AI can be an incredibly powerful tool and a counterpart to human work. Whether it serves as a starting point for research, a process automation tool, or providing data analysis, AI is just one piece of the puzzle. What must come next is a person taking that output and bringing life to it, adding the color and clarity that only a human brain is able to do.
With AI feeling new and intimidating, we wanted to provide an example of how you can approach utilizing ChatGPT by pairing its responses to a prompt with personal expertise. We asked ChatGPT to come up with the top challenges that small business owners face when starting a business and write a 3-4 paragraph summary. Then, we added additional commentary addressing each of the themes using our experience running Damefender for the last 8 months.
ChatGPT: Starting a small business is often viewed as a thrilling venture, filled with dreams of independence and success. However, many small business owners encounter surprising realities that challenge their initial perceptions. One of the most common surprises is the overwhelming number of roles they must play. Entrepreneurs often expect to focus on their passion, whether it’s crafting artisanal goods or providing specialized services. Instead, they quickly find themselves juggling responsibilities that include marketing, accounting, customer service, and human resources, often learning these skills on the fly. This shift can be daunting and requires adaptability and a willingness to embrace various aspects of business management.
Zahya: Before deciding to launch Damefender, I did a lot of research. Both in speaking with other advisor/owners, my hired coach (who was the original person to encourage me in taking this step), and looking at alternative opportunities to being an owner. As an entrepreneur, the BEST BOOKS for preparing included 10x is Easier than 2x, Who Not How, and The E-Myth. Each came highly recommended by many, including my aforementioned business coach (Erin Botsford – who I recommend googling –Top 100 US Financial Advisor, now retired and coaching younger FAs).
Across the three books they talked a lot about team and learning to let go – both tasks that don’t add huge value and functionalities that can be done by someone OTHER than you. Damefender put this into practice bringing on Jacklyn in the role of Relationship Manager – managing many of our financial planning and meeting prep functions. And more critically, being solely dedicated to our practice and clients, in a way she can grow, as well as the practice… while minimizing continuous shifting of seats on deck that comes with “leasing employees” who aren’t dedicated to your clients.
ChatGPT: Another unexpected revelation for many small business owners is the level of financial scrutiny and management required. Many enter the market with a solid idea and a budget, but they often underestimate the complexities of cash flow management. Initial expenses, fluctuating revenues, and the necessity of reinvesting profits can create significant stress. Additionally, business owners frequently encounter the realities of unexpected costs, such as equipment maintenance or regulatory fees, which can strain budgets. This financial juggling act emphasizes the importance of thorough planning and financial literacy, highlighting a gap that many entrepreneurs wish they had addressed before launching.
Zahya: Well… luckily, that’s what we do for a living! So that was less of concern and very confirming when I realized that was probably one of the largest challenges for most owners. But we did investigate different business models and spent a lot of time considering where the biggest positive impact would be for our clients. This led us to eliminate the office that was costing $30k+ year and prioritize virtual meetings, which allowed us to repurpose those funds in more bodies. We also looked very hard at what technology we could incorporate to make us more efficient – like MyRepChat for client text messaging and OnceHub for scheduling meetings.
ChatGPT: The role of customer relationships is another area that often surprises new business owners. While many start with the belief that their product or service will sell itself, they soon realize that building and maintaining relationships with customers is essential. Customers not only expect high-quality offerings but also value excellent service and personalized experiences. Entrepreneurs quickly learn that word-of-mouth referrals and online reviews can significantly impact their business’s success. This realization leads many to prioritize customer engagement and satisfaction, often leading to innovative approaches in their marketing and service delivery.
Zahya: I believe we have the best book of business. And what I mean by that is we have the greatest group of clients you could imagine. Ranging from 21 to 90, we have clients experiencing every milestone in life and we’ve solved problems as small as how much should I have in my rainy-day fund to how should I go about purchasing a plane (not kidding, and yes, we now have experience navigating that). We have built this business on prioritizing our clients and providing tailored solutions to address the unique needs and life challenges of each individual.
ChatGPT: Lastly, the emotional toll of entrepreneurship is a significant yet often overlooked aspect. Many small business owners expect challenges, but the extent of stress, uncertainty, and the potential for burnout can be surprising. The pressure to succeed can weigh heavily, especially when personal finances are intertwined with business outcomes. Loneliness and isolation can also emerge, as many entrepreneurs find it difficult to connect with peers who understand their struggles. Recognizing and addressing mental health and well-being becomes a crucial part of sustaining both the business and the owner’s overall quality of life. This emotional landscape underscores the importance of support networks, whether through mentoring, peer groups, or professional counseling, to navigate the complexities of entrepreneurship.
Zahya: As the oldest of 6 children, starting my own business really brought me back to my roots of leading the charge – so there was a lot of comfort there. Working in financial services for over two decades, I’ve been lucky enough to build a wonderful network of supportive individuals who I can bounce ideas off and go to for advice. I am active in various industry networks, local organizations, and nonwork related groups that allow me to connect with peers regularly. Besides external support, I have also built a strong team that adds to the expertise we can offer and serves as a sanity check because I have people I can count on for help. I understand how entrepreneurs can feel lonely at times, but if you’ve put in the work to create a thriving business you’ve likely put in the work to surround yourself with the right people. It takes a village!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.