3 Ways AI Can Transform Your Business Planning Process

In the middle of hashing out the nitty-gritty of my next big project—a book on the fine art of business development and planning—Meghan, my trusty publisher, threw a curveball into our Google Meet. “So, why wouldn’t someone just ask AI to write their business plan?” she quipped, with a kind of daredevil gleam in her eye.

Not one to shy away from a bit of mischief, I egged her on, “Sure, let’s see what your future robot overlords can whip up.” It was more than just a playful jab; it was an open invitation to dance at the edge of AI’s evolving role in authorship and entrepreneurship.

Without missing a beat, Meghan typed out her challenge to ChatGPT-4: “Write me a business plan for a yoga studio in Austin, Texas.” We leaned into our screens as if watching a street magician at work, half-expecting a rabbit to pop out of a hat. “Wow, this is pretty snazzy,” she gasped, as paragraphs of company description, market analysis, strategy, and more unfurled before us. For a fleeting second, we marveled at the sleek, polished plan that appeared almost conjured from thin air.

But then the scrutiny began. The AI had ambitiously outlined a yoga studio offering everything from Hatha to Vinyasa to Kundali to Ashtanga to Yin to Iyengar to Power Yoga, a veritable smorgasbord of bending, stretching, and breathing options. “Hmm, how are you going to fit all these classes into the two classrooms stated in the business plan?” I mused, picturing a scheduling nightmare worse than a Tetris game on hard mode. “And is Austin really craving this much variety in their yoga diet?”

We dove deeper, and I poked holes in the AI’s grand vision of this mythical studio. Did Meghan plan to magically obtain certifications in all these styles overnight or would she need to hire instructors? Why wasn’t that in the business plan? Were there enough yoga enthusiasts in each demographic to fill these classes, or were we pitching Kundalini to a crowd that lived and breathed only Power Yoga? In fact, there was no geographic analysis of the demographics at all.

“I get it, I get it,” Meghan relented. 

The reality check quickly tempered her initial awe. The AI’s glossy plan, while impressive at first blush, was a mirage. 

This impromptu exercise wasn’t just a fun detour in our conversation; it was a revealing exploration into the limitations of letting AI run wild with your business dreams. It turns out, even in the age of advanced algorithms, there’s no substitute for a human entrepreneur.

Our foray into AI-assisted planning served as a comic yet insightful reminder: AI might draft a plan that looks good on paper, but it takes a human touch to navigate the complexities of real-world business. The lesson? Use AI as a brainstorm buddy, not your sole strategist. And always, always keep a human in the loop, ready with a healthy dose of skepticism and a knack for asking the tough questions. After all, when it comes to turning dreams into reality, a little human mischief goes a long way.

Three Ways to Use AI in Business Planning

Let’s break this down a bit, shall we? Meghan’s venture into AI-assisted business planning was filled with great insight. 

1. Brainstorming and Ideation: Think of AI as that one friend who’s always up for a brainstorming session, no matter how outlandish the ideas get. It’s like throwing spaghetti at the wall to see what sticks—just don’t try to serve your family the wall spaghetti afterward. Using AI like a sketchbook; it’s swift, it’s messy, and it’s surprisingly fun. The real magic happens in the iteration: taking that AI-generated sketch and refining it. Bounce ideas back and forth until something takes shape.
2. Asking the Right Questions: AI’s responses can be powerful, but they’re only as sharp as the inquiries you pose. “I’m thinking about starting a new yoga studio. Do you have any advice for determining what the most popular yoga disciplines are being taught in Austin, TX?” or “I would have two 800 sq. ft. classrooms. Can you tell me what I need to consider when scheduling out classes for the convenience of my students?”—these are the types of questions that turn a generic AI response into a goldmine of factors you need to consider. Try prompts like these out, you’ll be surprised. 
3. Collaboration Over Delegation: AI in business planning is about a partnership where humans and AI play to their strengths. Consider this scenario: you purchased a geo-targeted demographic study for your proposed yoga studio location. The report is filled with critical data—population demographics, income levels, interests—and you set GhatGPT-4’s Code Interpreter to pinpoint nuanced insights that can inform your marketing strategies and promotional efforts, turning data into actionable intelligence. Or, imagine you’re faced with the logistical puzzle of scheduling classes. You provide AI with all the pieces: class sizes, types of yoga offered, preferred times, and lengths of sessions, along with instructor availability. AI then processes this information to develop a scheduling strategy that maximizes resource utilization while ensuring a harmonious balance between peak class times and instructor workload. Workflows like these are about leveraging AI’s computational power to uncover optimal solutions that might not be immediately obvious, ensuring you take into consideration all possible information.

The moral of the story is clear: AI is a tool, not a magic wand. It’s a companion in the creative process, ready to assist, provoke thought, and inspire. But at the end of the day, the heart and soul of your business plan — the part that resonates with stakeholders, organizes actions, and drives outcomes — comes from the distinctly human ability to dream, question, and innovate. 

Meghan’s dive into AI-assisted business planning peeled back the curtain on the power and pitfalls of relying on technology for entrepreneurship. It’s a vivid reminder that while AI can illuminate paths we might not see, the journey of crafting a business plan that resonates and succeeds is deeply human. As we venture further into the AI era, the key is to blend AI’s analytical might with our unique human insights, creativity, and strategic thinking.

Businessplan.com is your ally in this evolving landscape. Our AI Essentials section is designed to guide you through utilizing AI in your business’s pre-planning, planning, and development stages. As AI continues to shape the future of business, we’re committed to growing with it, ensuring you have the latest tools and insights at your fingertips.

We’re excited to see how you’ll leverage AI in your entrepreneurial endeavors. Share your stories, experiments, and ideas with us on X and LinkedIn. Let’s navigate this exciting frontier together, turning the potential of AI into tangible success for your business.