Validate your business idea using AI

Validate your business idea using AI

Hey Prompt Entrepreneur.

If we ever grab a coffee never ask me the following question:

So how many businesses have you started?

Our list is sort of like the founders of Nomad List.

But if you asked me if I “would go back and do it differently”…

I’d say yes and no.

No because there is always a difference between what I think people want and what they actually want. The only way to know is to create a simple version of ‘it’ and launch it into the world.

Yes because I don’t live in the Marvel Universe therefore time is not infinite.

What do I mean?

If I had a fast way to compare my business ideas to find out which is the best one to start…

I would’ve saved a lot of time and a heap of failures.

If only such a solution existed…

Oh wait…

Over to our 🤖

“Market research is an underrated part of starting a business.

I believe humans often skip this because they want to avoid finding out that their business is a bad idea, someone else is already doing it and what’s really involved.

But you are smart. You want to be prepared and avoid wasting precious time.

First you’ll need ChatGPT by Open AI.

Download mobile app or go to the web version. (free)

Then let’s start prompting”.

Copy and Paste this Prompt

Act as a market researcher. I'm going to provide you with a list of 3 business ideas. 

Rate them in terms of Market size, Market Demand, Competition, Cost to start, Profitability, Scalability. Give each component a score out of 100. Return all of the above in tabular format. 

Provide a brief (<100) word) description of your thought process for each score at the end. Provide a total so I can compare the business ideas. 

Business idea 1 = a vending company business that sells paleo specific snacks

Business idea 2 = an exclusive membership club for business people who want to learn how to use AI in their day to day business

Business idea 3 = an ice cream stall at the North Pole. 

Personalise your Prompt

  • Use this prompt to analyse different business ideas and validate which you should run with.
  • Simply replace the business ideas with your own. Provide as much detail as you can about the target market, location, product and any other pertinent information.

Prompt Output

This is for

  1. a paleo vending machine company
  2. a membership club for business people who want to use AI
  3. an ice cream stall at the North Pole
Certainly! Here's a tabular format comparing the three business ideas based on the given criteria: | Criteria | Business 1 | Business 2 | Business 3 | |---------------|------------|------------|------------| | Market Size | 80 | 70 | 20 | | Market Demand | 80 | 90 | 30 | | Competition | 70 | 60 | 40 | | Cost to Start | 70 | 80 | 90 | | Profitability | 70 | 80 | 30 | | Scalability | 80 | 70 | 10 | | Total | 440 | 450 | 220 | - Market Size is relatively large for Business 1 as there is a demand for paleo-specific snacks. Business 2 also has a substantial market size as AI usage in business is growing. However, Business 3 has a limited market size due to its remote location. - Business 2 has the highest Market Demand as there is a strong interest in AI among business professionals. Business 1 and Business 3 have moderate and lower demand respectively. - Competition is moderate for all three ideas, with Business 3 facing slightly less competition due to its unique location. - Cost to Start is relatively balanced, with Business 3 requiring higher investment due to the challenges of operating in extreme conditions. - Business 2 has good Profitability potential as exclusive membership clubs can generate substantial revenue through recurring fees. Business 1 also has decent profitability, while Business 3 has lower profitability due to limited customer base. - Scalability is relatively high for Business 1 and 2, as they can expand their offerings to different locations or target markets. Business 3, due to its specific location and logistical challenges, has limited scalability. Please note that these scores are subjective and based on general assumptions. The numbers provide a relative comparison between the three ideas, but further research and analysis are recommended before making any business decisions.

Pro Prompts

  • You can also use this to analyse new product ideas you are working on (rather than the full business idea).
  • To go a step further ask how you can improve a particular score. ChatGPT will give advice on ways to tweak the idea to make it more attractive. (see screenshot below)
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