Offering convenient, secure payment processing is a critical component of any online store, but it can be difficult to evaluate the different options available to small businesses today. In this article, you’ll gain a deeper understanding of what is Stripe, how it works, how to set it up, its key features and benefits and how it compares to other options. After reading, you should have a clear understanding of how Stripe works and whether it’s the right payment processing system for your small business. 

What is Stripe?

Stripe is an online payment processor and payment gateway that lets customers securely pay online for products and services. When customers are ready to make an online purchase, they can submit their payment through Stripe, which processes the payment, communicates the success or failure of the transaction back to the customer, and ensures that the funds are properly transferred to the business.

Stripe has developed integrations with popular ecommerce website builders (such as WooCommerce and Shopify) and also offers a suite of tools and APIs to allow businesses more flexibility in how they integrate its payment functionality into their site. Stripe is a popular payment processing system that is used by businesses of all sizes, from Atlassian and Lyft to small ecommerce stores.

Payment methods accepted by Stripe

Stripe supports a wide range of payment methods, so it’s a very convenient option for your customers. Stripe accepts:

• All major credit and debit cards (e.g., Visa, Mastercard, American Express, Discover, etc.)
• ACH payments (i.e. bank account transfers)
• Digital wallets (e.g., Apple Pay, Google Pay, etc.)

It can also support buy now, pay later style services (e.g., AfterPay). Stripe payment methods work both online and in-person, so it is a great choice for businesses that have online and brick-and-mortar storefronts.

How does Stripe work to process payments?

Because Stripe acts as both a payment processor and a payment gateway, it covers everything you need to process payments online. Here’s a brief overview of how Stripe works:

1. Customer submits payment information.

The customer shares their credit card, debit card, or other payment information details, either on your online store’s checkout page or using a POS terminal (e.g., a card reader) at an in-person retail location.

2. Stripe securely transmits payment information to the acquiring bank.

Once the customer submits their payment information, Stripe encrypts these sensitive details and securely sends them to the bank that will process the transaction (i.e. the acquiring bank). Stripe uses several different acquiring banks, such as Wells Fargo. Merchants don’t need to have a dedicated account with the acquiring bank — you can benefit by using Stripe’s merchant account for these transactions.

3. Acquiring bank connects with the issuing bank.

When the acquirer receives the payment request, it connects with the issuing bank associated with the customer’s payment method (for example, if your customer has a Visa card from Citi, then Citi is the issuing bank).

4. Issuing bank approves payment and transfers funds to the acquiring bank.

If the customer has available funds, the issuing bank approves and authorizes payment, transfers funds, and communicates this back to the acquiring bank.

5. Stripe communicates success to the customer.

The acquiring bank communicates success to Stripe, which passes this message along to the customer (e.g., customer sees an “Order successful!” message on the checkout page). From the customer’s point of view, this entire process takes only a few seconds.

6. Stripe transfers payment to your bank account.

Once the issuing bank finalizes its approval (often the same day), Stripe will payout to your business bank account, minus its payment processing fee. It can take a few days for funds to hit your bank account, and some merchants use payout schedules that transfer payments on a regular basis (e.g., weekly).

How to set up and use Stripe payment processing

Now that you know how Stripe works, let’s cover how to use Stripe as a merchant. We’ll primarily cover how to set up Stripe for an ecommerce website.

Step 1: Sign up for a Stripe account

If you haven’t already done so, you’ll need to start by signing up for a Stripe account. This is a relatively simple process where you provide some basic contact details, business information, and banking details. Once your account is verified, you can continue on to step 2, or spend some time configuring additional settings, such as two-factor authentication.

Step 2: Integrate Stripe with your online store

Integrating Stripe with your online store will vary based on your ecommerce platform. Fortunately, Stripe has pre-built integrations with most major ecommerce platforms, such as WooCommerce, Shopify, BigCommerce, and more. This means that you can start using Stripe on your online store with just a few clicks, without the assistance of a developer.

If you have a completely custom site not built on an ecommerce platform, you’ll need the help of a developer (if you’re not comfortable coding) to build a direct integration with Stripe on your site. Stripe offers extensive developer documentation to support custom builds.

Step 3: Run a test transaction.

Before deploying Stripe to your customers, it’s a good idea to run a test transaction to ensure that everything is working correctly. The steps here can vary based on your ecommerce platform, but you’ll likely be able to enable a test mode to see if Stripe can connect and communicate correctly without actually processing a live transaction. Alternatively, you can test a live transaction and then refund yourself from your store dashboard.

This will give you a chance to experience what it’s like to use Stripe as a customer, as well as see how those payments show up in your Stripe Dashboard.

Step 4: Start selling!

If your test transaction went off without a hitch, you’re ready to start processing payments with Stripe. Disable any test mode you might have turned on for the previous step, and start selling!

Benefits of Stripe

Now that you know how Stripe works and how you can set it up on your online store, let’s explore a few of Stripe’s key benefits for your small business.

Integrations with ecommerce platforms and website builders

As previously mentioned, Stripe has integrations with many popular ecommerce platforms and website builders. This is a huge advantage for small businesses since it means you can get up and running with Stripe on your site without touching a single line of code. In addition to the speed of setup, this also means you can expect great support and continued quality-of-life improvements as those integrations are improved over time.

Endlessly customizable and developer-friendly

While there are many pre-built Stripe apps and plugins, there may come a time when you need to tweak Stripe to meet your site’s specific needs. In those cases, you’ll be pleased to know that Stripe is well-known for being developer-friendly and open to customization. Stripe has great documentation, which makes it easier for a developer to customize Stripe to your specifications.

Seamless payment experience

Your site’s payment experience can have a marked impact on your conversion rates (i.e. the rate at which customers make a purchase on your site) — a seamless experience can improve conversions, while a clunky or slow process can cause customers to abandon their purchases. Stripe provides a streamlined and user-friendly payment experience, ensuring that more customers who start checkout are able to complete it successfully.

Fast onboarding and extensive reporting

As you likely noticed during the setup instructions, it’s easy to onboard as a new Stripe customer. Most notably, Stripe customers don’t have to go through the lengthy and difficult process of setting up a merchant account with an acquiring bank — they’ll automatically use Stripe’s own merchant account for their payment processing. This is a huge time saver for small business owners!

Stripe users also benefit from its extensive reporting capabilities through the Stripe Dashboard. You’ll be able to clearly track your payment activity, transaction fees, and payouts with Stripe’s reporting, giving you greater clarity into the health of your business.

Are Stripe payments safe?

Stripe has extensive security and fraud prevention features, making it one of the safer options for accepting payments on your store. Stripe is a certified Level 1 PCI Service Provider, which means it adheres to very strict security standards set by the PCI Security Standards Council. You can feel confident that your customers’ payment information is safe when processed by Stripe.

Online fraud is a real problem for ecommerce stores, but Stripe offers advanced fraud detection through its Stripe Radar service. This feature, built directly into Stripe, can proactively identify and prevent fraudulent charges, which protects your customers and your business. Additionally, Stripe can support features like:

These bring even more powerful fraud prevention, but please note that utilizing these features may impact your transaction fees.

Is Stripe right for your business?

Not all businesses are created equal! There are a number of factors that will determine if Stripe is the right payment processing solution for your business. Stripe is a great fit for small businesses that:

• Use popular ecommerce platforms. Stripe’s direct integrations with WooCommerce and Shopify make it a great option for businesses built on those platforms. You won’t have to spend any of your valuable time or resources building or maintaining a connection with Stripe.

• Have security or fraud concerns. If you’ve been the victim of fraudulent charges and bad actors before, you know how costly it can be to your business reputation and bottom line. Stripe’s sophisticated fraud prevention and top-notch security make it a great choice for security-conscious merchants.

• Sell internationally. Stripe is supported in over 40 countries, so it is a smart option for businesses with international sales.

• Care about customization. Because Stripe is so developer-friendly, it will be attractive to businesses that want the option to customize Stripe to meet their store’s specific needs.
• Want to give their customers options. Stripe supports a wide variety of payment methods (credit cards, debit cards, ACH payments, digital wallets, buy now / pay later, and more) so it gives customers a lot of flexibility around how to pay for your products and services.

However, Stripe isn’t right for everyone. Stripe cannot be used for selling certain high-risk products (check out their list of restricted businesses to ensure your products and services are supported by Stripe). Additionally, Stripe charges a significant transaction fee of 2.9% + 30¢ per online transaction, so it may not be a cost-effective option for every business.

What are some Stripe alternatives?

While Stripe payment processing is a popular and reliable solution, there are alternatives that might be a better, more affordable fit for your business. These options vary based on their transaction fees, customizability, support for international sales and integrations with other apps used by your online store. Some examples include:

When considering a payment processing system, be sure to consider these transaction fees as well as which features are most important to your business. Ideally, you’ll choose a payment processing system that offers the features you need at a great rate, so that you aren’t overpaying for capabilities that aren’t important to your business.

Is selling online over-saturated? No way! It’s still very doable to make money from anywhere with a laptop. You just need to learn how to sell online and have the dedication to make it work.

This guide will give you proven methods to sell products and services online with insights from people making money using digital platforms. Plus, we’re sharing tips for building your own website and the secrets to selling with social media.

How to start selling online

Before jumping in and making your first sale, you need to know what you’re selling and who to. Through market research, you will find the answers.

Do market research

Once you’ve brainstormed the products or services that you’d like to sell online, you’ll need to see if there’s a market for those products. To do this, there are market research tools online that you can use.

Market research involves gathering information about your target market, competitors and industry trends. The goal is to determine whether or not your ideas are likely to make money and, if they are, how you can reach an audience interested in buying from you.

Market research includes:

• Competitor analysis to see what others are doing and what works for them. You need to look at where you fit within the market, what makes you stand out and what you can offer that competitors don’t.
• Analyzing online forums where your audience hangs out to build a picture of who your audience is and what they need so that you can target them better.
• Look for trends to discover products people are looking for now.

Top tip: When it comes to identifying trends, you can use Google Trends, which is a free tool. Search the product or service you’re considering selling and see how interested people are.

For example, a search for ‘buy selfie stick’ shows that searches for this product peaked in 2018 and have steadily declined in search volume; probably not the product for you right now.

Searches for air fryers, on the other hand, increased in 2020 and have remained relatively stable ever since.

Choose a niche and product

If you’re starting your online selling venture from scratch, it’s best to start with a niche product or service.

Niching allows you to build out an audience looking to solve a specific problem. You will get to know your buyer deeply, and only then can you provide them with all the reasons why your chosen product or service helps them.

Top tip: it will help if you genuinely like and believe in what you’re selling, especially if you’re going to sell on social media (more on that later).

Choose a platform or create an online store

The key to choosing a platform – or platforms – is not to spread yourself too thinly. If you’ve done your market research thoroughly enough, you will already have an idea of where your audience is hanging out online.

Top tip: consider your time. You are better off covering fewer platforms well than covering many badly. You can always scale later.

Market and sell

Once you’ve covered the above, it’s time to jump into your marketing plan. You’ll need a marketing plan that considers the buyer funnel. Think about the content you need to create to persuade prospective customers to buy from you. You will also want to build trust as part of your marketing strategy.

Top tip: sites like Reddit and Quora are free and provide insight into your audiences, their problems, their issues with competitors and so much more. The same applies to Google’s People Also Ask.

Sticking with the idea of selling air fryers, a quick search of the word ‘air fryers’ returns commonly asked questions about pros and cons.

Popular platforms where you can sell products online

Now that you’ve got your marketing plan started, it’s time to choose a platform for selling online.

Sell on your own online store

You can’t sell online without a digital store or platform. While you can sell on social media (more on this later), an owned channel like a website can become an asset over time.

Here’s some guidance on setting up your own platform.

Choose a domain

Check your desired domain name is available and buy online. Your domain name should be the same as your business name. It should be memorable, easy to spell, and relevant.

Create your store

Create an online store using GoDaddy’s Website Builder and set up shop within a day. You can add products, take payments and sell online from anywhere in the world.

Add payment processing

You need to integrate your online store with a payment gateway to accept payments. The gateway you choose comes down to personal preferences, terms and conditions and transaction fees.

PayPal is free to integrate but may charge a higher rate per sale, but if you want to test your ecommerce store before committing to a gateway like Stripe, PayPal can be a good start.

Manage inventory

Inventory management is crucial for any ecommerce business, especially if you receive orders online. If you have physical products, your inventory must match what’s available online; otherwise, your risk selling more products than you have in stock, resulting in disappointed customers.

If you’re selling online and offline, stock inventory can get more complicated as you must regularly update your online inventory.  Larger businesses have inventory management systems for this, but as a start-up, you can sometimes manage inventory updates with good administration.

Choose a shipping provider

Shipping can get rather complex, especially if you’re planning on handling international orders. You need to think about shipping costs and how you will manage them. Some businesses choose to absorb shipping so there’s no obvious cost to the buyer. Of course, if you do this, shipping costs should be factored into your product price.

Shipping calculations vary, but here are some options.

• Flat-rate shipping is as it sounds. The business charges the same shipping cost for all packages, regardless of weight or distance. Flat-rate shipping should be carefully monitored. With a flat rate, your business expects to profit on some purchases and lose on others, especially if you’re shipping internationally. Flat-rate will only work if the profits and losses are approximately balanced.
• Actual cost is a calculation where the business calculates the exact shipping cost for each package and charges this to the customer. This is usually done automatically at checkout using a shipping calculator. The calculation will take into account location, weight, size and more.

You can incentivize a purchase with free shipping, and you can also offer more expensive shopping options for faster delivery.

Top tip: Test your shopping experience before you start. You must ensure your prospective customers have a seamless experience from finding you to buying. That means no broken checkout.

Sell on Marketplaces

Marketplaces like Amazon, Etsy, eBay and Craigslist offer excellent opportunities to reach a broad audience and sell your products. Service-based businesses can try Freelancer, Upwork, Toptal and more.

You can sell on many of these marketplaces and your website. You can try the marketplaces and see how they perform.

Naturally, each marketplace will take a percentage of the sale, so you’ll need to factor that in.

Amazon

Any ecommerce brand should at least try out Amazon. It is a search engine for products, and some of your buyers will go to Amazon before Google.

Pros

• Amazon is one of the largest ecommerce marketplaces.
• It’s simple to set up a seller account and list your products.
• Users may use Amazon as a search engine rather than Google, so you’re reaching a new audience.

 Cons

• Amazon has over two million sellers, so you need good product photography to stand out.
• For users to find you on Amazon, you need to know a little about Amazon SEO.

Etsy

Etsy is a popular marketplace for crafts, handmade and vintage products. But Etsy is also an excellent marketplace for digital products like guides, ebooks and more.

Pros

• If your product is crafty, handmade or vintage, you can know that users are heading to Etsy to find it.
• It’s cheap to start selling.

Cons

• It is a busy marketplace with lots of sellers.
• You don’t have the same control over your Etsy store as you do your store.
• Customers often expect personalization on Etsy.

eBay

eBay is one of the oldest ecommerce marketplaces. By now, most of us have probably sold (or tried to sell) something on eBay.

Pros

• It’s familiar.
• You may already have an account with some reviews to build trust.

Cons

• eBay’s UX isn’t as friendly as some alternatives.

Craigslist

Craigslist is a classified advertisements website that allows you to sell products locally.

Pros

• There are no fees
• You can sell locally, which helps with shipping fees if you want to keep your business geographically small.

Cons

• Local sales only can be limiting once you have the desire to grow.

Sell on social media

Once the products or services are available to buy, your first task is to drive traffic to the site. Here are some tips for promoting and selling your products digitally.

Social media

Social media is a great place to build an audience and, importantly, a brand. Through social media, you get to know your audience, and they get to know you; social media is personal.

TikTok

TikTok is a platform credited for its generous algorithm providing accounts with excellent reach. As one of the fastest-growing platforms with over 1 billion users, your audience is likely hanging out there.

Mia Steele is a TikTok creator who began monetizing content in April 2022. She reports great success on the platform.

Steele says, “In less than six weeks of posting on TikTok and diving into User Generated Content (UGC), I began monetizing my content. I managed to replace my income by creating content and ads for brands.

“As my TikTok following grew, I even sold my own digital products to my audience.”

Steele’s top tip for a successful social media account is, ‘Devote time to cultivate and nurture your own audience, so you can capitalize on the traffic to sell your own products.’

TikTok also has TikTok Shop that you can access once you have 1,000 followers. TikTok Shop allows you to take a commission from items promoted and sold within your videos.

Facebook and Instagram

Like TikTok, you can grow an audience on Facebook and follow the path of selling digital products. Facebook and Instagram also have Shop functionality to sell products directly on the platform.

Facebook and Instagram benefit from the ability to post from Instagram to Facebook automatically, which will save you time.

Pinterest

Pinterest allows you to create a shoppable feed to list your products and sell them directly on the platform. You can also use Pinterest to drive traffic to your online store or blog.

Pinterest marketer Kayla Ihrig says, “The best way to make money on Pinterest is by making pins that lead to your services or products. Unlike other platforms where you need to constantly share valuable information to market your product or service, on Pinterest, users are searching for it and just want to be able to find it. Creators need to create images or videos (called pins) that display what they offer and then optimize them for search. Then, when a user searches for a solution to their problem, they find your content and go back to your website.”

Ihrig’s pin, pictured below, is the perfect example of a pin that leads a user to her service-based site.

Selling on social media opens a window of opportunity for entrepreneurs. You can sell your own products and services or explore affiliate and email marketing, which you can advertise in tandem with your platform.

Affiliate marketing

With a combination of your website and social media, you could sell products online without actually owning or stocking a single item. Ideal for the entrepreneur craving ultimate freedom.

With affiliate marketing, you take a percentage of sales made via your channels using trackable affiliate URLs.

Mia Steele drives traffic from her social media following of 20,000 to her website. She started with a domain name from GoDaddy and started her journey into affiliate marketing.  Steele says, “Within just seven months, I had joined more than 15 affiliate programs, built an email list of over 3000 subscribers, and earned over $90,000 in commissions by promoting products on TikTok and through my blog.”

The key, Steele says, is “Building your email list from day one. I underestimated the power of an email list until I ventured into affiliate marketing, and I regretted not starting earlier. Having a compelling free lead magnet and consistently producing high-quality content to drive traffic to your offers will be the key to your success.”

Email marketing

Email marketing is a cost-effective way to reach your target audience and promote your products. Done well, every email you send can make money. At least, this is the case for the team at Siligrams.

Arlene Battishill, Chief Marketing Officer, says, “Our email marketing is killing it with an average 55% open rate. Every email makes money. A recent email marketing campaign – a series of 10 daily emails – had an average 63% open rate because the campaign was nothing but stories and bad jokes and had absolutely nothing to do with our product!”

The secret to Battishill’s campaigns is consistency and humor; not every email is a sales plea that likely contributes to the sales success. Siligrams choose to humor and engage their audience instead of going for a hard sell. Remember, people buy from people.

Top tip: you can create and send stylish emails in bulk using GoDaddy’s marketing suite.

Trust the process when selling online

If it were easy, everyone would do it. Although the online selling path is simple, it requires dedication. Commit to your product, trust the process and be consistent.

As a budding entrepreneur, you have a lot to explore, and a platform that works for one business may not work for another, so be bold and experiment.

Sell online FAQ

Finally, we’re answering some of the most asked questions when it comes to selling online.

How do I sell online for the first time?

Your first online sale is the result of small steps made consistently. Follow the steps in this guide, from idea generation and market research to marketing and set-up, and you will make your first sale.

What are the most profitable items to sell online?

The most profitable items to sell online vary based on trends, but some items stand the test of time. These items include SaaS products via affiliate marketing since you earn recurring revenue.

For physical products, you can explore items in the following categories:

• electronics
• fashion accessories
• beauty products
• home decor
• health and wellness

Naturally, these categories are also some of the most competitive, and you should consider the challenges. For example, electronics can go wrong, resulting in customer service issues and refund requests. Health and wellness is challenging to build authority in, especially if you’re relying on a new, owned website to sell from.

How can I sell products online legally?

The legal requirements for selling online can vary, and you must research to ensure you comply fully with laws and regulations.  You must consider registering your business, correctly paying your taxes, and customer privacy and security. Advertising online also requires you to adhere to rules and regulations, from product information to the types of images and ad copy.

What is the easiest platform to sell online?

Ease of use is a priority for any platform that allows you to sell online. You can set up an eBay, Etsy or Amazon store within a day. The platforms are already geared to helping people like you sell.

If you want to own your platform, which is not a good idea, website builders help you set up shop as quickly and efficiently as possible.

It’s everyone’s dream to have their own business. With entrepreneurship, you become your own boss, you set your goals, and if things go well, you can make more money. However, owning a business also means you need to manage stress..

From wrangling employees, to long hours, to worrying that the business could fail to problems with equipment, not making sales, not having enough capital to having too much debt, the list is endless — in short, it’s hard work

These things can make owning a business more stressful and lead to burnout as a small business owner.

But it seems you can’t escape the stress of owning a business, with a 2021 survey showing that 52 percent of small business owners experienced stress during the year.

The best you can do is to learn how to manage stress and protect your well-being. This is especially important for small business owners because the success or failure of the business solely depends on them.

Even if you have a few employees, they depend on your guidance and the momentum you set for your business growth.

Learning to manage stress as a small business owner is as important as learning how to market a business and make sales. In fact, managing stress should be among your top long-term strategies for business growth.

This post highlights top stress management tips for small business owners:

Ready to do this? Let’s go!

How to manage stress as a small business owner

Owning a business is different from working for an established company. As a business owner, you have more responsibilities, and the success of your business largely depends on you.

Statistics show that about 20 percent of all small businesses fail within the first year. As a small business owner, you need to figure out how to keep your business going to ensure it doesn’t fall into that bracket.

Unlike employees, entrepreneurs don’t work for paychecks. They have the responsibility to ensure the company is on the right track. This can sometimes mean working more than 50 hours a week without an overpay or any income at all.

Undoubtedly, many things can stress small business owners, so the question remains: What are the most effective ways to manage stress? Let’s highlight them below:

Know your stressors

The first step to managing your stress is identifying the cause. Many things can stress small business owners, including lack of enough funds, time management issues, and employee management.

Your workplace stress as an entrepreneur could be due to things you can’t solve or get time to do.

Running and growing a business involves many trials and errors and entering unfamiliar territories. This and many other things can stress you even without knowing. To identify your stressors, you need to look back and analyze your actions and paths carefully.

Once you identify your stressors, you can begin looking for the best solution. Sometimes you will feel relieved just by identifying things causing you stress.

While identifying your stressors is important, you should also aim to be more self-aware. By gaining self-awareness, you can know what things or situations make you stressed and the best way to deal with the situation.

Also, when you become self-aware, you know your strengths and weaknesses, which is key when running a business.

One way to reduce stress is by delegating tasks that cause you stress. For example, you can delegate staff management to a team manager if dealing with them directly causes anxiety.

If that is not possible, knowing that a particular job causes stress will help you know how to prepare beforehand to reduce the impact on your mental state when handling it. For example, you can take a deep breath before the task or practice mindfulness.

Focus on the right things

Unless you retrain your mind, you will likely focus more on what is going wrong when running a small business than going right. While this can help rectify your mistakes to keep things going, focusing more on the negatives can lead to more stress.

You’ll be less likely to manage stress when you think about your capital deficit, things that are behind schedule, or an employee who didn’t respond to you appropriately.

Instead of focusing on things that go wrong, remind yourself of things that are going right. For example, you could remind yourself of positive feedback from a customer, an employee committed to their work, or the fact that you’ve dialed in important parts of your workflow.

List all the right things happening in your company, no matter how small they are. Once you have the list, you will be amazed at how much you have accomplished and the potential growth of your business. Keep the list somewhere you can easily see to act as a motivator whenever you feel stressed.

Create a schedule and stick to it

Without a structure, you’ll have no plan, meaning you won’t have a way to anticipate what can happen. When you don’t have a schedule, you have so much to do in a day that you might not do anything.

But when you plan, you can handle more and have enough time to anticipate what might happen.

You quit your 9-to-5 job because you wanted full control of your day, right? Unfortunately, if you don’t create a reasonable schedule and stick to it, you will not have that all-important work-life balance, meaning no time to fulfill your dreams.

Being a business owner should come with a sense of control and should be a reminder that you are your boss.

Having a routine helps you know what to expect each time of the day and comes with a sense of control and peace of mind. That means you don’t have to follow a schedule you haven’t created yourself. The best part is that you can always adjust your schedule if something stresses you.

Creating a schedule and sticking to it gives your mind and body a sense of protocol. This is good for your body clock, which determines when you feel energized or tired and impacts your focus.

When creating your routine, consider the effort you need to complete each task. Schedule the most challenging tasks before other tasks requiring less energy and concentration for better results.

You’ve probably heard small business owners complain that their day is never enough to complete their tasks. The truth is, the number of hours is never the problem but the lack of schedule.

If you schedule your end of the day, you’ll complete all your tasks on time and still have time to rest.

To better stick to your schedule, consider investing in scheduling software to help manage your time more effectively. If you can plan, anticipate, and organize your day, the stress of running a business will significantly reduce.

Prioritize sleep

Not sleeping the recommended number of hours (7-8) could impair cognitive functioning and deplete energy levels.

But telling people to “get enough sleep” without giving tips on how to achieve that doesn’t help. After all, if they could get sleep that easily, they could sleep. The fact that one is advised to sleep means they’re having trouble sleeping or don’t have time to sleep.

But telling people to prioritize self-care — including sleep — is a practical approach that can give results. Ideally, prioritizing sleep means becoming aware that sleeping enough is crucial to manage stress. But knowing that alone won’t help you sleep. Here are practical tips to help you sleep better:

• Stick to your routine. Sticking to your routine won’t only help you achieve your goals but also help you fall asleep easily.
• Avoid alcohol before sleep. While alcohol can make you sleepy, it only gives you lower-quality sleep. This, alongside other effects of alcoholism, makes alcohol not a better option before sleep.
• Avoid coffee at night. Coffee is a stimulant, meaning it increases activity in your brain and nervous system. Taking coffee at night will impact your ability to fall asleep and affect your daily routine.

These tips will help you have enough sleep at night. Having enough sleep means enough rest and more focus the following day.

Exercise more

While you should dedicate more of your time to your business, it shouldn’t be at the expense of your fitness. Exercising doesn’t only improve your physical health but is known to reduce stress as well.

However, this doesn’t mean spending two or more hours in a gym daily — not at all. A 30-minute walk every day or other physical activity will do.

For example, you can walk to your next meeting or walk around your workplace at lunchtime. Also, instead of sitting down for many hours in the office, consider having a standing desk or taking breaks from work to stretch your body.

Whatever the case, don’t spend countless hours in the office sitting, as this will impact your mental and general health — and could lead to health problems down the road.

Exercising increases endorphin levels (brain transmitters) that help you feel better. The higher the endorphin levels, the more you feel less stressed, and vice versa. Exercising is a great way to feel more satisfied and energized, and manage stress.

It helps improve your mood and gives you a better perspective on how to run your business.

Be mindful of your diet

What you eat impacts your mental health and general health. Regardless of how much you exercise, you will remain demotivated and probably moody if you eat unhealthy foods.

A balanced diet is a great way to improve your immune system and repair damaged body tissues. A healthy diet also provides the energy needed to manage stress and make you feel more relaxed.

The food you eat can help reduce stress or increase your stress levels. For example, you should avoid these foods if you are feeling stressed:

• Caffeine
• Alcohol
• Processed foods, including chips, frozen foods, cookies, etc.
• Sugary drinks and foods
• Foods with high trans fats like frozen pizza, fried foods, microwave popcorn, etc.

Instead, eat foods that can help promote feelings of warmth and calmness, including:

• Whole grains
• High fiber foods
• Foods high in magnesium, such as broccoli, avocados, bananas, pumpkin seeds, spinach, etc.
• Protein-rich foods such as peanuts, almonds, chicken breast, lean beef, eggs, etc.
• Foods high in vitamin B like chicken, beef, organ meats, eggs, etc.
• Foods with higher amounts of omega-3 fatty acids like avocados, olive oil, salmon, tuna, sardines, etc.

Eating healthily will not only provide the nutrients to handle stress but will also provide energy to exercise and handle daily work.

Delegate tasks

One of the reasons small business owners fail to manage stress is because they have more than they can handle. If that’s the case, delegating is a great way to reduce stress.

Some tasks cannot just be put on hold. This is especially so for tasks at the core of running your business.

But that doesn’t mean that you should be the one to handle them. To avoid being overwhelmed with tasks, outsource some of the duties or find team members to help free up your calendar (and mind).

Of course, delegating tasks can be hard, especially if you have been used to handling the tasks yourself. However, having reliable employees to delegate some tasks is a healthy business choice.

If you’re yet to train people to handle tasks that overwhelm you, you should start doing so. This will benefit your mental health and help you achieve more in your business.

Automate

Automation is similar to delegating, only that you’re relying on technology this time. Running a business today is unlike in the 90s when many things were done manually. Today, small business owners can use apps to automate many aspects of their businesses.

For example, my own company AlchemyLeads saw a 250 percent increase in monthly leads after automating their lead outreach process using Zapier. Not just outreach, small businesses can automate many areas of their businesses to boost effectiveness.

Businesses can save time by abandoning spreadsheet scheduling of their staff for online scheduling. Another area you can use automation is in running your payroll and posting on Facebook, Instagram, Twitter, and other social media platforms.

While automation tools will cost money, they will make it easier to run your business and save a lot of time and money in the long run.

Be ready to say “no”

Sometimes you don’t need to delegate or even automate tasks; you only need to say “no.”

When the business is young, you’re likely to say “yes” to almost everything as long as it appears to be helping your business.

And truth be told, you don’t have many opportunities coming to you when starting, so you may seem like you don’t have much choice but to accept all opportunities that come your way.

However, as early as it is, it is good to create boundaries and focus only on things that will help grow your business. So, before you say “yes,” ask yourself whether the act has any short-term or long-term benefits for your business.

But saying “no” is not easy, especially on matters involving customer, employee, or partner happiness. However, remember that saying “yes” to everything might overwhelm you and affect your ability to deliver in the long run.

So, instead of agreeing to anything to make others happy, focus on doing what really matters and set your terms. If you don’t do that, you’ll be overwhelmed, and your acts won’t meet the standards.

Remember, you have limited time to do things that you value. So, learning to say “no” to unnecessary things will help reduce stress and give you more time to focus on more productive activities.

Take breaks

Even if you take the above steps, you won’t be able to manage stress if you work continuously without breaks. This can be as simple as taking a 10-minute break to stretch, walking around the office, or going on vacation.

Whichever way you decide to go, don’t worry about matters to do with your business when taking a break from work. If possible, turn off your phone and have someone handle the tasks on your behalf to ensure you have enough time to relax.

Stepping away from your business for a while will help decongest stress and give you a new perspective on your business and life.

Manage stress and keep thriving

Implementing even one of the above strategies can go a long way to help you manage stress. And once you experience those benefits, keep building on that success. After all, even the most successful business isn’t worth your well-being.

Your business plan is the document to help you go from idea to execution. You’ll likely depend on your business plan to organize your thoughts, strategize for success and stay focused. You might also write a business plan to secure funding.

If you want to write a winning business plan, read this comprehensive guide. We’re sharing step-by-step tips on how to write a business plan.

What is a business plan?

A business plan is a document that you use to strategize for your business’ future. The business plan includes an overview of your business, its goals and your marketing strategy. The document will also include financial forecasting.

Need help deciding on a business to start? Check out this list of small business ideas that are easy to launch  on a low budget. You might also consider other online business ideas that require minimal upfront investments.

In this article:business plan

Why do you need a business plan

You need a business plan to outline your business goals and the strategy to achieve them. Your business plan is also your first opportunity to create something tangible from your ideas. By putting ideas on paper, you’re giving yourself the opportunity to properly think through your plan and vet its likely effectiveness for business success.

Outside of your personal reasons for writing a business plan, you will need this document if you need to convince funders or investors that your business is legitimate and likely to return a profit. You would be expected to provide investors with a well-thought-out business plan demonstrating market awareness and financial planning.

How to write a business plan

If you’re ready to get stuck in and write your business plan, the next steps will greatly help. You want to be thorough at every step, especially if you’re sharing the plan with potential stakeholders. But remember, this is your business; your plan will be unique to you.

1. Create an executive summary

Your executive summary is essentially your first impression to investors. In a few sentences, it needs to grab attention and explain what you/your business does. It wants to grab the reader’s attention, so they’re compelled to read on.

2. Describe your company

Your business plan will include a description of your company. Think about your elevator pitch and write your company description into your plan. Be very clear here, think about what you do, who you do it for, and exactly what problem you are solving.

You’re likely not the first person to create a company solving a particular problem for your audience, so try and detail what it is that makes your company stand out.

3. Introduce team members

If you have any particularly credible or expert team members, be sure to introduce them within your business plan. Write a short bio with key credentials and how they contribute to your new business.

4. State your company goals

Every business needs goals, and deciding exactly what yours are might not be so obvious. Yes, your company needs to make a profit, but the goals need to be broken down into more measurable and actionable steps.

Start with desired business goals. Then decide what you need to achieve to make each goal a success. For example, for your company to meet your projected revenue goal, then what do you need to achieve? What marketing goals does the business need to meet to satisfy business goals?

5. Detail values and a mission statement

Of course, your business is here to make money and provide the lifestyle that you want. When writing a business plan, it’s easy to get wrapped up in the data and the money, but your why is the lifeblood of your business.

Take some time to create a page that digs into the meaningful element of your business. What larger problem are you trying to solve? What values will you hold the business to? How will you create a truly meaningful layer within your business?

This section should be very useful for you as a business owner since this is what will keep you going. But, it can also be used to help onboard a team later and better understand your connection with your audience.

6. List products or services

When you write your business plan, you must include your products or services.

Within this section, write:

• What the product or service is
• How it helps your audience
• How it stands out in the marketplace

For product-based businesses, include:

• A brief introduction to costs (you’ll expand on this later)
• Where products are sourced
• Quantity of products owned

7. Do market research

Every business must conduct market research. You need to think about the local market and if you’re starting an online business, you must consider the digital market. You may have different competitors in each marketplace.

It’s crucial that you can develop comprehensive market research that shows a deep understanding of competitors and your place amongst them.

Your market research will help you determine if your business venture is justified and also act as support to your proposition which is especially useful when pitching to investors.

The market research section will help you see where the gaps are between your business and competitors, and it will form the beginning of your sales and marketing plan as you strategize to close the gap on leading competitors.

8. Create a marketing and sales plan

Your marketing and sales plan will generally be built from your competitor research. You can use competitive data to get a feel for what’s working. However, it’s important to remember that your brand and its audience are unique.

Also, when it comes to marketing, you are better off doing less better than trying to do more poorly, so you must factor in your budgets.

Your marketing plan should be in support of the business goals outlined previously. Your marketing plan should have a clear goal and a strategy to help achieve it. As a business owner, you are not necessarily expected to know the ins and outs of marketing, so if you need support here, you can get it. You may need to reach out to your marketing team or other professionals who can help you decipher what the business needs to succeed.

9. Create a financial projection

When it comes down to it, finances determine a successful business from an unsuccessful one.

If you’re seeking investment, your financial forecast is everything. If there’s one thing that investors need to know very clearly is the financial estimations and performance of your business over time.

In your projection, plan for:

• Sales
• Expenses including wages
• Pricing of products and/or services
• Contingency for unexpected finances

10. Add an appendix

It’s not enough to simply write a business plan; every claim you make needs to be well-documented and supported. So, include an appendix.

Your appendix is a compilation of supporting documentation and/or evidence. Items that might be included in the appendix include:

• Resumes of key team members
• Documentation supporting your market research and analysis. If your plan summarizes findings, include the marketing research and data here.
• Legal documents, such as incorporation papers, patents, or trademarks
• Marketing materials, such as brochures or flyers
• Customer testimonials or case studies. New businesses might not have this, but if you have conducted research or focus groups, you can include findings here.
• Product prototypes or lab tests if you have them
• Any other relevant supporting documentation that was referenced in the main body of the plan.

Business plan format

There are three types of business plans, traditional, lean, and nonprofit. Whilst this article focuses primarily on the most common business plan format, the traditional plan, it helps to know what might be involved in other formats.

Traditional

The traditional format provides a detailed business overview and is useful for presenting to investors or lenders. In a traditional plan, you will likely write more than you would in a lean plan. Some businesses might opt for a traditional plan and then create a lean version for specific functions.

Lean

The lean business plan format is, as you would expect, a leaner (simplified) version of a traditional business plan. The lean business plan format includes the most critical aspects of the business. If you’re writing a lean business plan and you want to pitch to investors, then you must include key sections like market analysis, revenue forecasts, etc.

Nonprofit

The nonprofit business plan is similar to the traditional business plan, but naturally, it differs as it includes items that are required to run a nonprofit organization. For example, if you were writing a nonprofit business plan, you would likely include all elements of the traditional plan, plus fundraising and development, governance, and financials.

You may also have research from the local area you’re serving to help with that market analysis section. Your aim will be to prove that there’s a public need for your nonprofit.

Tips for writing a small business plan

Before you start writing your small business plan, read through these tips that might not be so obvious.

Use a business plan template.

Business plans are not new, so why not start with a tried and tested template? There’s plenty of space to turn the template into something unique that feels like yours. Using a template avoids overwhelm and provides structure. Check out this free business plan template you can download and customize in a cinch.

Write for yourself, not just investors.

Your business plan is yours. Writing your business plan is your chance to organize your thoughts and get your ideas on paper. Upon completion, you should feel satisfied with your robust roadmap to success. Of course, consider your audience and investors and give them everything they need, but don’t forget to satisfy your own intent. Remember the business plan formats; you can always start with a traditional plan for you, then provide the investors with the lean version.

Demonstrate what makes you unique.

You’re likely joining a busy marketplace, and you want to go in ready to disrupt and stand out. Clearly articulate what sets your business apart from the competition, and explain why customers should choose your products or services.

Use concrete data and examples.

Your business plan is no longer your place to dream. Writing your plan takes dreams and helps you turn them into something tangible and achievable. Within the business plan, you should be able to support your ideas with concrete data and real-world examples. You need to prove to yourself – and investors – that this business is viable.

Be realistic in your projections.

As above, writing your business plan is about creating something achievable, You must be realistic with your projections. Whilst being optimistic is exciting — and you can still be optimistic — you must be realistic in your plan.

Realistic projects are better for you mentally, too. If you’re more likely to achieve your goals, you’re less likely to get overwhelmed. Plus, goals that are not realistic will heap pressure on you and your team, and that’s the last thing a new business needs.

Business plan FAQ

Here are your most asked questions, answered.

How do I write a simple business plan?

You will write a simple business plan if you keep focused and aim to be thorough but concise. Aim to cover all important aspects and don’t over-plan. Focus on shorter time frames and be realistic about what can be done. Rely on research and data to help shape the plan.

Can I write a business plan myself?

Yes, you can write a business plan yourself. That said, if your plan covers areas of business where you’re not so strong, you might need support.

How long should a business plan be?

Your business plan will be as long as it needs to be, but the aim here is to create something thorough but concise. As a guide, aim for around 15 to 20 pages.

How long should it take to write a business plan?

Writing your business plan will probably take a few days, but you’ll need to do a lot of research behind the scenes. You also need to step away from the plan, return and edit it to ensure it is accurate and void of errors. A business plan should take three months from beginning to end.

AI chatbots have become a game-changer. As digital assistants, they can help generate content, streamline service and processes, enhance experiences, drive growth, answer questions, and so much more. To unlock their full potential, it’s crucial to understand the craft of prompting, speaking to the AI chatbots in a way that they give the results that we want. And our guide to writing prompts for AI is here to teach you how to do just that.

Writing prompts for AI

What are AI prompts?

A prompt is an input, a text command or a question provided to an AI model, with the aim of generating a desired output like content or answer. It is like asking a question or giving the AI a command to get the desired answer or outcome.  Prompting is providing a cue to an AI language model, and it’s essential for obtaining high-quality responses from generative AI models like ChatGPT, Google Bard and Bing AI.

The better the prompt, the better the results.

So, what makes a good prompt? Effective prompts that are clear, specific, and tailored to the task at hand can improve the accuracy and relevance of the agenerated responses. Think about what you want the AI to accomplish and give it a prompt that will get you there. While it may take some extra effort to craft effective prompts, the high-quality responses that you’ll receive make it worthwhile.

Related: AI prompts for small business owners

Back to top.

5 steps for writing effective AI prompts

This guide is designed to help you learn the craft of prompting, enabling you to get the most out of these AI chatbots.

1. Understand the basics

A prompt is a message or question that you provide to the chatbot to generate a response. The purpose of a prompt is to provide a specific direction or goal for the chatbot to work towards, allowing it to produce more relevant and accurate responses.

In the context of chatbots, prompts serve as the input to the system, while the response generated by the chatbot is the output. By providing a clear and concise prompt, you can influence the output generated by the chatbot and obtain the information or response that you’re looking for.

Related: How solopreneurs can lean on generative AI to scale their business

Back to top.

2. Know your chatbot

When it comes to working with chatbots, it’s important to understand the differences between popular systems like ChatGPT, Google Bard and Bing AI. Each system has its own unique strengths and weaknesses, and understanding these differences can help you craft more effective prompts and obtain better results.

ChatGPT

ChatGPT is known for its ability to generate natural-sounding responses, making it a great option for tasks like customer support or chat-based interactions. The system is trained on a massive dataset of human language, allowing it to produce responses that are fluent and contextually relevant. However, it can sometimes struggle with tasks that require a more creative or specific approach.

Related: Getting started with ChatGPT — A beginner’s guide to creating with AI

Google Bard

Google Bard is designed to produce creative and engaging content. The system is trained on a large dataset of poetry and prose, allowing it to generate responses that are poetic, humorous, or emotionally evocative. This makes it a great option for tasks like content creation or social media management. However, it can sometimes produce responses that are overly verbose or irrelevant to the task at hand.

Bing AI

Bing AI is designed to produce more concise and specific responses, making it a great option for tasks that require a high degree of accuracy or specificity. The system is optimized for tasks like question-answering or fact-checking, and it excels at producing responses that are brief and to the point. However, it can sometimes struggle with tasks that require more complex or nuanced responses.

Each chatbot also has its own unique syntax and instructions, which can affect the way you craft your prompts. For example, ChatGPT may require you to provide a specific context or topic in your prompt, while Google Bard may require more creative or conversational prompts. Understanding the specific requirements of each chatbot can help you craft more effective prompts and obtain better results.

Any chatbot and model can produce inaccurate or unintended results. Make sure that you check your work.

By understanding the unique strengths and weaknesses of each system and crafting effective prompts accordingly, you can improve your outcomes and achieve your goals with greater speed and efficiency. Try them out and see which fits your needs best!

Related: The essential small business guide to generative AI

Back to top.

3. Craft effective prompts

Crafting effective prompts is key to getting high-quality results from chatbots like ChatGPT, Google Bard and Bing AI. Here are some tips and strategies to help you create better prompts:

• Talk to it like it’s intelligent. When talking to the chatbot, treat it as if you’re conversating with an intelligent human, using natural language and coherent questions to obtain more accurate and useful responses.
• Be clear and specific. Clear and specific prompts are crucial for guiding the chatbot to generate relevant and accurate responses. For example, if you’re using a chatbot for customer support, a clear and specific prompt might be: “Please describe the issue you’re experiencing in detail.”
• Use context and set the stage. Providing context can help the chatbot understand the purpose of the prompt and generate more relevant responses. For example, if you’re using a chatbot for product recommendations, a prompt like “What are your favorite products?” may not be as effective as “Can you recommend a product that’s similar to [specific product name]?”
• Make it personal and specific. Include your name, product, or company name, background information, topic, highlights, tone, format (like a list or blog), and length.
• Define the role and expertise. Tell the AI to assume the identity of a profession (like a copywriter, marketer, developer, coach, professor, or HR).
• Set the style. Choose a style such as academic, instructive, journalistic, critical, creative, conversational, or professional.
• Set the tone. Opt for a tone like confident, witty, or dramatic.
• Use the right format and tone. Tailoring your prompt’s format and tone to match your goal is essential for getting the desired response. For example, if you’re using a chatbot for professional purposes, maintaining a formal tone might be more effective: “Kindly suggest some strategies to increase website traffic for a small business.” On the other hand, if you’re seeking creative ideas, adopting a more casual tone could yield better results: “Hey, what are some fun ways to promote a small business on social media?”
• Experiment with question phrasing. Rephrasing questions and testing multiple variations can help you find the best possible prompt. For example, instead of asking “How can we improve our product?” you might try “What features would you like to see added to our product?” or “What are your biggest pain points when using our product?”

Poorly written prompt example: “Tell me about marketing.”

Strong prompt example: “Act as a master marketer, and in a professional tone, explain three essential digital marketing strategies that a small business should implement to increase their online visibility and drive sales. Please write a 200-word explanation with 3 bullet points following.”

Prompt template:

• Role: Specify the role you want the chatbot to assume, such as a business strategist, educator, or marketing expert.
• Objective: Indicate the intent of the content to be generated, e.g., blog article, social media update, product overview, FAQ, or ask a question.
• Details: Include relevant information like the business, brand, or product name.
• Background: Offer a concise background of the business or brand, highlighting its primary product or service offerings, target customers, and unique selling propositions.
• Content subject: Define the central topic or theme of the content to be generated.
• Context and objectives: Supply context, particular goals for the role, and company details to help the chatbot grasp your expectations, e.g., “As a specialist in ecommerce and collaborating with ‘Business Y’, a top online marketplace, offer advice for enhancing the user experience of their website.”
• Writing style: Indicate the preferred style for the content, e.g., formal, casual, convincing, educational, etc.
• Structure: Mention any specific format or organization, e.g., bullet points, paragraphs, Q&A, etc.
• Supplementary details: Incorporate any other pertinent information or context that may support The chatbot in producing the content, such as particular examples or directions.
• Voice: Indicate if you’d like it to be in a certain style like Shakespeare.

Pro tip: After creating your text, run the prompt: Act as a plagiarism checker and analyze this text for potential plagiarism, then suggest rewrites or modifications to ensure originality, and retain similar format, tone and length: [paste generated text]. Once the text is output, re-read and revise it to ensure that it speaks to your needs.

Back to top.

4. Improve your AI prompts

Ready to build on what we’ve discussed so far? Here are some further steps to take to improve on your prompt writing:

• Offer the AI step-by-step instructions. Breaking down complex queries into simpler steps can help you get better results and more accurate responses.
• Identify main ideas: Find the most important parts of your question.

Example: A business owner wants to improve their online presence to drive sales. Main ideas: online presence, drive sales.

• Simplify your question. Turn your complex question into simpler, specific questions about each main idea.

Example: What makes a strong online presence? How does a better online presence drive sales?

• Ask the chatbot. Enter the simple questions one by one for more focused answers.
• Utilize prompt chains. Break down complex queries into a series of connected, simpler questions to obtain better results and more accurate responses.
• Write shorter questions. Break down your complex question into smaller specific questions and order them in a logical order. Ask the chatbot these simpler questions one by one, using the answers to build a comprehensive response.
  Example: Improving Customer Service Complex question: “How can I improve customer service at my online store?”

Prompt chain:

• What are the common pain points customers face when shopping online?
  [allow to answer, then type in the next]
• What tools or processes can be implemented to address these pain points?
  [allow to answer, then type in the next]
• How can the store proactively communicate with customers to improve their shopping experience?

Pro tip: One way to achieve longer text is a simple prompt chain. After text is generated, type in “tell me more…”

Here are some further prompt descriptions that can enhance the chatbot’s output:

• Linguistic and cultural context: Indicate the language and cultural background related to the discussion or subject, assisting the chatbot in producing more precise and pertinent responses.
• Emotion and sentiment: Point out the desired emotional tone or sentiment you want to express in your conversation or subject, such as joy, sorrow, frustration, or astonishment.
• Imagery and sensory details: Offer visual or sensory details to aid the chatbot in creating more vivid and captivating responses, like describing a setting or an item.
• Actionable steps: Incorporate a call to action in your prompt, prompting the chatbot to create responses that inspire or convince the reader to act.
• Brand character and identity: Determine the brand character and identity you wish to portray in your conversation or subject, like approachable, authoritative, or lighthearted.
• Sector or niche-specific terminology: Supply sector or niche-specific terminology, helping the chatbot to produce responses customized for a particular audience or subject.
• Historical or cultural allusions: Add historical or cultural allusions to assist the chatbot in creating responses that are both pertinent and informative.
• Humor or amusement factor: Specify if you’d like the chatbot to produce responses with a humorous or entertaining aspect to engage readers.

Intermediate prompt writing tip

Use this prompt to quickly and effectively “tune” your prompts. Copy and paste or type this before starting a chat:

I’d like you to act as my prompt assistant. Your mission is to help me create the most effective prompt for my requirements, which will be used by you, The chatbot. To achieve this, we’ll follow these steps:

• Your initial response should be to inquire about the topic of the prompt. I’ll provide my input, and we’ll refine it through subsequent iterations by going through the following steps.
• Based on my input, you’ll produce 3 sections: a) refined prompt (supply an improved version of the prompt that is clear, concise, and easy for you to understand), b) recommendations (suggest what details could be added to the prompt for improvement), and c) inquiries (ask relevant questions related to any extra information needed from me to enhance the prompt).
• We’ll continue this iterative process, with me giving more information and you updating the Refined Prompt section until it’s perfect.

Keep refining until you’re satisfied, then simply copy and paste the improved prompt into a new chat. Witness the transformation!

Back to top.

5. Practice advanced prompt engineering

From here, you can further level up your prompt writing skills with these more-advanced tips:

• System message prompts: Use system messages to set context and guide chatbots for more accurate answers.
• Set the context: Describe the conversation’s purpose, background information and main goal.

Example: [System message] You are an AI assistant helping a business owner improve their online presence to drive sales.

• Guide the chatbot: Remind the chatbot of its purpose when dealing with complex questions.

Example: [System message] Remember, we’re focusing on strategies for businesses to enhance their online presence and drive sales.

• Temperature parameters: Adjust the temperature to control the type of answers chatbots give.
  • For focused answers: Set a low temperature (e.g., 0.2-0.5) when you need specific information or a direct answer.
  • Example: What are the top 3 strategies for businesses to improve their online presence?
    • For creative answers: Set a high temperature (e.g., 0.8-1.0) when looking for brainstorming ideas or multiple solutions.

Troubleshooting common issues

Common issues when using chatbots include receiving irrelevant, incomplete, or overly verbose responses. To improve response quality:

• Reframe your question: Make it more specific or rephrase it to avoid ambiguity. Example: Instead of “How to increase sales?”, ask “What are effective strategies for a small business to increase sales online?”
• Break down complex queries: Divide your question into smaller, simpler parts to get more focused answers.

Back to top.

Suggested uses for generative AI

Here is a list of some ideas of the various tasks that chatbots can be used for. This list is not comprehensive, it is ultimately as long as your imagination!

1. Idea generation and brainstorming:
   • Generate new ideas
   • Combine existing concepts
   • Get inspired by other creators
   • Explore online forums or communities
   • Reverse-engineer popular content
2. Content creation and optimization:
   • Write compelling ad copy
   • Craft engaging email content
   • Develop creative ad concepts
   • Utilize social media
   • Optimize SEO
   • Improve ad visuals
   • Consider localization
3. Editing and proofreading:
   • Read for clarity
   • Rearrange sentences
   • Enhance word choice
   • Check grammar and spelling
   • Simplify complex sentences
   • Ensure consistency
   • Summarization
   • Suggest revisions and additions
4. Research and analysis:
   • Analyze ad performance
   • Analyze demographic data
   • Understand pain points
   • Research industry trends
   • Research relevant keywords
5. Audience targeting and campaign management:
   • Target specific demographics
   • Create tailored content
   • Leverage influencers
   • Use the appropriate tone
   • Tailor campaigns
   • Plan social media posts
   • A/B test messaging
   • Curate resonating content
6. Organization and planning:
   • Set deadlines
   • Develop a task list
   • Prioritize activities
   • Allocate resources
   • Delegate responsibilities
   • Set milestones
   • Plan for contingencies
7. Feedback and improvement:
   • Ask for feedback
   • Incorporate feedback
   • Monitor progress
   • Test and revise

Back to top.

Ethics and responsible use

Using AI chatbots responsibly and ethically is important to prevent problems like wrong information, biases and negative effects. Chatbots learn from data that might have biases, so make sure to ask questions that promote fair answers and don’t support stereotypes or false information.

Keep private information safe by not sharing or asking for sensitive details with the chatbot. Be careful when discussing sensitive topics, legal matters or health issues, because chatbots could give incorrect or harmful advice.

Back to top.

Conclusion

As you practice and refine your prompting skills, remember that continuous learning and adaptation are essential. Chatbots will continue to evolve and improve, and so should your strategies for engaging with them.

Solopreneurs, or those who launch and run their business on their own, can range from part-time freelancers who are slowly growing a passion project to full-time small business owners like photographers, sellers of handmade goods and personal chefs.

Solopreneurs face their own unique set of challenges as small business owners, and as you may have guessed, limited time and resources are at the top of the list. Without employees to help take on some of the work, solopreneurs need to manage their products and inventory, build a strong online presence, develop a sales and marketing strategy, curate social media posts, and draft and send email newsletters. And that’s just before lunch!

However, as generative AI systems like OpenAI’s ChatGPT or Google’s Bard become more widely accessible, solopreneurs won’t have to wear all those hats on their own.

If you’re a solopreneur, here are five ways you can use generative AI as your first – albeit artificial – employee.

1. Upskill, upskill, upskill

You are one person and can’t possibly be the expert at everything that your business needs. But you can learn. Generative AI systems have access to millions of resources that you can use to help fill in the gaps in your current skillsets.

For example, an electrician might have a sixth sense for wiring a ceiling fan, but may not be a skilled marketer—they could use AI for help with content creation like advertisement text, social media posts, responses to customer inquiries, building a social content calendar and more. Or a graphic designer could use AI to conduct market research and gather insights on industry trends to identify new opportunities and make more informed business decisions.

Think of leveraging AI like you would a business partner. Use it to save time, improve efficiency, and gain a competitive advantage for your business.

Related: How to write a blog post properly using AI

2. Brainstorm new ideas

Not sure what’s the best domain name for your new business? Or have an email subject line, but wish it was a little more catchy? Use AI to brainstorm and bounce around ideas. Here are some fun things to brainstorm with AI to get the juices flowing:

• Business ideas based on your hobbies
• Names for your business
• Hashtags for a social media contest or campaign
• Email subject lines
• Analyze across multiple customer reviews to highlight the key areas you should focus on
• Alternative high-quality logo for your brand

Related: Everything you ever wanted to know about AI (but were afraid to ask)

3. Attract new customers

As a small business owner, you understand that helping potential new customers find you is key to growing your business. Doing this often involves multiple layers of marketing, including Google Ads, social media, strategic copywriting of your website and more. GoDaddy recently created a Small Business Generative AI Prompt Library designed to help you use generative AI platforms for this exact purpose. We have prompts that help you use AI to identify the best SEO keywords for your website, generate compelling social ads, write engaging product descriptions, create social posts that resonate with a specific customer vertical and more.

Before using AI, establish some clear guidelines for the type of content you want the model to produce—this can include anything from tone of voice to vocabulary, length or even specific topics to avoid. Pick from GoDaddy’s prompts or create your own and be sure to use very specific questions to guide the AI’s responses. The more specific your prompts, the more relevant and on-topic the content you’ll get back.

4. Retain your existing customer base

Acquiring new customers costs five times to 10 times more than selling to a current customer. You could also lean on generative AI to help encourage repeat customers as another highly cost-effective way to grow your business. You can use AI to:

• Quickly craft responses to customer reviews
• Draft personalized, automated thank you emails to send once a product is delivered
• Write promotional emails around a specified subject, tone and target audience

As a solopreneur, consider using generative AI to provide around-the-clock customer support—for example, you can build AI into automated chatbots on your website to help handle common customer inquiries, like shipping information, returns and refunds. This will save both you and your customers time and provide a better overall experience.

You can use AI to help you at every stage of your business—whether you’re brainstorming a business name or making next month’s social content calendar. Having a built-in second “set of hands” available 24/7 will help you work more efficiently and ultimately propel your success as a solopreneur. However, as with most emerging innovations, there are guidelines on how to use it safely. Below are some tips for using AI that we recommend:

Do not enter personal or proprietary information into AI: As a general rule, only share content into AI that you wouldn’t mind other people seeing. Never enter your customer’s personal or contact information into AI, and keep any proprietary information or secret recipes off the platform.

Use human editors: Although AI is smart, it can sometimes share inaccurate or biased information and should be used as a first draft, rather than a final draft. There is also no telling if answers have been generated using another company’s intellectual property, which may create risks. You should regularly review the content generated by AI to ensure it aligns with your brand guidelines and business needs, and help you identify any potential biases or inaccuracies.

Always fact-check for accuracy: AI systems are always learning and pull from content all over the web. However, some AI systems were built using digital content up to a certain date, meaning their knowledge is limited and they cannot answer questions related to current events.

Related: The essential small business guide to generative AI

The best ways to delegate tasks aren’t always straightforward. Your team members are unique. They have different abilities and distinct approaches to work.

We all work with team members who do things differently, but that doesn’t make their approach wrong. We may realize they work better than we do. And while that stings, it’s also thrilling!

We must learn the best ways to delegate tasks to discover what our teams can do. We must also determine when best to do those tasks. While it may be an uncomfortable process, it will be worthwhile when we get excellent results and teams that accomplish things beyond our wildest expectations.

What’s delegation?

First, let’s unpack what we’re discussing to ensure we’re all on the same page. Delegation is the process of assigning tasks to team members. There are many reasons to delegate work, such as to establish equal workloads or a specific task is better suited for a certain team member.

“You can do anything, but you can’t do everything.”
—Stephen Covey

You get more done when you delegate because other people are working alongside you. Your team gets more done in less time.

Knowing when and how to delegate makes us better leaders as our team members learn and grow. Delegation helps build skills and a sense of pride among team members. Happy team members with high levels of job satisfaction tend to stay with you longer and accomplish more at work.

Why is delegation important?

Delegating work serves two critical functions. First, it lets us be more productive as leaders. When we delegate tasks, our time and energy are free for other things.

Second, delegation shows team members that we trust them to do important work. It gives them pride in what they do and makes them feel vital to our overall mission and goals.

Unfortunately, it can be challenging to step back and get a big-picture perspective of the work and who should do what. We have to take the time to think. We need to look at the scope of work and consider which tasks fit which team members best.

That’s how we delegate effectively and ensure the project is completed at the highest level.

What are the benefits of delegation?

There are many benefits of delegation for both leaders and teams. It may seem like the best reason to delegate is for productivity’s sake (and that’s a solid reason), but some wellness and growth opportunities also come with it.

Lighter workload and less burnout potential

Everyone is susceptible to burnout, including the leadership team at any organization. Burnout is emotional, physical, and mental exhaustion from ongoing stress and overwork. It causes people to feel cynical, unmotivated, and detached from their work.

Burnout can make even the best team member have extreme challenges at work. You don’t want it for yourself or your team.

Delegation can help prevent burnout from setting in while also creating a less stressful workload. It helps everyone on a team feel empowered and engaged by connecting them with the work they’re most likely to enjoy and find meaningful.

The saying “Many hands make light work” is true. What might feel like an endless to-do list to one person can be managed easily by many. The great thing about delegating is that you can still get stuff done while getting back some of your time.

You don’t have to work overtime and miss out on things in life. You hired your team for a reason, after all. You also aren’t burning the candle at both ends, always feeling tired and overwhelmed.

You can recharge and reclaim some of your energy. You’ll be more enthusiastic and creative when you have mental and emotional space.

Increases efficiency and productivity

You know what it’s like to be overwhelmed. You have a lot to do, and you know everyone is waiting for you. Pretty soon, you’re holding the team back because you can’t physically do everything that needs to be done in a day.

We’ve all been there at some point in our careers.

A project can suffer when one person has too many tasks to complete. If one person is responsible for too many things, that person will bottleneck the workflow, creating delays and all-around frustration.

Delegating gets the work done faster and more efficiently. Team members down the pipeline aren’t waiting for one stressed-out person to complete tasks so they can do their part. No one feels like anyone else is holding them up.

Empowers your team

You hired each member for a reason. They were the right fit for the role you needed filled. They had the skills to bring something unique to the table and thrive at the organization. You felt like they had something your team needed.

Failing to delegate undoes all of these positives by stifling team members.

Team members can doubt they belong when we don’t delegate and act like we must do everything independently. It makes them think we don’t trust them to do the work or don’t think they can. They may even feel like they’re just filling a slot instead of really contributing something.

Delegating shows our teams that we trust their abilities and judgment. It helps them feel valued and respected. Delegation empowers them to use their skills, creativity, and knowledge to excel at work, which means we all win.

Makes room for skill development

There’s no training quite like on-the-job training, and there’s no substitute for the satisfaction of learning something new or discovering a unique way to solve a problem. When you delegate, you free your team to experience these feelings and develop professionally.

Assigning new, challenging tasks puts your team in a position to think for themselves and build new skills. It also lets you create a team who can handle complex work, which is invaluable when you get big projects or need to promote someone.

Why leaders don’t delegate

Delegation clearly has a lot of benefits, so why don’t we all do it or do it more? Why do some leaders seem overwhelmed while their team waits for more to do or longs for more challenging assignments?

In the book, “How to Be a Great Boss,” Gino Wickman and René Boer write about the importance of letting go of the vine. The metaphor goes something like this: If you are swinging Tarzan-style from vine to vine in the jungle, you can only move forward if you let go of the vine you’re holding to grab the next one.

We have to do the same thing as leaders. We can only move forward if we let go of certain tasks and free up our time and energy to do the things only we can do. We can’t swing the business forward if we’re still hanging onto that last vine.

As the author wrote,

“To go up, you must first let go.”

It seems so obvious, right? So why don’t we let go? Yes, those words sound scary, but the alternative is frightening too.

When leaders don’t delegate, it’s usually for one of these reasons:

• They lack trust. Sometimes we don’t trust our teams to do the work as well as they should or as we would. That second concern may be valid. There’s a reason we’re in leadership, after all. But it’s our job as leaders to develop our teams and elevate their work. If we never trust them to do the work, how will they learn?
• They fear losing control. Some leaders need control or worry others will drop the ball if they’re not involved in every detail of the work. Delegating doesn’t erode authority, and it’s impossible to control everything. If you must, review the final product before it goes public the first few times you delegate a job to the team. Give them feedback and let them grow.
• They don’t know how. A common reason we don’t delegate is that we don’t know how. We keep plugging away at the stack on our desks, thinking we’ll eventually get to the bottom of the pile. Unfortunately, that doesn’t happen. The work never stops, and we’re not using our resources well. If we don’t figure out how to delegate, we burn out and lose good team members.

Solving the delegation problem

So, if you’re a leader who is reluctant to delegate tasks or doesn’t know how, what’s the best way to fix that? You know you can’t do everything, and it isn’t good for you or your team if you try, but how do you embrace delegation when it feels so scary?

To solve the delegation problem, you must

• Start small. If delegation doesn’t come naturally to you, it’s OK to start with delegating small things. It’s probably the best way, actually. Work your delegation muscles until they feel stronger and you’re more confident with the process.
• Build relationships. Know your team and each person’s strengths and weaknesses. Understand what they’re capable of. When you have relationships with your team members, it’s easier to trust them and know they won’t let you down. When you understand each team member’s skills, you feel more confident delegating because you know their capabilities. Heck, you’ll probably even find that some are better at certain tasks than you are.
• Communicate well. A common reason leaders don’t get our desired results is that we don’t communicate effectively. We have to make sure we communicate what the assignment is, what success looks like, and when it’s due. If you think you’re communicating too much about a project, you may be hitting just the right spot. Always try to over-communicate.
• Offer support. Be sure your team knows they can come to you when they get stuck. As leaders, we don’t want to micromanage projects, but at the same time, we don’t want our teams to feel stranded on an island without support. Offer support up front. Inquire about progress and remind your team that you’re here if they need help.
• Provide feedback. Everyone craves feedback. Without it, we’re left wondering if we did a good job. Uncertainty rarely feels good. Once your team delivers a task or project, give them some feedback.
• Focus on success. Focus on things they did well and provide advice for next time. Providing feedback helps you build your team’s abilities while demonstrating your expertise. It also can help those leaders who need control feel like they’re still an active part of the process.

When to delegate tasks

Unfortunately, there’s no cut-and-dried way to know when we should delegate tasks. It would be nice if a chart or program thought of every possible work function and told us who should do it, but that’s not possible. A

general idea is to delegate if another person can complete the task at least 70% as well as you can, but there are many factors to consider when deciding when to delegate, and every organization is unique.

The following types of tasks are generally great for delegating:

• Large or complex tasks. Don’t just throw a huge, complex task at one team member. That’s not what this means. Instead, break big, time-consuming tasks into smaller sub-tasks. Then divide those sub-tasks among your team. This approach encourages teamwork.
• Tasks that require special skills. Everyone has a “very particular set of skills.” (Just ask Liam Neeson.) If a task requires a skill you don’t have that one of your team members does, it makes sense to give it to them. They also enjoy doing certain things more than others. For example, if you have a task that requires technical skills and you aren’t tech-savvy, you can delegate it. In cases like these, you can use a resource like Codeable, which allows you to hire the best WordPress developers for your project when you need those specialized skills.
• Tasks that aren’t a priority. The workday is full of small tasks that have to get done. Delegating those tasks gives you more time to focus on higher-level or more time-bound items on your calendar. We can’t do everything. Leaders need help too.
• Tasks that help others develop. Giving your team members an opportunity to learn new skills will empower them to take more initiative on future projects. When delegating tasks, consider which skills you’d like to nurture in your team members and choose tasks to help them grow.

As we get more comfortable delegating tasks and learn which types of tasks best fit each team member, we’ll be able to assign them more complex tasks moving forward. Pretty soon, delegating tasks will become second nature — at least, we hope it will.

When you need more help

I’ve written a lot to this point about delegating to your team, but what about if you lead a small or medium-sized team? Sure, you can delegate some tasks, but your limited team can only do so much. A sure way to burn out your team is to overfill everyone’s plate. To avoid this, you have to outsource and use apps that make work more efficient.

When you outsource to a human or software, you’re assigning things your team shouldn’t be doing or doesn’t have the expertise to do.

There are tons of ideal outsourcing partners and software. Some do great work or provide tools that can help you get the most out of your work regardless of the size of your team. If you’re looking for some help, check out these resources:

• Imagine what you could get done with an extra hand. That’s what Magic provides. It’s a virtual assistant service that can handle all kinds of tasks, including those related to marketing and customer support.
• Ask Betty. Need some help? Ask Betty. The company provides virtual and personal assistant services. They can also help with all office stuff and provide social media support.
• If you have a WordPress project you’d like to delegate, check out the Codeable difference. Stop wasting time searching for the right person for the job. To find vetted freelancers with fair pricing and no bidding, click here.
• Need project management software? With ClickUp, you can manage the whole team’s work for multiple clients.
• Toggl Track. Need to bill by the hour or gain a better understanding of your team’s productivity? Toggl Track can keep track of time spent on any project and create invoices for you.
• Need a basic plug-and-play design tool? Everyone uses Canva for its templates and simple design capabilities.
• Want to stay in touch with your customers? With MailChimp, you can send them newsletters for free.
• Everyone needs a simple and intuitive way to schedule social media posts across platforms. Buffer is a fan favorite.
• When you have multiple people working in various programs, you could spend a lot of time sharing or trying to remember passwords. LastPass stores and protects them all for you so you can keep all your passwords in one place and share them with your team as needed.
• Have a distributed team, or want to have a single place for all of your communication? Slack is the preferred chat app for teams at this point.
• If you find yourself frequently explaining the same process, make a Loom. You can store the short videos for your team to reference as often as needed.

Top ways to delegate tasks

At its core, delegation is taking a task from your workload and giving ownership of it to someone else. That can be stressful if you’ve never delegated a task before, and it can be challenging for the team member if they don’t feel they have what they need to do the work.

Effective delegation is more than just assigning tasks. You need to trust your team and understand what they can do to enjoy the benefits of delegation. The following tips will help you better understand the best ways to delegate tasks and when to do it.

Identifying the right person for the task

For successful task delegation, choosing the right person for the task is crucial. Entrepreneurial Operating System (EOS) has a concept called “right person, right seat.” It basically means that any business has to have the right people in the right positions to excel.

The right person, right seat concept has two parts:

1. Find the right people. In this step, you think about your business and what human resources it needs to succeed. What positions do you need? What traits or skills must the person in that post have? What values do they need to fit your culture? Once you identify these things, you find and hire the people who fit those needs.
2. Put people in the right seats. The second step is where you maximize people’s potential by making sure they’re in the right positions and doing the work they’re meant to do. Sometimes we hire people then realize they’re a better fit for another role or that they have unique skills we weren’t expecting. We have to be fluid enough to recognize this and move people around or adapt their roles.

When you identify the right person to delegate to, you’re putting the right person in the right seat to help your organization excel.

“It’s not about having the right person for the job; it’s about putting the right person in the right seat on the bus.”
—Gino Wickman, author of “Traction: Get a Grip on Your Business”

Picking the right team member for the job does more than help your business. It shows your team that you value their particular skills and recognize what they love doing. And, of course, fit matters. Putting a team member in charge of a task they love and excel at will always give you the best results.

Providing clear instructions and setting expectations

Good delegators provide instructions and expectations without micromanaging their team. Explain the expected outcomes and the timeline for hitting specific milestones for your team. Be clear about the resources available and how much you can help.

Avoid telling them exactly how to do every little part of the task. Part of delegating is letting your team members learn new skills. That means they have to figure out solutions to problems and approaches to tasks. Unless there’s a set, specific way the work has to be done, avoid trying to control things.

Remember, the end goal is excellent work. However your team member decides to get there is fine. You don’t always need to know how the hot dogs are made.

Setting realistic deadlines

Here’s the truth — we work faster than many of our team members. We’ve been doing this stuff for years. We’ve developed workflows. There’s little or no uncertainty in our process. But just because something is easy for us doesn’t mean it will be for someone on our teams — at least not the first time.

A teammate doing the work for the first time doesn’t have the luxury of experience. So, just because a task seems easy to you or doesn’t take you long doesn’t mean your team member will have the same experience.

Instead of setting a deadline based on how quickly you can do something with years of experience, think about how long it took you in the beginning. Also, consider how fast this team member usually works. Use those measures to set a realistic deadline.

Oh, and don’t share how long it takes you with the team. That’s a jerk move.

Team members can feel demoralized when they hear how quickly someone can do a task that takes them much longer. Remember, the endgame of delegation is increased productivity and empowered team members. Make sure your deadlines or the information you share don’t have the opposite effect.

Giving up authority

When we delegate and don’t give our team members the authority to make decisions, the delegation will fail. Instead of saving time and energy, the project will stall, and the task will likely end up back with us. Honestly, there’s not much more frustrating than getting a project back and having to do it yourself.

Creating an environment where your team members can make decisions prevents this sort of issue. Part of delegating is empowering your team to do the work you’ve assigned them. Foster a culture where people feel like they can ask questions and take the necessary steps to complete a project without your input.

Guiding through feedback

Delegation is a learning opportunity. To learn new skills, your team needs direct feedback. They need to know what they do well and what they can improve on. Your team members might make mistakes, but feedback can help them learn from their mistakes.

Common mistakes to avoid

Everyone makes mistakes, even leaders. Good leaders can make mistakes while delegating. It takes time to learn how to delegate effectively. Just as team members learn new skills through doing their tasks, we learn how and what to delegate through practice.

There are common mistakes many of us make while delegating. By avoiding these mistakes, we can help our teams complete their work and thus maximize delegation processes.

Micromanaging

No one likes a micromanager because they want to control all aspects of the work they “delegate.” They say they’re just checking in when in actuality they want to nitpick every aspect of a project, to the point they might as well do the project themselves. Even worse, a micromanager doesn’t empower the team to make decisions.

Don’t be a micromanager.

“Micromanagement is the destroyer of momentum.”
—Miles Anthony Smith, author of “Why Leadership Sucks”

Delegation enables you to take a task off your to-do list. If you’re constantly trying to control how a task is done, you’re not delegating — you’re just micromanaging.

Give your team members the time and space to complete their work. They’ll appreciate the freedom and might exceed your expectations.

While no one likes a micromanager, we all love to see our teams succeed and over-deliver, right?

Delegating too much or too little

Good delegation is a balancing act. You need to delegate to get stuff done on time, but you don’t want to give a large project to someone who isn’t ready for it.

You also want to empower your employees with tasks they can do and do on time but don’t want to give them something so small that they feel like you don’t trust them with the big stuff.

It’s tough, right?

Finding the right balance means knowing your team and what they can do. Start by delegating smaller projects to see how your team handles the work, then build up to bigger projects.

Not helping enough

Delegating gives team members opportunities to learn and grow. Providing clear directions and communication is key to ensuring they’re successful. If you don’t, then you’re setting your team members up for failure.

If you don’t provide the necessary support or let your team know you welcome questions, they may not complete the task correctly or on time. You may also find the task back on your to-do list. We never want that to happen. It discourages everyone.

Failing to communicate effectively

Clear instructions and feedback will help your team complete tasks correctly and efficiently. As they learn to do the work, they’ll need your support to make sure they’re on the right track. Giving a team member a task to complete without communication, though, is a recipe for disaster.

Even if the task seems mundane, it may not feel that way for someone who hasn’t done it before. Expecting your team to know how to do something without instruction or resources can leave them feeling demoralized and frustrated. Take the time to communicate with your team about the task so they can complete it.

Delegate and get it done

Have a better idea of the best ways to delegate tasks and when to do so. We discussed the importance of delegation, when you should delegate, and how to pick the right team member for the task. Remember, delegation is a learned skill, so it takes time to do it effectively. Always provide clear instructions, set realistic deadlines, give your team the authority they need to complete the task, and provide the feedback they need to be successful.

Are you ready to dive into the world of AI? This beginner-friendly tutorial will show you the basics of using ChatGPT, an AI chatbot capable of generating human-like responses to a wide range of questions and prompts. By following these simple steps, you’ll be on your way to mastering interacting with ChatGPT in no time.

Getting started with ChatGPT

Create an OpenAI account

To get started with ChatGPT, sign up for an OpenAI account at https://beta.openai.com/signup/ it’s free! Once you’ve registered and logged in, you’ll have access to the ChatGPT interface.

The interface is simple and intuitive. You’ll see a text input box where you can type your prompts. The AI-generated response will appear in the chat area.

Back to top.

Craft your first prompt

To begin your conversation with ChatGPT, simply type a question or statement into the text input box. Keep your prompt clear and concise to get the most accurate and relevant response. For example, you can ask ChatGPT about a topic you’re interested in, such as “What are the benefits of renewable energy?”

Back to top.

Submit your prompt

After crafting your prompt and adjusting any settings, click the “Send” button. ChatGPT will process your prompt and generate a response, which will appear in the chat area.

Back to top.

Refine your prompts

If the AI’s response is not what you expected, you can try rephrasing your prompt, providing more context, or using prompt engineering techniques such as the system message approach or role-playing method. This will help you achieve more accurate and targeted responses.

Back to top.

Practice and experiment

The key to mastering ChatGPT is practice and experimentation. Try different prompts, explore various topics, and test different text generation settings to get a better understanding of how ChatGPT works.

Have a question or need some ideas? Ask ChatGPT!

ChatGPT is fantastic at giving information about itself.

Back to top.

To further enhance your ChatGPT experience, engage with the AI community on forums, blogs, and social media to learn about tips, tricks, and best practices. By staying informed and actively participating in the community, you’ll be on the forefront of ChatGPT in no time!

Remember to be patient, experiment with different approaches, and have fun discovering the incredible potential of AI! Happy chatting!

Back to top.

Examples of questions/prompts for ChatGPT

Here are some ideas on what you can ask ChatGPT, along with descriptions of each:

• Explanations: Seek clarification or explanation of various concepts, theories, or ideas. Example: “Explain the theory of relativity.”
• Quotes and studies: Inquire about famous quotes, studies, or research related to specific topics. Example: “Find a quote about perseverance” or “Tell me about a recent study on employee engagement.”
• Comparing: Inquire about the differences and similarities between various concepts, objects, or ideas. Example: “What are the differences between a plant cell and an animal cell?”
• Summarizing text: Ask ChatGPT to provide a summary of a given text or passage. Example: “Can you summarize the main points of this article on financial forecasting?”
• List generation: Request lists of items related to various topics, such as ingredients, steps, or tips. Example: “List 10 ways to improve productivity at work.”
• Pros and cons: Seek guidance on the advantages and disadvantages of specific decisions or ideas. Example: “What are the pros and cons of remote work?”
• Suggestions: Ask ChatGPT for suggestions on various topics, such as book recommendations, recipes, or travel destinations. Example: “Can you suggest some must-read books on personal development?” or “Can you suggest some effective marketing strategies for a new business?”
• Feedback on your text: Copy and paste your text and request constructive feedback on your writing, such as essays, emails, or reports. Example: “Please provide feedback on my business proposal for a new product launch.”
• Creative writing: Seek help with writing short stories, poems, or other creative works. Example: “Write a short story about a world where everyone can read minds.”
• Brainstorming: Request assistance in generating ideas for projects, events, or solutions to problems. Example: “Brainstorm some ideas for a new marketing campaign for our product.”
• Translations: Request translations between languages. Example: “Translate ‘hello, how are you?’ from English to French.”
• Coding: Ask ChatGPT for assistance with coding questions, such as troubleshooting errors or understanding programming concepts. Example: “How do I fix this error in my Python code?”
• Role-playing: Engage in role-playing scenarios to help with decision-making, problem-solving, or practicing social skills. Example: “Pretend you are a customer with a complaint, and I am a customer service representative.” or “Pretend you are negotiating a business deal with me as the other party.”
• ChatGPT commands: Learn about and utilize specific commands to control the behavior of ChatGPT, such as adjusting the response length, tone, or format. Example: “Explain String Theory like a five year old.” or “Can you respond to my question with a professional tone?”
• Mentorship: Request guidance and advice on personal development, career planning, or other life choices. Example: “How can I develop my leadership skills in the workplace?”

Back to top.

For more ideas, check out our AI prompts for small business owners.

There has never been a better time to start a business. In our hyper-connected digital age, you can set up a website, online store, and entire brand from anywhere in the world.

Online business-building tools have never been more accessible—and with the right approach, you can grow a loyal customer base quicker than you might think.

If you’re wondering how to start a business in 2023, we’re here to help. In this guide, we’ll look at the essential steps you need to take to make your business a real success. Here we’re going to cover:

FAQs

Ready? Great. Let’s get started.

Related: How to start a business

1. Find a business idea

First of all, to enjoy sustainable commercial success, you have to find a business idea that is not only feasible but something you feel passionate about.

If you have a shortlist of business ideas in mind, dig a little deeper by carrying out a little market research. Look at brands in your potential niche and find out how their consumers engage with them while looking at overall demand based on public sales or growth data.

Doing so will give you inspiration for your own business ideas. Armed with your market and competitor research, you can develop your ideas by considering:

• What am I passionate about?
• What are my specific skills and expertise?
• Which subject matter am I most passionate about?
• Can I feasibly sell or promote the product or services in my potential niche?
• What unique spin can I put on well-trodden business ideas or concepts to stand out?
• What gaps or weaknesses can I exploit in my potential niche or market?

Ask yourself these questions and you’ll eventually land on a business idea that has the potential to scale while keeping you engaged and inspired in the long term.

Related: Read our guide on essential small business ideas for more small business inspiration.

2. Use market research to validate your idea

Once you’ve landed on a solid business idea, you’ll need to see if it has any legs. We just touched on the concept of market research, but now we’re going to drill down a little deeper.

When brainstorming business ideas, you will have scratched the surface. But, to really validate your concept, you must get under the skin of your industry as well as your target audience. In addition to gathering industry insights and data, you should build buyer personas that represent your ideal target audience.

During this phase of the operation, it’s also important to conduct extensive market research as well as market analysis. Here are some market research and analysis ideas for your consideration:

• Conduct consumer surveys across channels (phone, email, social media, mobile app, etc.).
• Hold focus groups to gain a deeper understanding of how your target audience might perceive your brand and what you have to offer.
• Observe how your target audience engages with potential competitors on social media as well as the related subject matter they’re discussing online.
• Explore public data related to your target market to uncover consumer buying patterns as well as sales trends. This will help you validate your idea while giving your business planning a definitive direction—which brings us onto our next point.

3. Create a business plan

Now your idea is validated and you’ve got a handle on your target market, you’ll need to start planning. When it comes to knowing how to start a business, developing your plan methodically is a vital skill. Here are some tips to help you navigate the process like a boss:

• Consider your “why”. This will help you gain an understanding of your key motivations for starting your business as well as what you want to achieve
• Outline plans of action or initiatives  that represent your brand mission and what you do
• Define your key business goals using timelines and milestones to keep you on track
• Write an executive summary that states all essential information related to your business’s aims, goals, and products

To break down each step in more detail, read our essential guide on how to write a business plan and use our official business plan template to make sure you don’t miss anything important.

4. Get funding, explore finance options

To get your business off to a flying start, you’re going to need to get the right level of funding. The funding options you explore will depend on the type of business you’re looking to start.

If you’re looking to start a solely online business and scale up, you could use your personal funds or savings to get up and running. Doing so will give you complete control on your decisions, allowing you to scale the business on your own terms. But, it’s worth noting that if your business struggles or fails to achieve profit, you will be solely responsible for paying back any debt.

Other business funding options include:

• Crowdfunding: Using dedicated crowdfunding platforms, you can inspire people to donate to your business venture in return for incentives or equity. This can be a very effective form of fundraising—and there have been many crowdfunding success stories over the years.
• Gain a line of credit: Akin to obtaining a personal line of credit, you can gain a line of business credit. The terms, limits, and interest rates will depend on the nature of your business as well as factors including your financial history and credit rating.
• Get a grant: Another way of securing a healthy level of funding for your business is getting a grant. If your business mission is rooted in building a better community or inspiring innovation, you could be eligible for a healthy grant from the Federal Government.
• Pitch to investors: Researching investors in your niche and pitching to them is an excellent way to get funding as well as professional backing and expertise. This is certainly an avenue worth exploring if you’re looking for startup capital as well as help with your business’s launch and development activities.

Interested in learning more about planning for business funding? Our guide covers the cost to start a business in full detail.

5. Choose a legal business structure

When starting a business in 2023, settling on a water-tight legal structure is vital. Before you officially register your business, you have to decide on a concrete business structure—and the type you choose will impact your business from a legal standpoint. So, take your time when considering these structures.

Sole proprietorship

If you own your business independently, you can opt for sole proprietorship. This means that you will have full autonomy over your business, but you’ll be responsible for all debt, obligations, and finances.

Pros:

• You will be in full charge of business decisions, development and planning
• You will receive all of the business’s profits
• You will find filing for tax simpler

Cons:

• Managing everything on your own could burn you out and limit your potential for growth
• If you hit financial hot water, you will be liable for settling any debts or arrears

Partnership

Combining forces with another budding business owner will give you double the startup as well as another person who is liable for the red tape as well as the financial aspects of the business. More often than not, two heads are better than one—forge the right partnership and you could see your business thrive from the get-go.

Pros:

• You will have twice the skills, perspective, and financial scope
• You will have another person who is responsible for the running as well as financial and legal aspects of the business

Cons:

• If you and your partner disagree on any aspect, this could cause the kind of friction that could derail progress and stunt growth

Corporation

As a corporation, you will separate your personal assets from your business assets. This means that while your company can incur debt and be subject to legal disputes, your personal finances and assets will remain protected. There are many different forms of a corporation to consider, some of which offer access to some pretty decent investment opportunities.

Pros:

• You will gain access to excellent capital options
• You will benefit from certain tax breaks
• You will be able to protect your personal assets

Cons:

• Corporates can be costly to form and run
• There can be a lot of red tape involved in the running of a corporation

Limited liability company (LLC)

This type of business structure is one of the most common options for new businesses. As a limited liability company (LLC), you will benefit from the legal protection of a corporation while also reaping the tax rewards of a business partnership.

Pros:

• The setup process is relativity straightforward
• You will gain access to a healthy choice of capital and funding options
• You will have a certain level of protection concerning your personal finances

Cons:

• Your investment options can be limited with an LLC
• You can be subject to fairly costly annual maintenance fees

Want more information on how to start an LLC? Our guide has you covered.

Weigh up the pros and cons of each business structure, taking your aims and goals into consideration. At this point, you will want to brainstorm a catchy business name to make it official and bring your brand to life.

Once you’ve decided on your brand-boosting business name, you secure the appropriate domain name.

6. Register your business and get the required licenses

The next step in your how to start a business journey is registering your business and getting any required licenses.

By choosing your business name and settling on your business structure, you will have already started the registration process. To complete the registration process and obtain the right licenses, you will need to:

• Check the full registration requirements depending on your legal structure
• Work though the registration requirements of any regions where you’re looking to trade or operate
• Register for any taxes
• Obtain an employee identification number (EIN)
• File any relevant trademarks
• Find out which business license is relevant to your organization and start the application process

7. Open a business bank account

With your business almost up and running, you’ll need to open a bank account. In 2023, there is no end of choice when it comes to setting up a business bank account.

You should choose a bank account with benefits and features that suit your business’s size as well as your goals.

Tip: Create a shortlist of business bank accounts with flexible loan options as well as excellent customer service and online banking applications.

To set up your business bank account, you will need:

• Official business formation documentation
• EaIN or tax ID numbers
• Your official business name and location
• Date the business was  set up or established
• Your  Social Security number, address and date of birth

8. Get business insurance

In addition to opening your bank account, you will also need to get business insurance. If you don’t, you could find yourself footing a colossal bill if any unexpected issues, damages or disputes arise.

Even as a small business, you will need to cover yourself with the right kind of insurance to protect yourself against any eventuality. At the minimum, you will need general liability insurance (GL) to cover you for loss, injury or damage to yourself or a third party.

If you’re offering a service rather than tangible goods, it will also pay to get professional liability cover incase of any consumer-facing mistakes you might make. Also, as your business scales, you might also consider employment practices liability insurance. This type of cover will protect you against any potential employee claim or complaint.

9. Build your website

At this point, you will be ready to build your website and bring your business to life. Your website or online store will be the digital hub of your entire business—so getting the design and the functionality just right is essential.

If you’re interested in starting a website for your business, here are some hand-picked resources to help you out:

Tip: To build an online store that is slick, wonderfully designed, and easy to navigate, try the powerful and easy-to-master GoDaddy website builder. Or build an online store with our slick and savvy ecommerce tool. And tie your business together with a GoDaddy POS system to accept payments anywhere.

10. Launch and grow your business

“There’s no shortage of remarkable ideas. What’s missing is the will to execute them.”—Seth Godin

If you’ve followed all of the steps in this how to start a business in 2023 guide successfully, you’ll be ready to launch.

Once you build a buzz about your big business launch across various channels including email and social media, you can start selling and take measures to grow year on year through marketing campaigns and sales initiatives.

Starting a business in 2023 is a challenging but potentially rewarding venture. Be persistent, play to your strengths, take the time to ensure you’ve covered every base, and you’ll be winning on the commercial battlefield in no time. Best of luck.

FAQs:

How can a beginner start a business?

A beginner can absolutely start a business. As long as you have a clear idea of your goals and a passion for what you do, you can make your business a real success. Follow the steps in this guide and you’ll be up and running sooner than you might think.

How much money do you need to start a business from scratch?

The cost of starting a business will vary depending on your industry or business model of choice. But, research from the US Small Business Administration shows that most small businesses cost around $3,000 to get started. And, the majority of home-based ventures cost $2,000 to $5,000 to set up.

Can I run a business by myself?

There is no reason that you can’t run a small business by yourself. With the right resources and the right approach, you can set up, launch, and operate your business. Going solo is more than possible, but with so much to consider it’s a huge undertaking. As your business scales, hiring a small team or getting a partner on board will be a good idea. That way, you can further accelerate your commercial growth.

How do you create a legal organization?

To move your business idea into a legal organization, here’s a quick rundown of what you’ll need to do. First, come up with a unique name for your business. Next, figure out what kind of business structure works best for you, such as a sole proprietorship, partnership, LLC or corporation. Once you’ve got that sorted, pick a good location for your business and make sure you’ve got all the necessary permits and licenses. Then, get all your paperwork in order and register with your state. After that, it’s time to set up your financials, like opening a company bank account and staying on top of your taxes. Just remember, forming a business can be a bit complicated, so it’s always a good idea to chat with a tax advisor or lawyer to make sure you’re doing everything right.

What is the easiest business to start?

A service-based business is often considered the easiest to start as you don’t have to deal in physical stock or inventory. But, in 2023, it’s never been more accessible to set up and launch a successful online business. In the digital age, tools exist to help you set up an ecommerce store or build a website without technical expertise. Follow the right steps and almost every kind of business will be within your reach.

What is the simplest legal form to start a business?

A sole proprietorship is the easiest business legal structure to set up. If you have a little capital of your own, you can apply for a sole proprietorship with ease. You will have complete control over the entire business, but be aware: you will be responsible for the financial as well as legal aspects of the business.

A business plan is critical for any serious entrepreneur and business owner. Without a plan, you can lose your vision; it’s easier to get distracted by the next new thing, and without an established WHY it can be difficult to keep going when times get tough. If business planning feels overwhelming, we’ve got the solution: free business plan templates for small businesses.

In this article, we’re sharing free business plan templates, what we love about them and our tips for creating a business plan that will set you up for success.

• What’s covered in business plan templates?
• Use one of our favorite free business plan templates
• Tips to create a business plan that works
• Business plan template FAQ

What’s covered in our business plan templates?

Business plan templates cover all sorts of areas of business. The best thing about a free business plan template for startups is that the template acts as a guide to help you write your plan effectively — overwhelm, be gone!

We’ve highlighted sections commonly included in the templates, and below, you can find seven of the best business plan templates and what we love about them so you can pick the template that best suits your needs.

Executive summary

Introduce your business plan and outline any key points. You’ll include a brief overview of the business plan, its purpose, its mission statement, and a summary of notable points.

Company description

The company description is an in-depth description of the business, including values and mission statements.

Company goals

The company goals section should include specific key performance indicators and strategies, you’ll be able to track your progress and celebrate your successes along the way.

Products / Services

Your business plan will outline what you’re selling. You might start thinking about your target market here, too.

Market research

Include a comprehensive evaluation of the industry and market. This section must be thorough, especially if you’re presenting to investors. They will feel more comfortable investing if they believe you’re well-researched and know your market. You’ll want to consider an analysis of competitors, market size, customer demographics, where your product or service fits, and how you intend to close the gap on aspirational competitors to disrupt the market.

Marketing and sales strategy

In your business plan, create a roadmap for marketing and sales. You’ll need to demonstrate how to reach and attract customers, including advertising, promotions, and sales tactics. During this section, you’ll need to choose priorities and support why you’re focusing on particular marketing or sales tactics.

Financial projections

A detailed analysis of the financials, including revenue forecasts and expense projections. You’ll need to include a break-even analysis to indicate when funders can expect a return on their money. This section is critical, especially if you’re starting with someone else’s cash.

Appendix

Supporting documents, such as resumes of key personnel, market research data, and financial statements.

Use our free business plan templates

We’ve provided our free business plan templates in several formats, for your convenience. Simply download a template in your desired format, follow the instructions and compose your own text to replace the example.

Ready to get started? You got this!

Tips to create a business plan that works

Here are some of our top tips for creating a business plan that will help you.

Get very clear on what you’re saying in your plan.

When you develop your business plan, you will be focusing hard on each aspect of your business. Now is the time to focus intently on the business. If you aim for absolute clarity on your plan, you’ll thank yourself later since your business planning will help you spot potential issues that you can resolve, or plan for, now.

Conduct thorough market research.

Your market research is of utmost importance. In most cases, you need to think about your market online and off. You need to prove this research is well-thought-out so that investors are not struggling to find faults or missed opportunities.

Develop a focused marketing plan.

It’s very easy to become enamored with marketing, but you must keep yourself focused and realistic. Marketing is expensive. You need to pick your channels wisely based on data, and better to focus on a few channels well than many poorly.

Project your financials realistically.

Investors won’t take kindly to unrealistic financial projections or timelines for break-even.

Keep your language clear and concise.

Your business plan needs to use simple terms to avoid confusion.

Include an executive summary.

Your summary provides a concise overview of your business plan. Since all stakeholders must review this plan, the executive summary will be an excellent reminder of notable details.

Regularly review and update your plan.

My first business plan was a four-year plan, but within one year, I had achieved almost everything planned. After the first year, I reviewed my plan, so the business was constantly evolving.

Think hard about your why.

Your real why might not be something you put in front of your investors, but when I created my business plan, I added a page dedicated to my personal why. This slide goes beyond revenue, expenses, and logistics. I use it to keep myself motivated and inspired. My ‘why’ includes having a better work/life balance, supporting my friends and family, pursuing a business that allows me to hire new talent, and earning enough to donate to charities or mentor aspiring entrepreneurs.

Business plan template FAQ

Is the business plan template really free?

Yes! The business plan templates are free and highly customizable too. The free plans should get you started, and you can feel free to add or remove sections to tailor the template to your business.

How do I write a business plan?

If you’re asking how to write a business plan, then starting with a free business plan template is an absolute must. The template will guide you through each phase required.

To write a business plan, you must outline your mission, target market, and unique value proposition. Your business plan should include market research and an understanding of who your immediate and aspirational competitors are. Also, where exactly you fit in the market and how your offering is unique.

What’s of utmost importance, especially if you want to persuade funders or investors, is demonstrating a clear understanding of your market, competitors, and financial projections. You need to be realistic but bold and knowledgeable in your approach. Investors need to feel very safe that the money they invest (and more) will return in ample time.

Why do I need a business plan to start a business?

Importantly, a business plan is there for you; it helps you articulate your vision. Whilst you may already know what you want to do with your business, taking the time to put your thoughts in writing will help you gain clarity over your thoughts and direction.

A well-thought-out business plan will help you settle your ‘why’ for both an online business or offline venture. It can also help you stay on track as you grow your business by providing a framework for measuring progress and making informed decisions.

Writing your business plan can also help you assess the viability of your business idea. When you create the plan for the business, you think about the details so you can highlight any roadblocks or things that won’t work before you start. This will save expensive mistakes later.

Outside of your needs as an entrepreneur, a business plan will likely be required to secure funding from investors or lenders. Without a plan, there’s no real backing to demonstrate why you need funding and how quickly it can be returned.

The information contained in this guide is provided for informational purposes only, and is not intended and should not be construed as legal advice from GoDaddy on any subject matter.