By Debbie Gregory.

Part 1

Most businesses start small and some even choose to stay that way. Large corporations such as Amazon and Apple began in garages. According to the Small Business Administration (SBA), 50% of all firms in the U.S. currently are home-based. If your business idea is worth pursuing, don’t be afraid to start it at home. Working from home will require some forethought and discipline to stay on task.

To help ensure success, here are a few tips for starting and operating a home-based business:

Starting Your Business:

1.) Make sure your business idea is a good one:

Successful businesses, products, and services solve a problem that customer’s face. Make sure that you properly research your business idea before you begin to invest time, energy, and money. No one wants to waste what resources they have on an idea that will never get off the ground.

Search Google, YouTube, and other relevant sites to make sure that the product or service you want to provide doesn’t already exist. If it does, figure out ways to improve it or make it more distinguishable from what will be your competition.

Make sure that you create a comprehensive business plan to help organize your ideas, business goals, how you plan to make a profit, and all estimated expenses. Create a prototype (if applicable), and test it, to help you determine how the market will receive your product. Determine the right price for your product by determining the cost to manufacture and what your competitors charge and letting you know what customers are willing to pay.

2.) Obtain a business license:

Even home-based businesses need a business license and this is especially true if you plan to sell goods or services to customers. This allows your revenue to be tracked for taxation by your local city. Check with them for information on obtaining and renewing your license.

3.) Obtain business the insurance:

It is always a good idea to proactively protect yourself. Most businesses need professional liability insurance and general liability insurance; You may need additional coverages too. Consult an insurance professional to see what type of insurance your business will require.

4.)  Brand your business:

Branding your business is vital to your success. Branding offers consistency throughout all promotional channels (such as your social media, ads, newsletters, and more), it generates your unique identity, and can increase your perceived professionalism. Plan to pay a professional to develop a good logo, website, social media pages, business cards, unique packaging materials, and other marketing materials (brochures, flyers, coupons, signs, etc.) that you will need to effectively brand yourself and market your offerings.

5.) Build your team:

Unless you plan to run the business alone you will need to build a solid team of like-minded individuals. Make sure that you have already clearly established your goals for your team and work environment and then find candidates that share your vision for the culture you want to foster and make sure that they have a strong desire to help your business grow.

6.) Taxes:

There are different laws and taxes for home-based businesses, and it is always a good idea to fully understand how your taxes will change as.  There are quite a few deductions for home-offices such as mortgage, rent, utilities, real estate taxes, repairs, maintenance, upgrades, and more. It is always a good idea to consult a tax professional before you begin your business.

7.) Do Not Stagnate:

As our world changes around us, we must be flexible and change with it. Your business model and goals will need to be able to adapt as consumer needs, economics, technology, politics, laws, and preferences in the market change. Stay on your toes and don’t get too comfortable regardless of how successful you are becoming. You need to make sure that your product or service doesn’t become stale in your market.

We encourage Veteran and Military Business Owners to join VAMBOA, the Veterans and Military Business Owners Association.   There are not any dues or fees charged to our members.  Here is a link to join:  https://vamboa.org/member-registration/

By Debbie Gregory.

Part 3 of 3

Learn what industries, job functions, business types, state concentrations are more likely to be filled with Veterans as well as some characteristics of the veterans   running these businesses.

Service & Disability Status:

• About three-quarters of respondent owners had active duty service at some time (72.0 percent),
• 9 percent reported post-9/11 active duty (September 2001 or later).
• 3 percent reported having a service-connected disability, including 5.4 percent of employer owners and 7.9 percent of non-employer owners. During the 2012 survey year,
• 3 percent of owners reported service in the National Guard or a Reserve component, and 0.8 percent reported active duty service during 2012.

Age:

Veteran business owners are much older than business owners in general.

• In 2012, 74.0 percent of veteran business owners were age 55 and over (all owners: 41 percent); • 26.0 percent were age 55–64 (all owners: 25.4 percent); and
• 0 percent were 65 or older (all owners: 15.6 percent). On the younger end of age distribution, 11.7 percent of veteran owners were under age 45 (all owners: 32.5 percent). And only 3.4 percent of veteran owners were under age 35, versus 13.5 percent of all owners.

Education:

• In 2012, veteran owners were slightly less likely than all owners to have either a bachelor or post-graduate degree (45.2 percent of veteran owners compared with 47.1 of all owners).
• Veteran owners were slightly more likely to have post-graduate degrees (21.4 percent compared with 19.8 percent for all owners).
• A larger share had a high school diploma:
• only 2.6 percent of veteran owners had not graduated from high school (all owners: 5.0 percent).
• 4 percent had at least some college education.

Primary Function in Business:

• Producing services and/or goods: 59.5 percent of veteran owners and 59.3 percent of all owners;
• Managing day-to-day operations: 67.9 percent of veteran owners and 64.7 percent of all owners; and
• Financial control and the authority to sign loans, leases and contracts: 55.0 percent of veteran owners and 50.5 percent of all owners.

Prior Business Experience:

More veteran owners reported previous experience than all owners, 42.4 percent compared with 35.7 percent, respectively. These percentages were very similar for both employers and non-employers.

Birth Citizenship:

Almost all veteran owners, 97.3 percent, were born U.S. citizens, compared with 85.6 percent of all owners. These percentages were very similar for both employers and non-employers.

Hours Worked in Business:

Hours worked in the firm were similar for veteran and all owners. Among veteran business owners, 36.1 percent reported that they worked 40 or more hours per week in their businesses (all owners: 37.5 percent). And 11.0 percent worked 60 or more hours per week in their firms (all owners: 10.6 percent).

Business Income as Primary Source of Income:

Owners reported that their business provided them with their primary income source: 47.5 percent all owners versus 40.7 percent of veteran owners. Among employer firm owners, these figures were 68.0 percent of all owners and 64.3 percent of veteran owners. Owners of non-employer firms reported somewhat lower reliance on their business income: 40.7 percent of all owners and 33.0 percent of veteran owners indicated that it was their primary source of personal income.

Start-Up Methods:

By far the largest method for entering business was for owners to found or start the firms themselves.

• Among veteran owners of respondent firms, 85.3 percent founded their businesses (all owners: 83.1 percent).
• Veteran employer owners reported that 74.3 percent started their own firms (all employer owners: 70.0 percent).
• Veteran non-employer owners reported 89.0 percent started their own firms (all non-employers: 87.5 percent).
• Veteran owners also reported that 10.8 percent purchased their businesses (all owners: 11.3 percent); 2.7 percent inherited them (all owners: 2.8 percent), and 2.8 percent acquired their ownership by transfer or as a gift (all owners: 4.4 percent). Year business was acquired. Interestingly, 7.4 percent of veteran owners indicated that their business ownership was newly acquired in the survey year of 2012, as did 10.4 percent of all owners.
• Veteran owners reporting business acquisition in the four years before 2012 made up 16.2 percent of all owners of respondent veteran businesses (all owners: 21.1 percent).
• From 2000 to 2007, 21.3 percent of veteran owners acquired their businesses (all owners: 23.4 percent).
• As we look further back, the veteran owner shares increase relative to all owners: 14.8 percent of veteran ownership interests were acquired in the 1990s (all owners: 13.1 percent); 10.7 percent of veteran interests began in the 1980s (all owners: 6.8 percent); and 9.5 percent of veteran ownership interests were acquired before 1980 (all owners: 3.5 percent).

VAMBOA, the Veterans and Military Business Owners Association hopes that you will join us.  We do not charge any dues or fees.  Here is a link:  https://vamboa.org/member-registration/

By Debbie Gregory.

Part 2 of 3

Below are some Census statistics related to which industries, job functions, business types, state concentrations are more likely to be filled with veterans as well as some information on the characteristics veterans starting and running these businesses.

Veteran Owned Employer Establishment Numbers:

The 442,485 veteran-owned employer firms in 2012 operated 501,003 separate establishments. Those operating in only one industry (by two-digit NAICS code) represented 99.3 percent of all firms and 91.8 percent of all establishments. Veteran owned employers operating in multiple industries represented only 0.7 percent of firms but had 8.2 percent of establishment’s sales and receipts.

• More than half of all veteran-owned firms (55.8 percent) had annual sales of less than $25,000, and over one-third (34.9 percent) had annual sales of less than $10,000. These shares mirrored those for all firms, and they include all firms that reported business income of $1,000 or more in 2012. Accordingly, many part-time business activities were included.
• 6 percent of veteran-owned employer firms had sales of $100,000 or more, and 37.6 percent had sales of $500,000 or more.
• Among veteran non-employers, 10.1 percent had sales of $100,000 or more, while only 0.9 percent had sales of $500,000 or more.

Number of Employees:

Most veteran-owned employer firms are very small.

• 5 percent of all veteran-owned employer firms have one to four employees;
• 3 percent have from one to nine employees;
• 6 percent have from one to nineteen; • 9.0 percent have twenty or more; and
• 2 percent have more than fifty.

Veteran Owned Firms by Gender, Ethnicity & Race:  

The majority ownership of veteran-owned firms was overwhelmingly male (84.3 percent), non-Hispanic (92.9 percent) and white (85.1 percent). Women owned 15.2 percent of all veteran-owned businesses, and self-identified minorities owned 20.6 percent.

Majority Ownership Shares by Ethnicity & Race:

• African American (10.7 percent);
• Hispanic (7.0 percent);
• Asian American (2.1 percent);
• American Indian or Alaska Native (1.3 percent)
• Native Hawaiian or other Pacific Islander (0.3 percent); and
• Some other race (2.2 percent).

States with the Most Veteran Owned Firms in Order:

• California (252,377),
• Texas (213,590),
• Florida (185,756),
• New York (137,532) and
• Pennsylvania (97,969).

States with Highest Veteran Owned Sales:

• California ($135.1 billion),
• Texas ($109.9 billion),
• Florida ($57.7 billion),
• New York ($55.8 billion), and
• Pennsylvania ($50.3 billion).

States By Percentage:

Ranking states by their percentage of veteran-owned firms controls for differences in state population size. The states with the highest percentages of veteran-owned firms were:

• South Carolina (13.0 percent),
• New Hampshire (12.2 percent),
• Virginia (11.7 percent),
• Alaska (11.7 percent), and
• Mississippi (11.4 percent).

States with Highest Percentages of Sales by Veteran Owned Firms:

• New Hampshire (6.2 percent),
• Nevada (4.8 percent),
• South Carolina (4.7 percent),
• Mississippi (4.7 percent), and
• Tennessee (4.6 percent).

Veteran Owned Firms Contribute to the economies of many states and our nation.

By Debbie Gregory.

Part 1 of 3

We have gathered some interesting and awesome statistics from the US Census about Veteran Owned Businesses to share in this three-part series of articles.  See what industries, job functions, business types, state concentrations are more likely to be filled with veterans and information on the characteristics of veterans starting and running these businesses.

Veteran-Owned Businesses – Top Level Stats per 2012 Census:

• 52 million businesses were majority-owned by veterans.
• Of this total, 442,485 were employers, and 2.08 million were non-employers.
• Veteran-owned firms had receipts of $1.14 trillion, employed 5.03 million people, and had annual payroll of $195 billion.
• Veteran-owned firms represented 9.1 percent of all U.S. firms.
• 3 percent of all owners of SBO-respondent firms were veterans.
• 3 percent of all respondent veteran owners had service-connected disabilities.
• Veteran-owned employer firms.
• 5 percent of all veteran-owned firms were employer firms, slightly lower than the 19.6 percent share of employers among all firms.
• Veteran-owned employers had receipts of $1.049 trillion. They accounted for 91.9 percent of the receipts of all veteran-owned firms. Veteran-owned firms without employees.
• 5 percent of all veteran businesses were non-employers, slightly higher than the non-employer share of all firms, 80.4 percent.
• Veteran non-employers had receipts of $92.2 billion, or 8.1 percent of the receipts of all veteran-owned businesses.

Distribution by industry: Top six industries of Veteran Owned Businesses:

• Professional, scientific, and technical services (16.6 percent of all veteran-owned firms),
• Construction (13.2 percent),
• Other services (11.8 percent),
• Real estate (8.6 percent),
• Retail trade (8.1 percent), and
• Administrative and support services (8.0 percent).

Concentration Within Industries:

Overall, 9.1 percent of all U.S. businesses were Veteran Owned but this percentage varied by industry, ranging from 12.9 percent in the mining, quarrying, oil and gas group to a low of 5.7 percent in the accommodation and food services industry.

Other industries with higher-than-average veteran ownership included:

• Finance and insurance (12.8 percent);
• Transportation and warehousing (12.1 percent);
• Construction (11.4 percent);
• Agriculture, forestry and fishing (11.3 percent);
• Utilities (10.9 percent);
• Professional, scientific, and technical services (10.8 percent); and
• Manufacturing (10.2 percent).

Top industries in terms of sales:

There are five industry groups that accounted for 71.5 percent of all Veteran Owned firm sales and they are:

• Wholesale trade (22.9 percent),
• Retail trade (19.5 percent),
• Manufacturing (12.3 percent),
• Construction (10.1 percent), and
• Professional, scientific, and technical services (7.0 percent).

Concentration of Sales within Industries:

Veteran Owned firms accounted for 3.4 percent of all U.S.firm sales. Their share varied by industry, ranging from a high of 7.7 percent in construction to a low of 0.7 percent in the utilities group.

Other Sectors with Higher-than-Average Veteran Shares of Sales:

• Agriculture, forestry and fishing (7.1 percent);
• Other services (6.9 percent);
• Real estate and rental/leasing (5.7 percent);
• Retail trade (5.2 percent);
• Transportation and warehousing (4.9 percent);
• Professional, scientific, and technical services (4.7 percent); and
• Accommodation and food services (4.7 percent).

Home-Based Businesses:

A larger share of veteran Owned Businesses than all U.S. firms reported that they were home-based, 57.0 percent compared with 52.2 percent.

Franchised Businesses:

• The percent of veteran-owned businesses operated as franchises was somewhat lower than that for all firms, 2.1 percent versus 2.9 percent.
• Among veteran Owned employer firms, 4.2 percent were franchises, compared with 5.3 percent for all firms.
• The two most important industries for veteran Owned franchises were accommodations and food services (15.5 percent of all veteran franchise operations) and retail trade (4.7 percent).

Exporting and E-commerce activity:

While most veteran Owned firms reported no exporting or E-commerce sales, they differed only slightly from all firms. 93.5 percent reported no export sales, compared with 91.3 percent of all firms, and 92.8 percent reported no e-commerce sales, versus 91.0 percent for all firms.

Seasonal and Part-Tme Operation:

Veteran Owned firms had profiles like all firms with respect to seasonal and part-time operations. Many more non-employers than employers were seasonal or part-time. Among all respondent Veteran Owned firms, 48.0 percent were in none of the seasonal or part-time categories included in the survey, as were 77.6 percent of employers, but only 40 percent of non-employers.

Sources of Startup or Acquisition Capital:

The largest source of capital for business startup or acquisition was personal or family savings: 59.4 percent for Veteran Owned firms and 57.3 percent for all firms. Business loans from banks or other commercial lenders were used by 7.8 percent of Veteran Owned firms and 7.5 percent of all firms, while personal credit cards were reported by 7.5 percent of veteran-owned firms and 7.6 percent of all firms.

Amount of Startup or Acquisition Capital:

Finance patterns were like those of all businesses. About one-quarter of all businesses reported that they did not need any capital to start up or acquire their business (23.7 percent of Veteran Owned Businesses and 24.8 percent of all firms). Among firms that used capital, the share using less than $5,000 was 34.1 percent for Veteran Owned firms and 31.6 percent for all firms. The share using less than $25,000 was 50.8 percent for Veteran Owned firms compared with 46.9 percent for all firms.

Sources of Expansion Capital:

Capital for 20.8 percent of Veteran Owned firms and 21.9 percent of all firms. Business profits and/or assets were used by 5.5 percent of Veteran Owned firms and 5.7 percent of all firms. Personal and business credit cards were used by 4.5 percent of veteran-owned businesses and 4.9 percent of all firms.

Major Customers:

Veteran Owned Businesses reported that their major customers were similar to those of businesses in general. (Major customers are those who account for 10 percent or more of a firm’s sales.)

• A slightly lower percent of Veteran Owned Businesses’ major customers were individuals, 67.6 percent, compared with 72.2 percent for all firms.
• Other firms and government accounted for a slightly greater share of veteran owned businesses’ major customers. Other firms were major customers of 37.9 percent of veteran-owned businesses, compared with 34.0 percent for all firms.

Veteran Owned Businesses rock and represent a significant portion of the US economy.

By Debbie Gregory.

Ever since World War II, military veterans have consistently created and innovated businesses in America. Veterans are generally quite good at looking at the world, figuring out what is missing from it, and learning to create those solutions. Veterans are responsible for brands such as FedEX, Nike, and GoDaddy. New technology companies such as Sybase, Skybox Imaging, Ustream, RedOwl, Rhumbix and RideScout have also been created and are run by veterans.

Some remarkable veterans who saw needs and created the frameworks, movements, networks, and methodologies that changed the way people think and currently do business:

1.) Angel Investor – Will Bunker

In 1990 Will, a former Marine, built one of the largest dating sites in existence, which later became Match.com. Recently he co-founded GrowthX to fund startups and the GrowthX Academy to help people learn the skills to be better salespeople, growth marketers, and UX designers.

2.) Athos – Don Faul, CEO

Don, a former Marine, is a current leader in smart performance apparel that monitors your biosignals. Prior to his involvement with Athos he led Facebook’s online operations, and was COO of Pinterest.

3.) CrossLead – David Silverman, Founder and CEO

David was a Navy Seal and createad CrossLead to help companies leverage real-time data to better understand their networks and build better teams of people.

4.) Esurance – Chuck Wallace, Co-Founder

Wallace, a former Airman, was a key player on the teams that created Automatic, Ustream.TV, and USell.   He then came up with a new way to sell insurance and started Esurance, which quickly became one of the fastest growing insurance companies in the US.

5.) Lean Startup Movement – Steve Blank, Creator

Blank is a former Air Force mechanic turned entrepreneur and is known as the “Godfather of Silicon Valley” for his role authoring innovative books in the Lean Startup movement, which have been implemented by millions of startups worldwide.

6.) Maker Movement Pioneer – Mark Hatch

Hatch is a former Special Forces leader who currently runs the Green Beret network on LinkedIn, he is a partner at Network Society Ventures and is an author. He helped pioneer the Maker Movement and through his works he continues to help future makers and tinkerers.

7.) Social Media Maven – Koka Sexton

Sexton is a former Army officer who is one of the world’s leading minds in social media. Sexton used to head LinkedIN’s social media department, created Social Selling Labs to provide sales resources, and is currently working for the most-used social media management tool – Hootsuite.

8.) Startup List – Nick Frost, Creator

Frost is a Navy veteran who created Startup List in his bunk in Iraq. He currently works as a curator at the Mattermark Daily newsletter.

9.) StreetShares – Mark Rockefeller, Co-Founder

Rockefeller, a former Air Force officer co-founded StreetShares and a created a new way to match borrowers with investors. Recently the company added Veteran Business Bonds to their offerings to better support veteran businesses.

10.) The Lean Product Playbook – Dan Olsen, Author

Olsen, a former Naval Officer, has been a leader in Silicon Valley for over 20 years. His experiences working on nuclear submarine designs led him to write a practical step-by-step book for lean startups that is used by thousands of entrepreneurs each year.

11.) VC Trailblazers – Pitch Johnson and Bill Draper

Johnson (Air Force) and Draper (Army) were some of the venture capitalists on the West Coast back in the early 1960s. They created Asset Management Ventures and Sutter Hill Ventures and through these companies they have funded a staggering number of other companies.