What must an entrepreneur do after creating a business plan?
Obtain financing. Once the business plan is written, the standard next step is to secure the capital to launch — because registering, hiring, setting up operations, and marketing all depend on having funding in place first.
The answer, and why
On the standard multiple-choice version of this question — A. Open the business, B. Finance the business, C. Advertise, D. Hire employees — the correct choice is finance (obtain financing).
A business plan is a document, not a business. It describes what you intend to build and, crucially, it's the artifact investors and lenders read before they hand over money. So the moment the plan is finished, its first job is to raise the capital that every subsequent step depends on.
Why the other options are wrong (for now)
- Open the business — You can't open before you've paid for a location, inventory, licenses, or staff. That money comes from financing.
- Advertise / market — Marketing spend is itself a line item that financing pays for, and there's nothing to sell yet.
- Hire employees — Payroll is one of the largest early costs. You need secured funding before committing to it.
Each of those is a later step. Financing is what unlocks them.
The bigger picture
Think of the plan as the blueprint and financing as the budget approval. A blueprint doesn't pour concrete — money does. Once funding is in place, the plan becomes your checklist for registration, operations, hiring, and launch, and you revise it as real numbers replace projections.
Use the interactive sequence above to see how the steps stack after the plan is done.
- 1
Secure financing
Use the plan to raise money — savings, a small-business loan, investors, or a line of credit. Almost every later step costs money, so this comes first.
- 2
Register the business
Choose a legal structure (LLC, corporation, sole proprietorship), file paperwork, and get an EIN and any licenses.
- 3
Set up operations
Secure a location or platform, suppliers, tools, and systems so you can actually deliver the product or service.
- 4
Build the team
Hire or contract the people the plan says you need to hit its goals.
- 5
Launch marketing
Execute the pre-launch marketing in your plan — brand, site, social, and outreach.
- 6
Monitor and revise
Track results against the plan and update it as reality comes in. A business plan is a living document.
Frequently asked
Why is financing the answer instead of 'open the business'?
You cannot open, register, staff, or market a business without money. On the standard exam question, financing is the immediate next step because every other action depends on it. 'Open the business' comes later, after funding and setup.
Do you register the business before or after getting financing?
Usually after securing at least initial financing. Some founders register first to open a business bank account, but the exam's intended sequence puts financing right after the plan.
How does an entrepreneur secure funding for a startup?
Common sources are personal savings, small-business loans, lines of credit, angel investors, venture capital, grants, and crowdfunding. The business plan is the document lenders and investors evaluate.
How often should a business plan be updated?
Review it at least quarterly and whenever a major assumption changes — pricing, costs, market conditions, or funding. It should evolve as the business grows.