Ellery 'Volunteers' To Help Veterans Group Of Entrepreneurs

Dale Ellery, Fiducial's district manager for the Detroit region, never served in the military but he did "volunteer" to give two workshops last week to members of the Michigan Veterans Business Resource Center who are actively running their own small businesses or keenly interested in doing so.

Ellery, a CPA who's based in Fiducial's Burton, MI, office, originally noticed an advertisement from the veterans group seeking local professionals to provide some accounting insight for their members.

"I'm not a veteran but I'm sympathetic to the cause," said Ellery who spoke to attentive crowds at Veterans of Foreign Wars (VFW) Posts in Flushing and Mt. Morris. The workshops were open to all honorably discharged veterans, active duty military, National Guard and Reserve members, as well as widows and widowers of veterans.

"These were good meetings," he said. "Mostly I stressed the business organization or entity type and whether you should be a sole proprietor, S Corporation, LLC, C Corporation or partnership. It was kind of a breakthrough for them." Ellery also presented advice on financing options, business plans and how veterans may qualify for a state program providing free accounting services and counseling.

Veterans attending the presentations ranged in age from 25 to 70. Some of those listening to the expert advice are still eligible for the GI Bill benefits if they've been out of the service for less than 10 years. One veteran, who has already retired from active duty in the workforce, was also thinking about starting his own business.

Capital, good records vital Asked about the main reasons small businesses fail, Ellery told the audience that it's largely due to having inadequate capital and poor recordkeeping. He cited several sources of generating funds for a start-up business including a home equity line of credit, relatives, investors and even partners who share the same vision.

"You have to have at least 20% [of the funding] of what you think you need to get the business started," he said.

On recordkeeping, Ellery stressed that if this group of entrepreneurs wanted a computerized system they should opt for QuickBooks which is used by 70% of all small businesses.

"Almost every college or high school is teaching a course on QuickBooks each week," he said.

For those that prefer a manual approach, he suggested using a pegboard system made by McBee. No matter which system is adopted, keeping good records is an absolute necessity.

"You have to keep good records in order to have an accountant or tax preparer help you," he said. "If you have your records organized when you come into their offices then you're using their best brainpower to help you. If you come in with a bushel basket of receipts and want them to figure it out, you can't be sure of what they did." Keeping accurate records helps the professionals focus on the bigger picture of saving clients money on their taxes. Since the client is the one ultimately held responsible for the return, Ellery suggested it's a good idea for them to do everything they can to ensure that it's prepared as accurately as possible.

Interest gathers steam Also on tap were highlights of the new tax laws including a manufacturing credit which, according to Ellery, has been "very liberally interpreted so many businesses will qualify for this new credit." He also included a heads-up on energy rebates for homebuilders that could qualify for up to $2,000 back on their taxes by using energy-saving materials.

One of the veterans talked about putting together a business plan and found one book, Business Plan for Dummies, especially helpful.

"Business plans are extremely important," said Ellery. "You have to have an idea of a business plan and write your own business plan on what is the market and what are the demographics. It's imperative." Edward Ronders, director of the Michigan Veterans Business Resource Center in Flint, says the non-profit agency now has 150 active clients since opening their doors in January 2005. The agency provides veterans with counseling, mentoring, networking and education.

"We also help them prepare a business plan and guide them through the financial options that are available," said Ronders, a Vietnam veteran, who believes more former armed forces personnel want to start their own businesses.

"It seems like something that's catching on," he said. "It's been building steam for the last three or four years." Ronders indicated that a keen desire has been shown by National Guardsmen and Reservists who want to go into business for themselves.

"There's an interest there," he said. "People who are coming back from Iraq and Afghanistan have the GI Bill and have other training available." Handling tax hurdles The U.S. Congress created the Veterans Corporation, a nonprofit organization based in Alexandria, VA, that was formed under the provision of the Veterans Business Development and Entrepreneurship Act of 1999. It provides core funding to the Michigan agency whose services are free.

Ronders was impressed with Ellery's sincerity and passion the first time they met.

"Dale cares about people," he said. "He's a tax expert and that's one of the biggest hurdles entrepreneurs have to overcome: handling various taxing situations." Just as the veterans demonstrated their dedication to getting the job done in the military, now they must apply the same initiative in starting and running a business.

Among the enterprises started by Michigan vets are an ice cream shop, a painting business and a medical staffing firm.

"They have the discipline and they have the drive because putting together a business plan is not easy," Ronders added. "It doesn't happen overnight but they have some great ideas."

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