No one would say that starting a business is a safe career path. By some estimates, 90% of startups fail. The cards are stacked against you. But as Adam Grant once wrote, "[G]reat entrepreneurs have a different response to the fear of failure. Yes, they're afraid of failing, but they're even more afraid of failing to try."
Just because many businesses fail doesn't mean that you shouldn't try -- especially if you have a great idea. What's more, AI tools like ChatGPT are making it easier and less expensive than ever to start a business -- even if you want to kick things off as a side hustle, as I did with my company nearly two decades ago. Had ChatGPT been around then, I probably would have quit my day job sooner.
If you're considering launching a startup, here are seven ChatGPT prompts to help you each step of the way.
In the business world, there's a trope about founders following their dreams and chasing their passions. I'm sure that happens sometimes -- an entrepreneur launches a business related to their passion, which translates to a successful innovation. But I think a more surefire way to build a successful startup is identifying a problem and figuring out how to solve it.
ChatGPT can be a second brain at the idea generation stage. Even if you reject all of the LLM's ideas, you'll have a wider pool to choose from.
Here is one prompt to get the ball rolling at this preliminary stage:
"What are common issues faced by [target market] regarding [context]?"
For example: "What are common issues faced by journalists regarding recording interviews?"
(The results ranged from technical problems and ethical concerns to interviewee comfort and data management -- so many angles to consider!)
Once you identify your target market's issues and needs, you can ask ChatGPT to help brainstorm innovative solutions. Try the following prompt:
"Can you suggest innovative ways to [describe the issue and include the target market]? Please provide a list of 5 potential solutions."
Remember: the more context you provide, the more refined your answers will be. If, for example, you're targeting a certain geographic area or age range, let ChatGPT know.
So, you've come up with what sounds like a strong idea for a startup. A second opinion is essential. When I was starting out, I discussed my idea for an online form company at length with my mentor. I suggest doing the same. But if a second opinion is helpful, a third (or fourth) opinion is even better. ChatGPT can offer guidance on confirming the validity of your idea and strategies for ensuring financial feasibility -- in other words, that your idea will be profitable.
One of the first things to check is the current landscape of the market. To help with your competitor research, you can ask ChatGPT:
"I am starting a business to [describe product or service]. Can you list the main competitors in the [industry] market?"
For a more fleshed-out reply, you can pinpoint additional information. For example: "Describe their strengths and weaknesses," or "Who are their current customers?"
I've written before about how crucial it is to listen to users. They are an entrepreneur's most important stakeholders. It doesn't matter how brilliant your business idea is -- if it's not serving your users' needs or solving their problems, it won't succeed.
The listening process begins even before you launch your business. ChatGPT can help you tap into insight from potential customers. You can use this prompt:
"I am launching a business to [describe product or service]. What are some methods for collecting and analyzing potential customer feedback? Provide a list of 5 methods."
You can then use these methods to ensure your business idea has traction. And if it doesn't, you can use customer feedback to figure out how to tweak and refine it.
Writing a business plan is a necessary but sometimes harrowing step in launching a startup. It's no surprise that grad school programs dedicate semester-long courses to it. But you don't need an MBA in order to lay out your business's proposition. ChatGPT can help you to identify the most important elements (executive summary, market analysis, and financial projections) and build out each.
Even if you're not seeking VC funding and instead are taking the bootstrapping route, mapping out your business plan is an important exercise for laying out your goals, figuring out how to get there, and staying on track.
Here's a prompt you can use to get started:
"Can you help me draft an executive summary for my business plan? Please use the following details. The business name is [business name]. It is a [industry] business that [description and unique selling proposition]. The target market is [description of your target market]. My business aims to [needs/problems your business addresses]. It is different from competitors because [how your business stands out]. In the next [X] years, we aim to [revenue projections]. We also hope to [describe any other key metrics/KPIs]. Using this information, can you help me draft an executive summary?"
Next is the market analysis section. This part provides an overview of the current size of the market you want to serve, what your potential users are willing to pay, and revenue projections. ChatGPT can help you draft your market analysis with the following prompt:
"I am creating a business plan and need help drafting the market analysis section. My company is a [industry] business. The target market is [target market description -- include as many details as possible]. My company will [description of the problem your company will solve]. Here is some information on the market size and growth potential: [any available date]. The main competitors are [competitors]. Can you draft a market analysis based on this information?"
Finally, as I've written before, a laser-focus on profitability is the only way to ensure that your startup will succeed, especially if you are a bootstrapper like me. Every business plan needs solid financial projections to assure your key stakeholders -- and most importantly, yourself -- that the business will be profitable.
Here is a prompt you can use to draft your business plan's financial projections:
"I need help drafting the financial projections section for my business plan. Here is the key information. For funding, the company will require [amount needed, either VC funding or self funding]. In the next [X] year[s], I project revenue to be [amount]. I anticipate the company will be profitable in [timeline]. The most significant costs will be [costs]. Here are the key financial metrics: [e.g., gross margin, net income]. Can you use this information to draft financial projections for my company?"
Of course, financial projections are just projections. With so many factors constantly in flux, no one can predict a business's profitability. But this will help you generate a basic financial picture of your fledgling company.
Final thoughts
If you're in the early stages of starting a business, remember that all founders battle through a whirlwind of emotions. The struggle -- and the fear -- is real.
"What we regret is not failure, but the failure to act," wrote Adam Grant. Hopefully, using the above prompts and ChatGPT, you'll never regret not launching your business.
