3 Innovative Business Concepts for Former Service Members

The Entrepreneurial Spirit of Veterans: Turning Service into Success

It's no wonder that many veterans excel as entrepreneurs and small-business owners. They bring a wealth of skills to the table, including leadership, discipline, teamwork, and the capacity to make swift decisions—all essential ingredients for navigating the business landscape. In fact, recent U.S. Census data reveals that veterans account for 7.5% of the nation’s 5.4 million employee-based businesses.

Calculated Risk-Taking: A Shared Military and Business Mindset

Contrary to the stereotype of entrepreneurs as reckless gamblers, Misty Stutsman, director at Syracuse University, emphasizes that they are, in reality, calculated risk-takers. "Just like in the military, where decisions often need to be made despite challenging circumstances and incomplete information, entrepreneurship requires a similar decisiveness," she explains. If you’re a veteran contemplating a new venture, your first step should be brainstorming potential business ideas.

Franchising: A Path with Proven Structures

One prominent avenue for veterans is franchising. From 2011 to 2014, over 5,600 veterans opted to become franchisees, according to the Franchise Business Review of 2014. Franchising allows individuals to enter the business realm without starting from scratch; established systems and support networks are already in place. "Franchising appeals to veterans because it reflects a military-style structure where plans are laid out, and tasks are delegated for execution," notes Mark Rockefeller, a U.S. Air Force veteran and CEO of an online small-business lending platform.

However, entering the franchise world does come with financial commitments. Initial costs can be steep, with franchise fees ranging from $20,000 to over $60,000, plus ongoing royalties. Thankfully, many franchises actively recruit veterans and offer incentives. For instance, Sport Clips provides a 20% discount on franchise fees for veterans involved with VetFran, while 7-Eleven and The UPS Store also have special offers and financing options for veterans.

Government Contracting: Unlocking a World of Opportunities

The U.S. government is the largest buyer of goods and services globally, with a mandate that at least 3% of its contracts must go to service-disabled veteran-owned small businesses. This means becoming a government contractor can be a lucrative path, especially for veterans with technical skills gained in the military. "If you’ve amassed experience in areas like IT, logistics, or engineering, you hold invaluable insights and connections," states Geoff Orazem, a U.S. Marine Corps veteran and co-founder of a firm that supports startups and contractors in navigating government contracts.

The U.S. Small Business Administration also offers valuable resources to help veterans embark on their journey into government contracting.

Retail Ventures: Catering to a Community with a Cause

Retail is another popular domain for veterans, ranking fourth among industries embraced by veteran entrepreneurs, trailing only professional services, construction, and healthcare. For those skilled in sales and marketing, opening a retail business could be a fulfilling option. This sector is particularly appealing for veterans who wish to promote military-themed products, such as Lock N Load Java or Combat Flip Flops. "There is a powerful connection among consumers who identify as veterans, and they are often eager to support businesses that resonate with their experience," says Rockefeller.

Moreover, many veterans see entrepreneurship not just as a means to earn a living but as a chance to give back to their communities. Lock N Load Java, for example, contributes $1 from every order to send coffee to active-duty troops and supports military charities with its profits. "The underlying drive to serve is part of why many join the military, and using business as a platform to give back aligns perfectly with that ethos," explains Carl Churchill, a co-founder of Lock N Load Java.

Preparing for the Challenges Ahead

While the entrepreneurial journey can be rewarding, it’s vital for veterans to be ready for the demanding workload that comes with starting and running a business. With the right mindset and preparation, veterans can translate their military training into a thriving entrepreneurial venture.