Module 6 of 8 · Intermediate · 10 min read

Business plans and strategy

Pressure-test ideas, draft plans, model scenarios and prepare decisions with AI as a sparring partner.

Key takeaways

1Use AI to challenge your thinking, not to confirm it.
2Ground market numbers in real sources; models guess sizes and prices.
3Build financial models in a spreadsheet with visible assumptions.
4Talk to real customers; no model can validate demand for you.

01Where AI helps

The most valuable use is often adversarial: ask the model to find the holes in your plan.

Structuring a business plan, pitch deck or strategy memo.
Generating and stress-testing options, risks and assumptions.
Competitor and market research with search-connected tools.
Building spreadsheet models and scenarios with clear formulas.
Preparing for meetings: likely questions, objections and answers.

02The workflow

Plans are hypotheses. AI helps you write them down clearly and find the weak points.

Write down the idea, the customer, the problem and why now.
Have AI list the riskiest assumptions and how to test each cheaply.
Research the market and competitors with sourced tools.
Build a simple financial model with explicit assumptions.
Draft the plan or memo; run a 'red team' critique.
Test the riskiest assumptions with real customers, then update.

03Tools to reach for

Keep your numbers in a spreadsheet you control, not in a chat transcript.

Reasoning-capable chat assistants for strategy, critique and planning.
Research modes with web search for markets, competitors and pricing.
Spreadsheets with AI formula help for financial models.
Presentation tools with AI drafting for decks.

04Prompt: riskiest assumptions

Find out what has to be true before you spend money.

Example

Here is my business idea: <idea>{{idea, customer, problem, solution, price, channel}}</idea> List the 8 assumptions that must be true for this to work, ranked by how risky and how critical they are. For each, propose the cheapest, fastest way to test it in under two weeks, and what result would make me stop or change course.

05Prompt: red-team critique

Give the model permission to be tough.

Example

Act as a sceptical investor who has seen many similar plans fail. Read <plan> and give me the 10 hardest questions you would ask, the three most likely reasons this fails, and what evidence would change your mind on each. Be direct; don't soften the critique. Then suggest the single change that would most improve the plan.

06Prompt: a financial model

Ask for a spreadsheet structure with every assumption visible.

Example

Design a 24-month financial model for {{business}} in {{spreadsheet app}}. Put every assumption on an 'Assumptions' sheet (pricing, conversion rates, churn, costs, hiring), each with a label, a value I'll fill in and a note on where to find a real figure. Build monthly revenue, costs, cash flow and break-even on a 'Model' sheet using formulas that reference the assumptions. Add best, base and worst scenarios. Don't fill in market numbers yourself; leave them for me to source.

07Pitfalls

AI makes plans faster to write and easier to challenge. Reality still gets the final vote.

Made-up market sizes: models produce plausible but unsupported figures. Find real sources.
Agreeable feedback: models tend to be encouraging. Explicitly ask for critique.
Spreadsheet errors: check formulas and totals; a small error compounds over 24 months.
Desk research only: talk to customers before trusting any plan.

Watch out

This guide isn't financial, legal or investment advice. For fundraising, company structure, contracts or tax, consult qualified professionals.

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