What must an entrepreneur do after creating a business plan?

Creating a business plan is just the beginning. Learn the essential steps entrepreneurs need to take next, including funding, networking, and turning their vision into action.

1. Reality Check: Testing assumptions before taking the leap

Creating a business plan is like mapping out a road trip—it’s exciting and full of promise. But even the best maps don’t predict every detour, roadblock, or flat tire. That’s where the reality check comes in. 

According to the latest reports, 90% of new startups fail. Additionally, many entrepreneurs become overly attached to their business plans without critically evaluating the underlying assumptions, leading to potential pitfalls.

How to run a reality check on your business plan

A. Start Small: Run a Pilot Test: Instead of a full-scale launch, begin with a pilot project. If you’re opening a coffee shop, host a weekend pop-up in a busy area. If you’re creating an app, release a minimum viable product (MVP) to a small user base.

B. Use Pre-Launch Validation Tools: Crowdfunding platforms like Kickstarter or Indiegogo are not just for raising money—they’re a goldmine for market validation. A successful campaign proves demand before you commit to full production.

Even if you don’t crowdfund, social media platforms like Instagram and LinkedIn can be used to create surveys or pre-launch buzz.

C. Talk to Your Potential Customers: Nothing beats direct conversations with your target audience. So, identify them among your family or friends and ask them:

2. Define your sales system, selected marketing channels, and possible funds

A great business plan is incomplete without a well-defined sales system and marketing strategy. So, now let’s see how you can build a roadmap to secure your first sales and manage your finances effectively.

Designing Your Sales Pipeline

A sales pipeline outlines the stages your prospects go through before becoming customers. Start simple:

1. Lead Generation: Attract potential buyers through inbound (content, SEO) or outbound (cold calling, email campaigns) methods.

2. Qualification: Understand if leads align with your ideal customer profile.

3. Proposal: Share tailored offers or demos.

4. Closing: Finalize deals with compelling offers or limited-time discounts.

For example, Atlassian (creators of Jira) relied on a direct-sales pipeline early on, focusing on self-service demos and trials, which lowered their cost of acquisition and attracted enterprise clients organically.

Choosing Marketing Channels That Fit

After setting up the sales system, it’s time to think about your customers: where they are, and what they love. Yes, I am talking about marketing channels that must align with your target audience and budget. Common choices include:

Social Media: Platforms like Instagram and LinkedIn are cost-effective but must align with your niche. For example, if your business is B2C and focuses on services or products in the beauty or travel industries, platforms like Instagram, Facebook, and TikTok are great options. But, if your business is B2B, LinkedIn and Twitter (now X) are the best choices.

Content Marketing: Blogs, videos, or podcasts help build long-term trust with your audience. This approach allows you to target individuals who are already customers of your competitors or have a keen interest in your niche, significantly increasing the chances of conversion.

Performance Ads: Use Google Ads or Meta Ads for targeted outreach but monitor ROI carefully.

For example, Warby Parker, a direct-to-consumer eyewear brand, launched with content-driven campaigns and grassroots events, avoiding hefty ad costs until they built traction.

Managing Costs and  Bootstrapping

Since no one trusts someone else’s vision outright, they typically want to see minimum results first. Only then do they begin calculating and considering potential growth. As a result, most businesses struggle to secure investors before getting started. That’s why you should estimate your channel expenses and ensure you have the funds readily available.

3. Design and set up After-sales Service

According to a Bain & Company study, a 5% increase in customer retention can boost profits by 25% to 95%. Offering excellent after-sales service demonstrates your commitment beyond the transaction, ensuring customer satisfaction and long-term business success.

By designing a robust after-sales service strategy, you’re not just closing sales—you’re opening doors to lasting relationships.

What Should After-Sales Service Include?

A. Onboarding and Training: Help customers use your product effectively. Provide guides, tutorials, or personalized onboarding calls.

Example: When HubSpot sells its CRM software, it offers free onboarding sessions and an extensive knowledge base to ensure users can maximize its potential.

B. Warranty and Maintenance: Offer guarantees for repairs or replacements within a specified period. Clear terms build trust and reduce friction.

3. Design and set up After-sales Service

According to a Bain & Company study, a 5% increase in customer retention can boost profits by 25% to 95%. Offering excellent after-sales service demonstrates your commitment beyond the transaction, ensuring customer satisfaction and long-term business success.

By designing a robust after-sales service strategy, you’re not just closing sales—you’re opening doors to lasting relationships.

What Should After-Sales Service Include?

A. Onboarding and Training: Help customers use your product effectively. Provide guides, tutorials, or personalized onboarding calls.

Example: When HubSpot sells its CRM software, it offers free onboarding sessions and an extensive knowledge base to ensure users can maximize its potential.

B. Warranty and Maintenance: Offer guarantees for repairs or replacements within a specified period. Clear terms build trust and reduce friction.

4. Secure the right legal structures20% of small businesses fail within the first year, 50% within five years, and approximately 65% within ten years (U.S. Small Business Administration), often due to inadequate legal structures and poor risk management. That’s why after designing after-sales service, the next crucial step is to secure the legal structure of your business.

The essential legal documents every entrepreneur needs

A. Business Structure Agreement: The first decision you’ll make is what legal structure to adopt. Whether it’s a sole proprietorship, partnership, limited liability company (LLC), or corporation, your business structure will dictate everything from taxation to personal liability. Make sure you choose the right structure that aligns with your goals and risk tolerance. 

LLCs are often preferred by entrepreneurs for their flexibility and limited liability protection, but each structure has its own set of benefits depending on your industry and growth plans.

B. Operating Agreement (for LLCs): If you’ve formed an LLC, an Operating Agreement is critical. This document defines how the LLC will be run and outlines ownership distribution, management roles, and procedures for making business decisions.

C. Partnership Agreement: If you have co-founders or business partners, a Partnership Agreement is essential to clearly define the responsibilities, roles, and obligations of each partner. This document helps avoid misunderstandings by setting clear expectations about profit-sharing, dispute resolution, and the process of dissolving the partnership if necessary.

D. Intellectual Property (IP) Protection: As you build your business, intellectual property is likely to become one of your most valuable assets. Whether it’s a logo, product design, software, or proprietary process, protecting your IP should be a priority. Registering copyrights, trademarks, and patents can safeguard your innovations and prevent others from using your work without permission.

For instance, In 2014, Airbnb faced a trademark dispute when Automation Anywhere tried to copy its logo. Had Airbnb secured a trademark for its logo earlier, the case would have been avoided, and the company wouldn’t have faced the time and financial burden of a legal battle.

E. Non-Disclosure Agreement (NDA): When you begin sharing your ideas with investors, potential partners, or employees, it’s essential to have a Non-Disclosure Agreement (NDA) in place. An NDA protects your intellectual property and ensures that confidential business information, like business plans and proprietary software, won’t be disclosed or misused. This is especially important during the early stages of product development when you’re dealing with sensitive ideas.

5. Set up systems to scale from day one

70% of businesses fail because they scale too quickly without systems in place (Startup Genome). This doesn’t mean building complex infrastructure right away—it means planning for growth with intention.

So, think beyond the present. While it’s tempting to focus only on immediate needs, systems designed for scalability can save time, money, and headaches down the road.

Steps to Build Scalable Systems

A. Automate Repetitive Tasks: Time spent on manual processes is time stolen from innovation. Identify tasks that can be automated, such as:

Invoicing and payment processing

Customer onboarding emails

Social media scheduling

6. Measure What Matters: Data-driven decision-making

A survey found that 91% believe democratizing data and analytics is vital for organizational success, and 76% say the same about AI capabilities(Source).

So, in today’s data-driven world, understanding which metrics matter to your business can make or break your strategy.

What to Measure: Focusing on the Right Metrics

A. Customer Acquisition Cost (CAC) vs. Lifetime Value (LTV): Balancing your cost to acquire a customer with the long-term value they bring is a critical factor in profitability. When CAC exceeds LTV, you’re essentially losing money. By focusing on reducing CAC and increasing LTV, you build a sustainable growth model.

B. Churn Rate: Churn rate—the percentage of customers who stop using your product or service—is one of the most telling metrics for a business’s long-term success. A high churn rate signals that your value proposition isn’t resonating or your customer service is lacking.

Tip: Aim for a churn rate of below 5% for SaaS businesses. If it’s higher, dive into your customer feedback for insights into potential improvements.

C. Conversion Rate: Whether it’s converting leads to customers, website visitors to sign-ups, or free trial users to paid subscribers, your conversion rate is a direct reflection of how compelling your offer is. Optimizing your conversion process should be a continuous effort.

D. Revenue Growth:  Measuring month-over-month or year-over-year revenue growth helps you gauge the health of your business. Are you gaining momentum, or is growth stagnating? This metric, when tracked alongside other data points, can highlight patterns in your sales cycles or uncover seasonal trends.

7. Fundraising: Beyond dollars, build partnerships

In this stage, your goal isn’t just to secure capital—it’s to align with partners who believe in your vision and can contribute beyond the check.

So, when seeking investors, don’t just ask, “How much can they give me?” Instead, ask:

Can they open doors to key networks?

Do they have industry expertise I can leverage?

Are they aligned with my long-term goals?

Conclusion: From planning to action, One step at a time

In summary, entrepreneurship isn’t just about reaching the destination—it’s about the growth and transformation that happens along the way. From aligning your purpose with execution to learning from setbacks, these steps are your foundation for long-term success. It’s a process of continuous refinement, learning, and building momentum.

Sources: https://www.agicent.com/blog/steps-after-business-plan/