What are the keys to becoming a successful Veteran entrepreneur?

LTC Gavin Heater — Fri, 27 Mar 2015 22:41:44 -0400

I am looking for some guidance and mentorship regarding becoming a Veteran entrepreneur. I have a few time tested ideas, some demographic metrics, working capital and potential investors. I know this would be a calculated leap for me and my family, as I have always worked for someone else. Ideas for and against taking a leap greatly appreciated.

Response by CPT Aaron Kletzing made Mar 28 at 2015 8:03 AM

CPT Aaron Kletzing — Sat, 28 Mar 2015 08:03:18 -0400

There is much to say on this topic -- though one thing I would point out is that it is important to be clear on how your business can make money and eventually become sustainable. For example, who is going to be willing to pay for your good or service, and how much, and what are you basing that assumption on?

Response by SPC David Shaffer made Mar 28 at 2015 10:35 AM

SPC David Shaffer — Sat, 28 Mar 2015 10:35:58 -0400

Sir, your very first step should always be a business plan. The business plan is essential, and most businesses that start without one fail. There are many resources available at the small business administration website http://www.sba.gov. They have amazing resources to get you started.

Response by SPC David Shaffer made Mar 28 at 2015 10:43 AM

SPC David Shaffer — Sat, 28 Mar 2015 10:43:53 -0400

I forgot to mention that you have to register to be considered a veteran owned small business (important if you want government contracts) and there is also information about that on the sba website. If you get stuck you can always call or stop in your local sba.

Response by SPC David Shaffer made Mar 28 at 2015 1:25 PM

SPC David Shaffer — Sat, 28 Mar 2015 13:25:15 -0400

https://www.sba.gov/content/veteran-service-disabled-veteran-owned

Another great place to start.

Response by CPT Hannibal Bray made Mar 28 at 2015 3:55 PM

CPT Hannibal Bray — Sat, 28 Mar 2015 15:55:29 -0400

It sounds like you're on the right track, Gavin.

Do you want to be bold and audacious? Or do you want to be comfortable?

I would encourage you to ONLY take advice from those who have actually done what it is that you are trying to accomplish. In other words, figure out "who's your who?" Who has already done it? Even if it's in a different sector or industry than you are venturing into, you can learn from their mistakes and successes. There seem to be very few truly original ideas. Besides, anybody can have a great idea. It's all about the execution.

1. Figure out exactly WHAT you're trying to accomplish.
2. Get passionate about WHY you're doing it.
3. Figure out WHO can help by lending their time, money, or expertise.

Of course you'll need a business plan to iron out the specifics of HOW you will launch, measure performance, pivot when necessary, scale things up, etc. And having at least an idea of what your possible exit strategies might be would be good too. But I wouldn't get too focused on the HOW until you are absolutely solid on 1,2,3 above.

In addition to finding a mentor, and planning to spend a lot of time networking, here are just a few of the books I would recommend reading (or re-reading) during your first year to stay focused.

Think and Grow Rich - Napoleon Hill
The Magic of Thinking Big - David Schwartz
The Lean Startup - Eric Ries
Dig Your Well Before You're Thirsty - Harvey Mackay
Cashflow Quadrant - Robert Kiyosaki
Start With Why - Simon Sinek
Mach II With Your Hair on Fire - Richard Bliss Brooke
Duct Tape Marketing - John Jantsch

Finally, I say "calculated leaps" are the best kind. Just remember, for your parachute to open... you have to JUMP, my friend!

https://www.youtube.com/watch?v=mmReH3q6c4w

Steve Harvey Wisdom- You Got To Jump

Multi-Millionaire, Best Selling Author, Actor, Talk show host gives wise words to all employees on being comfortable.

Response by SP5 Andy G. made Mar 30 at 2015 6:30 PM

SP5 Andy G. — Mon, 30 Mar 2015 18:30:51 -0400

Would you have brain surgery by someone who says "I've never done one, but I read the book on it"?

OK - so it may be rhetorical, but fact is closer to that fiction.

First - do NOT look to the SBA (or the VA small business component of it) unless the individual you are dealing with has build at least one successful company. The fact is, nearly every one is a government employee who nary operated a lemonade stand.

Second - DO look for a local mentor who can give you a candid and objective assessment of your skill set, who understands business-building, and who can provide qualified, first-hand guidance now and then throughout the first couple of years of your new business.

Finally - unless you feel compelled to scratch after government contracts, look at building your business in the private sector. Despite the best intentions of the VA and SBA to give veterans, and specifically service disabled veterans contracting priority, the system is rife with corruption, all but guarantees that more veterans will not get a contract than receive one (50-100 businesses compete, only one gets the contract), and on average, it will take 1-1/2 years before getting a first contract.

Join Rotary, use SCORE, and participate in local entrepreneur organizations to connect with qualified people to get you started down the right path.

Understand your shortcomings, and if necessary, find a business partner that balances those shortcomings with expertise needed by the business.

For solo service-based companies, perhaps look at franchises - but be sure to look at SBA loan default rates by Franchise Brand. Higher default rates mean that you have a higher risk of going bankrupt with those franchises, despite what the glossy sales materials say. Read http://www.bloomberg.com/bw/articles/2014-09-16/franchises-the-government-keeps-helping-people-buy-failing-brands

And keep asking questions.

The Government Keeps Helping People Buy Failing Cold Stone Creamerys

A report finds high default rates on franchise loans