How Being A Veteran Owned Business Can Help You Grow Faster

It is estimated that there are more than 3 million veterans in the United States. Many of these men and women have sacrificed much for the country. They have served in the military and put their lives on the line to protect us and ensure that we have the freedoms we enjoy today. Veterans have earned a reputation for being hardworking, honest, trustworthy, and reliable. That's why it makes sense that they would want to start their own business and build a successful business for themselves.

What is a Veteran-Owned Business?

A veteran-owned business is a business established by a person who has served in the United States armed forces. These businesses are recognized as eligible for certain tax breaks and are given special treatment when seeking financing.

Why are VOBs so successful?

There are four types of VOB companies:

• Small business
• Women-owned business
• Service-disabled veteran-owned business
• Disabled veteran-owned business

These companies have a higher success rate compared to other companies.

These companies also have several advantages. They are better at handling unexpected changes and disruptions in the market. They also have better cash flow, and they usually have lower operating costs.

Here is why VOBs are so successful:

1. Flexible Hours

When you work for a large corporation, you usually work 9 to 5. For VOBs, this is flexible, and employees can work whenever they need to. It is helpful because it allows them to work during off-hours and also makes it easier for them to meet deadlines.

2. Low Fixed Costs

A large corporation has high fixed costs. These include rent, insurance, taxes, utilities, salaries, etc. Because of this, they have to raise their prices to cover these costs.

On the other hand, VOBs do not have fixed costs. It means they can offer lower prices because they are not paying for rent, insurance, and taxes.

3. Access to Capital

Because of the low fixed costs, VOBs often receive better terms when it comes to financing. They usually have better access to capital.

4. Better Management

VOBs are typically run by veteran entrepreneurs who know how to manage a business. When you run your own business, you are responsible for everything that happens. It means that you can make mistakes and learn from them.

5. Strong Customer Service

VOBs have a history of providing excellent customer service. They know how important it is to provide quality products and services. In addition, they also understand what customers want.

6. Increased Employee Loyalty

When you work for a large corporation, your employer often pays more than what your job is worth. On the other hand, VOBs pay a lot more than average salaries. It means that employees are more likely to stick around.

Why You Should Be a Veteran-Owned Business

Here are some of the reasons why you should be a veteran-owned business:

1. Better Quality. Veterans tend to know what they're doing because they have spent time serving the country. They are also often more honest and hardworking than non-veterans.
2. Loyalty. Veterans understand what it means to serve their country and will likely stick with their businesses.
3. Efficiency. Veterans tend to keep their businesses running smoothly and efficiently. Non-veteran business owners often have difficulty learning how to run a business, and they may not be able to keep their business running properly for as long.
4. Savings. Veteran-owned businesses tend to be more profitable than other businesses. They also tend to offer discounts to military personnel, which helps their bottom line.
5. Reliability. Veteran-owned businesses are usually more reliable than other businesses. They often have more experience in working with government agencies and contractors. They also tend to be better at delivering products or services on time.
6. Reputation. Veteran-owned businesses are usually well respected by the public. They tend to work closely with the government to know what it takes to get things done.
7. Support. Veteran-owned businesses often receive exceptional support and assistance from the government. They are also more likely to have robust support systems in place.
8. Access. Veterans-owned businesses have access to specific government programs that other companies do not have. They also get access to preferential pricing on particular products and services.
9. Stability. Veteran-owned businesses have more stability than other businesses. They are less likely to go out of business. They also tend to stay in business for a long time.
10. Trust. The public and government agencies trust veteran-owned businesses. They have earned this reputation through their quality work and loyalty to the country.

How to Start a Veteran-Owned Business?

Step 1: Determine if you have what it takes:

Are you the type of person who can run a business? Do you have what it takes to start a business? Do you have what it takes to be successful? What do you need to become successful?

Step 2: Develop a business plan:

Create a detailed business plan. It can be a simple list of steps to follow or a more complex project. If you're having trouble coming up with ideas, think about your goals. What are your goals? What's your best business approach?

Step 3: Find a mentor:

Find someone who is already running a successful business and ask them for advice. It will help you learn from their mistakes and successes.

Step 4: Get financing:

Do you have enough money to start a business? Do you have what it takes to get financing? What are your options? What are the risks?

Step 5: Determine your location:

Determine where you want to start your business. Do you want to start your business in an urban area? Do you want to start your business in a rural area? Do you want to start your business in the suburbs? Do you want to start your business in a particular state? Do you want to start your business in a specific country?

Step 6: Determine your product or service:

Determine what type of product or service you want to offer. Do you want to sell products or services? Do you want to sell a product or service you already made or created? Do you want to sell a product or service that you don't currently make or create?

Step 7: Determine your marketing strategy:

Determine how you're going to market your business. How are you going to get your customers to know about your business? Do you have a website? Do you have social media accounts? Do you have a Facebook page?

Step 8: Get your business license:

Do you have what it takes to get a business license? Do you have what it takes to start a business? Do you have what it takes to get financing? Do you have what it takes to find a location? Do you have what it takes to determine your product or service?

Step 9: Determine your startup costs:

What are the equipment and supplies you need? Do you have what it takes to buy these items? What are your startup costs?

Step 10: Determine your startup time:

Determine how long it will take to start your business. How much time will it take to start your business?

How to Create an Effective Marketing Plan for Your Veteran-Owned Business?

Marketing is vital to growing a successful business. Creating a marketing plan that attracts potential customers takes time, money, and effort. In today's economy, where small businesses compete with giant corporations, knowing how to market your business effectively is essential to standing out among the competition.

Creating a Marketing Plan

The first step in creating a marketing plan is deciding what you want to accomplish with your marketing efforts. It is a crucial step because it helps you determine if you should create a formal marketing plan. A good marketing plan will include details about what you want to accomplish, such as increasing revenue or making new contacts.

Next, you must decide how much of your marketing budget you are willing to allocate to each of your goals. Spending at least 10% of your marketing budget is essential to reach your long-term goals. When creating a marketing plan, writing your expectations for each campaign is also helpful.

A final step in developing a marketing plan is determining whether to hire a consultant or work with a company that specializes in marketing.

Marketing Plan Components

Once you have created a marketing plan, it is time to determine what components will make up the plan. You should divide the program into three sections:

Target Audience

It is a list of people you hope to reach through your marketing efforts. You should include the demographics of your target audience, such as gender, age, income, and geographic location.

Campaign Ideas

It would help if you brainstormed ideas for each campaign. Think about how you can get the word out about your product or service. Some movements are simple and require little effort. Others will require more research and planning.

Campaign Strategies

You should also determine the methods you will use to promote your product or service. It includes where you will advertise, what you say in your ads, and how often you will run your ads.

How to Avoid Pitfalls in Starting a Veteran-Owned Business?

A recent survey revealed that almost half of the VOB owners reported encountering at least one major problem during their first few years of operation. One-third said that they had to close their business. These problems include:

1. Inadequate financing. The most common financing challenge was insufficient capital. Almost half of the VOB owners had difficulty finding financial support for their business. And only 28 percent found a lender willing to help them get started.
2. Poor business plan. More than half of the VOB owners unable to secure adequate financing had trouble developing a viable business plan.
3. Too many regulations. Although VOBs are exempt from federal regulations like the Small Business Administration, they must comply with state and local laws.
4. Lack of awareness. Many VOB owners didn't know about the Servicemembers Civil Relief Act. The act provides several tax breaks and other benefits to qualifying veterans starting new businesses.
5. Excessive red tape. VOB owners face red tape and a long government approval process when starting a new business.
6. Too many rules. Many VOB owners have had to hire a lawyer because of the complexity of federal and state regulations.
7. A lack of support. As a result of the high costs of starting a veteran-owned business, most VOB owners are not supported by the VA.
8. Poor management. Many VOB owners have been frustrated with poor management at the VA. They are often left to operate a business while the VA pays their employees.
9. Loss of investment. Because the VA does not guarantee VOBs, they do not qualify for the VA guarantee. As a result, the VA does not reimburse the owners for their losses.
10. Long waiting times. Most VOBs take a year or more to begin providing goods and services. The lengthy approval process means that VOB owners may be forced to close their business before they start getting any revenue.

Benefits of Veteran-Owned Business

The SBA has several programs specifically aimed at benefiting veterans and their businesses.

• VetBiz Loans. The SBA offers loans and grants to small businesses owned by veterans and service members and to small businesses in targeted distressed communities.
• Section 8(a) Program. The Section 8(a) program helps veterans obtain financing for their businesses. The program offers incentives to banks and lenders to lend money to qualified small businesses.
• Veteran-Owned Small Business Administration Certified Service Contract program. This program provides guaranteed contracts for certain types of small businesses.
• Women Veteran Owned Business. This program assists women-owned small businesses in obtaining contracts.
• Section H11 Small Business Innovation Research Grants. Grants are available to assist small businesses that develop products, services, or processes that benefit the warfighter.
• Small Business Innovation Research program. Grants are available for research and development projects that benefit small businesses.
• Section 8(a) Loan Guarantee program. Grants are offered to financial institutions that make loans and loan guarantees to small businesses.
• Microloan Program. The SBA provides microloans to small businesses to help them start and grow.
• Veteran-Owned Small Business Development Center program. Grants are provided for training and educational programs to assist small businesses owned by veterans and service members.
• Veteran-Owned Business Development Center Program. Grants are provided to eligible small businesses for programs that enhance their ability to expand, diversify, and create jobs.

Conclusion

In conclusion, there are many reasons why being a veteran-owned business can help you grow faster. For example, veteran-owned businesses have a lower cost of capital than other businesses. They also tend to be more innovative than non-veteran-owned businesses.

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Written and Published By The Strategic Advisor Board Team
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