Did you know that you can use AI to help you plan your new business?
Artificial Intelligence (AI) can do way more than creating images. My latest use is to help answer complex questions that come up in the process of planning a new business.
Here’s an example of a scenario that you need to analyze before building a business plan. How much time do you need to work in order for your business to generate he revenue that you need?
Here is a prompt that I created for a beauty brand founder who knew she didn’t want to work 40+ hours a week like she had before she retired:
My business offers non-invasive skin care services. The main ways my business will generate revenue are consultations, treatments, and product sales. The monthly overhead cost to operate my business is $7500. I purchase $800 in products to resell in my business and I use 10% in providing services to clients. An average product sale is $48. I charge $45 for a 30 minute consultation and and the average cost of a treatment is $96 and takes 1.5 hours to complete. Given that I only want to work 30 hours each week, what is the right mix of product sales, consultations, and treatments that will generate $5000 a month in profit?
I used Chat GPT and below is how it solved the problem:
To generate $5000 a month in profit while working 30 hours per week, you need to find the right mix of product sales, consultations, and treatments. Based on the calculations, the solution can be represented as:
- ( x = 0.8125z + 53.75 ): The number of product sales needed.
- ( y = 240 – 3z ): The number of consultations needed.
Here, ( z ) represents the number of treatments.
You can choose a specific number of treatments (( z )) to find the corresponding number of product sales (( x )) and consultations (( y )). Here are a few examples:
- If you perform 10 treatments per month (( z = 10 )):
- Number of product sales: ( x = 0.8125 \times 10 + 53.75 = 61.875 \approx 62 )
- Number of consultations: ( y = 240 – 3 \times 10 = 210 )
- If you perform 20 treatments per month (( z = 20 )):
- Number of product sales: ( x = 0.8125 \times 20 + 53.75 = 70 )
- Number of consultations: ( y = 240 – 3 \times 20 = 180 )
- If you perform 30 treatments per month (( z = 30 )):
- Number of product sales: ( x = 0.8125 \times 30 + 53.75 = 78.375 \approx 78 )
- Number of consultations: ( y = 240 – 3 \times 30 = 150 )
You can adjust the number of treatments to find a feasible mix that suits your business needs.
Yes, you can manually do the match yourself but most of us can’t do it as fast as AI can. You can take my prompt and edit it to fit your business scenario and get answers in a minute.
I would love to hear how you’re using AI in your business. Please share!
