How to start a business with AI

Create a business plan with AI

When starting a new business, the first step is to create a business plan. In general, a business plan includes information on what your business does, its finances, and potential customers. When writing a business plan, turn to generative AI for guidance. From drafting your plan and providing feedback to answering questions in real-time, generative AI does it all. Use these example AI prompts to guide the creation of your business plan:

• What components are needed in a good business plan?
• I’m trying to start a new business. Draft a business plan with the following: [business description], [explanation of finances], [target audience].
• Read my business plan and provide feedback on grammar and word choice: [business plan].
• Create a business plan template that includes the following: [key components].

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Choose a business structure

Your business structure impacts your personal finances and taxes, in addition to the amount of risk you take on. Choosing a business structure is a big undertaking, and it often feels confusing for newcomers and first-time business owners. While AI tools can’t take the place of legal advisors, they help clarify possible business structures. Try these or your own prompts to get started:

• I’m starting a new business. Explain the differences between the four most common business types in the U.S.
• What’s the difference between a sole proprietorship and a partnership?
• How does becoming a limited liability corporation (LLC) affect my taxes?
• Which business structure has the simplest setup?

Secure funding

Finding a reliable source of capital for your business is the next step. When choosing between loans, grants, crowdfunding, and investments, weigh the pros and cons of each with AI guidance. Use these or your own example prompts to try it out:

• What does crowdfunding entail and how do I secure it for my business?
• What’s the difference between a grant, loan, and investment?
• Define an angel investor. Do I need to pay back the capital they offer?
• How can I secure an SBA-backed loan?

Register your business name

Create a business name and register with the state to finalize the process. Brainstorm business names and answer any questions with generative AI prompts such as:

• Generate a list of potential names for my small business. I’ll be selling [product] to [target audience] in [location].
• Where do I register my business with the state? Can I complete the process online or do I need to visit a physical location?
• What is an employer identification number (EIN) and why do I need one?
• Locate supplemental learning resources to help me register my local small business.

Now you’re ready to start launching, marketing, and growing your business. Before you know it, your profits will spike. For more AI tips and use cases, visit our Life Hacks hub.