What Must an Entrepreneur Do After Creating a Business Plan?

Turning your business plan into a thriving enterprise isn’t just about good ideas, it’s about the right execution. Here are the essential steps for entrepreneurs must take after finalising their business plan to ensure success and avoid the common pitfalls that cause 50% of startups to fail. 

Creating a business plan is often one of the first and most important steps in the entrepreneurial journey. It is a foundational document that outlines a business’s vision, strategy, and necessary actions for launching and growing a company. In fact, studies show that businesses with a formal business plan are 16% more likely to achieve success compared to those without one. This plan serves as a blueprint for decision-making, setting clear targets, and ensuring that the business remains focused on its goals.

However, completing a business plan is not the final step; rather, it is the starting point for turning ideas into action. Research indicates that 50% of startups fail in their first five years, with lack of planning, funding issues, and insufficient market understanding as primary factors. Therefore, entrepreneurs need to take decisive steps after finalising their business plan to avoid these pitfalls.

After crafting a business plan, entrepreneurs must move forward with a clear strategy for executing their vision. This includes reviewing and refining the plan, registering the business, securing funding, building a capable team, developing an effective marketing strategy, and preparing for future challenges. Each of these actions is critical to ensuring that the business not only survives but thrives in a competitive landscape.

Read: 10 Free Business Planning Courses Every Entrepreneur Should Take

An entrepreneur do after creating a business plan

1. Review and refine the business plan

The first step after completing a business plan is to review and refine it. A business plan is a dynamic document that must evolve with the business. Entrepreneurs should ensure that their plan reflects the latest market trends, customer insights, and financial forecasts. This review process involves:

• Seeking feedback: Share the business plan with trusted advisors, mentors, or industry experts. Their insights can help identify gaps or areas of improvement.
• Reassessing assumptions: A business plan is often built on assumptions about the market, customer behaviour, and competitors. These assumptions need to be tested and updated regularly.
• Financial Review: Reevaluate the financial projections to ensure they are realistic. Adjust the budget and forecasts if necessary to better align with actual data.

2. Register the business

Once the business plan is refined and ready to be implemented, the next step is to officially register the business. This formal step ensures the business operates within the legal framework of its jurisdiction and sets a solid foundation for operations. The steps involved in registering a business typically include:

• Choosing a business structure: The legal structure of a business determines its tax obligations, liability, and the type of business registration needed. Common structures include sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Each has distinct advantages and disadvantages, so it is important to consult with legal and financial experts before making a decision.
• Registering the business name: A business name must be unique and in compliance with local regulations. Entrepreneurs will need to check whether their desired name is available and file for trademark protection if necessary.
• Obtaining an Employer Identification Number (EIN): An EIN is required for tax purposes and is essential for hiring employees and opening a business bank account.
• Securing permits and licenses: Depending on the nature of the business and its location, entrepreneurs may need various local, state, or federal permits and licenses to operate legally.

3. Secure necessary funding

One of the most critical steps an entrepreneur must take after finalising their business plan is securing the necessary funding to get the business off the ground. Whether an entrepreneur is launching a tech startup or opening a local retail shop, they will need capital to cover start-up costs and initial operational expenses. Several funding options are available, each with its own advantages and drawbacks:

• Bootstrapping: Using personal savings or business revenue to fund the venture. This method allows the entrepreneur to maintain full control of the business but may strain personal finances.
• Venture Capital (VC): Professional investors who provide funding in exchange for equity. Venture capital is often suited for high-growth businesses but comes with the expectation of significant returns.
• Angel investors: Individuals who invest their personal funds in exchange for equity or convertible debt. Angel investors often bring valuable expertise and connections, in addition to funding.
• Crowdfunding: Raising money from a large number of people via online platforms such as Kickstarter or Indiegogo. Crowdfunding allows entrepreneurs to gauge interest in their product while raising funds.
• Bank loans and grants: Traditional methods of funding, with bank loans requiring repayment and grants offering non-repayable funds, typically for specific industries or projects.

4. Develop a pitch

If an entrepreneur intends to raise funds through investors, a compelling pitch is essential. The pitch should succinctly convey the business’s value proposition, market potential, and financial outlook. Developing a pitch involves:

• Creating a pitch deck: A visually appealing, concise presentation that highlights the key elements of the business plan, including the problem the business solves, the target market, the product or service offering, the revenue model, and the team behind the venture.
• Refining the pitch: The pitch should be tailored to the audience, whether it is angel investors, venture capitalists, or potential customers. Each group will have different interests and priorities.
• Practice: Entrepreneurs should practice delivering the pitch to ensure it is clear, confident, and compelling. They should be ready to answer tough questions and demonstrate their business’s potential for growth.

5. Start networking

Networking is crucial for any entrepreneur. Building a strong professional network can open doors to funding opportunities, partnerships, and customer acquisition. Entrepreneurs should focus on:

• Attending industry events: Conferences, trade shows, and workshops provide opportunities to meet potential investors, customers, and collaborators.
• Connecting with mentors: Experienced mentors can offer valuable advice and guidance, helping entrepreneurs navigate challenges and avoid common pitfalls.
• Building relationships with potential investors: Regular networking with investors can lead to funding opportunities when the time is right.
• Using social media: Social platforms like LinkedIn and Twitter allow entrepreneurs to connect with thought leaders, share their progress, and build their reputation.

6. Build a core team

Assembling a capable and motivated team is essential for business success. Entrepreneurs should focus on hiring individuals who align with the company’s vision and culture. When building a core team, entrepreneurs should consider:

• Key positions: Identify the critical roles needed for the business, such as operations, marketing, sales, finance, and product development.
• Recruiting talent: Seek candidates with the right skills and experience. Cultural fit is just as important as technical expertise, as team members will influence the business’s culture and work environment.
• Establishing a team vision: Ensure the team shares a common goal and vision for the business. Aligning the team with the business’s mission will foster motivation and unity.

7. Set up milestones and KPIs

Once the team is in place, it’s time to establish actionable milestones and key performance indicators (KPIs) to track progress. Setting clear goals will help keep the team focused and motivated. Entrepreneurs should:

• Break down long-term goals: Divide large, long-term goals into smaller, manageable milestones to make progress more tangible.
• Define KPIs: Identify the metrics that will be used to measure success, such as customer acquisition cost, lifetime value, monthly recurring revenue, or website traffic.
• Track progress: Regularly monitor performance to ensure the business is on track. If necessary, adjust strategies to meet targets.

Read: 10 Best Free AI Tools For An Effective Business Plan

8. Develop and refine your branding and marketing strategy

Effective branding and marketing are essential for attracting customers and building a strong market presence. Entrepreneurs should:

• Create a brand identity: Define the brand’s values, mission, vision, and tone. The brand identity should resonate with the target audience and differentiate the business from competitors.
• Build a marketing plan: The marketing strategy should include customer segmentation, content marketing, social media, and paid advertising. Entrepreneurs should focus on creating a clear value proposition and communicating it effectively to their audience.
• Leverage digital marketing: Utilize SEO, email marketing, and social media platforms to drive traffic, engage with customers, and increase brand awareness.

9. Launch your product or service

With all the foundational steps in place, it’s time to launch the business. Entrepreneurs should:

• Set launch goals: Define what success looks like for the launch. This could include sales targets, customer sign-ups, or media coverage.
• Create buzz: Build excitement around the launch using social media, influencer marketing, or promotional events.
• Monitor the launch: Track key metrics during the launch to gauge success and adjust strategies as necessary.

10. Monitor business performance and adjust your plan

After the launch, entrepreneurs must continuously monitor the business’s performance and adjust strategies as needed. Key steps include:

• Track KPIs: Regularly assess performance against KPIs to identify areas for improvement.
• Solicit customer feedback: Engage with customers to gather insights and feedback to refine products or services.
• Adapt to market changes: Be prepared to pivot or adjust strategies based on changes in the market, technology, or consumer behaviour.

Frequently Asked Questions 

1. What is the first step an entrepreneur should take after completing their business plan?
Ans. After completing a business plan, the first step an entrepreneur should take is to review and refine the plan. This involves seeking feedback from mentors or experts, revising financial projections, and ensuring the plan aligns with current market trends. Regularly updating the plan ensures it remains relevant and actionable as the business progresses.

2. How do I register my business after creating a business plan?
Ans. Registering your business typically involves selecting a business structure (such as a sole proprietorship, LLC, or corporation), registering your business name, obtaining the necessary tax registration or Employer Identification Number (EIN), and acquiring any required local, state, or federal licenses and permits. It's important to research the specific registration requirements based on your location and industry.

3. What are the best options for funding my business after completing a business plan?
Ans. Funding options for entrepreneurs include bootstrapping (using personal savings), securing loans, seeking angel investors, applying for venture capital, or exploring crowdfunding. The best option depends on the type of business, the entrepreneur's financial situation, and the stage of growth the business is in. Each option has its advantages and potential risks, so it's important to consider which best suits your needs.

4. How do I build a strong team after finalising my business plan?
Ans. Building a strong team involves identifying key roles and hiring individuals whose skills align with the needs of the business. Entrepreneurs should look for people who not only have the necessary technical skills but also share the company’s values and vision. It's essential to create a positive work culture and provide opportunities for growth and collaboration to retain top talent.

5. What should be included in a business pitch to attract investors?
Ans. A business pitch should be a concise, compelling presentation that highlights the business’s value proposition, target market, competitive advantage, revenue model, and financial projections. It should also clearly demonstrate how the investment will be used and the expected return on investment. A well-prepared pitch deck can increase the chances of securing funding from investors or venture capitalists.