As we celebrate our nation’s independence, we also celebrate the immense efforts and sacrifices put forth by our nation’s active duty and veteran military members. After serving our country, veterans make great business owners and many veterans choose entrepreneurship as their next career. Starting an independent business or investing in a franchise is an appealing goal that allows vets to take their strengths and build a new career. And, there are a plethora of resources available to support veterans in this dream.
Why veterans make great business owners
It’s no surprise that veterans often make excellent business owners. Many of the skills and traits developed on the frontlines are applicable to entrepreneurship.
First and foremost, veterans usually have strong work ethics and a lot of determination. Staying strong on the battlefield requires both physical and mental discipline. These things are also necessary in entrepreneurship. Business owners must be hard working, focused and driven to build their businesses to success.
Veterans are also strong in their values. Serving your country is an admirable task, and that passion can easily transfer to serving customers and meeting their needs through business solutions.
Additionally, vets are used to operating under stress. Entrepreneurship takes long hours and comes with many hurdles, and business owners can’t give up if they want to succeed. Staying level-headed during stressful situations and finding solutions to problems are extremely valuable skills that veterans bring to small business ownership.
Funding resources for veteran entrepreneurs
Financing is one of the most common challenges entrepreneurs face when trying to launch a business. This is often true for veterans, as well. However, veterans may have access to some unique funding options that help them achieve their dreams of launching a franchise or independent business.
Here are some of the most popular funding options available to veterans:
- SBA loans: The U.S. Small Business Administration (SBA) offers a range of loan types that are accessible to entrepreneurs of all backgrounds. However, veterans may be eligible for reduced fees on SBA 7(a) loans through the SBA’s Veteran Advantage program. This reduces the cost of obtaining a loan for your business startup.
- ROBS: Many veterans leave active duty with a 401(k) from a previous employer prior to the military and/or a special Thrift Savings Plan (TSP). Pre-tax retirement accounts can be used to fund your new business venture! Through a Rollover as Business Startup (ROBS), vets can roll funds into a new self-directed 401(k) account that invests in their small business, providing debt- and penalty-free financing. This is an excellent choice for veterans who may not have established credit histories or access to capital that’s needed to obtain a loan.
- Veterans Freedom Loan: Tenet Financial Group can connect veterans and active military personnel to special loan types like the Veterans Freedom Loan—a $150,000 maximum working capital loan for home- or office-based franchise opportunities. This 10-year loan comes with reduced SBA Guarantee and broker fees for veterans and requires a low cash injection of just 11% of the project cost.
Additionally, veterans interested in franchising should be aware that some franchise systems offer discounted franchise fees to former military service personnel. This makes it even easier for veterans to gain access to entrepreneurship! And, Tenet Financial Group also offers a discount to veterans too.
Franchises are great choices for veterans who want to get a business running fast, since franchise systems provide the pre-determined structure immediately. If you’re an active military member or veteran with a dream of opening a small business, Tenet Financial Group is here to help. Whether it’s connecting you to loan opportunities or installing a ROBS 401(k), our team is prepared to serve you. Contact us today to learn more.