What Is a Good Business For a Veteran Retired From The US Navy?

During the 2012 election there was a debate between Governor Mitt Romney and President Barack Obama on the future of the United States Navy. Governor Mitt Romney suggested that the United States needed more U.S. Navy ships. The president stated that since the ships are more technologically advanced these days, we don't need them in the same numbers as we have in the past. It is true that our Navy is having trouble covering the oceans of the world, but it is also true that President Barack Obama is going to cut military expenditures.

The DOD has already decided that it will cut $500 billion over the next decade, and that's probably just a down payment. What does this mean for the U.S. Navy? It means there will be fewer ships. Therefore we will need fewer sailors and seamen. Where will they go? Well, the military will let these individuals go with honorable discharges, and a number of people through attrition. They've already started. Many Navy bases are down to bare-bones already. Robotic ships will take over, and there will be less need for that many seamen (in theory as per the current President's plan).

Okay so, that means that all these retired veteran Navy personnel will be looking for work in the private sector. You must also recall that our unemployment is over 8% right now, and it will surely climb after 2013 as the federal government decides to cut its budget. What if these former Navy veterans can't get work in the private sector? Well, maybe they can start their own business. They have experience, know-how, hard work ethic, and they tend to fall the rules and do everything by proper procedures.

Might I suggest a small business in the marine sector?

How about cleaning and detailing boats?

How about upkeep services for high-end yachts and sailboats?

You may not have been thinking here, but I can tell you from being in the business previously that it is a good business, albeit hard work. Boat and yacht owners will trust retired military U.S. Navy personnel because of their service. It's hard to get someone to clean your boat and do proper detailing and find someone who will be punctual. That's certainly wouldn't be a problem for a Navy retired veteran.

Doing what you say you are going to do in this sector is paramount, and it's the same way in the U.S. Navy. Therefore this might be one potential option, and therefore I ask that you please consider all this and think on it.

Raising Capital For Your Business - How Long Does it Take?

Most companies vastly underestimate the time commitment necessary to successfully complete a financing. In actuality, a company seeking financing needs to budget between 500 to 1000 work-hours to the capital-raising process, spread out over a 6-9 month time period.

The key processes in the capital-raising process include 1) perfecting the business plan, offering memorandum, and other company due diligence materials, 2) developing a comprehensive, targeted prospective investor list, 3) contacting this list and responding to investor due diligence requests, and 4) negotiating the transaction.

Completing the business plan typically requires at least 200 hours of work. This time is dedicated to conducting the market research to validate the opportunity, developing a comprehensive financial model, determining the most effective way to lay out the business strategy, and actually writing and proofing the business plan.

The next step, developing a comprehensive, targeted prospective investor list is also very time consuming. There are thousands of potential investors, each of which has very different tastes regarding the types of ventures that interest them. Some invest by market sector (e.g., healthcare vs. telecommunications), stage (seed stage vs. later stage), geography, or a combination of these. Many hours must be dedicated to determine which investors are the right fit for your venture. This process involves creating a master investor list, visiting each investor's website to view investment criteria and past investments, and determining who is the right contact at the firm.

To see how easily the time adds up, consider that only about 25% of prospective investors who show an initial interest in a transaction actually progress to detailed company due diligence. Only about 10% of this 25% actually progress to a bonafide offer of funds, of which only 25% of these actually result in an investment transaction. So completing a financing transaction requires, on average, contacting approximately 160 pre-qualified prospective investors.

The due diligence process, where investors scrutinize the investment, can also be very time consuming for the company. Investors often request many documents, some of which can be easily retrieved from files (e.g., prior tax returns), while others may take more time to prepare (e.g., additional market analysis, customer lists with past purchases, contact information, etc.). Finally, negotiating a transaction can take a significant amount of time depending upon the complexity of the transaction and number of parties involved.

Too many companies fail to raise capital since they are unaware of the significant time requirements to do so. Those firms who understand these requirements and budget accordingly are the ones most likely to persevere and end up with the capital they need.