Vets’ Business Dreams: Funding & Financial Know-How

For veterans transitioning back to civilian life, the prospect of starting a business can be both exhilarating and daunting. Accessing capital can feel like navigating a minefield, especially when you’re also trying to build a solid foundation of financial knowledge. Is there a clear path for veterans to access funding and build successful businesses in the US?

Sergeant Major (retired) Marcus Hayes had a vision. After 22 years in the Army, including multiple deployments, he wanted to build a landscaping business in his hometown of Columbus, Georgia. He knew the area, understood the climate, and saw a gap in the market for high-quality, reliable landscaping services. What he didn’t have was the capital to buy equipment and hire a crew.

Marcus wasn’t alone. Many veterans face similar hurdles. They possess invaluable leadership skills, discipline, and a strong work ethic, but often lack the financial acumen and resources to launch a successful venture. The good news is that resources exist specifically to help veterans like Marcus.

The first place Marcus turned was the Small Business Administration (SBA). The SBA offers several programs tailored for veterans, including the Veterans Advantage loan program, which aims to reduce fees and streamline the loan application process. The SBA also provides access to entrepreneurial training and counseling through organizations like SCORE and Small Business Development Centers (SBDCs). These resources can be invaluable in developing a solid business plan and understanding the financial aspects of running a business.

We had a client last year, a Marine veteran, who was struggling to understand his cash flow projections. He was brilliant at the operational side of his business, but the financial statements were a foreign language to him. We connected him with a local SBDC, and within a few weeks, he had a much clearer understanding of his finances and was able to make better decisions about pricing and inventory.

Marcus attended a Boots to Business Reboot program, an entrepreneurial training initiative offered by the SBA. There, he learned about creating a business plan, market research, and financial management. He also connected with a SCORE mentor, a retired business executive who provided personalized guidance and support. This is where financial education started to click for Marcus. He realized that a solid understanding of financial statements, cash flow, and break-even analysis was just as important as knowing how to operate a lawnmower or design a landscape.

One of the biggest challenges for veterans seeking funding is their credit history. Many veterans, especially those who served overseas, may have gaps in their credit reports or limited credit history. Lenders often view this as a risk, making it difficult to secure loans. Furthermore, mistakes or even identity theft while deployed can damage credit scores. Marcus discovered, to his dismay, that his credit score was lower than he expected due to an old medical bill he thought he had paid. He had to take steps to correct the error and improve his score before he could seriously pursue funding.

Here’s what nobody tells you: Building a strong business credit profile is just as important as having a good personal credit score. A business credit profile is separate from your personal credit and reflects your business’s ability to repay debts. Establishing business credit involves obtaining an Employer Identification Number (EIN) from the IRS, opening a business bank account, and obtaining credit from vendors and suppliers. Paying invoices on time is crucial for building a positive business credit history. Over time, this can help you qualify for larger loans and better interest rates.

Marcus started small. He secured a microloan from a local community development financial institution (CDFI). CDFIs are mission-driven lenders that provide financing to underserved communities, including veterans. He used the microloan to purchase a used truck and some basic equipment. He also took advantage of free online resources from organizations like the FINRA Foundation and the National Foundation for Credit Counseling to improve his financial literacy. These organizations offer free courses and tools on budgeting, credit management, and investing.

I remember speaking with a veteran who started a food truck business. He had a great concept and a loyal customer base, but he was struggling to manage his inventory and pricing. He was constantly running out of ingredients or selling his food at a loss. After taking a financial literacy course, he learned how to track his costs, set prices that covered his expenses and generate a profit, and manage his inventory more efficiently. Within a few months, his business was thriving.

Another avenue for funding is through private investors. Many investors are specifically interested in supporting veteran-owned businesses. Organizations like Patriot Boot Camp and Bunker Labs connect veteran entrepreneurs with mentors, investors, and resources. These programs provide valuable networking opportunities and can help veterans refine their business plans and pitch decks. However, before seeking investment, it’s crucial to understand the terms of the investment agreement and the potential impact on your business. Equity financing, for example, involves giving up a portion of ownership in your company in exchange for funding. Debt financing, on the other hand, requires repaying the loan with interest. Choosing the right type of financing depends on your business’s specific needs and financial situation.

Marcus diligently worked on his business plan, refining his financial projections and market analysis. He also networked with other veteran entrepreneurs, learning from their experiences and building a support system. He even attended a workshop at the local Veterans Business Outreach Center (VBOC) – the one near the Riverwalk on Bay Avenue. The VBOC helped him refine his pitch to potential investors. He learned that investors aren’t just looking for a good idea; they’re looking for a well-thought-out plan, a strong team, and a clear understanding of the market.

He presented his business plan to a group of angel investors at a local pitch competition. He was nervous, but he was also prepared. He had practiced his pitch countless times and knew his numbers inside and out. To his surprise, he received multiple offers. After careful consideration, he accepted an offer from a group of investors who not only provided funding but also offered valuable mentorship and industry connections. The group was headed by a retired executive from TSYS, the big payments company headquartered in Columbus.

Fast forward to 2026, Marcus’s landscaping business, “HayesScapes,” is thriving. He employs a team of veterans and is known for his high-quality work and commitment to customer service. He also mentors other veteran entrepreneurs, sharing his experiences and helping them navigate the challenges of starting a business. He even volunteers at the VBOC, offering advice and guidance to aspiring veteran business owners. He credits his success to a combination of hard work, determination, and a solid foundation of financial education.

Marcus’s story highlights the importance of financial education for veterans starting businesses. While leadership and operational expertise are essential, a strong understanding of finances is critical for long-term success. By taking advantage of available resources, building a strong credit profile, and seeking mentorship, veterans can overcome the challenges and achieve their entrepreneurial dreams. It’s not easy, but it’s absolutely achievable.

Don’t let a lack of financial knowledge hold you back. Take the first step today by exploring the resources available to you and investing in your financial education. Your entrepreneurial journey awaits.