Sean McIntosh is looking for a few good entrepreneurs.
McIntosh is the executive director of The Bunker KC, a new business incubator for military veterans. The six-month program will start taking applications for its first class of companies on April 9. The deadline is June 15. The first training cohort will start on July 9 and will end on Dec. 11 with a demo day.
Eight to 12 businesses will be selected for this first group.
McIntosh, who served as a Navy SEAL and who has launched two companies of his own, talked with Thinking Bigger Business about how the program works.
Who Is The Bunker KC For?
The program works with military veterans who have served at least three years and were honorably discharged. There’s no time limit on when the entrepreneur was discharged, so Vietnam and Iraq veterans alike are welcome.
However, most of the people who’ve expressed interest have been out of the military for two to three years, McIntosh said. He enjoys working with service members who are getting ready to return to civilian life.
“I prefer veterans that are transitioning and haven’t left active duty because they’re hungry and there’s a real benefit to that,” he said.
Applicants also need to have moved beyond the “I’ve got a rough idea” stage of starting a company.
“They need to have developed their business model and concepts,” McIntosh said. “They ideally need to have some sales. And they need to be willing to dedicate their time full-time to growing the company.”
How Serious Is That Full-Time Requirement?
Pretty serious. “We feel that part-time effort gets part-time results,” McIntosh said.
How Does the Program Work?
Over six months, participants will be exposed to specialized training to help their companies succeed.
The first two months will be devoted to market validation, understanding each company’s customer-acquisition costs and generally stress-testing its business model.
The next two months will be spent on business development and strategic sales training.
During the final section, participants will prepare to raise capital, either through loans or angel investment.
The first class will end on Dec. 12-13. Participating companies will be invited to a private mixer with angel investors, and the next day, they’ll give presentations about their products and services during a public Demo Day.
The Bunker KC is based at a co-working space in the Crossroads. It also will hold programs at the Sprint Accelerator, the Truman Library and several other local venues. Next year, McIntosh said, the program wants to move into its own space.
Why Kansas City?
The Bunker KC is actually an expansion of a program headquartered in Chicago. There are Bunker affiliates in Los Angeles; Austin; Philadelphia; Washington, D.C.; and Tacoma, Wash.
Kansas City was selected to host a Bunker affiliate because of its active community of entrepreneurs and the presence of the Kauffman Foundation, McIntosh said.
The lower cost-of-living played a part, too, because it gives company founders a longer “runway.”
“They can live on savings for six to nine months, versus two months in San Diego,” McIntosh said.
Why Does Kansas City Need a Program Like The Bunker KC?
“Veterans are used to working with other veterans and having shared learning experiences,” McIntosh said. “That makes them, ultimately, more comfortable and successful.”
The Bunker KC also has a different focus from other business incubators geared to veterans. Most of those tend to steer participants toward government contracting, which accounts for 9 to 12 percent of the U.S. economy. The Bunker KC wants to tackle the other 88 to 91 percent.
Based strictly on early calls about the program, there appears to be a strong need for something like this.
“The overall interest I’m getting,” McIntosh said, “is overwhelming.”
