5 Common Veteran Entrepreneurial Mistakes

Veterans are not just known for their services to the country but good entrepreneurial skills. 

Leadership, discipline, teamwork, work ethic, confidence, among other skills are much needed to run a business improving the likelihood of success in a veteran-owned business. 

However, like many businesses, a veteran ought to know some of the common mistakes that they may encounter. They include; 

1. Working in advance of revenue or capital  

The number one mistake many people make in their business relates to acquiring and managing finance.

Working in advance of revenue means acquiring resources before earning the revenue to offset the resources required.

Working in advance of capital on the other hand is running a company with the expectation of capital perhaps from promissory notes or a credit company. 

To prevent this from happening and show that you have enough capital, to begin with, that can be used to run the business before revenue starts channelling in. 

Manage your finances well to prevent instances where you have to seek out more credit before repaying existing loans. 

Avoid taking high-interest rate credit because you may end up spending all your revenue paying expensive business loans. 

2. Going it alone 

Another mistake to avoid is running a business alone. Appreciate the value of teamwork to get your business 

Business partnerships apart from being a source of income can be an opportunity for new business ideas and ventures.

As a veteran businessman, you will need a strong working community for your business to succeed.

Choose your employees carefully considering the type of services you need and what you’re willing to pay them for. 

You will also need to outsource other types of business services including insurance legal services business management services financial management services e t c

Read reviews about online business services from other entrepreneurs to ensure you get the best services available at an affordable price.

3. Ignoring your weaknesses and strengths 

Not every business person has everything figured out.

Your stronghold may be with negotiations, use that to your advantage by getting many investors to invest in your company or form partnerships with other businesses.

You may be good in terms of discipline, share your work ethic with your employees so that your company is built with disciplined employees. 

On the other hand, acknowledge that you have weaknesses. You may not be good with finances or you are the type of person who spends to the last coin. Seek assistance from people who are good with finance management. 

Focusing on your strengths and acknowledging your weaknesses will contribute to the success of your business.

4. Partnering with the wrong investors 

As much as partnerships are important for businesses, a veteran should know when to let some partners go or when not to get into a partnership.

Make a strong checklist for investors. You want investors who not only provide funding for your business but fit your brand. 

The investors you choose should appeal to investors as well as be easy to get along with.

Your business success will heavily depend on the investors and the work you put into it.

5. Relying on one source of income

Another mistake veterans make in entrepreneurship is relying on one source of income.

It is not every day that a business can succeed in its first instance many businesses lose if not completely fail. 

It is therefore important to diversify your source of income to ensure stability. 

You can smarten up by having your company as a limited liability company so that in case of insolvency you will not be held personally liable.

It is something that has kept many business owners from going personally bankrupt. 

However, before looking for other sources of income ensure that you have one stable source, preferably passive income.

If you’re relying on your company for income then ensure it is stable enough before venturing into another business.

It will ensure that if one of the enterprises fails there’s one you can rely on.

Conclusion

Fintech Curve, Forces Compare, among others are famous businesses in the UK founded by British ex-forces members. 

UK Connect, Taboola, GoDaddy, and many other international successful businesses were founded by people who at least served in the military.

This goes a lot to tell that a veteran business can succeed. Learn from other entrepreneurs and couple it with your military skills, and you will make it.