Have any of you started your own business while still on active duty? If so, please share your lessons learned here.

CDR Private RallyPoint Member — Tue, 07 Jul 2015 14:16:13 -0400

Response by CW4 Private RallyPoint Member made Jul 7 at 2015 2:25 PM

CW4 Private RallyPoint Member — Tue, 07 Jul 2015 14:25:50 -0400

I wish. I considered real estate on the side because I knew a few other Warrant Officers doing it and they were really successful but I just don't have the time to dedicate to a second profession. I will wait until I'm about a year out from retirement to consider starting another job or starting my own business.

Response by COL Mikel J. Burroughs made Jul 7 at 2015 2:36 PM

COL Mikel J. Burroughs — Tue, 07 Jul 2015 14:36:42 -0400

CDR Private RallyPoint Member I'm sorry that I'm chiming in, because I retired in 2012, but I have started two businesses, one while serving and the other just recently at the end of 2012. The first time, I got deployed and I had to sell my interest in the company, so point being if you are going to start a business on your own (who will run it if you get deployed?), secondly, if you are involved in an LLC and you have a share of the company will the managing partner(s) pick up your end of the work load if you get deployed. Something to consider. My last business I picked the wrong partner. You have to really vet your partners if you start an LLC. I thought I did, but as time went on and I found out that he was stealing from the company I immediately shut down the company to save face with some of my investors and former clients that I brought to the table. Point - know your partners and make sure that whoever is going to be the managing partner (majority share holder) that they are willing and open to all financial dealings, access to records, access to bank accounts, and they perform under the guidelines of the Operating Agreement. Hold them to their agreement and responsibilities and stay involved everyday. Don't assume anything. Just a few words of wisdom from an old Colonel with a little experience in business matters.

Response by MSG Darrin Smith made Jul 10 at 2015 9:47 PM

MSG Darrin Smith — Fri, 10 Jul 2015 21:47:02 -0400

Yes, it was difficult for two reasons. The first reason is I had a huge learning curve and no one was there for me to lean on for answers so I could have done several things better. Second was trying to be the best soldier I could and the best business owner at the same time is difficult. Lessons learned was get a business where you do not have to manage a inventory. Choose a product you are familiar with and enjoy. Online selling was the best option for me. Websites are low start up and they are open 24 hrs and most importantly I did not have to hover over employees, manage payroll or any of those time consuming things. E-commerce is perhaps a suitable business if time is a concern. Also realize you don't have to rush, enjoy the journey.

Response by LTC Private RallyPoint Member made Jul 14 at 2015 1:46 PM

LTC Private RallyPoint Member — Tue, 14 Jul 2015 13:46:15 -0400

Kyle,
There are a lot of pitfalls to starting your own business while still on active duty. The type of business itself will play a big role in what you need to consider. I started a flight school and 4 years later it is still successful, but only because I have very good partners. I'd be happy to share some lessons with you.

Response by SGT Stanley Bass made Jul 15 at 2015 10:14 AM

SGT Stanley Bass — Wed, 15 Jul 2015 10:14:45 -0400

Sorry my business was really started after I had gotten out of military but wanted to chime in.
I guess I started my business while I was still in. I used to do flea markets and small shows on bases where I was stationed. I had a friend I met when stationed in Korea that helped me a lot. However it wasn't really until I got out and went to school that I really started working a business. First I did it to raise money under the schools 1099, when I was the president of the Veterans club on campus, so we could have a BBQ every Veteran's Day. While I was in School I started with a degree program that was the closest to the last thing I did in the military to help with the horrible transition I was going through. A tourism degree. This translated easily to a Business Management degree. I was working on this degree while I was raising money for the Student Veterans club the first Year I was president. After finishing that degree most of it transferred to an Accounting Degree. All of these helped me see all the aspects of running a business and I treated raising money for the Veterans club like a business. After my term as president ended I got my re-sellers and started doing flea markets, because it is what I knew. Four years later I have no problem getting a show because, as I am finding out, nobody sells the items that I sell. Also I think I have no problem with inventory because of my accounting degree. I find it fun. My business is not a brick and mortor and I do not have employees, it is just myself and my wife, but we travel through out Nor Cal doing fairs, car shows and other holiday events like 4th of July parades. It is still more of a hobby as we do not make the big money, but we don't have over head with employees, space rent or utility bills for the company

Response by SSgt Alan Pruitt made Jul 15 at 2015 12:12 PM

SSgt Alan Pruitt — Wed, 15 Jul 2015 12:12:43 -0400

Starting a business while on active duty is challenging for almost any member - regardless of branch of service or deployment status. As a serial entrepreneur with a lot of start-up experience and economic developer by trade - here is my advice. 1) find a local Small Business Development Center (SBDC) in or near your community and open up a confidential and free counseling channel to discuss your self-employment goals before you commit any significant time or finances towards. SBDCs are funded by the US Small Business Administration and co-hosted by a lot of community colleges nationwide. SBDCs are part of a vast national network of business advisors who can help you decide if starting your own business (now or in the future) is a viable option. If nothing else, take advantage of the many low-cost or no-cost workshops to learn about Small Business 101. 2) If you don't understand or appreciate what small business finance is all about - then don't be the cause of a self-inflicted wound that will lead you towards financial distress. Enroll in courses that teach you the Intuit Quickbooks platform. Know the difference between cash flow and profit/loss statements (hint: they are not the same thing). 3) Do not (under most circumstances) BORROW any money to start-up a business. Appreciate boot-strap funding and avoid going into to debt for a venture that has a low probability of returning your borrowed investment in less than 5 years. 3) "Fail Fast." My go to phrase for anyone seeking my small business start-up advice. Some ideas are just that - ideas. Don't get trapped into being a financial martyr for an idea that will drain you (and your loved ones) financially and emotionally. 4) The product or service that offers the highest ROI (return on investment) is anything knowledge based. You have probably spent years in training and work experience becoming a subject matter expert in something. Stick to your wheelhouse and reduce your start-up risk. Also be aware of current regulations regarding self-employment while on active duty. 5) A great time and financial investment now (while on active duty) is to pursue professional certifications that are knowledge-based, i.e., Realtor, certified personal trainer, certified public accountant, private pilot license, anything professional health-care related, general contractor, etc. Choose certifications that are portable (recognized anywhere in the US); professionally accepted and offer the chance at possible self-employment later down the road. 6) As hockey legend Wayne Gretzky said once, "I skate to where the puck is going to be, not where it has been." You must take his advice and apply it to your current and future business (and career) plans.

Response by HN Israel Soto Alicea made Jul 18 at 2015 12:37 AM

HN Israel Soto Alicea — Sat, 18 Jul 2015 00:37:43 -0400

Starting your own business while on Active Duty is definitely a great unfair advantage for yourself and your competitors no matter what industry you decide to do business in. I've built ready-to launch business models for the Active Duty members over the last 4 years. There's a huge different between going in business for your self and going in business with a business mentor. Choosing to utilize a business mentor will allow you to social investment some time in yourself while meeting the needs of the mission at your command. There are companies out there that will actually do the foot work for you will you finish your Active Duty contract for as little as $50/month. What kind of business are you considering opening? You could at the very least incorporate your business to build yourself mentally into filling the shoes of a CEO.

Response by Cpl Ray Milano made Nov 24 at 2015 2:57 PM

Cpl Ray Milano — Tue, 24 Nov 2015 14:57:37 -0500

My suggestion would be to connect with some of the local resources and programs available to assist you. I work for the SBA's Office of Veterans Business Development and, as discussed in previous posts, the SBA has several resources and programs available based on your needs. I'm available to provide additional info and you can also explore the resources at http://www.sba.gov/vets and http://www.sba.gov/ovbd

Veteran-Owned Businesses | The U.S. Small Business Administration | SBA.gov

If you are a veteran or service-disabled veteran, SBA has resources to help you start and grow your small business. From creating a business plan to finding your first customer, we're here to help you succeed.

Response by MSG Wally Carmichael made Dec 11 at 2015 6:34 PM

MSG Wally Carmichael — Fri, 11 Dec 2015 18:34:01 -0500

Paying a mentor or is a vital investment rather on active duty or not. Find a mentor who is actually doing or has done what you want to do.
My first business I started, while on active duty, was in the Real Estate investment industry. I paid a mentor $5k to mentor me for one year on the operations of Lease Options. He also provided contracts, sales tips, marketing ideas and many resources he used. I continued using those skills no matter where I was in the US.
My second business I actually started while in Iraq. It was a satellite internet connection business to get Soldiers and Civilians their own system set up. The previous owner mentored me after I bought him out. I sold that business.
One of my neighbors is a E7. He started a One Click Cleaners franchise. He set it up while in Iraq. He got a huge military discount on the franchise ($180k knocked down to $60k (they don't offer that any more)). One of the sales guys came to Hawaii to mentor him for a month. He and his family manage the business along with 3 employees. He recently cut away from One Click and started his own brand. The thing is, after almost 4 years, he's just now turning a profit. It's not the route I would choose.
I've had a few other business while on active duty. The business I started two years before I retired is the business I still manage today. I'm a health, fitness and business coach (Lifestyle Entrepreneur). I'm not a personal trainer. I have done some group exercise events. However, I mostly manage this business online. I have customers, clients and partners all over the US and Canada and soon expanding into other countries. Most of my customers come from the company I'm partnered with.

This is the business model I strongly suggest, if you plan on starting a business while still on active duty. My mission now includes mentoring our military families on this business model because it's completely mobile and can be operated from anywhere as long as you have an internet connection. It's very low overhead, you deal with no inventory, and it can move with you.

Response by MSgt Private RallyPoint Member made Sep 6 at 2017 11:53 AM

MSgt Private RallyPoint Member — Wed, 06 Sep 2017 11:53:23 -0400

I am active duty and my wife took over a marketing and promotional company that has been in business for 30 yrs that she was managing. I see situations to help with cost of certain items that unit orders but was wondering what steps I would have to take to ensure that I am good with the conflict of interest. The company is ran %100 under my wife. Yes there is still a chance of profit for company but still a good cost savings for unit. I probably need to consult with legal for advice but I figured I would see what info people might have on here. Thanks for the help!!!

Response by A1C Medrick "Rick" DeVaney made Jul 9 at 2022 12:03 AM

A1C Medrick "Rick" DeVaney — Sat, 09 Jul 2022 00:03:21 -0400

Although I Didn't Start My Business While In The Service,
My Brother JIM, Did. He Was Already Working In The Panama Canal Zone, At Albrook Air Force Base, When He Received His Draft Notice Into The Army.
By That Time He Had Several Connections In The USAF, And Was Told To "Hot Foot It" To The Enlistment Office And They'd Be Waiting For Him.
Due To His Connections, He's The ONLY Guy I Know Of, Whom Never Went Through Basic Training. The Base Commander Just Slapped A Uniform On Him, Added A Stripe, & He Went Back To The Job He Was Already Doing.
Then He Purchased A Building & Started An Electronics Repair Shop; "Television Americano."
Upon Discharge He Remained In Panama And Started Several Other Businesses Over The Years,
Including, But Not Limited To, A Service Station, An Auto Body Shop, A Roller Skating Rink,
A SMALL Oil Reclaiming Plant, And Some Others As Well.
But His Best Investment Was The Insurance Company...."La Tienda De Seguros"... Once It Got Rolling, Is When He Became a Multi-Millionaire.
So "YA, He Started A Business While In The Service."

Response by A1C Medrick "Rick" DeVaney made Feb 22 at 2023 8:01 PM

A1C Medrick "Rick" DeVaney — Wed, 22 Feb 2023 20:01:23 -0500

Myself NO...
But My Brother Jim?..'Oh "L" YES.
But To Make This Very-Very Short As Possible..
While He Was Stationed Panama ~ ALBROOK AFB; Jim Opened A TV Repair Service..
But Hired Others To Preform The Repairs.
Next: Gas Station About 1 Block Up The Street From TV Repair Service......
Remained In Panama All Of His Adult Life:
TV Repair ~ Gas Station ~ Auto Body Shop ~ SMALL Oil Reclaiming Plant ~
~Distributorship Of Wynn's Friction Proofing For All Of Panama ~
Partner In Only Roller Rink In Central America ~ Full Ownership Of An Insurance Company. ~
Plus Other Small Businesses Which Resulted From The Needs Of The Others....
EVENTUAL RESULTS ? ~~~ Multi-Millionaire... More $$ Than God..
BUT, As Is With Any New Business, It Takes Full Dedication, High Risk Of Losses, 7 Days Per Week Of Work, Many 12 - 18 Hour Days And The List Continues.... It's A Real Ball Buster.

SO, CAN IT BE DONE?......
YOU Must Make THAT Decision.
"Been There ~ Done That",
But On a MUCH Smaller Basis...