Opinion: Co-writing your business plan: How to use AI effectively

Amy Jackson

Artificial intelligence has become a powerful tool in the modern entrepreneur’s toolkit. From automating tasks to analyzing data, AI is helping small-business owners save time and operate more efficiently. 

One area where AI can make a noticeable impact is in business planning. Tools like ChatGPT, Gemini and Claude can help you draft a solid outline and their impact is most powerful when combined with the insight, authenticity or judgment a human author brings. 

Proper business planning is an essential part of business ownership. A business plan outlines key elements, such as goals, strategies, target markets and financial projections. It also helps identify potential challenges and solutions, guiding the owners’ decisions and direction for the business. While there is not a one-size-fits-all template for business planning, a strong plan typically includes the following components:  

• Executive summary
• Business/company description
• Market analysis
• Competitors
• Operating plan
• Marketing and sales strategy
• Management and organizational information
• Financial projections

What AI does well in business planning
AI tools excel in speed, organization and ideation. They can: 

• Structure your plan. Quickly generate outlines and fill in content for sections like executive summary and business/company description.
• Generate professional language. If writing is not your strong suit, AI can improve tone and clarity.
• Brainstorm ideas. Explore business models, revenue streams or marketing approaches.
• Tailor content for different audiences. Adapt your business plan for lenders, investors or internal stakeholders while keeping the core consistent.

Prompt engineering tips
Prompt engineering is the practice of crafting clear, targeted instructions or questions for AI tools to generate accurate and relevant outputs. In business planning, well-structured prompts can save business owners time, help them explore different scenarios and gain new insights into their business opportunity.  

A guide to asking AI: 

• Be specific. Vague prompts like “write my business plan” will return vague results. Instead, try, “Write a business plan outline for a dog grooming business targeting urban pet owners.”
• Set the tone and audience. Define who the plan is for. For example, “Draft a market analysis for a business plan submitted with a loan application to my lender.”
• Use your data. Instead of asking AI to guess numbers, provide them. Avoid sharing sensitive data – AI tools may store or reuse inputs. Try using generic numbers to get the overall concept then update later for accuracy: “Write a financial projection summary using the following inputs: $250,000 in startup costs, break-even in 18 months, projected Year 1 revenue of $600,000.”

Here are some prompt suggestions:

• Executive summary: “Summarize this business plan in 150 words.”
• Market analysis: “Create a market analysis for a specialty coffee shop in Springfield, Missouri. Include industry trends, target demographics and competitive landscape.”
• Marketing Plan: “List five creative, low-budget marketing strategies for a yoga studio targeting competitive athletes.”
• Financials: “Explain startup costs and break-even analysis for a business that requires $50,000 in equipment, $10,000/month in operating costs and anticipates $20,000/month in revenue by month six.”

Where AI falls short 
Despite its strengths, AI is not a business strategist or visionary founder. It has limitations that include:

• Market context. AI will provide generic results unless you provide detailed input. It does not know your competition, community dynamics or pricing structure unless you share it.
• Data accuracy. AI-generated financials may sound convincing but can be entirely fabricated. Always double-check any tables, forecasts or numbers against real data and human judgment.
• Citations. AI does not always cite reliable sources; sometimes it fabricates sources altogether. You will need to validate your data independently.

Blending AI, human expertise
When using AI in business planning, follow these best practices:

• Start with an outline. Then let AI help fill it in.
• Treat AI as a brainstorming partner, not the final authority.
• Use AI for formatting and polishing but do the fact-checking yourself.
• Incorporate your data and experience to ensure relevance and authenticity.

AI can accelerate business planning and, when used with intention, can be a highly effective tool in the process; however, strategic direction and final judgment will always remain the responsibility of the entrepreneur.  

Amy Jackson is a regional small business consultant for the Missouri Small Business Development Center at Missouri State University. She can be reached at amyjackson@missouristate.edu.