Three Innovative Business Concepts for Veterans

The Entrepreneurial Spirit of Veterans

It's no secret that veterans often transition into successful entrepreneurs and small-business owners. Their unique experiences equip them with essential skills like leadership, discipline, teamwork, and Quick decision-making under pressure—qualities that can make all the difference in the competitive business arena.

Veterans: A Significant Force in Business Ownership

According to recent U.S. Census data, veterans account for approximately 7.5% of the 5.4 million businesses that employ others across the country. This representation underscores the significant role that veterans play in the American economy.

Calculated Risks: A Military Perspective

“Many view entrepreneurs as reckless risk takers, but they are actually quite strategic,” explains Misty Stutsman, an esteemed director at Syracuse University. “This mirrors military decision-making where you often have to make substantial choices based on limited information.”

Taking the Leap: Where to Start

If you're a veteran contemplating the world of entrepreneurship, brainstorming your business idea is the first crucial step. Here are three promising avenues to explore:

Franchising: A Structured Approach

One path to consider is purchasing a franchise. Between 2011 and 2014, over 5,600 veterans opted to become franchisees, as indicated by the Franchise Business Review’s data. With franchising, you sidestep the challenges of starting from the ground up; operational systems are already established, and support is readily available from the franchisor.

Military Structure Meets Business Framework

“Franchising attracts veterans due to its resemblance to military operations,” observes Mark Rockefeller, a U.S. Air Force veteran and CEO of an online lending platform for small businesses. “It involves a clear plan and checklists handed down for execution.”

Investment Considerations

While launching a franchise can be pricey, typically requiring significant initial capital alongside one-time fees ranging from $20,000 to over $60,000, many franchises actively recruit veterans and offer reduced fees. For instance, Sport Clips provides a 20% discount for veterans, and 7-Eleven also lends financial perks to those who have served.

Government Contracting: A Lucrative Opportunity

The U.S. government stands as the largest buyer of goods and services globally, mandating that at least 3% of its contracts specifically support service-disabled veteran-owned businesses. Veterans who have honed technical skills in the military, such as IT or engineering, might find success as government contractors, a field rich with potential for those with prior industry expertise.

Retail: A Growing Frontier

Retail ranks as the fourth most popular sector for veteran entrepreneurs. Veterans experienced in sales and marketing are particularly suited for this realm, often launching stores with products that reflect their military identity. Innovations include online shops like Lock N Load Java and Combat Flip Flops, which resonate with both veterans and civilians eager to support veteran-owned businesses.

Giving Back Through Entrepreneurship

Many veterans are driven by a desire to contribute positively to their communities. For example, Lock N Load Java donates a portion of its profits to support active-duty troops and military charities. As U.S. Army veteran Carl Churchill puts it, “Utilizing capitalism to do good is incredibly meaningful for those of us who served.”

Preparing for the Journey Ahead

However, veterans should brace themselves for the hard work that comes with entrepreneurship. The journey requires not only dedication but a clear understanding of the business landscape to navigate it successfully.