Starting a business can be thrilling, but it’s not easy and can be risky. Out of 50 million startups launched each year worldwide, about 30% fail within the first three years, and around 50% don’t make it to the five-year mark.
Even more surprising is that only 40% of these startups actually make a profit, while the other 60% either break even or continue losing money. One major issue is timing, with 21% of startups failing because they hit the market at the wrong time.
First-time entrepreneurs face even tougher odds, with only 18% succeeding compared to those with more experience. The top reasons for failure include not having a product the market wants, running out of money, and not having the right team in place. Poor planning often plays a big role, with 16% of startups failing due to a lack of a clear business plan.
With these challenges, it’s clear that you can’t just dive in without a plan. This is where ChatGPT can help.
By using prompts, you can avoid common mistakes and increase your chances of success. To get the best advice, provide specific details about your business idea and industry. Work through these prompts one step at a time to fine-tune your plan and get on the right track.
1 - "As a business coach for startups, how can I check if there’s a real demand for my business idea before investing a lot of time and money?" (If you already have a business idea, feel free to add details.)
2 - "Help me make a solid financial plan so I don’t run out of money during the early stages of my business. Please ask me the questions you need to get all the information."
3 - "What strategies can I use to build a diverse and strong team that matches my skills and helps the business grow?"
4 - "How can I create a unique value that sets my business apart from the competition? Here’s what my product/service offers: [Add details of your product or service.]"
5 - "What are some good ways to gather and act on customer feedback to make sure my product or service fits market needs?"
6 - "How can I set a realistic timeline with milestones to track my business progress and avoid growing too fast too soon?"
7 - "What are the common mistakes first-time entrepreneurs make in my industry, and how can I avoid them?"
8 - "What key performance indicators (KPIs) should I track to measure how healthy and fast my business is growing?"
9 - "How can I build a strong network of mentors, advisors, and industry contacts to support my business?"
These prompts are just the start. ChatGPT can give you insights, suggest resources, and ask questions to help you think through your business idea. Whether you’re doing research, shaping your product, or understanding your audience, these prompts will guide you before you invest your time and money.
With the right planning and tools, you can increase your chances of success and avoid being one of the many failed startups. You've got this!