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ChatGPT has quickly become a go-to source for instant information on just about any topic imaginable. With over 180 million users asking this AI platform questions daily, it's no wonder that many entrepreneurs are tapping ChatGPT for small business advice.
However, while ChatGPT tries its best, its knowledge does have limits. As many as 55% of people don't actually trust advice from this platform.
That's why we asked ChatGPT what the most common small business questions it receives are, then got expert commentary from our COO and small business owner, Alex Miles to respond. Read on for experienced, trustworthy answers to the AI's most frequently asked small biz queries.
How do I start a small business?
First things first, be clear on your business idea and ensure it's profitable. Do your research, figure out viability, and assess if there's a market gap. Create a solid business plan covering company details, competitors, and finances. Register your business, sort funding, and handle logistics.
What funding options are available for small businesses?
If you can, start with self-financing or loans from friends. Explore government schemes, check out start-up lenders, or consider crowdfunding. There are many paths – pick what suits your business model.
What are the essential steps for creating a business plan?
Think of your business plan as a roadmap. Cover objectives, marketing, financials, and more. It's crucial for grants or loans. Even if self-funding, it helps you spot potential issues and shape your idea.
What are common small business challenges?
Late payments can hit hard. Only 1% of small businesses haven't dealt with unpaid invoices. Customer returns, customer acquisition, finding good employees, and deciding when to grow are also common hurdles.
How can I effectively market my business on a limited budget?
Social media and email marketing are budget-friendly. Leverage your website, gather customer reviews, and explore in-person marketing at networking events.
How can I handle customer feedback and reviews effectively?
Have a platform for reviews, monitor them, and respond. Thank customers for positive reviews. If there's a negative one, resolve the issue. Use feedback to continuously improve.
How do I manage cash flow effectively in a small business?
Track and measure finances. A small business credit card offers visibility and helps bridge cash flow gaps. Keep on top of customer invoices and build an emergency fund for rough patches.
How can I choose the right technology for my small business?
Identify pain points in your business and automate operations. Technology should streamline processes, saving you time for more pressing tasks.
How do I hire and manage employees as a small business owner?
Figure out roles, advertise, conduct interviews, and ensure a smooth onboarding process. Support your employees, think about future training, and conduct regular check-ins and reviews.
How can I balance work and life as a small business owner?
Recognise your time limitations. Set achievable expectations, delegate where possible, and protect your free time. Switch off devices, practice self-care, and keep evenings and weekends work-free.
The bottom line
AI, like ChatGPT, is a good start, but do your research and speak to experts. AI lacks the human experience of running a business. Use it wisely, cross-check, and seek insights from credible sources for the best results.
