Introduction:

Developing a business plan is an important part of starting a new company, but it’s just the beginning of being an entrepreneur. Many entrepreneurs feel like all they have to do is complete the business plan, and that they will stop working hard. However, what comes after the business plan is just as important as creating the business plan. In this article we will discuss what steps you need to take after you create a business plan, and why executing your business is critical to your long-term success as a business owner.

1. Validate Your Market

The next step to completing your business plan is to validate the market that you believe you will be selling your product or service into. Your business plan has estimates for how many customers will buy your product or service, as well as the price and the size of your market and purchasing behaviour of customers, however, until you talk to your target customer base directly, these numbers are just hypotheses. You need to confirm with your target customers whether your assumptions regarding the size of the market and their purchasing behaviour are correct before you make large investments in unsellable products or services.

Key Validation Actions to Take on the Market:

Contact customers to verify your assumptions about the market

Create and launch a minimum viable product (MVP)

Implement beta-testing programs

Conduct limited-scale advertising through paid campaigns.

2. Legal Formalization and Compliance

Once verification of your market assumptions has taken place, legal matters must become the next area of focus for entrepreneurs. This includes how the business entity will be structured for legal purposes, obtaining tax ID numbers, and securing necessary permits or licenses. A legal formalization provides protection for the entrepreneur and credibility for investors and partners.

Legal Structure Checklist:

Decide the entity used for the business.

Register as required by law with your government agencies.

Obtain other required that will allow your business to operate.

Create documents such as the operating agreement (operating entity) or shareholder agreement (shareholder entity).

3. Raise Capital and Find Funds

Funds are needed to implement a business plan. Entrepreneurs need to evaluate estimated start up expenses, fixed costs and variable expenses as well as anticipated revenue. By accessing the right type of capital will allow businesses to have access to runway to continue operating in the initial phases.

Types of Capital:

Bootstrapping

Angel Funding

Venture Capital

4. Create Operational Systems

Executing on your plan requires that you have established systems in place. As an entrepreneur you should establish accounting software, customer relationship management tools, project management tools and inventory management. Establishing these tools early helps you to avoid unnecessary expense and ensures that you are providing consistent quality of service as your business grows.

Systems to Establish Early On:

Accounting Software

CRM Tools

Project Management Tools

Step 5: Implementing a Go-To-Market Strategy

Before you can implement your business plan, you need to establish an efficient go-to-market strategy. This includes identifying your customer segments, developing a value proposition, and determining the most effective channels for connecting with those customers. The better the execution of the go-to-market plan is, the stronger the relationship will be between your business and its early adopters.

Go-To-Market Building blocks

- Customer Segmentation
- Pricing Strategy
- Conversion Funnel Design

Step 6: Building an Exceptional Team

After putting in place operational systems, it’s time to begin the process of putting together the right team. An exceptional team is essential for effectively executing any business plan, so entrepreneurs must look for and develop talent that enhances their own skills and experience.

Key Startup Positions

- Operations Manager
- Marketing Lead
- CFO or Financial Advisor

In conclusion: to execute your business plan you need to do more than just follow the road map — you must take action, validate your market, comply with the law, and create and implement scalable operational systems. To effectively make the transition from theory to practice, entrepreneurs must validate assumptions, obtain capital, formally develop legal structures, and assemble a strong team. These activities, along with a strong go-to-market strategy and financial prudence, will create the foundation for ongoing growth in your business.