Starting A Veteran-Owned Retail Business: A Comprehensive Guide

Starting A Veteran-Owned Retail Business: A Comprehensive Guide 

According to the Small Business Association, there are 31.7 million small businesses in the U.S.. Of these nearly 32 million businesses, around 2.4 million are veteran owned firms. This illustrates that this industry is growing and profitable — and can be particularly profitable for veterans. Becoming a business owner can be one of the best jobs for veterans because of the independence and flexibility of being your own boss. Veterans also have specific support resources, including financial and practical, that can make opening a business easier. 

Skills that veterans have learned during their service can also transfer to owning and running a business. General skills like time management, teamwork, and work ethic are incredibly helpful for running a successful business. Even branch-specific skills, such as IT, finance, or mechanics can also be a boon to new business owners. This guide can help veterans learn what it takes to start their own business, and connect them to the resources at their disposal. 

Steps For Opening A Retail Business

The specifics of starting a new retail business will vary from person-to-person, depending on their location, business idea, and their existing resources. However, there are key aspects that every business will need. These include: 

• Startup Costs and Funding: Every business, regardless of type, will have startup costs associated with it. This could include the purchase of the business or business location, any inspection costs, the purchase of equipment, and so on. There are several ways you can secure funding, including investors, crowd-funding and loans. Veterans may be eligible for specific loans and grants, with more favorable terms. 
• Determining a Legal Structure: The legal structure of your business will determine how your business is recognized by local, state, and federal law. The four main structures used in the U.S. are sole proprietorship, partnership, limited liability company (LLC), and corporation. Most retail stores are LLCs. Each structure type will change the way that you, and other entities, interact with your business on a legal scale.
• Acquiring Insurance: If you have a physical location, or any employees, you will often be required by the state to get liability insurance. Even if you aren’t required by the state to get insurance, it’s still highly recommended as a way to protect yourself and your customers from accidents. 
• Establish a Supply Chain: Your supply chain is more than just partnering with vendors for raw materials, it also helps establish how your products get to customers. Your supply chain may look different depending on what type of business you have. For example, if you manufacture your own products, your supply chain will also involve storage and assembly of raw materials. You should test your supply chain before you open it up to your entire client base — you can do this by sending products to a friend or loved one.

Some of these steps may require more or less effort depending on whether or not you have employees, and if you do, how many you have. Your type of store, whether it be online or in-person, will also change how you go about some of these steps. 

Independent Retail Business or Franchise Business?

When starting a new retail business, you have a couple of options; either creating a new business or joining a franchise. There are pros and cons to each of these options, and deciding which is best for you will ultimately come down to your larger needs and goals.

It’s important to understand the differences between operating a franchise and an independent business. While your day-to-day operations may look very similar, the internal structure will be very different. When operating a franchise, you have to work within the limitations of the company that owns your brand. This can limit some of your freedom to make big changes. On the other hand, running your own business allows you complete creative freedom — however, you have much less of a safety net when things go wrong. 

Joining a Franchise 

When you buy into a franchise, you’re operating a business under a brand. This means that the individual business is yours, however, the branding, intellectual property, processes, and products are the parent company’s. Joining a franchise gives you access to many more resources — including brand recognition and established supplier and vendor relationships. However, as mentioned, you will have to operate under the guidelines of the parent company. This can cause some dissonance if you decide to buy into a franchise with differing opinions or values than yours. This is why it’s important to do your research before purchasing a franchise, to ensure that you’ll be able to work synergistically with the brand. 

Some of the best retail franchises for vets, according to Nerdwallet, include:

• Edible Arrangements
• Pirtek USA
• ProSource Wholesale
• Snap-on Tools

Each of these franchises offers honorably discharged veterans discounts on initial purchase prices, inventory purchases, or even special financing options. 

Opening an Independent Retail Business 

Your other option for opening a retail business includes opening your own, independent store. This will include more leg-work in the initial opening of the store than purchasing a franchise. However, you will have complete creative freedom, and own any intellectual property and branding solely. When opening your own store, here are some questions that can help shape what your business will look like:

• Do you need a physical location?
• Where will your customers find you?
• Who is your competition?
• How much space do you need?

You can have an incredibly successful retail business with or without a physical storefront. There are pros and cons to each, and as an independent business owner, you can decide whether or not you want to continue to maintain a physical location whenever you’d like. 

Finding Vendors And Suppliers

Vendors and suppliers are an integral part of the retail supply chain. Whether you do your own manufacturing or you sell already finished products, your vendors and suppliers are one of the foundational pillars of your business. Because of their crucial role, it’s important to find the right partnerships. Not every vendor or supplier will be a perfect fit, and that’s ok. The healthiest, and most lucrative business partnerships exist where there is open and honest communication, and some sort of shared goal. For example, if your business is committed to sustainability, then partnering with a vendor who uses minimal, or recyclable packaging is a better fit than partnering with a large commercial company, which may not. You can vet your suppliers by conducting interviews, asking other clients of theirs, and even searching online for reviews.

Technology For Your New Business

Digital transformation is a rising trend in business technology. Not only are businesses accelerating their digital transformation, but equally consumers are expecting more digital solutions from the businesses they shop from. This illustrates just how important your business’s technology is, both to keep up with industry trends and to satisfy consumer wishes. Below are some vital digital solutions every business needs.

POS Systems

A POS, or point-of-sale system, is crucial for every retail business. This system is where you’ll process sales, list products, and can even help you manage inventory from the back end. Your POS software is integral to your customer’s ability to shop, and your ability to sell products. POS hardware is also an important part of conducting sales and managing inventory. Your POS system hardware could include a variety of things, including:

• Barcode scanners
• Barcode printers
• Portable data terminals
• Mobile card readers

Certain POS brands, like Square, may have packages with this hardware included. Or, you can create your own printing and labeling solution, catered to your business’s needs.

Loss Prevention and Inventory Management

Loss prevention and inventory management technology can encompass different types of systems. As the name suggests, loss prevention and inventory management software are designed to prevent the loss of assets. Whether this is through preventing inventory shrinkage, physical and digital theft, or inventory organization, these systems are a business owner’s best friend when it comes to staying on top of inventory. These systems can include a combination of software and hardware, including but not limited to:

• Inventory software
• Asset tracking software
• Cloud-based management
• Mobile technology
• UPC reader

Whatever inventory control system you choose will come down to the type of inventory you deal with, as well as your business’s specific priorities and needs.

Marketing Your Business

Once you’ve secured funding, set up your shop, and installed both your hardware and software, then it’s time to get the word out! There are several avenues available to new businesses when it comes to marketing. The two main types of marketing out there include traditional marketing, such as flyers and signs, and digital marketing, such as using social media.

Traditional Marketing

Traditional marketing is the use of traditional channels, like print media, to market your business. Traditional marketing also encompasses coupons, TV ads, and other tried and true forms of marketing that we’ve seen over the years. This marketing is ideal for a more analog audience. For example, if your target audience is seniors, then using Twitter as your main form of marketing may not be your best bet. Traditional marketing isn’t just appealing to seniors. You can still target younger generations with traditional marketing avenues, you may just have to try a little harder. Getting a booth at a college event, setting up at local farmer’s markets, or holding raffles outside of popular coffee shops can be a great way to use traditional marketing to appeal to a younger audience.

Digital Marketing

Digital marketing uses the internet and other online avenues as its marketing channel. Social media marketing and email lists are two great examples of digital marketing. This type of marketing is usually targeted at the younger generation, who grew up with the internet and use it in their everyday lives. When it comes to military use, Facebook, Instagram, and Youtube are among the top used sites.  It can be harder to measure outcomes with digital marketing, as people aren’t bringing flyers or coupons into your store, but you just have to know what “success” means in the world of digital marketing. Engagement is a huge metric for social media posts. Not only is this a way for marketers to measure how many people their posts are reaching, but, the more engagement a post gets, the more likely the social media algorithm is to boost the account, which in turn increases visibility. You can use traditional and digital marketing techniques together or separately. It’s just important that you approach marketing holistically — don’t put all your eggs into one basket. Explore different avenues, and watch carefully for engagement or ROI to determine which avenues are most successful for you.

Additional Resources for Veterans

All veterans have access to the Office of Veterans’ Affairs (VA) resources, with varying levels of services available to them depending on their service time and discharge specifics. You can head into your local VA office if you need help getting started with a new business initiative. Below you can find additional resources for veteran business owners.

• Small Business Association Veterans Business Outreach Center:
• VA Veteran Entrepreneurial Portal: The VA entrepreneurial portal allows veteran business owners to more easily access their federal services, both in and outside of the VA. This portal also offers educational best practices and other resources for veterans opening or running a business.
• Boots to Business: Boots to Business is a training program for any honorably discharged veteran looking to become an entrepreneur. This program was designed specifically for services members beginning their transition out of active duty and into civilian life.
• VetFran: VetFran connects veterans with franchise purchasing opportunities, partnerships, and mentoring programs. This site can act as both an educational resource, as well as an ability for veterans to mentor and guide other veteran business owners.
• Veteran Women Igniting the Spirit of Entrepreneurship: V-WISE was created to empower female service members to pursue entrepreneurship. This organization offers different lengths of classes, from introductory to intensive, that will prepare you for opening and running your own business.
• National Veterans Owned Business Association: This association is a great opportunity for veterans to network and connect with other veteran business owners. This association also helps link veteran business owners up with their corporate partners, for both supplying and franchising purposes.

Veterans often have many of the skills and resources necessary to create successful businesses. Additionally, running your own business can be a fulfilling endeavor when transitioning out of the service. Reach out to any of the resources listed here, or visit your local VA to get started on your path to entrepreneurship.