In modern times, military members have numerous resources when they start transitioning out of the military. A large number of those resources focus on business ownership. I have experienced firsthand that most of those resources are limited until you are within a few months of separation. Furthermore, the resources focus on the skills necessary to run a business, not the different options to becoming a business owner.

The business ownership process takes longer than transiting into another job/career. Even once you get your company up and running it may take a while to replace your income. My goal is to provide the necessary knowledge sooner to ensure members have the time necessary to plan. Veterans perform well as business owners but may not know their options before leaving the service.

This column intends to educate readers on three different methods of obtaining business ownership and identify the need to surround yourself with qualified advisors.
Each of the three most common methods to business ownership has its benefits, risks and concerns.

Start-up

Start-ups allow you to control every step and process. They can sometimes allow for little to no initial capital. This is a common way to bring new ideas to market. Although those are very appealing benefits for start-ups, they also have a lower success rate than the other two options, as you often find yourself filling countless roles with little support. Even if your small business is successful, it may take several years for the company to become profitable.

Franchise

Not all franchises are created equal, but in general the value is in proven processes, purchasing power, brand recognition, knowledgeable support, training and higher success rates. Franchises allow for more accurate strategic planning than a start-up, as you have more data to support your goals. Those benefits do not come for free as there are typically both upfront and ongoing fees, but many franchisors offer a discount for veterans. There are countless different franchises so it is wise to work with a franchise consultant who can help match your criteria to the right opportunity.

Established business

Those coming from outside the business world may not know that you can find a profitable business for sale at reasonable prices. This business acquisition strategy allows you to enter something that is already established, with customers, employees and processes. This means from day one you may have a return on your investment. Sometimes the existing business for sale is a franchise and other times the business is fully independent. In my opinion, this area has the highest risk if you do not have a strong team of professional advisors to help make informed decisions. Business sales typically take around nine months from start to finish.

As you transition out of military service you will face countless decisions. Surrounding yourself with advisors early in your decision process will smooth the transition into business ownership. Because every person’s situation is different and requires specific considerations, it is important to find an advisor who can tailor their service to help you meet your goals.