You asked what an entrepreneur must do after creating a business plan, the answer to this question involves a lot of details that will catapult your plans into reality.
However, it is important to note that a plan is the best way to start anything, including a business.
Writing a business plan is the best way to successfully launch your business; the time and effort you invest in considering various aspects and operational procedures will pay off once you begin operating the company.
A business plan can help clarify important business decisions like capital investments, leases, resource allocation, and so on. A solid business plan can help you identify important business priorities and milestones to focus on.
Because business plans are dynamic documents, they must be updated regularly. The most important question is what the entrepreneur should do after developing a business plan.
This article will provide you with an answer to that question as well as a step-by-step guide for putting your ideas into action.
11 Things An Entrepreneur Should Do After Creating A Business Plan
1. Validate Your Business Idea after creating a business plan
According to numerous studies, one of the primary reasons why businesses fail is a lack of market demand for their product.
You cannot run a business if no one is interested in your product or service. So one of the first things to do as an entrepreneur after creating a business plan is to validate your idea.
If you validate your business idea first, you won’t have to worry about it failing.
You can validate your business idea by utilizing the wealth of relevant and useful information available here.
a. Market validation
The first step in your validation process is market validation. If your idea is validated at this stage, you can move on to the next stage.
During the market validation stage, the critical questions listed below must be addressed.
- Is the product that arose from your business concept marketable?
- Is there a market there? Is the size appropriate?
- Are there customers who are desperate for a solution to the problem that your product will solve?
- Do they have the funds to fund such a solution?
The resources and procedures listed below will help you find answers to these questions that are based on facts rather than assumptions.
If you want to see what people are looking for when they need the type of solution that your business idea will provide,
- Google Trends is a good place to start.
- Google Keyword Planner can be used to research and validate your hypotheses.
- You can use Amazon to see if your business idea has a large enough market.
- You may be wondering why Amazon. because people search for something, in this case, products to buy, in the same way, that they search on search engines
You’ve accumulated a large number of thought-provoking comments and analyses.
b. Idea validation stage
You want to be certain that it is worthwhile to begin investing time, money, and effort in the validation process at this point. You should also go one step further and design and build your main product.
Using a landing page to gauge and assess whether your customers are sufficiently interested in the issue is one way to validate your idea. Conversion rates are the most accurate way to predict interest.
Conduct in-person interviews to determine whether your potential customer will purchase such a solution. Most of the time, they will not say outright that they will not buy from you or are not interested in your solution.
Your job will be to read their nonverbal cues while explaining the concept behind your product or service.
Once your business concept has passed these tests, it is considered validated.
You are now ready to proceed to the validation process’s product validation phase.
c. The product validation stage
The product validation stage concludes the process of validating a business idea to ensure its success.
You are confident that your product or service has a sizable enough market at this point. People will pay you for a solution that they desperately require.
The idea validation stage ensures that there is sufficient demand for a potential product. You also want to ensure that customers will buy from you.
You must attract early adopters for your MVP through various types of teasing. Potential customers or clients who have previously spoken with you in person have already been polled.
You must have a critical mass of testers and early adopters before releasing your MVP. Before you can consider your MVP validated, they must provide you with sufficient feedback.
From there you can consider if you want to go ahead with your business plan.
2. Sourcing of funds
Raising startup capital is the first step in putting your business plan into action. It is also an important action to take after creating your business plan.
You should be aware of your business plan’s financial requirements; your plan must specify how much money you require and how it will be spent.
It is also critical that you understand the timing of the funding. For example, do you need all of the funding right away (for example, to build out a location), or can you receive it in stages or “tranches”?
The amount of funding you seek will influence the funding sources you approach. If you need $250,000 in funding, for example, angel investors are more appropriate than venture capitalists.
The most commonly mentioned sources of capital for early-stage businesses include:
a. Funding from Personal Savings
Personal savings are the most common source of capital for small businesses. The two issues with this type of funding are your savings and your willingness to put those savings at risk.
Business owners and entrepreneurs frequently prefer OPM, or “other people’s money.”
b. Business Loans
“Loan” is a synonym for “debt financing.” Banks and credit unions provide loans that must be repaid over time with interest.
This could be a personal loan, a traditional business loan, or a variety of other loans, depending on the type of asset you need to purchase (e.g., equipment, land, or vehicles).
To be granted these funds, you must meet the lender’s requirements and demonstrate to them that you have a good chance of repaying the bank loans (e.g., having collateral in some cases).
A bank loan does not require you to give up any equity. You will, however, be required to pay interest in addition to the principal.
c. Friends & Family
Friends and family are significant sources of capital for entrepreneurs.
They may provide funding in the form of equity (they receive stock in your company), debt (you must repay it), or a combination of the two (e.g., a royalty whereby they get paid back via a percentage of your sales).
Friends and family members make excellent donors because they have your trust and are easier to persuade than strangers.
However, there is a chance they may lose their money. And you should consider how it might affect your relationship with them.
d. Angel Investors
Over 250,000 private angel investors in the United States currently fund over 30,000 small businesses each year.
The majority of these investors are not members of any angel networks. They are instead successful business owners, executives, or other types of people with the money and resources to invest in deals that interest them.
Networking can help you find an angel investor for your business.
e. Venture Capital
Is your business past the startup stage and in need of additional venture capital for market share and expansion? If this is the case, you should look into venture capital funding.
Venture capitalists invest in start-up and medium-sized businesses that they believe will go public or be sold for huge profits in the future.
They are specifically looking to invest in companies that have the potential to be worth $100 million or more in five years.
They also go through an expensive and time-consuming process to select the best company in which to invest their venture capital.
As a result, depending on how urgently you require the funds, the application and approval process could take several months.
3. Secure an office space or set up a home office
Another necessary thing you should do once you are done creating a business plan is to secure an office and it is critical to take your time when choosing a business location because it is a key stage in launching a business.
The location of your business will be determined first and foremost by the type of business you run.
Business parks, shopping centers, strip malls, office buildings, and other structures are all built to fulfill the specific demands of different enterprises.
These useful hints might assist you in determining the optimal location for your expanding business.
a. Decide on a business location type
If you work from home but need more space, you might consider moving to a new home or adding on to your existing home to create the office space you need.
For a retail business, you can also find retail space in airports, free-standing buildings, and special event kiosks.
Commercial business space – Commercial business spaces offer flexibility for even more growth down the road but are typically best for businesses that don’t rely on heavy consumer traffic.
If you operate a manufacturing or distribution business, you’ll have special needs and likely have limited choices when opening a new location.
b. Check that the business location is within your budget
Of course, one of your primary objectives will be to select a site that is within your project plan.
When it comes to money, however, there are other factors to consider. In addition to the purchase price or monthly rent, other location-specific costs are frequently present.
Taxes, utility improvements, minimum wage laws, and economic incentives are just a few of the hidden costs that must be considered in almost every region.
Even mobile businesses must consider the cost of licenses and car registration when deciding on a new location for their operations.
c. Consider your brand
As you develop your business location strategy and weigh your options, keep your brand in mind.
For example, you probably wouldn’t want to locate your new office in the heart of a posh, boutique shopping district.
d. Think about vendors and suppliers
To avoid major delays or recurring inventory problems, you must find a location that allows you to easily communicate with your vendors and suppliers.
Consider which location makes it easier and less expensive to obtain the raw materials you require when weighing your options.
e. Find a safe location
You should not underestimate the importance of running a business in a safe and secure environment.
Consider your company’s safety as well as your own and your employees’ safety.
f. Go where there is demand
Finding a location for your company where there are few competitors is ideal.
Find markets where your products or services are in high demand or have little competition.
4. Purchase The Required Equipment And Tools for the business after creating a business plan
If you want to increase productivity, foster a positive workplace culture, and provide excellent customer service everywhere, you must invest in the best technology and tools available.
Even though purchasing equipment for your business may appear to be an expensive endeavor, it does not have to be if you know what you’re doing.
Yes, you will need to make a significant investment, but if you follow these frugal tips, you will be able to manage it with ease.
Let’s take a more measured approach to this prevalent issue and look at some strategies you can use to buy the right equipment for your business without going over budget.
a. Evaluate your needs and budget as actions to take after creating your business plan
Before you begin looking for equipment suppliers, conduct an internal analysis.
Make a list of the essential technology and equipment you require for each team and department based on your workload and employee count.
If you plan to get loans, use an equipment loan calculator to calculate the monthly payments and total cost.
This will assist you in avoiding purchasing equipment that is neither necessary nor urgent.
b. Focus on Digitalisation
As digital technology transforms how we work both online and offline, there are some technologies that modern businesses simply cannot function without.
Or, rather, they can, but investing in specific technology can greatly increase productivity, reduce wasteful spending, and help you achieve your goals more quickly.
So part of what an entrepreneur must do after creating a business plan, especially in terms of procuring equipment and tools for office use is to focus more on digitalization.
c. Work With Your Equipment Provider
When purchasing new office equipment, it is critical to collaborate closely with the appropriate suppliers to obtain the best solutions and quotes that meet your needs and budget.
d. Check if You Can some tools for getting Second-Hand
Not all of your company’s equipment needs to be brand new, especially if it isn’t critical to your operations or reputation. A new waiting room couch is not always required, but a mechanic may require a new digital diagnostics tool.
e. Shop Around For Supplier Discounts
Last but not least, when shopping for office supplies and technology, you are not required to accept the first offer that comes across your desk or to purchase the first offer that comes across your desk.
Compare prices from various vendors, shop around, and always look for better deals.
5. Design Your Business Operating Process
As an entrepreneur, well-designed business processes are essential for efficiency, scalability, and competitiveness.
Keep the following in mind when developing a new process or reengineering an existing one for your business
- Simply analyzing your processes can reveal redundancies, inefficiencies, risk areas, a lack of succession planning, and other issues (whether or not you intend to automate them).
- Analyzing your business processes is critical for improving how your company operates.
- Standardization can achieve consistency by benchmarking best practices across the organization.
- It is possible to identify problem areas such as errors, long cycle times, and bottlenecks by using meaningful KPIs.
- Automating repetitive tasks to free up your employees’ time to make more significant, value-added contributions that increase loyalty, engagement, and job satisfaction
Some of the key design process steps are as follows
a. Customer Feedback and Problem Description
The success of a project is dependent on accurately defining the problem, which includes determining why we are creating the process. Is it required, or do we not require it?
Who will be the internal and external customers of the process? The process is created or destroyed by defining the issue.
- Begin by considering the process’s output and what it should be.
- Specify and document the requirements.
- Regulators, other organizational divisions, and actual end users should all be identified and documented as stakeholders.
b. Design the process
You can begin by outlining the process now that you have everything you need to design and create an effective and efficient business process.
- Make a separate list of the steps, inputs, and outputs required to achieve the business goal.
- Make a process out of post-its on a whiteboard (virtual or real), with each note containing the most specific, detailed steps you can think of.
- Make links between the various steps and the order in which they occur.
- After the initial process mapping, hold a series of workshops to identify any design gaps.
c. Rolling out the New Process
A successful rollout of a new process is doomed to fail if the impact on end users is not considered. Before starting,
- Organize workshops with a representative sample of cordial but honest process users and clients.
- Create various scenarios, assign roles, and iterate the process several times as originally planned.
- Gather feedback from customers and employees, as well as information about how the process is carried out, and make note of any inefficiencies or, worse, mistakes.
6. Hire For Key Roles
Because the success of your business is dependent on hiring the right people, what an entrepreneur must do after creating a business plan is follow a formal hiring procedure when looking for new hires.
If you put in the time and effort to find the right people, your chances of hiring top performers will increase, and you will be less likely to make costly and painful mistakes.
Many business owners have sound judgment when it comes to determining whether or not a candidate is qualified for a position. However, you should not simply follow your instincts.
The hiring decision should be supported by reliable, unbiased criteria. This is how you can find the best employees for your business.
a. Examine your company’s culture
To hire the best candidates, you must be aware of your company’s requirements.
- What is its purpose?
- What are its core values?
- What kind of people belong here?
- What kind of mindset are you looking for?
b. Create proper job descriptions
Create job descriptions for each position within the organization that accurately reflect the duties, level of expertise, and experience required.
c. Prepare detailed interview questions
You can rate and compare candidates’ performance using an evaluation scorecard that you created.
Another critical component of the hiring process is requiring candidates to complete an assignment that requires the skills for which they are being hired.
e. Examine your options beyond the CV
On paper, the most qualified candidates may not be the best fit for the job. Inquire about the candidates’ interests, goals, and priorities.
f. Ask for references
It’s always a good idea to double-check references. Although fewer companies provide references for previous employees, reference checks are still one of the best ways to learn about candidates.
g. Bring them on board
Once you’ve found the best, you’ll need their complete commitment. According to research, a strong orientation program can increase new employee retention by up to 40%.
7. Maintain sound financial and bookkeeping practices
Effective bookkeeping is critical to the success of any business because even the most innovative ideas will fail if the funds run out.
As soon as your business is up and running, one of the things an entrepreneur must do after creating a business plan is to implement an efficient bookkeeping system.
Here is some startup bookkeeping advice to help you succeed in your field.
a. Start by using the correct accounting method
The accrual basis of accounting is preferred. Accrual-basis accounting provides a more accurate picture of your company’s finances and performance.
Accrual accounting is also more tax efficient because you can claim business expenses on your tax return in the year you incur them rather than the year you pay them.
Whatever method you use, it is critical to be consistent to keep accurate financial records.
b. Good accounting starts with sound systems
Accounting requires more than just hiring a dependable small business accountant to handle the numbers for you to ensure that your finances are accurate and well-managed.
It also necessitates the implementation of the necessary systems. With the right system, it is possible to do the following:
- Reduce errors and mistakes
- Allows you to create the data you (and your investors) require automatically.
- Payroll, reporting, invoicing, and other tasks can all be automated.
And it’s all done on a single, simple platform! Of course, you want to keep your system as simple as possible.
As a startup, you most likely lack the resources required to implement a more comprehensive plan.
c. Maintain a distinction between your personal and business finances
This is a common mistake made by all startups, whether established or new.
Using your accounts is appealing. After all, it’s simpler, faster, and ensures that you’ll be paid right away.
However, it comes with several drawbacks:
- It puts you in direct contact with business liabilities and debts.
- Business taxes and expenses come straight out of your savings
- It complicates your accounting.
- You are maybe missing out on a lot of business tax breaks.
You don’t have time for that; fortunately, the startup’s bookkeeper can take care of it.
d. Track revenue and expenses
A simple spreadsheet cannot typically keep track of a growing business’s income and expenses. Accounting software can keep track of both one-time and ongoing costs.
Accounting software can classify revenue and expense streams using historical data to help you track overall financial trends and identify growth opportunities.
If you follow best practices for bookkeeping and accurately record transactions, you can check these patterns at any time.
e. Make a schedule for bookkeeping
Make a plan to publish a book review once a week or once a month. This will save you time in the long run.
Furthermore, it ensures that you will not be stressed at the end of the fiscal year!
Even if you outsource your accounting, setting aside time for your books is a good idea.
f. Set aside funds for taxes
Setting aside money for all of the business taxes you’ll owe for the year is a great way to manage cash flow.
In general, you should set aside approximately 30% of your income for taxes, which should include both business taxes and VAT.
By putting this money aside, you can gain a better understanding of your company’s finances and ensure that you are not misusing government funds.
8. Hire Business Consultants
Running a small or medium-sized business is difficult due to the sheer amount of work required. Accounting, human resources, and technical support are all difficult for business owners to manage on their own.
They don’t have to figure everything out on their own, though, because hiring consultants is so simple. So answer the focused question of what must an entrepreneur do after creating a business plan is to hire a good business consultant.
Hiring a consultant can help businesses improve performance and make the necessary changes to ensure success.
A business consultant is a qualified individual who assists business owners in their endeavors.
For a variety of reasons, hiring consultants is a wise business decision. Among the many services provided by consultants are the following:
- providing expertise in a particular market
- Expanding the current staff
- Initiating transformation
- Demonstrating impartiality
a. How to Choose a Business Consultant
Choosing a business consultant who meets your needs can be difficult
Whether you’re looking for someone to help with high-level strategy needs or a specialized, problem-solving specialist to improve your SEO or product-sourcing processes, knowing where to start and taking things one step at a time are critical.
- Locate the best business advisor by beginning your search for a business consultant by tapping into your existing network. You should also investigate specialized marketplaces that can assist you in locating consultants based on their specialties, price ranges, and locations.
- You can vet a potential business consultant by asking questions, learning about their background and credentials, learning about their practical experience, and reviewing their track record.
- Schedule a meeting with your potential consultant if they have excellent references and a proven track record of being dependable and successful. Give a detailed explanation of your concerns and expectations, and then assess whether you are comfortable with their demeanor and personality. If the consultant checks all of your boxes, it may be time to move forward.
People prefer to do business with people they know, like, and trust rather than total strangers, so building a strong business network is one of the things an entrepreneur must do after creating a business plan.
Building trustworthy relationships and leveraging those relationships to meet new prospects who can eventually drive revenue growth is critical to successful business development today.
These relationships are critical to maintaining and growing your business because they will significantly contribute to its expansion.
The following are the top five networking suggestions to help you develop and broaden your small business network.
a. Engage in social activities
Use social media sites and apps like LinkedIn, Twitter, and online networking communities to expand your business network.
However, before you dive into social media, you must first thoroughly understand the medium, how it operates, and how you can use it to benefit your business.
b. Be of assistance
Helping and giving to others should always take precedence over taking and receiving for yourself. When you help people in your network grow, you grow as well.
Always be eager to share your knowledge and ideas. Promote the work and accomplishments of your network.
c. Develop your reputation
Building a successful business network requires the establishment of trust and a positive reputation. Business networking is rendered ineffective due to a lack of trust. Certain business connections simply cannot be made until a strong reputation and trust have been established.
d. Consider the long term
The longer you keep a relationship going, the more valuable it becomes. As a result, it’s critical to avoid becoming overly impatient and expecting results too soon when starting a relationship.
While connections open doors, relationships close business. Exchanging business cards and connecting on LinkedIn is just the beginning of networking.
Networking is most useful when long-lasting, mutually beneficial relationships are created. Relationship development takes time.
Be patient, please. Keep in touch with those you find appealing.
e. Follow Up
The need for follow-up is crucial for the following two reasons: 1) Networking is only successful when it is continued. 2) Contact follow-up strengthens relationships, reputation, and trust.
Make a name for yourself as someone who is persistent and keeps their word. Contact those who said they would assist you or the other way around.
Follow up on unanswered emails. Do for others what you promised to do.
10. Develop Your Brand Around Your Audience
If you’re in business, you need to think about branding your business because it’s important towards helping you achieve all you created in your business plan.
Larger businesses can afford to invest more in branding. But you don’t need an Apple-sized bank account to create a winning branding plan.
You can do a lot of things to make your business stand out, draw in clients, and make a good first impression without spending a fortune.
Let’s start by laying the foundation for creating the brand for your business. How to brand your business is as follows:
a. Research your target audience and your competitors
As an entrepreneur, one of the first things to do after creating a business plan, especially in terms of branding is to first comprehend the current market, including your potential customers and current competitors, before you can decide on how to build a business brand.
b. Choose your focus and personality
You cannot initially create a brand that is everything to everyone.
As you develop your brand, it’s crucial to decide on your focus and let that direct all of the other elements.
Consider your brand as a person to better understand how to grow it.
Who is that kind of person? What character traits would appeal to your target audience?
The tone of all of your written and visual content, as well as your social media voice, will be influenced by this.
c. Choose your business name
What is the cost of a name? You can make the case that your name is very important or very unimportant depending on the kind of business you want to launch.
The name of your business, however, is probably one of the first important decisions you as a small business owner will need to make.
If you choose that course of action, it will have an impact on your brand’s trademark registration, marketing, and logo (it is more difficult to register a trademark for generic brand names that directly describe what you sell).
d. Write a slogan
You can use a catchy slogan as a tagline in your social media bios, website header, personalized business cards, and anywhere else you have a small amount of space but want to make a big impact.
e. Choose the look of your brand (colors and font)
Once you’ve chosen a name, you should think about your brand design—specifically, the colors and typography you’ll use to visually represent your brand.
When you start using a website builder to make your website, this will be helpful.
- Design your brand logo
A brand logo design is probably one of the first ideas that enter your mind when you think about developing a new brand.
And with good reason—it serves as the company’s public face and is easily recognizable wherever your brand is used.
Ideally, you’ll want to create your brand with a logo that’s unique, identifiable, and scalable to work in all sizes (something often overlooked).
To summarize, as an entrepreneur what you must do after getting your business plan ready are as follows:
- Validate Your Business Idea
- Sourcing of funds
- Secure an office space or set up a home office.
- Purchase The Required Equipment And Tools
- Design Your Business Operating Process
- Hire For Key Roles
- Maintain sound financial and bookkeeping practices.
- Hire Business Consultants
- Develop Your Brand Around Your Audience
Having digested the necessary things an entrepreneur must do after creating a business plan the final words here are that as long as your initial business plan is comprehensive, actioning the follow-up steps should be relatively straightforward. Still, doing the necessary things an entrepreneur must do after creating a business plan doesn’t mean that it won’t be hard work – but the more open you are to adapting and remaining flexible and organized, the smoother things should run.