Entrepreneur Bound? Here Are 10 Steps To Get Your Business Started!

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Starting a business? Confused about the planning, legal and regulatory steps you should follow?

Did you know that home-based businesses are required to hold permits to operate legally in most states? What about incorporation? Many new businesses assume they need to incorporate or become an LLC from the get-go – but the truth is, more than 70 percent of small businesses are owned by un-incorporated sole proprietors (although even this group is required to register their businesses).

So, variables aside, there are still some fundamental steps that any business needs to follow to get started. SBA has compiled 10 steps that can help you plan, prepare, and manage your business – while taking care of the startup legalities.  Not all these steps will apply to all businesses, but working through them will give you a sense of what needs your attention and what you can check off.

Step 1 – Write a Business Plan

Yeah, yeah, you know you should write a business plan whether you need to secure a business loan or not. The thing is, a business plan doesn’t have to be encyclopedic and it doesn’t have to have all the answers. A well-prepared plan – revisited often – will help you steer your business all along its growth curve. Try to think of your business plan as a living, breathing project, not a one-time document. Break it down into mini-plans – one for marketing, one for pricing, one for operations, and so on. Take a look at SBA’s Business Planning Guide for more ideas.

Step 2 – Get Help and Training

Starting a business can be a lonely endeavor, but there are lots of free in-person and online resources  that can help advise you as you get started.  Check out what‘s offered at your Small Business Development Centers; SCORE (which offers free mentoring services); Women’s Business Centers, or your local SBA office.

Step 3 – Choose Your Business Location

Where you locate your business may be the single most important decision you make. Many factors come into play such as proximity to suppliers, the competition, transportation access, demographics, and zoning regulations. Check out SBA’s Tips for Choosing a Business Locationand this blog: How to Choose the Best Location for your Business.

Step 4 – Understand your Financing Options

You may choose to bootstrap, fall back on savings, or even keep a full-time job until your business is profitable, but if you are looking for an external source of financing, these resourcesexplain your options.

Step 5 – Decide on a Business Structure

Going it alone or forming a partnership? Thinking of incorporating? What about an LLC? How you structure your business can reduce your personal liability for business losses and debts.  Some choices can give you tax benefits. To help you determine the right structure for your business, here’s an overview of your options and some information on how to file the necessary paperwork in your state and the tax implications of your decision. You might also want to read:

Step 6 – Register Your Business Name (“Doing Business As”)

Registering a “Doing Business As” name or “trade name” is only needed if you name your business something other than your personal name, the names of your partners, or the officially registered name of your LLC or corporation. Here’s how to register your “Doing Business As” name.

Step 7 – Get a Tax ID

Not every business needs a tax ID from the IRS (also known as an “Employer Identification Number” or EIN), but if you have employees, run a business partnership, a corporation or meet certain IRS criteria, you must obtain an EIN from the IRS. You’ll also need to start paying estimated taxes to the IRS; this blog explains more about this process.

Step 8 – Register with Tax Authorities

Employment taxes, sales taxes, and state income taxes are handled at the state-level. Learn more about your state’s tax requirements and how to comply.

Step 9 – Apply for Permits and Licenses

All businesses, even home-based businesses, need a license or permit to operate. This guideexplains more and includes a handy “Permit Me” tool that lets you determine what your permit and licensing needs are, based on your zip code and business type.

Step 10 – Hiring Employees

If you’re hiring employees, follow these 10 steps. If you’re working with a contractor or 1099, read 5 Things to Know About Hiring Independent Contractors.

Source:  sba.gov

$3.5 Million in Grants to Support Veteran Small Business Owners

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The U.S. Small Business Administration (SBA) announced $3.5 million in grant awards to support outreach organizations focused on veteran small businesses. The grants provide critical funding to create new Veterans Business Outreach Centers (VBOCs) in Alaska, California, Colorado, Iowa, Nebraska, Nevada and South Carolina, strengthening training and counseling services for aspiring and existing veteran and military spouse small business owners. In the U.S., there are nearly two million veteran-owned small businesses, employing over five million people and generating over $1.3 trillion in annual revenue.

“Our service members have protected our nation with selfless honor and sacrifice, and the Biden-Harris Administration is committed to supporting them with resources and opportunities as they pursue their American dreams of business ownership,” said U.S. Small Business Administrator Isabella Casillas Guzman. “With this expansion of our veteran-focused network of small business centers, we can help more transitioning service members, veterans, National Guard and Reserve members, and military spouses start and grow their businesses and advance our economy.”

VBOCs are responsible for conducting Boots to Business classes for transitioning members and their spouses, aiding in putting together business plans, they provide mentorship and resources, and so on. These centers are available in nearly every state.

“VBOCs are a one-stop shop for business training, counseling and resource partner referrals to transitioning service members, veterans, National Guard and Reserve members, and military spouses interested in starting or growing a small business,” said Timothy Green, acting associate administrator for the Office of Veterans Business Development. “The new centers will provide additional resources to increase support and access for nearly two million veteran-owned small businesses. The expanded locations aim to enhance the veteran small business owner experience with more opportunities for training and less appointment wait times.”

Organizations receiving grants from the SBA have demonstrated a commitment to addressing challenges that veteran-owned small businesses face and helping them succeed through the Department of Defense’s Transition Assistance Program. The VBOC program has expanded from 22 to 28 locations, fully servicing all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam and American Samoa. Grants will support a range of services, including:

  • Business planning: Provides veterans with training and counseling on accounting, financial planning and management.
  • Accessing capital: Helps veterans understand the multitude of sources of capital available to them, as well as helps them access financing, loans and grants.
  • Marketing and outreach: Provides marketing and outreach services to promote veteran-owned businesses in their communities and beyond.
  • Transitioning: Provides Boots to Business instruction to help active-duty service members transition out of the military.

Grant recipients and the areas impacted:

  • Seattle Economic Development Fund- Business Impact Northwest: Seattle, Washington. Covering area: Alaska.
  • University of Texas Arlington College of Business: Arlington, Texas. Covering area: Nevada.
  • Carmel Veterans Service Center: Colorado Springs, Colorado. Covering area: Colorado.
  • Nebraska Enterprise Fund: Oakland, Nebraska. Covering area: Nebraska and Iowa.
  • The Citadel: Charleston, South Carolina. Covering area: South Carolina.
  • Long Beach City College: Long Beach, California. Covering area: California’s LA County, San Bernardino County, Ventura County, Orange County, Santa Barbara County and Riverside County.

For more information on these and other local VBOCs, visit sba.gov/vboc.

Source: U.S. Small Business Administration

5 Growing Careers in Mental Health

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The National Institute of Mental Health estimates that more than 1 in 5 U.S. adults live with a mental illness. Among adolescents and people of color, the prevalence of mental disorders can be even higher. Along with a growing awareness of the importance of mental health and the need for treatment, the demand for workers who can help is increasing.

If you’re interested in a career supporting mental health, you may want to consider these five occupations that the U.S. Bureau of Labor Statistics projects will grow much faster than average over the 2021–31 decade.

Together, they employed about 761,000 workers in 2021—and they are expected to have more than 91,000 openings on average each year through 2031. The education typically required to enter these occupations ranges from a high school diploma to a master’s degree, and they all pay around or more than the $46,310 median for all occupations in 2022.

Substance Abuse, Behavioral Disorder and Mental Health Counselors

Substance abuse, behavioral disorder and mental health counselors advise people on a range of issues, such as those relating to alcoholism, addictions or depression. They provide support, including for prevention, to help clients recover from addiction, modify problem behaviors or improve mental health. They may work with patients individually or in group sessions, helping those struggling with mental health, and may find ways to discuss their addiction or other problems with family and friends.

  • Projected growth: 22.1%
  • Average salary: $49,710
  • Education needed: Bachelor’s degree

Community Health Workers

Community health workers advocate for residents’ needs with health care providers and social service organizations. They implement wellness strategies by collecting data and discussing health concerns with members of specific populations. They typically work closely with health education specialists, but their expertise lies with direct interaction with those needing assistance in the forms of informal counseling, providing basic health services, advocating for individuals and conducting outreach programs.

  • Projected growth: 15.9% (Average growth is at about 7-8%)
  • Average salary: $46,190
  • Education needed: High school diploma

Marriage and Family Therapists

Marriage and family therapists help people manage problems with their family and other relationships. They bring a family-centered perspective to treatment and work with individuals, couples or even whole families to work out any issues they may be having. Marriage and family therapists are also responsible for evaluating family roles and development to understand how clients’ families affect their mental health and address issues, such as low self-esteem, stress, addiction and substance abuse.

  • Projected growth: 13.9%
  • Average salary: $56,570
  • Education needed: Master’s degree

Health Care Social Workers

Health care social workers help clients understand their diagnosis and adjust their lifestyle, housing or health care. They can help people transition from the hospital back into their communities, provide information about home health care services and support groups, and work with doctors to understand the effects that disease and illness have with mental and emotional health. Health care social workers may also receive a specialization in geriatric social work, hospice and palliative care, or medical social work.

  • Projected growth: 11.1%
  • Average salary: $60,280
  • Education needed: Master’s degree

Mental Health and Substance Abuse Social Workers

Mental health and substance abuse social workers help clients with mental illnesses or addictions. They provide information on services, such as support groups and 12-step programs, to help clients cope with their illness and are licensed clinical social workers who may perform some of the same tasks as health care social workers.

  • Projected growth: 11.1%
  • Average salary: $51,40
  • Education needed: Master’s degree

Sources: The Department of Labor, Bureau of Labor Statistics

The Hiring Guide for Small Business Owners

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Hiring employees is more than just a job ad and some interview questions. You’ll want to make sure that your future employees are being properly cared for according to federal and state laws. Here’s what you need to know:

Hire and pay employees

Before finding the right person for the job, you’ll need to create a plan for paying employees. Follow these steps to set up payroll:

  • Get an Employer Identification Number (EIN)
  • Find out whether you need state or local tax IDs
  • Decide if you want an independent contractor or an employee
  • Ensure new employees return a completed W-4 form
  • Schedule pay periods to coordinate tax withholding for IRS
  • Create a compensation plan for holiday, vacation and leave
  • Choose an in-house or external service for administering payroll
  • Decide who will manage your payroll system
  • Know which records must stay on file and for how long
  • Report payroll taxes as needed on a quarterly and annual basis

The IRS maintains the employer’s tax guide, which provides guidance on all federal tax filing requirements that could apply to your small business. Check with your state tax agency for employer filing stipulations. 

File taxes with employees or independent contractors

Distinguishing between employees and independent contractors can impact your bottom line, or your total revenue once expenses have been deducted. Your bottom line ultimately impacts how you withhold taxes and helps you stay legally compliant during tax season. Learn the differences before hiring your first employee.

An independent contractor operates under a separate business name from your company and invoices for the work they’ve completed. Independent contractors can sometimes qualify as employees in a legal sense. The Equal Employment Opportunity Commission guide breaks things down so you can make a more informed decision.

If your contractor is discovered to meet the legal definition of employee, you may need to pay back taxes and penalties, provide benefits and reimburse wages stipulated under the Fair Labor Standards Act.

Plan to offer employee benefits

Health care and other benefits play a significant role in hiring and retaining employees. Some employee benefits are required by law, but others are optional. Required employee benefits include:

  • Social Security taxes: Employers must pay Social Security taxes at the same rate as their employees.
  • Workers’ Compensation: Required through a commercial carrier, self-insured basis or state workers’ compensation program.
  • Disability Insurance: Disability pay is required in California, Hawaii, New Jersey, New York, Rhode Island and Puerto Rico.
  • Leave benefits: Most leave benefits are optional outside those stipulated in the Family and Medical Leave Act (FMLA).
  • Unemployment insurance: Varies by state, and you may need to register with your state workforce agency.

Optional employee benefits

Your small businesses can offer a complete range of optional benefits to help attract and retain employees. Even if a benefit you offer is optional, it might still have to comply with certain laws if you choose to offer it.

Businesses that offer group health plans must comply with federal laws. You can read more about those laws in the Department of Labor’s advisory guide.

Employees can expand coverage through the Affordable Care Act and some may qualify for benefits via the Consolidated Omnibus Budget Reconciliation Act (COBRA). Businesses must extend the option of COBRA benefits to employees who are terminated or laid off. For more information and resources to help small businesses make decisions about health insurance coverage, visit HealthCare.gov.

Retirement plans are a very popular employee benefit. Consider offering an employer-sponsored plan like a 401k or a pension plan. The federal government offers a wide range of resources to aid small business owners in choosing their retirement plan and pension.

Employee incentive programs

Employee incentive programs can boost morale and create more draw for open positions. Common incentives include stock options, flex time, wellness programs, corporate memberships and company events.

If your budget allows, you may want to consider investing in benefits administration software to make your accounting process easier and more efficient. Detailing these benefits in the employee handbook helps your staff make decisions, and they can use it as a reference for workplace requirements. 

Follow federal and state labor laws

Protect workers’ rights and your business by adhering to labor laws, which means you must ensure that business practices align with industry regulations.

This includes learning applicable laws for hiring veterans, foreign workers, household employees, child labor and people with disabilities, among others groups. You must also comply when terminating an employee, laying off workers or downsizing the company.

Consult the Department of Labor’s federal and state law resources for more information.

Source: Small Business Administration

NVBDC Conference Elevates Businesses

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Another year is in the books for the annual NVBDC Reserving Veteran Business Connections Conference, a collaborative effort held in partnership with the prestigious Federal Reserve Bank of Chicago and the Federal Reserve Bank of Atlanta.

The Reserving Veteran Business Connections event is designed to foster connections and opportunities for veteran business owners and showcase networking and collaboration’s power in driving economic growth and diversity for NVBDC-certified service-disabled and veteran-owned businesses.

Attendees had the opportunity to connect, learn and propel their veteran-owned business to new heights by engaging with the Federal Reserve Bank of Chicago, the Federal Reserve Bank of Atlanta, the state of Michigan’s Michigan Economic Development Corporation (MEDC), the Small Business Association (SBA), Toyota, Rocket Companies, Kohler, Flagstar Bank, Comerica Bank, Tenneco, Stellantis, DTE, Freddie Mac, Cornerstone Consulting Organization LLC (CCO), Consumers Energy and Dell.

The 1:1 matchmaking sessions were the event’s highlight. They enabled veteran business owners to interact with supplier diversity professionals and transition from relationship building to contracts with NVBDC corporate members.

Keith King
Keith King
From Left to right: Chris Sim, Keith King, Leonie Teichman
From Left to right: Chris Sim, Keith King, Leonie Teichman
From Left to right: Mark Hands, Genevieve Hayes, Keith King
From Left to right: Mark Hands, Genevieve Hayes, Keith King
From Left to right: Mark Hands, Dr. Fred McKinney, Keith King
From Left to right: Mark Hands, Dr. Fred McKinney, Keith King
From Left to right: Mark Hands, Sheila Harton Montgomery, Teresa LeFevre, Keith King, Cameron Boli
From Left to right: Mark Hands, Sheila Harton Montgomery, Teresa LeFevre, Keith King, Cameron Boli
From Left to right : Leonie Teichman, Keith King, Mark Hands, Dr. Fred McKinney, John Taylor, Annette Stevenson
From Left to right : Leonie Teichman, Keith King, Mark Hands, Dr. Fred McKinney, John Taylor, Annette Stevenson
From Left to right: Mark Hands, Dr. Fred McKinney, John Taylor
From Left to right: Mark Hands, Dr. Fred McKinney, John Taylor

Conference attendees heard from a renowned economist, academic leader and advocate, Dr. Fred McKinney, who presented on Revitalizing Supplier Diversity Opportunities and Challenges. Moreover, attendees also had the opportunity to hear from supplier diversity professionals who provided insights into procurement opportunities, financing strategies and best practices for business growth.

The seventh annual NVBDC-Federal Reserve Matchmaking Conference leaves a trail of educated, inspired and motivated veteran entrepreneurs armed with insights, connections and strategies to elevate their businesses to new heights.

We invite you to register for our upcoming National Veteran Business Matchmaking Conference to be held live in Louisville, Kentucky, on November 8-9, 2023, by visiting NVBDC.ORG/EVENTS.

Photo credit: NVBDC Staff

How the DoD is Teaming Up with Small Businesses

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By C. Todd Lopez

The Defense Department’s Office of Small Business Programs has several efforts underway to make it easier for the U.S. small business community to become more involved in providing goods, services, technology and research to support our nation’s defense.

At the Professional Services Council in Arlington, Virginia, Farooq A. Mitha, the director of the Office of Small Business Programs, spoke to representatives of small businesses about his office’s most recent efforts, including the department’s newly released Small Business Strategy.

About 96% of the department’s Procurement Technical Assistance Centers have been rebranded as APEX Accelerators in the past few months. Those APEX Accelerators have an enhanced mission of helping existing and new businesses strengthen the defense industrial base by accelerating innovation, fostering ingenuity and establishing resilient and diverse supply chains.

“We’re going to be doing a lot of market research using these entities,” Mitha said. “We’re going to connect them closer to our other prime contractors that are looking for subcontractors to be part of their supply chains.”

The APEX Accelerators will also do more training with small businesses on issues related to cybersecurity and foreign ownership, control or influence that might affect their ability to work with the federal government. Efforts are also underway to reinvigorate the Rapid Innovation Fund (RIF), which hasn’t been funded since 2019. That program was designed to help small businesses get their technology from the prototype stage to the production stage—a period when many companies fail, commonly called “the valley of death.”

“We’ve gone four years without money into this program,” Mitha noted. “That is a big, big problem at a time when we’re spending more dollars doing prototyping. We need to support more companies to go into production and transition their technologies.”

The RIF will support streamlining entry points into the defense marketplace for small companies and enable better long-term planning for small business programs. Recently, Mitha advocated for the permanency of the Mentor Protégé Program (MPP)—a pilot for over 30 years. This led to Congress making MPP permanent in the Fiscal Year 2023 National Defense Authorization Act.

Additionally, two new programs have been implemented under Mitha’s leadership: The Small Business Integration Group and a new credential with the Defense Acquisition University (DAU).

The Small Business Integration Group, under Mitha’s leadership, will include services, the defense agency, the Office of the Secretary of Defense, the industrial base and small business stakeholders. This group will work together to form a stronger industry and communicate the needs amongst departments in a more organized fashion.

The DAU will also offer a new credential that will help anyone in the acquisition workforce earn their small business credential. Mitha says of the program, “We’ve now established common courses, curriculum and training for all these professionals. But we’ve made it a credential, not a career field. So, what that means is that anybody in the acquisition workforce can get the small business credential.”

Mitha said he expects more instructors and capacity will be needed to help the thousands of acquisition professionals across the department who may want to get the small business credential.

For more information on how the Office of Small Business Programs and the Department of Defense can help your business ventures, visit va.gov/osdbu.

Source: Department of Defense

Your Next Mission (Critical)

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By Carrie Goetz

Many veterans may not be exposed to the mission critical industry—aka—the data center industry. Veterans serving on the IT side will undoubtedly understand the concept of a data center. For those that didn’t serve in the technology sectors, don’t think this industry is not for you. As a brief explanation, the mission critical industry is responsible for constructing, operating and maintaining data centers. By way of explanation, every known digitally documented thing “lives” in at least one data center. Every bit, every byte, every conversation and even transitory data will have some stint in a data center.

According to Arizton, the global data center market is set to reach 288.3 billion by 2027, up from 215.8 billion in 2021. Plainly put, the industry is not going away. The depth and breadth of jobs within the industry are vast. While some veterans will have directly transferable skills, other skills map well to skills needed to fill the over 300,000 open jobs requiring people over the next couple of years. The industry is a bit of an enigma for those without an IT background. At a recent Heroes in Transition event in San Diego, the overall theme was to show transitioning Soldiers some of the industry’s opportunities and the purpose surrounding the industry.

As we discuss the industry, let’s tie this back to the “every known digitally documented thing” statement above. That one sentence discusses the need for diversity within the industry. If everyone’s data is in them, shouldn’t everyone be represented in the industry that supports that data? The need for TRUE diversity is vital. We haven’t reached gender parity (not even close). We aren’t in every country on the planet. We don’t represent everyone yet. But we do have jobs for every background, skill level and education level. In fact, the majority of the positions within the industry are learned on the job. Veterans are in great demand.

Site Selection

Building a data center starts with site selection. Telecommunications, power and latency are the prime considerations for the site. Not that these necessarily need to be in place, but the ability to get them to the site is critical. Envision a piece of land somewhere. Everything you can imagine that needs to be at a home site is required here, at a much grander scale. Site selection involves real estate, logistics and liaising with telecommunications carriers, power companies, municipalities and the state or country. These jobs exist with all data centers, and many cities with large data center allies have their own liaisons, too.

Construction and Build

Careers in construction and building design are private commercial versions relatable to anyone in construction from the military. Jobs range from engineering and drafting to hands-on trades. In fact, we owe the trades everything! If it weren’t for the trades, nothing would be built. There are many construction firms out there that specialize in mission critical buildings. Some are design-build, and some are just construction. Some larger colocation (colo) data center builders that lease space have in-house construction arms. While others rely solely on contractors. Regardless, the building, power, cooling, telecommunications, generation, electricians, plumbers, masons, carpenters and heavy machine operators are just a few of the skills in demand for construction.

It’s Built, Now What?

Once constructed, the building becomes an ecosystem supporting information technology and systems within the space. Every single thing that gets installed must be maintained within the ecosystem. The information technology systems also must be installed, maintained and at some point, replaced. Many jobs in operations lend well to skills obtained in the service. Operations personnel must think fast on their feet and react calmly to find a solution. And while you may be thinking, “I don’t understand the ecosystem,” there are books to help and certifications that will fill in your skills gap. In fact, many college-trained individuals get the exact same certifications to learn to support the data center.

Operations jobs can be chaotic, so if you thrive on chaos, operations could be right up your alley. If you don’t thrive on chaos or have had enough, thousands of jobs in and around the industry support operations without the frenzied pace.  Vendor companies need sales, systems engineers, designers and customer service personnel. Human resources, marketing, accounting and logistics are also in demand.

Where’s the Purpose?

The purpose is yours for the taking. Whether you find purpose in helping others or being a guardian within the industry, there are plenty of ways to gain fulfillment. For those in the military that crave working as a team, this entire industry is a team. People here are helpful. This industry is one of the most extensive ongoing apprenticeships ever. People learn from each other. We need diversity to keep groupthink in check and ensure that our platforms are kind, serve all and, most importantly, are safe.

The stark reality is that the internet isn’t completely safe. Our children are not inherently safe on the internet. We simply can’t assume it’s always someone else’s job to foster safety. But then, veterans don’t. Veterans have stepped up and shown character through their service. We need these guardians in our industry, from construction to the cloud and everything in between.  If travel is a passion, many of these jobs lead you around the globe. Want to be a homebody? These jobs are everywhere. You probably look at data centers every day and don’t even realize it. Most every company either has one or uses one someone else runs. The cloud is technically a data center that provides services to users.

If you are transitioning or a prior service member, rest assured you are in demand. Training is available. Organizations such as Salute Mission Critical, Overwatch, iMasons and others will help you find your path. I, too, am happy to help and make introductions. Lastly, thank you for your service. We are all in your debt. It’s time to pay it forward, and our industry is working to do just that!

Carrie Goetz is an Amazon best selling author of Jumpstart Your Career in Data Centers and associated educator’s reference with an extensive career in the data center industry. She is published in 69 countries. She is the inaugural AFCOM/ Data Center World Lifetime Achievement Award honoree, 2023 Top 25 Women in Mission Critical and 2023 ICT Woman of the Year recipient.

The Overseas Cost-of-Living Allowance Gets an Upgrade

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The Defense Department has announced updates to the adjustment process for the overseas cost-of-living allowance (OCOLA), which is aimed at creating financial predictability for service members stationed outside of the continental U.S. OCOLA is a nontaxable allowance that varies based on a service member’s duty location, pay grade, time in service and number of dependents.

Under the policy announced in early May, reductions in OCOLA resulting from changes in cost-of-living and currency fluctuations will be implemented no more than once every six months.

The reductions took effect on May 15 and will be applied again on November 15. The new policy also stipulates that approved OCOLA reductions based on annual cost-of-living assessments will be split between the two six-month cycles. Reductions based on currency fluctuations will be implemented in full each cycle, and the department will continue to implement OCOLA increases continuously throughout the year when warranted.

The updated policy aligns with changes mandated by Congress in the National Defense Authorization Act for Fiscal Year 2023.

The rates are calculated based upon a living pattern survey, which measures where members shop—including the proportion of shopping performed on military installations, at local community outlets and online—and retail price surveys, which measure the cost of non-housing goods and services in the locations where members shop.

The rates for foreign locations also account for currency fluctuations.

In December of 2022, the department implemented a 90-day pause in OCOLA reductions to provide temporary relief to those subject to OCOLA reductions due to higher inflation in the continental U.S. as opposed to many overseas locations, as well as a strengthening U.S. dollar.

Reductions will resume later this month under the new adjustment process. Service members in affected locations will see reductions to their OCOLA reflected in their paychecks beginning on June 1.

“Many of the locations that we will see initially will be in areas such as Hawaii, Guam, Japan and other locations in the [U.S. Indo-Pacific Command] theater, although we are seeing some fluctuations as well in other locations in Europe and Australia due to either the price surveys or due to currency and exchange rate changes,” a senior department official said.

While previewing the updated policy, officials emphasized that even those affected by OCOLA reductions are unlikely to see a drop in their overall pay when compared to last year.

“It’s important to acknowledge that in January, service members received a 4.6% increase in basic pay, as well as an approximately 11.2% increase in basic allowance for subsistence,” a senior official said. “And even those locations where COLA rates will start to decline, pay in 2023 is still higher than it was in 2022, so many service members will still have a higher take-home pay even with OCOLA reductions than they received in 2022.”

Under the updated policy, officials will notify combatant commanders 30 days prior to implementing reductions to ensure service members are prepared. Combatant commanders will be given an opportunity to submit an appeal within 45 days of the announcement to request a review of OCOLA reductions affecting duty locations under their command.

Source: Department of Defense

New Benefits for Growing Military Families

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Becoming a new parent can be daunting for anyone, let alone for military servicemembers and their spouses. But within the last year, a slew of new ordinances have been put in place to make your experience as a military parent and a military spouse easier. Here’s what you need to know:

Serving While Pregnant

Within the last year, several branches of the military have begun issuing free maternity uniforms for pregnant servicemembers. This not only dismissed the concern for ensuring that pregnant servicemembers has the correct uniforms, but eliminated the need to pay for them out of pocket.

The Air Force also loosened their guidelines for pregnant pilots, allowing them to continue flying certain air crafts under certain conditions during the first two trimesters of pregnancy.

Extended Parental Leave

In a memo signed by Gilbert R. Cisneros, Jr., the undersecretary of defense for personnel and readiness, the parental leave policy for servicemembers has been extended as of January 2023. According to the new memo, service members who give birth “will be authorized 12 weeks of parental leave following a period of convalescence to care for the child.” Service members who are the non-birth parent will also be authorized 12 weeks of leave to care for the child. Additionally, service members who are undergoing the adoption process or who have long-term foster care children placed with them will also be granted 12 weeks of parental leave.

“Members will be afforded the opportunity to take full advantage of the Military Parental Leave Program consistent with their desires [and the] operational requirements and training workloads of their unit,” Cisneros wrote. “It is important for the development of military families that members be able to care for their newborn, adopted or placed child or children.”

Affordable Housing

In October, the basic allowance for housing rates automatically increased in 28 areas where rent has skyrocketed by 20% or more. While the increase only lasted until the end of 2022, the new BAH rates were increased, averaging a raise of 12.1%. The DOD additionally increased the temporary lodging expense coverage to give families more flexibility to search for housing. These payments included a dislocation allowance to all eligible service members with rising prices for enlisted service members between the grades of E-1 to E-6 to help offset personal expenses for permanent changes of station.

Support for Military Spouse Employment

Just as transitioning veterans have a difficult time looking for employment, military spouses face their own unique set of struggles when it comes to being employed. For the last several months, the DOD has been working on new programs that will help spouses to gain and retain employment to lessen the roadblocks for spouses who are relocating.

“We know that one-third of military spouses must obtain new professional licenses every time they move to a new state,” Pentagon Press Secretary Air Force Brig. Gen. Pat Ryder stated in an October press conference. “”To ease this burden, we’ve accelerated the development of seven more interstate licensure compacts. We anticipate state approval starting in 2023.”

Childcare

For the last 10 years, the DOD has been sponsoring the “Military Childcare in Your Neighborhood-Plus” program, which provided free assistance to military families seeking quality childcare when on-base childcare was deemed unavailable. The program has expanded to include states that formerly didn’t have access to the program. This has allowed even more military families to locate and access high quality civilian childcare for their children.

Additionally, there are several other programs that work with the military to find childcare for military children. To find out more about “Military Childcare in Your Neighborhood-Plus” and other great military-supported programs, visit childcareaware.org/fee-assistancerespite/.

Sources: Department of Defense, Child Care Aware, U.S. Air Force

Are You a Veteran Entrepreneur? Get Certified and Connect with Top Companies

Business
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veteran and businessman shaking hands US flag in background

If you’re a small business owner who belongs to an underrepresented group, you may be eligible for certain business certifications that can help you access more government contracts and private-sector opportunities.

Certifications for groups like veterans, service-disabled veterans, disabled veterans, milspouses, minorites and more promote supplier diversity, which encourages the use of diverse businesses as suppliers. These certifications also come with access to exclusive resources and networks, leading you to new business opportunities.

Here’s an overview of different types of business certifications and how to begin the application process if you’re eligible.

The following organizations offer many of the business certifications currently available to diverse small business owners:

U.S. Small Business Administration (SBA): The SBA is a government agency that provides support and opportunities to entrepreneurs and small businesses. This organization offers certification programs like the Veteran-Owned Small Business Program (VOSB), Service-Disabled Veteran-Owned Small Business Program (SDVOSB) and Woman-Owned Small Business (WOSB) Programs, HUBZone Program and 8(a) Business Development Program, which make businesses eligible for certain government contracts.

Minority-centered organizations: Some minority-centered organizations, such as the National Minority Supplier Development Council (NMSDC), offer certifications that helped minority entrepreneurs gain new business from the private sector.

Other government and industry organizations: There are also certifications that are provided by state and city governments. The contracts they award are smaller and typically only within their jurisdiction.

Why Become a Certified Business?

Business certifications come with various perks and resources that can help your company stand out among competitors and scale your business faster.

Access to contracts: The federal government, as well as certain private sector corporations, set aside contracts to be awarded to businesses with certain verified certifications. These contracts are only given to businesses with these certifications in order to ensure equal opportunity.

Ability to form joint ventures: Once you become certified, you often can join other businesses within your certification in order to compete for certain contracts.

Additional management and technical assistance: Many of these certification programs also offer management and technical assistance to help their businesses grow and succeed.

Types of Business Certifications

Veteran-Owned Business Certification

As a veteran of the United States Armed Forces, there are two different certifications you can apply for if you’re starting a business. The Vets First Verification Program is a federal government program that grants certification for Veteran-Owned Small Businesses (VOSB) and Service-Disabled Veteran-Owned Small Businesses (SDVOSB). With these certifications, you’re granted competition for certain contracts that are set aside for veterans and veterans who became disabled while in the act of service.

To qualify for these certifications, you must be a small business that is at least 51% owned by one or more service-disabled veterans who manage the business daily. To apply for SDVOSB, you also must have a service-connected disability.

For business certification in the private sector, the National Veteran Owned Business Association’s Certified Veteran’s Business Enterprise (VBE) is a program that offers certifications as a marketing tool for businesses that want to work with VBEs. Like its federal government counterpart, your small business must be at least 51% owned by one or more service-disabled veterans.

While there are a wide range of business certifications and certifying bodies available to small business owners, here are some of the most well-known types:

Small Business Certification

The 8(a) Small Business Certification was designed to help create equal opportunities for small business owners who are “socially or economically disadvantaged.” The federal government awards at least 5% of contracting dollars for 8(a) businesses and allows them to compete for set aside and sole source contracts.

To be eligible for the 8(a)program, your small business must be at least 51% owned and controlled by U.S. citizens who are economically and socially disadvantaged. Additionally, the owners must manage day-to-day operations, make long-term decisions and have a personal net worth that is less than $750,000 and a three-year average adjusted gross income of $350,000 or less.

If you meet these certifications, you can apply to become an 8(a)business by registering on the SBA’s website. Once you complete the application, you will receive a letter informing you of your approval or rejection. If you were approved, your certification lasts for a maximum of nine years. However, you’ll be subject to annual reviews in order to maintain your standing in the program.

HUBZone Business Certification

The Historically Underutilized Business Zone (HUBZone) is a program with the goal of growing businesses in historically underutilized areas by awarding them at least 3% of federal contract dollars each year.

To qualify for the HUBZone program, your small business must be located in a HUBZone, have at least 30% of its employees living in a HUBZone, and be 51% owned and controlled by U.S. citizens, a Community Development Corporation, an agricultural cooperative, a Native Hawaiian organization or an Indian tribe.

You can apply for your HUBZone business certification on the SBA’s website. While there is no limitation to the length of how long a business can have a HUBZone certification, they will have to recertify for the program once a year. Additionally, an examination of your business will be required every three years.

Women-Owned Businesses Certifications

If your business is majority-owned and operated by one or more women, you may be eligible for the SBA’s Women-Owned Small Business program.

This program was created to aid female business owners by awarding them contracts within specific industries where women are underrepresented. A minimum of 5% of contracting dollars are given to woman-owned businesses each year by the federal government.

There are two types of woman-owned business certifications offered by the National Women’s Business Council: Woman-owned small business (WOSB) and economically-disadvantaged woman-owned small business (EDWOSB).

To qualify as a WOSB, your small business must be for profit and 51% owned and operated by women who are U.S. citizens and work within the business full-time.

If you’re looking to qualify as an EDWOSB, your business must meet all of the above requirements for a WOSB, as well as the economic requirements of an 8(a) certified business. If you already have an 8(a) certification, you can also apply for an EDWOSB certification as well. You can apply for both woman-owned business certifications through the SBA’s website.

Minority-Owned Businesses Certification

The National Minority Supplier Development Council (NMSDC) is an organization that is committed to integrating Minority Business Enterprises (MBE) equally in the public and private sector. This organization provides MBE certification for minority-owned businesses.

The NMSDC network consists of over 12,000 certified MBEs that are connected to over 1,400 large corporate members. Not only is it a significant certification within the NMSDC but being MBE-certified helps in government circles to gain federal contracts as well.

To qualify for MBE certification, your small business must be 51% minority-owned and operated, and the owners must be involved in daily management. The NMSDC defines a minority as “an individual who is at least 25% Asian, Black, Hispanic or Native American.” This is established and proven through a combination of screenings, interviews and site visits.

If your business meets these criteria, you can apply to be an MBE through the NMSDC’s website. Once you’ve submitted all the required documents and paid the application fee, you’ll get an email and letter if you’ve been approved. If your application was not approved, you may submit a letter of appeal.

B Corp Certification

A B Corporation is a for-profit business that is driven by a social mission. These companies use their profits as a means for positive impact for their employees, communities and the environment. They are certified by the SBA and are overseen by the B Lab, a governing body that ensures B corps are meeting their standards for impact.

Becoming a B Corp requires your company to have a positive social impact. For a business to certify as a B Corp, they must complete the B Impact Assessment (BIA) and meet the legal requirements. The BIA evaluates the applying company and their impact on their employees, consumers, community and the environment. Once you complete the BIA, you’ll pay a fee. Once approved, your certification will last for three years, after which you’ll be subject to a reassessment to determine if your company still means the criteria.

Source: NMSDC.org

Making Time for All the “Lasts” Before You PCS

LifestyleMilitary Spouse
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article author and her two small children posing on beach boardwalk

By Kristi Stolzenberg

Monday night, 7:30, mid-April, along with half a dozen other parents I’ve never met, I’m sitting in one of the many metal folding chairs lining the mirrored wall of a dance studio. I’ve got a nice social distance around me because in order to make sure dinner happened before class, I postponed my desperately needed post-run shower. This isn’t unusual (the shower postponement), but because I completely forgot it was Parent’s Night at our daughter’s dance studio, instead of waiting for her in the safety and solitude of my car, I find myself awkwardly sitting amongst strangers trying to mask my sweat, smell and dry, prickly legs which are on full display thanks to the running shorts.

Feeling really great about my self-care and parenting, I enthusiastically jot down notes as the dance instructor outlines the details of the end-of-year recital—where to be and when, instructions on makeup and hair, song title—hoping the passion with which I take notes will help me earn back some parenting points and salvage the first impression I’m making. Then the instructor asks the line of parents for a volunteer to help backstage at the recital—essentially herd the sequin-clad cats, make sure they’re buttoned up in their costumes, and touch up hair and makeup.

Please understand that I am not “that” dance mom. Our daughter loves it, and she’s a brilliant dancer, but it is her own thing. I’m not the type to tell her to put more energy into her leap thingy on counts seven and eight. My ballet buns have never won awards. And I’m pretty sure when I did her makeup for photos last year, the instructor or another mom completely redid it. I’m not exaggerating when I say we showed up to her first recital with her ballet costume still wadded up in the bag it came in, and when I walked in and saw everyone else’s moms had fluffed their tutus, hung them in garment bags, and neatly bagged hair, makeup and tights in separate pockets, I knew I was the weakest link in that room.

I paint this three-paragraph story to explain why I did what I’m about to tell you. After three Mississippi’s of silence, I raised my hand. I volunteered to be dance mom or backstage mom or whatever it’s called. I did this not because I’m qualified. And I certainly didn’t do this because I have time just lying around—I didn’t even have time to shower on a routine Monday. In fact, there probably isn’t a worse time for me to take on a responsibility that is going to stress me out. The recital, as it happens, falls right smack dab in the middle of our PCS—literally right in the middle.

I absolutely did not need one more thing on my plate. But I did it, willingly. Why? Because after last year’s recital, our daughter begged me to be the mom backstage. It is something important to her, and she is important to me, so I am making time not only for her to dance in her last Virginia recital, but to get way out of my comfort zone to make it memorable for her.

And when it comes to those “lasts” leading up to a PCS—the goodbye parties, the “real goodbyes” to the close friends (which are becoming more dramatic with each year as we near the teens), and the last dinner at your favorite place, every parent will tell you that they run a tight race with all the lasts at the end of the school year—award ceremonies, field days, class parties, field trips, yearbooks, and thank you gifts for every last faculty member at the school (P.S. this last one should also be read sarcastically).

The packing and planning and house hunting and selling that go into a PCS—even one just five hours away to a place we’ve already lived once—take up a lot of headspace. And you know “a lot” is an understatement. When you have to dedicate so much memory and critical thinking to things as wild as, “Make sure to put a do-not-pack sticky note on the litter box,” or pulling the old towels out of the linen closet so you can use those after everything is hauled away and trash them on your way out, there isn’t a lot of brain power or energy left to dedicate to really being present (or presentable) at all these lasts. In fact, I just realized as I typed that last line, that I now need to not only figure out what a dance mom wears—recital-worthy dress or jeans and a t-shirt—but I need to also make sure whatever it is doesn’t get packed…along with all of our daughter’s dance costumes.

But here are a few lessons along the way that prove that while you might have 47 tabs open in your brain at all times during a PCS, it’s worth carving out time for the lasts before you pull away from your duty station for the last time:

  • Your kids will remember what you made time for and what you didn’t. If you’re doing it right, your kids don’t know a fraction of the stress and strategy that go into PCSing. They just know that you didn’t have time for their game or awards ceremony or to set up a last hangout with their friends.
  • You’ll always regret it if you don’t hit your favorite pizza place, curry place, park, running trail, or visit with a friend one more time. If you’re tempted to skip any of these, just remember how unfinished moves felt during COVID. If you didn’t move during COVID, ask someone who did. If I could travel anywhere right now for 24 hours, I would be back in Iwakuni eating eggplant curry, level six with garlic naan at Devi, and then I would spend the rest of my day buying up all the blue and white pottery in Yamaguchi prefecture.
  • You’ll miss it when you’re gone. I don’t care how badly you want to leave a place; you will always miss pieces of it—whether the people you knew, the places you frequented, or just who you were as a family there. Don’t be so set on leaving that you deprive yourself of just one more memory.

Maybe you’ll look like a living public service announcement for the importance of self-care, maybe you’ll be distracted, and you’ll definitely be exhausted and unsure of whether you’re coming or going but show up. Do all the lasts. Soak it up. Make the time, take pictures, give hugs, make a few more memories for the road, and, if I’ve taught you nothing else, prioritize showering before leaving the house whenever you can.

Source: MilitaryOne Source

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