What Must an Entrepreneur Do After Creating a Business Plan? Exploring the Next Steps

Writer:

Ana-Maria Sanders

Editor:

Jim Hughes

Reviewer:

Sophia Rodriguez

Imagine standing on the edge of a vast new frontier, your business plan in hand, ready to transform your vision into reality. What comes next? This is the moment where true entrepreneurship begins.

What must an entrepreneur do after creating a business plan? After making a business plan, entrepreneurs must secure funding, choose a strategic location, and meet legal requirements to start their business. These steps can lead to growth and financial success.

This article will guide entrepreneurs through the initial startup phase and subsequent growth, serving both as a roadmap for the business and as a tool to attract investment and secure financing. Here’s how to get started.

What’s Included in a Business Plan?

A business plan is a detailed blueprint, providing a clear vision, objectives, and a strategic approach for success. The plan encompasses essential elements such as an executive summary, company overview, market analysis, organizational structure, product or service details, marketing and sales strategy, funding needs, and financial projections.

After the plan is created, the focus shifts to obtaining financial support, setting up operations, and executing the strategies outlined for expansion.

A business plan is a dynamic document that can adapt to changes in the business environment or market conditions. As such, it becomes an invaluable resource for planning and decision-making, underpinning the business's development and helping it navigate through challenges and opportunities. This approach ensures the plan remains professional and engaging, balancing thoroughness and clarity.

Why Is a Business Plan Important to an Entrepreneur?

A business plan empowers entrepreneurs to navigate financial landscapes with confidence. It offers a breakdown of economic dynamics and a framework for measuring sales and revenue against budgetary constraints. It's a tool for pinpointing your target market and audience and detailing necessary equipment and funding requirements.

When starting a business, updating your business plan helps you track progress, reduce risks, find areas for improvement, and set new goals. This ongoing engagement ensures that your business plan remains a relevant and powerful tool for steering your business toward sustained growth and success.

Essential Steps for Entrepreneurs Post-Business Plan Creation

Upon finalizing the business plan, the next phase involves implementation. Following developing a robust business plan, entrepreneurs execute these strategic measures to further their business's expansion.

Navigating Legal and Financial Setup

After creating a business plan, what is the next step for starting a business? After developing a business plan, entrepreneurs must tackle legal and financial setup, choosing a business structure that influences taxes and liability, ensuring legal compliance, and managing financial basics. This foundational work sets up a business for operational success and growth, highlighting the importance of careful planning in the early stages of business formation.

Choosing the Right Business Structure

Once the business plan is finished, the next step is to choose the proper business structure for your company. Each structure has advantages and disadvantages. If you are still unsure what structure to choose, consult an accountant or a tax specialist.

Sole Proprietorship: A sole proprietorship is an unincorporated business run by a single person. Starting a sole proprietorship is a great way to test a company in a low-risk environment. However, this type of structure doesn’t provide asset protection. If you default on your business loan or enter a lawsuit, your assets are at risk.

Partnership: A partnership is formed when two or more people collaborate to run a business. Each partner contributes something to the company and receives a share of profits or losses. The partnership’s liabilities are personal, too, and each partner is equally responsible for the company’s debts.

LLC: A limited liability company (LLC) is a simple business structure owned by a single or multiple members. It has pass-through taxation, which means your profits are taxed once. An LLC also provides personal asset protection, meaning that creditors can only attack the LLC's assets to settle debts and liabilities if your business is sued. Therefore, starting an LLC may benefit more if you want to operate a small business.

Corporation: A corporation has a more complex business structure, is expensive to operate, and is not ideal as a starting business structure. By law, it is recognized as a separate legal entity with its identity and individual rights like people. Corporations also have double taxation, meaning your profits are taxed twice.  Nevertheless, starting a corporation is great for those who want to raise money from venture capital.

Once you've honed in on a business structure, the next step is to make your venture official by registering your business. Choosing a unique and memorable name will set your brand apart. Search the United States Patent and Trademark Office (USPTO) database to check if your name has already been taken.

Registering your name with your state might not be enough to prevent others from using it elsewhere. To fully safeguard your brand's identity, including your name, logo, and tagline, consider securing federal protection by registering with the USPTO. This step can prevent unauthorized use of your brand elements.

Register your business with the IRS to obtain your Federal Employer Identification Number (EIN), essential for tax filing purposes. Additionally, ensure your business is recognized by the relevant state and local agencies, further legitimizing your operation. Securing the necessary business licenses and permits is the final piece of the puzzle, ensuring your business complies with all regulations and is ready to operate.

Setting Up Your Business Finances

If you are starting a business on a low budget, having a solid business plan can increase your chances of getting a business loan from the bank. A comprehensive business plan can reassure a lender by showcasing your professionalism and dedication to success.

Tips: If you want to apply for a bank loan, consider preparing the following documents in advance to save time:

• Well-written business plan
• Business forecast detailing future cash flow and costs
• Personal credit reports and scores from the three major credit bureaus: Equifax, Experian, and TransUnion.
• Tax returns and supporting IRS documents for your business account (if available) and personal tax account
• Personal records of the business’s owners
• Applicable business licenses and registrations
• Personal bank statement
• Bank account number
• Credit card sales, unpaid invoices, and accounts receivables (if available)
• If you want to avoid taking a loan from the bank, you can borrow money from friends and family who believe in your dream. You may also qualify for a government grant from the Small Business Administration if you are a woman, minority, or veteran. You can also reach out to independent donors such as angel investors.

You should also open a business bank account, set up accounting systems, and plan for tax obligations to ensure your business's financial health and compliance. Here's a brief outline of these steps:

Opening a Business Bank Account

• Choose the Right Bank: Research banks to find one that meets your business needs, considering fees, services, and accessibility.
• Gather Required Documents: Prepare necessary documents, which typically include your business formation documents, EIN (Employer Identification Number), and personal identification.
• Apply: Visit the bank in person or apply online, providing all required documentation.
• Deposit Funds: Make an initial deposit if required by the bank to activate your account.

Setting Up Accounting Systems

• Choose Accounting Software: Select software that fits your business size and needs, from simple spreadsheets to comprehensive accounting platforms.
• Record Your Transactions: In your chosen system, keep track of all business transactions, including sales, expenses, and payroll.
• Reconcile Regularly: Regularly compare your accounting records to your bank statements to ensure accuracy.
• Consider Professional Help: Depending on the complexity of your business, consider hiring an accountant or bookkeeper.

Planning for Tax Obligations

• Understand Your Tax Requirements: Familiarize yourself with local, state, and federal tax obligations, including income, sales, and employment taxes.
• Set Aside Money for Taxes: Allocate a portion of your earnings to cover tax obligations, avoiding surprises at tax time.
• Keep Detailed Records: To support your tax filings, maintain meticulous records of all income, expenses, and potential deductions.
• File and Pay Taxes on Time: Be aware of tax filing deadlines and ensure you file and pay your taxes on time to avoid penalties.

By carefully following these steps, you can establish a solid financial foundation for your business, ensuring you're well-prepared to manage your finances effectively and meet all legal and tax obligations.

After developing a business plan, entrepreneurs should explore various funding options. Each requires a strategic approach for effective engagement.

• Personal Savings: This straightforward method involves using one's funds, demanding careful financial risk assessment and a backup plan.
• Bank Loans: Bank loans require a strong credit history and a detailed business plan. Entrepreneurs should compare terms across institutions to find the best fit.
• Angel Investors and Venture Capital: Offering substantial capital for equity, attracting these investors demands a clear value proposition, industry networking, and negotiation skills.
• Crowdfunding: This validates your business idea through a compelling campaign. Successful crowdfunding involves engaging stories, appealing rewards, and robust marketing efforts.

Entrepreneurs must take a strategic approach to assessing their business's specific needs and the potential risks associated with different funding options. By understanding the unique requirements and best practices for engaging with each financing source, entrepreneurs can develop a tailored financing mix that best supports their business objectives.

Building Your Brand and Amplifying Your Market Presence

Building your brand and amplifying your market presence involves several strategic steps. Below are the key components detailed from the sources explored:

1. Develop Your Brand Story & Selling Proposition

Craft a compelling brand story to connect with customers personally, making the customer the hero. Your brand story and unique selling proposition (USP) should communicate how your product or service solves the customer's problem, distinguishing your business from competitors.

2. Establish & Grow Brand Presence Online

Website as the digital hub: Your website serves as the central point of your online brand presence, providing a platform for customer engagement and supporting digital marketing strategies​​.

Effective SEO strategies: Employ search engine optimization (SEO) to enhance your website’s visibility in online searches, incorporating both on-page and off-page SEO techniques​​.

Utilize online advertising: Engage ready-to-buy customers through search engine marketing (SEM), combining paid advertising strategies with SEO content marketing for traffic from ads and organic search results​​.

Crafting a Compelling Brand Identity

The market is saturated with different products and services, and your unique branding can help you stand out. Your brand should convey your business's story, values, and beliefs. A strong brand helps customers connect with you, relate to your product or service, and understand your corporate culture.

Establishing a Strong Online Presence

In today's digital age, establishing a robust online presence is non-negotiable for retail businesses aiming to thrive. A well-designed website and active social media channels aren't just digital storefronts; they're dynamic platforms where consumers can connect and engage with your brand. Beyond mere visibility, an engaging online presence solidifies your business's credibility, inviting consumers to trust and invest in your offerings.

Engaging with your audience through valuable online content isn't just communication — it's the beginning of a relationship. This interaction can cultivate customer loyalty and drive sales, transforming first-time visitors into long-term advocates.

Implementing Targeted Marketing and Sales Strategies

Craft a marketing strategy that resonates with your target market to stir excitement and raise awareness about your business's offerings. A comprehensive market analysis, baked into your business plan, should shed light on the most impactful ways to reach and engage your intended audience.

For instance, while older demographics may find value in traditional media channels like print, billboards, and television commercials, younger audiences are more effectively reached through the vibrant world of digital platforms, emphasizing the importance of a solid online presence.

Combining community building with marketing shows the importance of understanding and using audience feedback to create effective campaigns that turn leads into loyal customers.

Launching and Operationalizing Your Business

Launching your business marks the pivotal transition from planning to action, setting the stage for its journey in the market. Operationalizing involves executing the strategies in your plan, ensuring that every aspect of the business functions smoothly to achieve success.

Setting Up Your Operational Framework

Setting up your operational framework ensures your business operates efficiently and is poised for growth. Here’s a streamlined approach to establishing this framework:

• Define Core Operations: Identify essential business activities like production, sales, and customer service, focusing on where to allocate resources.
• Establish Processes: Document detailed procedures for each core operation to ensure consistency and efficiency and facilitate more accessible training for new staff.
• Implement Technology: Choose appropriate tools and technology to streamline operations, from inventory management to communication platforms, enhancing efficiency.
• Organizational Structure: Outline roles and responsibilities within your business, ensuring clear communication paths and decision-making processes.
• Financial Management: Set up budgeting, accounting, and reporting systems to maintain financial health and support informed decision-making.
• Quality Assurance: Maintain product or service integrity through standards and regular testing, with protocols for addressing issues.
• Plan for Scalability: Design your operations to accommodate growth, with flexibility built into processes and systems.
• Foster Company Culture: Develop a positive culture that aligns with your values, enhancing employee satisfaction and engagement.

Creating a robust operational framework lays the groundwork for a successful business, ensuring you're prepared for current needs and future growth. This framework should evolve alongside your business, adapting to new challenges and opportunities.

Building Your Team

Hiring the right team gives the business a higher chance of growth. Skilled and experienced employees can implement your business plan to provide potential growth.

Put enough time into the recruiting process to get a good outcome because those people will be a big part of your workforce. One study showed that highly engaged employees can increase a company’s profitability by 23%.

If you don't have enough funds initially, hire people who are good at multiple things. You can hire people who specialize in specific areas as the company scales.

Accounting and Financial Management

As a small business owner, you must keep your personal and business accounts separate. Separating your business account can help you easily track business transactions, accurately manage cash flow, efficiently file taxes, build credit, and establish credibility. It will also protect you from liabilities if something goes wrong.

Hiring an accountant who is well-versed in business finance may also be beneficial. They can facilitate record-keeping, monitor balance sheets, and handle payroll.

Starting and expanding a venture involves a series of strategic steps to ensure the growth and sustainability of the business. Here's a detailed overview:

• Preparing for Business Launch
• Growth Strategies After Launch
• Continuous Improvement Through Analytics and Feedback

Preparing for Business Launch

First and foremost, the product or service should be finalized to meet the quality standards set forth by the business and address the target market's specific needs and preferences. Rigorous testing and feedback loops can help refine the offering before it goes live.

Executing a comprehensive marketing plan can help draw in the right customer. This plan should detail how the business intends to reach its target audience, the channels it will use, and the messaging that will resonate with potential customers. A well-thought-out marketing strategy can create buzz and anticipation, laying the groundwork for a successful launch.

Another component to consider is setting up operational logistics. This encompasses everything from supply chain management to customer service protocols, ensuring the business can handle orders, fulfill deliveries, and efficiently address customer inquiries from day one.

Finally, the last step is preparing the team for the launch phase. This involves training staff, clarifying roles and responsibilities, and fostering an adaptable and ready culture to tackle unforeseen challenges. Attention to detail in these preparations can significantly affect how smoothly the launch goes and how well the business can respond to initial feedback and demand.

Growth Strategies After Launch

This section explores key strategies for maintaining momentum and significantly expanding a business's reach and impact after a successful launch.

Expanding Product Line or Service Offerings

Growth can be achieved by expanding the product or service range to meet market needs, attract new customers, and add value for existing ones, ensuring alignment with the brand's values and competencies through market research and product development.

Entering New Markets

Entering new markets offers growth opportunities by reaching different geographical areas, industries, or customer groups. Still, success demands understanding the local culture, laws, and market needs, often requiring tailored marketing and product adaptations.

Scaling Operations Efficiently

Efficiently scaling operations to meet rising demand involves optimizing processes, investing in technology, and upgrading infrastructure to maintain quality and customer satisfaction while balancing costs and agility for growth.

Continuous Improvement Through Analytics and Feedback

After setting your business in motion, it’s time to shift your focus to nurturing and refining your venture. This is an exciting time when you can enhance your business in response to real-world feedback and data insights.

Leveraging Customer Feedback

Use surveys, direct customer interviews, and feedback forms. Tools like Net Promoter Score (NPS) can quantify customer satisfaction and predict business growth.

Identify common themes and concerns. If multiple customers are pointing out the same issue, it’s a signal that this area needs your attention. Prioritize feedback that aligns with your strategic goals and has the potential for the highest impact.

Utilizing Analytics for Business Decisions

Define and track Key Performance Indicators (KPIs) relevant to your business objectives. This could include website traffic, conversion rates, customer acquisition cost, and customer lifetime value.

Use tools like Google Analytics for web metrics and CRM software for sales and customer data.

Conduct A/B tests on your product offerings, pricing strategies, website design, and marketing messages. This helps you understand what resonates best with your audience and allows for data-driven decision-making.

Improving Bit by Bit

Encourage your team to constantly look for improvement opportunities in every aspect of the business. Regularly review processes, customer touchpoints, and the product itself for enhancement opportunities.

Stay informed on industry trends and competitor movements. Use this knowledge to anticipate market needs and pivot your strategies accordingly.

Imagine you’ve launched a new product line. Initial feedback indicates that customers find the product useful but are unhappy with the complex setup process. Instead of viewing this negatively, see it as an opportunity to improve.

You could:

• Create detailed setup guides and video tutorials.
• Simplify the setup process based on user feedback.
• Offer free setup support for a limited time to enhance customer satisfaction.

Analytics might show that a particular marketing channel is underperforming in terms of ROI. Based on this data, shifting resources to more effective channels can optimize marketing spend and improve overall business efficiency.

Your post-business plan requires tuning into your customers and the stories your data tells. It’s about being agile, making informed decisions, and continually refining your offerings and strategies to better meet the needs of your market. Success lies in your responsiveness to these insights and your willingness to evolve.

Conclusion

Crafting a business plan is challenging, yet it's only the beginning. Focus on securing an ideal location, assembling a skilled team, establishing a solid presence, and committing to ongoing learning to enhance your company's prospects. Nonetheless, even a robust business plan cannot eliminate all operational risks. Success requires patience and adaptability to navigate industry-specific challenges.

FAQ

Still have more questions about what to do after you craft your business plan? Check out these frequently asked questions and answers:

What Are the Problems of Entrepreneurship?

What Are the Key Contents Typically Included in a Business Plan?