After I purchased a home and settled down in a city, I realized that my local elections mattered more than ever. In addition to dictating my property taxes and the overall health of our city roads, those elections might also determine the quality of the city website, irrigation system, and even our water rights for the year. Instead of simply ignoring the elections and focusing on my personal life, I started analyzing the local politics and reading up on the candidates. It took a lot of work, but eventually I felt comfortable with my choice of candidate. I want others to understand local elections, which is why this entire blog is about government and politics.
Starting a successful business can be challenging. For service members disabled as a result of injuries sustained while on active duty, the process of starting a small business can be fast-tracked by the government.
Disabled veterans are eligible for a type of business known as a Service-Disabled Veteran-Owned Small Business, or SDVOSB. This business classification can offer a number of benefits that improve your overall chances of success in the future.
1. Veteran Owned
As its name implies, an SDVOSB must be owned by a disabled veteran. This doesn't mean that the veteran must have sole ownership over the company. Many business owners have a partner or silent investors that help offset the costs of starting a new company. As long as a majority share of the company is owned by the veteran, the business can be classified as an SDVOSB.
Be prepared to provide documentation of ownership status if you are hoping to classify your business as an SDVOSB.
2. Veteran Run
It's not enough for a disabled veteran to merely own a majority share of a business seeking SDVOSB status, the veteran must be actively involved in the business as well. The government requires that a veteran control the business in order to qualify as an SDVOSB. Control can be a difficult term to define in the business sector, but it can be narrowly defined as a veteran's unconditional authority over a company's day-to-day activities. All decisions that are made within the business must be the sole discretion of the veteran in an SDVOSB.
You must be able to prove that you are taking an active leadership role within your business if you want the government to classify the entity as an SDVOSB.
3. Preferential Status
The reason that many small businesses hope to be designated as an SDVOSB is the preferential status given to SDVOSB entities when it comes to awarding government contracts. A government contract can be a lucrative and long-term source of income for a business. The federal government aims to award at least 3% of all contracting dollars to SDVOSBs each year.
If you are planning to start a business within a competitive industry sector, the preferential status you will have as an SDVOSB can help increase the number of government contracts your company is awarded on an annual basis. This status will give you a competitive edge over other businesses operating within your chosen sector.