After interviewing many Veterans in the past we realized very quickly that access to capital was usually the biggest roadblock for most Veterans. All the franchisors who market their franchises on our business marketing platform have to provide incentives specific for Veterans.
Some of the franchisors we represent provide unique competitions and franchise give-a-way programs. Some even wave the initial franchise fee based on performance markers but these franchisors are few and far between. Also rare so far are franchisors which provide Veterans methods to access equity investments from the general investing public for a franchise acquisition.
Crowdfunding expected to explode in 2016
In the next 60 days the Securities and Exchange Commission (SEC) will consider and adopt final rules that would allow the offer and sale of securities through crowdfunding. The recommended rules would give small businesses an additional avenue to raise capital and provide investors with important protections. If adopted, this would complete the Commission’s major rulemaking mandated under the JOBS Act.
Subject to some restrictions, the new rules will permit a company to raise a maximum aggregate amount of $1 million through crowdfunding offerings in a 12-month period. The new rules for crowdfunding investments, including an investment for a franchise acquisition, will become effective in May 2016.
VBS expects to channel thousands of new leads to our franchise partners who can now be more responsive to the Veterans. VBS can now provide more finance solutions for franchise acquisition goals. More Veterans will now be able to meet the criteria franchisors utilize to evaluate whether they are a good candidate financially.
So what’s a Bitcoin and how can I use it?
Some crowdfunding platforms are already available on a State level. For instance Chroma.fund is an investment crowdfunding platform that allows anyone in Oregon to make investments in local businesses. Think of it as a local market for stocks and bonds. But unlike Wall St. investments, people don’t need a broker to invest in businesses.
For investors using Chroma.fund, just a credit or debit card is all that’s required. Chroma even offers limited edition virtual coins that are impossible to counterfeit. Investors purchase ChromaCoins™ with US dollars, but instead of receiving a paper stock certificate, they’re issued a ChromaCoin™ a tiny fraction of a single Bitcoin, worth less than a penny. This ChromaCoin™ can serve as a counterfeit-proof record of ownership of the stocks and bonds purchased on Chroma.fund for local or regional franchises.
Chroma.fund is the nation’s first Bitcoin blockchain-enabled investment crowdfunding platform. Veterans can use Chroma.fund to create their own ChromaCoins™ to help finance a franchise acquisition. And State and local crowdfunding sources can help a Veteran get started right now.
When starting any business you need to be able to finance the entire amount of the opportunity which requires you to have good credit and equity capital to secure a loan. VBS currently has partners with financial organizations which convert 401K funds, finance experts who provide guidance on securing a loan, and micro-lenders to gain access to more capital.
In 2016 we will begin helping Veterans access equity as well. VBS would like to extend its continued support to Veterans interested in franchising and we hope you visit our website at www.veteransbusinessservices.us to learn more about franchise opportunities, business resources, and educational programs which can support your learning process.
VBS will be helping Veteran with crowdfunding & bitcoins in 2016. Have a great New Year and come talk to us if you want the best deal and advice when buying a franchise.
VBS’ Founder and Managing Director, Jim Mingey, is a decorated Vietnam Veteran raised from a proud military background. An entrepreneur for more than 35 years, Jim can relate on a personal level to the needs of the veteran small businessperson, and possesses the practical knowledge to implement his experience in today’s market. Jim participated in the EBV Program at Purdue University, is a graduate and former instructor at Boots to Business, is a mentor at American Corporate Partners, developed the first approved franchise training program for the Vocational Rehabilitation and Employment (VR&E) Program at Veterans Administration, and was instrumental in forming the first equity fund in the United States, The Veterans Opportunity Fund, exclusively for veteran owned small businesses and franchises.