by Kelly Weaver, Small Business Development Center Regional Director
Draft? Yes. Write? No. At this point, I have seen my share of business plans generated by AI. At first glance, they look well laid out and include the standard topics (sometimes in 50 pages+). However, one does not have to look too deep to find issues that can delay the progress of a project.
Here are a few areas of concern I have noticed:
Lack of Specificity – If you read a business plan and it is not clear where the business is located and why there is a unique need for it in that location, it’s not detailed enough.
Lack of Market Fit – All information in the plan must be vetted to make sure it is relevant to your plan. Does your plan fit your local market? Are there enough target customers to support the business? Are the sales, expenses and start up costs realistic for your location? What information sources have you used to verify them?
Lack of clarity – First of all, if the plan is 50 pages long, it is a non starter. Most ideas can be concisely explained in less than 10 pages. The plan should be detailed and clear enough so a reader with little knowledge of the industry or the market can see the viability of the business without having to make too many assumptions. It should be clear how and who will execute the plan. How will you implement the marketing strategies outlined? What is the expertise of the team behind the business?
Without your specific, individual, and unique imprint on the business plan, it is just a piece of paper. Make it real and relevant to you and your market. Let AI help you get started, gather research, or polish the language, but make sure the plan represents you and your specific execution plan for the business. Our Small Business Development Center staff can review plans with an eye for what lenders are expecting and what is relevant in local markets. We’d be happy to provide feedback that helps you get to the finish line with success.
AI can be helpful and can speed the process, but it can also be a waste of time if the user is not skilled in how to extract the right information. Here are several free training options that can help small businesses get the most out of the AI tools they are using.
The US Chamber’s Small Business B(AI)sics program helps small businesses learn practical ways to use AI in their operations. Businesses can sign up for free online training courses at https://www.uschamber.com/co/small-business-ai-training
The South Dakota Department Labor and Regulation recently offered funding for employers to training their workforce on AI. Employers interested in basic AI awareness training for your employees can access several free training offerings here.
Kelly Weaver is the Regional Director of the Small Business Development Center in Aberdeen which offers free, confidential business consulting to start up and existing businesses. She can be reached at (605) 698-7654 x144 or kelly@growsd.org. The Center is hosted by GROW South Dakota. Funded in part through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, conclusions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.