You’ve spent months gathering market data and putting together a rock-solid business plan. But no matter how many hours get poured into it, there will be at least one or two major points that get overlooked. It’s an inevitable part of the process that happens to even the best startups.
After planning for everything else and every potential scenario you can conceive, these are the necessities that may still go unnoticed.
Data Security and Data Loss Prevention
Every year corporate espionage costs the U.S. economy $480 billion. Data and trade secret theft has become such a serious issue that the FBI has stepped in to help thwart spies and hackers.
Network security is a serious consideration even for small businesses that are just starting out. The last thing you want is to put all of your resources into a design, product, service model, etc. only to have your trade secrets stolen. Protocols have to be put in place for the handling of information (who, what, when, where), as well as how to handle a security breach. To completely protect your data, a comprehensive data loss prevention system can be integrated to track and secure information at all entry points.
Full Understanding of the Industry Metrics
Knowing your market is critical, but knowing the industry metrics is also a necessity. Cash flow, return on investments and working capital are the accounting basics. Profit is always a key indicator of success; however, the industry-related metrics and benchmarks will point to what is needed for sustainability and to help you make projections.
These metrics and benchmarks also help you identify what needs to be a priority. Immerse yourself in industry publications, blogs, and books to ensure you fully understand the benchmarks that need to be hit.
Educational Materials for New Employees
The product or service that you sell is the Holy Grail. When your company is just starting out and trying to make a name for itself, every employee is a part of the sales team.
In the fast-paced startup environment, new employees often get right to work on their specific tasks without connecting to the product or service. Owners can easily address the issue by creating educational materials that give every new employee:
- A complete understanding of the business and what it does
- The unique value proposition
- The story behind the product/service
- The market value of the product/service
- What sets the company apart from the competition
- The core values of the company
Educating employees will help make them evangelists rather than workers who need a paycheck. These educational materials provide even more value by helping you create impactful messaging for your website and marketing.
Choosing the Ideal Business Structure
Right now it’s just you, a few employees and a big idea. But the goal is to continue to grow. Too often startups don’t consider the business structure right out of the gate, or they hastily make the decision. This can lead to some headaches down the road and leave you with a large tax bill after your first year in business.
A sole proprietorship is the easiest (and cheapest) business structure to establish, but it can open you up to personal liability. This is because unlike a limited liability company (LLC) and S-Corp, your personal and business assets are intermingled. The other benefit of incorporation is that it gives your startup a professional appearance, which is important when dealing with customers and potential investors.
Factoring in a Review Schedule
A business plan isn’t a one and done document. It’s a strategy for growth and success. If it’s set aside and not reviewed, how are you going to know if your business is staying the course?
A review schedule that’s factored into the business plan up front establishes times for evaluating the results against the strategy. This gives you the opportunity to steer your business in the right direction and keep things on track.
Identifying the Corporate Culture
Too often the corporate culture gets put on the backburner during the planning phase. It’s seen as something that will naturally fall into place but rarely is that ever the case. The business may take off quickly and begin expanding sooner than expected. The stresses of running the day-to-day business could cause you to lose focus on the values that make your company identifiable.
Creating the culture of the business is essential for success. Every business plan should include a culture deck. It guides you through making big decisions like the branding and people you hire. Corporate culture has to be something that you cultivate strategically rather than leaving it to chance. That could allow outside forces to shape your business, not the founders and CEO.
Assigning Key Tasks
Most entrepreneurs know to include specific milestones that they plan to hit, deadlines for reaching goals and budget requirements, but they forget another essential piece of information. Thorough business plans also identify who will be handling tasks and responsible for making sure the business hits its milestones.
It’s part of what some business gurus call MAT – milestones, assumptions, and tasks. The who part of the implementation is arguably the most important. Assigning key tasks will make it clear who is handling certain facets of the business, establish chains of command and help you identify if someone is going to be spread too thin.
An Exit Strategy
When you’re starting a company, the last thing you want to envision is the end of the company, especially in the business plan. However, this is something that investors like to see, and it doesn’t necessarily mean the business isn’t a success.
An exit strategy can distinguish multiple avenues that lead to maximum profitability. Exit plans can include acquisitions, initial public offerings, mergers, and sell-offs. The purpose is to establish that your business will be a valuable entity in the future, and there are ways to capitalize on it.
As your startup grows, you’ll continue to find necessities that somehow didn’t make it into the business plan. That’s the beauty of a review schedule. You can use that time to make necessary updates and adjustments as needed.
