organization dedicated to helping small businesses succeed. They offer a variety of programs from coaching to loans that give companies a boost upward. They can guide you from the concept phase into scaling a thriving business.

Veterans have access to more extraordinary services through the SBA. After your VOSB is registered with the SBA, doors open, making it easier for you to bid on government contracts.

Office of Veterans Business Development (OVBD) The OVBD is devoted to promoting veteran entrepreneurship. This office provides access to capital and business planning, such as supply chains or federal procurement.

Veteran Business Outreach Centers (VBOC) All over the country to guide veteran business owners. Their services include a mentorship with other successful business owners, training, business plan workshops, and concept assessments.

Lender Match SBA's website tool that helps veterans find capital lenders. In some cases, veterans can receive lower interest rates than civilians.

Military Reservist Economic Injury Disaster Loan (MREIDL)

This program offers loans if an essential employee is called to active duty (Reserves or National Guard) and causes a loss in operating costs.

Boots to Business DoD-sponsored entrepreneurial training program.

Women Veteran Entrepreneurship Training Program (WVETP)

Offers entrepreneurial training for women service members, veterans, and spouses who start or grow a business.

Service-Disabled Veteran Entrepreneurship Training Program

(SDVETP) Entrepreneurship training for service-disabled veterans wanting to start or grow a business.

Veteran Federal Procurement Entrepreneurship Training

Program (VFPETP) This training program guides VOSBs and SDVOSBs in attaining federal contract procurement. Veterans can increase their eligibility for government contracts if they have a service-connected disability.

Surplus Personal Property for Veteran-Owned Small Business

Programs Helps VOSBs receive federal property and supplies no longer needed.

8(a) Business Development Program Helps disadvantaged get the opportunity to bid on federal contracts when they otherwise would not.

SBA Mentor-Protégé Program - Matches business mentors with protégés, where they work on business development with a mentor including: BUSINESS MANAGEMENT: accounting, manufacturing, marketing, and strategic planning.

FINANCIAL ASSISTANCE: Capital investments and loans. g

FEDERAL CONTRACT ADVICE: Guidance on bidding, acquiring, and how the federal procurement process works.

BUSINESS EDUCATION: Strategic planning, international trade, and finding markets. BUSINESS DEVELOPMENT: Including strategy and identifying contracting and partnership opportunities.

PARTNERSHIP: Mentors may offer human resource sharing or security clearance support.

SUCCESS STORIES

Veteran-owned businesses are thriving all over the country in a variety of industries: clothing, home furnishings, food and restaurants, jewelry, personal care, and gifts, to name a few.

Grunt Style: An Army veteran founded this t-shirt company with its signature rifle logo. They have grown into a popular apparel store for patriotic gear and clothing. To date, they have over 1.1 million Instagram followers.

She Swank: This is a "community-building" marketplace that supports local, independent, and military makers. Focusing on women and moms, this boutique curates apparel, stationery, home, baby, bath, and body goods. Order online to support military entrepreneurs and small business owners.

Mason Chix: Taking a different approach, two military spouses founded this custom apparel company with Southern, state pride, or inspirational designs. They donate a portion of their proceeds to organizations that support military families.

Spousely: Spousely is an Etsy-style marketplace for active military and veteran-owned sellers. Military families can support each other by buying products that range from jewelry, art, sweet treats, baby gear, and more. They also have a platform to sell businesses and creative services such as marketing management, writing, taxes, and photography.

K-9 Salute: Veteran-owned company that sells all-natural dog treats. Their proceeds are donated to military and police K-9 units for vests and other animal supplies. They also help disabled military veterans receive service dogs.

MilSO Box: Military Significant Other Box lets you choose a three-, six-, or twelve-month subscription of carefully curated gifts to send a loved one during deployment.

As you start your business, you may still be an active-duty member or separated from service.

First, find out if your business idea is going to work. Discuss the market need, do research, and make sure it is a viable plan. The SBA mentors are a great place to start. Have a conversation with your mentor, and they can ask hard questions that make you think about your business in different ways. Second, investigate funding. Will you start the business using your own money? Can someone loan you seed money? How much do you need to spend upfront to launch the business?

If your business is online, you may not need to invest more than a few thousand dollars on a website, product photos, and some ads marketing your product. Alternatively, if your business requires big up-front purchases like equipment, consider if you could partner with someone before committing to it.

Finally, tell everyone you know. Let your friends, family, social media followers, everyone know about your new business. Chances are, they will want to do business with you, particularly if you position your business as a veteranowned business.