5 ChatGPT prompts that can determine the success of your business ideas

For aspiring entrepreneurs, validation can be the difference between a lightbulb moment and a profitable business. As LinkedIn co-founder Reed Hoffman wrote, “[G]Entrepreneurs know: not every idea succeeds. But each idea should be treated as it is. Only in retrospect can you know which ideas go far.

Coming up with a product or service that you think the world could use is exciting. Validating your idea is the process of determining whether there is a need for your product or service in your target market. In other words, it’s a way to gauge whether people will actually become paying customers.

When I started my business nearly two decades ago, I offered a free version for about a year while still holding down my day job. In that free time, I discovered that my product definitely had value—I had a profitable venture. Whether you’re considering a side hustle or ready to take your business idea to the next level, tools like ChatGPT can help you validate it before you get started. Here are some simple prompts to get you started today.

Define your unique value proposition

Some aspiring entrepreneurs make the mistake of thinking that a business idea must be completely original. But in reality, some of the most successful companies haven’t reinvented the wheel—they’ve simply offered an improved version of it. Consider a company like Warby Parker. When they started, there were countless eyeglass retailers; But none offered their then-revolutionary “home-try-on program,” where customers could choose five frames from a website and try them on at home before choosing which frames to keep.

ChatGPT helps you define your unique value proposition—how you stand out from the competition.

“I was starting a business and wanted to define its unique value proposition. Business will be [brief description of your business idea]. I want your help to identify what sets my business apart from competitors, considering factors such as product or service benefits, market gaps, and any unique features or value it offers. Can you guide me through the process of creating a compelling unique value proposition?”

Research the current market

The Art of War Author Sun Tzu once said: Keep your friends close; Keep your enemies close.

Business is not a war but the companies in the current market are your competition. The more you know about them the better. Entrepreneurs can get a clear picture of the market using ChatZip.

“I am starting a business offering offers [brief description of your business and any relevant geographic or demographic information]. I like to research the current market to identify my main competitors and understand their unique value propositions. Can you help me identify the top competitors in my industry and provide a brief description of each and summarize their unique value proposition in a sentence or two? Competitors should be businesses targeting a similar customer base or solving similar problems.

Create your target market

Another strategy to strengthen the validity of your business idea is to focus on a specific segment of the target market—in other words, identify customers you can attract away from competitors. A classic example is Airbnb. Hospitality is already a global industry. People have already rented their houses on short-term basis. Airbnb has carved a niche for itself by focusing on travelers seeking unique accommodations and people looking to rent out their homes, and has streamlined the process for both parties.

ChatGPT is a great tool for building your target market.

“I am planning to start a business offering offers [brief description of your business idea]. I’m looking to find a niche in an existing market. Can you help me identify a specific target market that I can focus on? Specifically, I want to help with the process of segmenting potential customers based on their needs, behaviors and pain points. I would also like some suggestions from competitors on how I can attract them.

Collect customer feedback

Customer feedback is key to improving your product or service and making it as useful as possible. In hindsight this may reveal insights that can only be discovered after potential customers interact with your product and share their experiences.

For example, at Jotform, we once released a product update. We believed consumers would prefer the new and improved version of our product—but our data showed otherwise. Instead of giving up, we dug deeper and asked customers to share their thoughts through a quick survey. Turns out they didn’t prefer the old product to the new product—they just wanted a choice. Customer feedback can inform more than just the product how You provide it. ChatGPT helps you gather invaluable insight by setting up surveys, targeted interview questions or focus groups. Here’s a prompt to get you started.

“I am starting a business offering offers [brief description of product/service]. Can you help me create a survey to gather feedback from potential customers about their needs, preferences and expectations? I want the survey to focus on things like product features, price and perceived value. If anything, I want to understand in terms of the product/service or how it is delivered.”

Determine financial viability

The final piece of the certification puzzle is financial viability. At the end of the day, this is a very important consideration—and surprisingly, a very neglected one.

As stated by Forbes, determining the financial feasibility of your business idea requires determining the required initial investment, ongoing operational costs, and your potential return. You can use these figures to calculate your break-even point and expected return on investment, and compare these results with price feedback from your potential customers.

ChatGPT can guide you through the process.

“I am starting a business and need to assess its financial feasibility. Can you guide me through the process and help create a financial template? I like to include key figures in the template such as initial investment, ongoing operational costs and potential revenue estimates. I want to calculate the break-even point, the expected return on investment (ROI) and determine the optimal pricing structure for my products or services.