Startup Success: Veteran Business Owners Impacting Our Local Economy
We all proudly read the news about the work veterans do protecting our country. However, what often doesn’t make the news is the impact these heroes have on the business world. Check out these statistics which belie their contributions to the startup ecosystem as the nation continues into a new year.
3 million: The number of businesses veterans run in the United States
5.7 million: The number of people employed by veterans, which equates to $210 billion in annual payroll and $1.2 trillion in sales
30%: The portion of all American businesses owned by veterans; interestingly, while veterans make up only 8% of the U.S. population, they are twice as likely to own a business as the general population
7%: The number of businesses owned by veterans still open after 10 years; according to the Small Business Administration, compared to one-third of all businesses that survive 10 years or more.
The success of veteran entrepreneurs has not gone unnoticed by angel investors, although more attention is needed. In fact, many interested in “vetrepreneurs” as equity-backable companies are making the move strategically with partnership and backing of this up and coming demographic. A growing number of veteran-owned startups are gaining traction with investors, customers and the market. Investors are drawn to the deal flow and potential returns as they hear about more and more good exits from veteran-run companies or about other companies growing at the scale needed for successful equity investment. Consider these examples:
3 million: The number of businesses veterans run in the United States
5.7 million: The number of people employed by veterans, which equates to $210 billion in annual payroll and $1.2 trillion in sales
30%: The portion of all American businesses owned by veterans; interestingly, while veterans make up only 8% of the U.S. population, they are twice as likely to own a business as the general population
7%: The number of businesses owned by veterans still open after 10 years; according to the Small Business Administration, compared to one-third of all businesses that survive 10 years or more.
The success of veteran entrepreneurs has not gone unnoticed by angel investors, although more attention is needed. In fact, many interested in “vetrepreneurs” as equity-backable companies are making the move strategically with partnership and backing of this up and coming demographic. A growing number of veteran-owned startups are gaining traction with investors, customers and the market. Investors are drawn to the deal flow and potential returns as they hear about more and more good exits from veteran-run companies or about other companies growing at the scale needed for successful equity investment. Consider these examples:
Rally Point
Site: RallyPoint.com. Founded 2012.
Location: Watertown, MA
Founder(s): Yinon Weiss, U.S. Army, Special Forces. Aaron Kletzing, U.S. Army, Field Artillery Officer. Dave Gowel, U.S. Army, Armor Officer.
Employees: 22
Description: RallyPoint is where warriors come to talk. The network is home to 1 million members who gather online every day to have open and candid conversations about things like: military life, transition to civilian life, careers & jobs, education opportunities, family matters, entertainment, and their favorite brands.
How the military impacted you as an entrepreneur: “It created the desire to bring private sector social networking technology and opportunity to the military.” -- Dave Gowel
Black Rifle Coffee
Site: BlackRifleCoffee.com. Founded 2014.
Location: Salt Lake City, UT
Founder(s): Evan Hafer, Army, Special Forces
Employees: 21
Description: Black Rifle Coffee Company (BRCC) is a premium, small batch, roast to order coffee company. Evan Hafer started BRCC after spending 9 years working in the most dangerous regions of the world as a contractor for the CIA. Between deployments to Iraq and Afghanistan, Evan refined his coffee roasting, one batch at a time. Through trial and error, Evan discovered what he felt was the best tasting espresso and drip coffee on the planet.
How the military impacted you as an entrepreneur: “Military service taught me several important lessons that have reverberated through Black Rifle Coffee; nothing is impossible, you can’t win if you don’t try and every second of your life there is an opportunity to succeed.” -- Evan Hafer
Site: Plated.com. Founded 2012.
Location: New York, NY
Founder(s): Nick Taranto, US Marine Corps, Infantry.
Employees: 700+
Description: Plated is on a mission to use data and technology to create a world where healthy, affordable, and delicious food is available for everyone. Plated delivers everything you need to cook a chef-designed dinner at home in around 30 minutes.
How the military impacted you as an entrepreneur: “There is no better training for the long, hard, emotionally draining early days of getting your business up and off the ground.” -- Nick Taranto
Winning personality traits combine well with military experience despite common misconceptions and stereotypes, these successful veterans aren't wedded to bureaucracy. In fact, they thrive in small groups, having led small teams or platoons throughout their military career. They are flexible, having been plunged into a highly unique environments with pressure cooker situations requiring literal do or die-based skills training. They learn how to be leaders early in their career, know how to execute plans and have the drive and desire to continue to be leaders even after finishing military service. "The lessons learned and lived in military service like leadership, teamwork, competitive spirit, mission-orientation and ambition are the same attributes needed to succeed in business," the National Veteran-Owned Business Association (NaVOBA) says on its website. More veterans are born with winning entrepreneurial personality traits, which combine well with military training and experience.
Early leadership training: The armed services teach leadership to all recruits - and provide experiences needed to practice what they've learned.
Leadership growth: Many are eager to continue being leaders even after they leave the service.
Working with teams: Whether on the battlefield or in strategic planning, veterans are surrounded by teammates, which serves them well when running a business.
Focus and execution: "American soldiers get more done by 9 a.m. than most people do in a day," touts a NaVOBA flyer that urges people to "Buy Veteran." With this work ethic, it's no wonder they make great entrepreneurs. "These are fine young men and women with fine ideas who have the ability to execute," Rodgers says. "If you don't have the team to execute, what good is the good idea?”
Progress after a failure: “
The military's culture has adapted to support the development of leaders well-suited for entrepreneurship by teaching how to plan for failure, how to seek knowledge from direct reports, and how to learn iteratively as a group. The military delegates significant authority to junior leaders who are expected (and encouraged) to fail during the early stages of their careers," writes veteran entrepreneur Blake Hall in an article on veteran entrepreneurs. "A 22-year-old responsible for leading 46 men and tens of millions of dollars of equipment is going to screw up. He/she is also going to develop much faster as a leader relative to peers.”
Knowledge seekers: Veterans are good at seeking knowledge from subordinates and learning iteratively. They review what did and didn’t work after every exercise - something that serves startups well.
True doers: Many vets who joined the military after 9/11 were driven, unafraid, and determined to directly confront the biggest challenges of the era. Having elected to shoulder the responsibilities themselves rather than watch or comment from a safe distance, they are the "true doers" of this generation.
Best practices: Today’s service men and women are smarter, better trained, equipped, and prepared than at any time in the nation’s history - especially those coming out of the military academies. Doan expands on the reasons and example companies in a recent blog post, Guess Who Just Started the Next Great Company?.
This year lets acknowledge the significant impact veterans are playing in our startup economy. They have the chance to build their financial returns in the process. Here’s to continuing to support our vets and looking forward to their impact in the future.
Site: RallyPoint.com. Founded 2012.
Location: Watertown, MA
Founder(s): Yinon Weiss, U.S. Army, Special Forces. Aaron Kletzing, U.S. Army, Field Artillery Officer. Dave Gowel, U.S. Army, Armor Officer.
Employees: 22
Description: RallyPoint is where warriors come to talk. The network is home to 1 million members who gather online every day to have open and candid conversations about things like: military life, transition to civilian life, careers & jobs, education opportunities, family matters, entertainment, and their favorite brands.
How the military impacted you as an entrepreneur: “It created the desire to bring private sector social networking technology and opportunity to the military.” -- Dave Gowel
Black Rifle Coffee
Site: BlackRifleCoffee.com. Founded 2014.
Location: Salt Lake City, UT
Founder(s): Evan Hafer, Army, Special Forces
Employees: 21
Description: Black Rifle Coffee Company (BRCC) is a premium, small batch, roast to order coffee company. Evan Hafer started BRCC after spending 9 years working in the most dangerous regions of the world as a contractor for the CIA. Between deployments to Iraq and Afghanistan, Evan refined his coffee roasting, one batch at a time. Through trial and error, Evan discovered what he felt was the best tasting espresso and drip coffee on the planet.
How the military impacted you as an entrepreneur: “Military service taught me several important lessons that have reverberated through Black Rifle Coffee; nothing is impossible, you can’t win if you don’t try and every second of your life there is an opportunity to succeed.” -- Evan Hafer
Site: Plated.com. Founded 2012.
Location: New York, NY
Founder(s): Nick Taranto, US Marine Corps, Infantry.
Employees: 700+
Description: Plated is on a mission to use data and technology to create a world where healthy, affordable, and delicious food is available for everyone. Plated delivers everything you need to cook a chef-designed dinner at home in around 30 minutes.
How the military impacted you as an entrepreneur: “There is no better training for the long, hard, emotionally draining early days of getting your business up and off the ground.” -- Nick Taranto
Winning personality traits combine well with military experience despite common misconceptions and stereotypes, these successful veterans aren't wedded to bureaucracy. In fact, they thrive in small groups, having led small teams or platoons throughout their military career. They are flexible, having been plunged into a highly unique environments with pressure cooker situations requiring literal do or die-based skills training. They learn how to be leaders early in their career, know how to execute plans and have the drive and desire to continue to be leaders even after finishing military service. "The lessons learned and lived in military service like leadership, teamwork, competitive spirit, mission-orientation and ambition are the same attributes needed to succeed in business," the National Veteran-Owned Business Association (NaVOBA) says on its website. More veterans are born with winning entrepreneurial personality traits, which combine well with military training and experience.
Early leadership training: The armed services teach leadership to all recruits - and provide experiences needed to practice what they've learned.
Leadership growth: Many are eager to continue being leaders even after they leave the service.
Working with teams: Whether on the battlefield or in strategic planning, veterans are surrounded by teammates, which serves them well when running a business.
Focus and execution: "American soldiers get more done by 9 a.m. than most people do in a day," touts a NaVOBA flyer that urges people to "Buy Veteran." With this work ethic, it's no wonder they make great entrepreneurs. "These are fine young men and women with fine ideas who have the ability to execute," Rodgers says. "If you don't have the team to execute, what good is the good idea?”
Progress after a failure: “
The military's culture has adapted to support the development of leaders well-suited for entrepreneurship by teaching how to plan for failure, how to seek knowledge from direct reports, and how to learn iteratively as a group. The military delegates significant authority to junior leaders who are expected (and encouraged) to fail during the early stages of their careers," writes veteran entrepreneur Blake Hall in an article on veteran entrepreneurs. "A 22-year-old responsible for leading 46 men and tens of millions of dollars of equipment is going to screw up. He/she is also going to develop much faster as a leader relative to peers.”
Knowledge seekers: Veterans are good at seeking knowledge from subordinates and learning iteratively. They review what did and didn’t work after every exercise - something that serves startups well.
True doers: Many vets who joined the military after 9/11 were driven, unafraid, and determined to directly confront the biggest challenges of the era. Having elected to shoulder the responsibilities themselves rather than watch or comment from a safe distance, they are the "true doers" of this generation.
Best practices: Today’s service men and women are smarter, better trained, equipped, and prepared than at any time in the nation’s history - especially those coming out of the military academies. Doan expands on the reasons and example companies in a recent blog post, Guess Who Just Started the Next Great Company?.
This year lets acknowledge the significant impact veterans are playing in our startup economy. They have the chance to build their financial returns in the process. Here’s to continuing to support our vets and looking forward to their impact in the future.