How Black Service Members Can Become Millionaires
There is strength in numbers, right? The United States military is strong in numbers and so is its demographic of black members. Many of us enlist in the armed forces to escape the inner city and pursue a better quality of life. Many of us stay in long enough to pay for college or to make a long-term career.
We come from families where money is often scarce and we come from communities where opportunities are just as insufficient. The first time we ever see real money is in the military and most of us stay enlisted because we see no other way out.
Imagine what could be done if every black soldier in an entire battalion came together and stockpiled their resources. Imagine what could be done if every black marine joined forces to fund a business. Imagine what could be done if every black sailor worked together to start a company. Imagine what could happen if every black airman, soldier, sailor, and marine put their money into a veteran-owned nonprofit organization. Can you imagine how much money would be raised as starting capital? Can you imagine how much inventory could be bought off the rip? Can you imagine how many jobs could be created for retired and separated veterans?
Let’s say a group of 1000 black active-duty soldiers came together and put in $10,000 to start a small business. Their starting capital would be $10M. These millions would cover the cost of attorney fees, filing fees, licensing, and starting inventory. Depending on what type of business they start, they would likely have enough left over to hold for emergency savings. Let’s say this collective of soldiers decides to start a property management company that specializes in veteran housing. Their $10M would go very far in a state like Michigan where land and real estate are relatively cheap.
These soldiers could retain a business lawyer for less than $600 per hour and could file for business licensure in the state of Michigan for less than $100. The remaining $9M could be spent on cheap lots of land where new construction could be built or it could be spent on buying existing real estate and renovation costs. In the state of Michigan, $10M would go a long way and these soldiers would still have funding left over. These soldiers could also apply for small business loans to supplement their starting capital. They can target cities with high veteran populations and make their investment back over time. Veterans typically come with retirement pensions, disability compensation, and housing vouchers. This is GUARANTEED income. Just a thought.
Let’s say a group of 1000 black sailors join forces to invest $20,000 of their savings into a veteran-owned nonprofit organization. This organization would have a starting capital of $20M. After lawyer and filing fees are paid, there would still be at least $18M left over in starting capital. This $18M could be spent on buying a commercial property that would operate as a headquarters office. A building like this could cost as low as $500k or as much as $1.5M. Let’s say this group of sailors secures a building that costs them $1.5M. They would then have $16.5M left over in starting capital. We also have to factor in inventory costs for this facility. For the sake of this hypothetical example, let’s say total inventory costs would be $3M. Now, these sailors have $13M remaining.
The next thing that would have to be figured out is what this nonprofit organization would provide to the veteran community. An organization like this could offer a lot, but let’s say these sailors wish to focus on supportive employment for newly separated veterans. They could reserve 100 slots per year at $25 per hour. They could set veteran pay at every two weeks for 8 hours a day. This would mean each veteran would take home about $1,400 every two weeks, which equates to $33,600 in one year. If you multiply this by 100 veterans, you are looking at $3.3M.
It would cost this nonprofit organization $3.3M to employ 100 veterans for a one-year supportive employment program and this leaves about $10M in starting capital. The remaining capital could be spent on uniforms, supplies, equipment, and transportation. This organization could also apply for additional funding from the U.S. government because there are several grants for veteran programs and organizations. This group of sailors can easily set their own salaries as well. Just a thought.
For my final thought, let’s say a group of 100 black separated and retired veterans joined forces to invest $10,000 of their personal savings into an online business. Let’s say they decide on e-commerce. Their Shopify store could have a starting capital of $1M. There is a plethora of profitable products out there, but for the sake of this hypothetical example, let’s say they decide to sell custom hoodies for every branch of the military. Let’s also say they buy these hoodies wholesale for $10 each but resell them for $35. Let’s say their starting inventory includes 20,000 hoodies. They will spend $200k on inventory and now they have $800k remaining in capital. Let’s say they spend $5k on Facebook ads, $5k on Instagram ads, and $5k on YouTube ads. That is $15k in advertising. Now they have $785k in capital remaining.
After they sell each hoodie for $35 each, they have made $700k in profit. $700k + $785k = $1.4M total. Let’s say they spend $500k on 50,000 hoodies and resell them for $35 each. They have now made a profit of $1.7M with $985K left in remaining capital. If you combine the profit with the capital, they would have a total of $2.7M. If you divide this by 100, each veteran walks away with $27K. Each of them has turned a profit from their $10K investment. Just a thought.
Thanks for reading!
