“When I was separated from the Navy, I received no transitioning help of any kind— no money, no advice, nothing,” he says. “Back then, the government wasn’t doing much, nor was the civilian side. We were rejected at every bank we applied to for a business loan. We wound up providing initial funding on our credit cards. Experiences like that motivated us to start Orion.”

Greg Ferguson, 39, a former Navy F-14 fighter pilot and Persian Gulf War veteran, says he also received little transitioning help when he left the Navy. “I attended an exit course,” he says, “but the training was geared more for enlisted personnel. I learned about extended benefits and reserve opportunities, but I didn’t get much direct help in the transition to civilian life.”

Ferguson first went to work for someone else as an employee. Later, he founded Mercury Development, a residential real estate development company in Raleigh, N.C.

Like many of his peers, Ferguson thinks his military experience helped him succeed in the business world. “One of the most important things I learned was personal discipline. When I got out after eight years as a naval aviator, I quickly discovered that only a small percentage of the civilian workforce has the personal discipline that most of my peer group had in my squadrons,” he says.

For active duty officers thinking about starting their own business after separation, Ferguson offers this advice: “First, I think it would be wise to work for a private company for a little while. I worked for a consulting firm with about 100 employees for about 18 months when I got out. I thought that was a small company compared to the Navy, but it is huge compared to a start-up business. I believe my transition through the privately held company helped tremendously.

“Second, never stop reading and learning. I’ve read hundreds of business books and I try to continue learning as much as I can. Third, find a support group like the Young Entrepreneurs’ Organization or [your] local Chamber of Commerce and immerse yourself in the company of others who are running their own businesses. I’ve been a member of both of these organizations since I got out, and they’ve taught me that there is always more to learn,” he says.

Some former officers believe that technical skills were the most important asset provided by their military service. Laurel Scherer, 33, a graduate of the U.S. Air Force Academy, served as a public affairs officer during her eight-year tour of active duty. “The training I received in photography enabled me to get started in my own freelance photography business,” she says.

Scherer, a captain at the time of her separation in 2001, also credits her experience in public affairs with helping her market her new business.

SECURING SUCCESS

No one can predict for sure whether an individual will be able to bridge the gap between military and business successfully. However, studies have identified personality characteristics seen most often in successful entrepreneurs.

Howard Van Auken, professor of management in the College of Business at Iowa State University, has worked with many servicemembers. He says the following personal characteristics improve the odds of business success:

Multiple skills. Running a successful business requires more than technical skills. An entrepreneur must have—or be willing to acquire—a range of business skills, such as accounting, marketing, and financial management.

Integrity and honesty. While these character traits are important in all aspects of life, they are critical when dealing with customers, bankers, suppliers, and employees. 

Setting (and sticking with) goals. All businesses go through times of adversity. Successful entrepreneurs must be able to remain motivated during difficult times, often becoming even more determined when things get tough. 

Leadership skills. Running a business means dealing with people. Business owners must be able to communicate with and motivate employees. Some experts think that people skills are among the most important tools in the business owner’s toolbox.

A willingness to network. The broader and more diverse the owner’s personal network of contacts, the more likely the business will be successful.

According to one estimate, more than 4 million former servicemembers own businesses in the United States. That’s no surprise to Chuck Windsor, managing director of communications and marketing for The Veterans Corp. 

“When people come out of the service, they’re independent and self-sufficient,” says Windsor. “So they have a lot of skills important to running a small business.”