Here is how to develop a solid artificial intelligence business plan.
In recent times, there has been a steady push towards expanding the frontiers of knowledge in the area of artificial intelligence. This has seen a boom in inapplicability in a wide range of human endeavors.
Also, IT businesses have sprung up in a bid to take advantage of the economic opportunities available.
However, one area that continues to pose a challenge to most entrepreneurs is the business plan. This critical area of business development requires an understanding of its flow.
If you’re reading this, you’re likely seeking a template to follow. This article will meet such needs perfectly.
ARTIFICIAL INTELLIGENCE BUSINESS PLAN GUIDE
To write a great artificial intelligence (AI) business plan, it’s necessary, to begin with, its arrangement.
Here, we’re talking about key sections such as the executive summary, the company description, products & services, and the market analysis sections.
Others are the strategy & implementation section, organization & management team, and also the financial plan & projection sections.
Let’s further break down each of these for more clarity.
i. Executive Summary
The executive summary section of an artificial intelligence plan always appears first.
However, that isn’t necessarily the order it follows when writing it. What we’re trying to say is that although this section appears first, it should be written last.
The reason is simple; as a summary of your business plan, writing it last enables you to capture all the basic points included in your plan.
This section is aimed at giving your readers or audience an overview of the entire document.
With the executive summary, investors can determine whether your artificial intelligence business idea is worth investing in or not.
They get to decide whether to read the fuller details in the business plan or to jettison the idea. This is why you should give it you’re all.
There are key sub-sections to include in your executive summary; they consist of your business name and location, products and/or services on offer, mission & vision statements, and the purpose of the plan.
Business Name & Location
What name will your artificial intelligence company be known by?
Here, the aim is to give your business identity. Also, its location counts and must be included. Investors can know whether you’re prepared for such an undertaking or not.
Products and/or Services
What aspect of artificial intelligence are you specialized in?
Whatever the niche, you’re going to have products or services to offer. Examples may include AIP+, data-driven reinvention, solutions AI or responsible AI among a long list of potential products and services.
It’s important to ensure that these are briefly stated as the executive summary section needs to be limited to a few pages.
Mission & Vision Statements
Under this section, you’ll need to state the mission and vision of your AI Company. The mission statement should be a summary of your values and aims. This is a statement to which all employees must subscribe.
The vision statement is futuristic and should include your ideals as a business. Here, you won’t convey the meaning and purpose of your business to employees as well as to stakeholders or investors.
Purpose of the Plan
The purpose of the plan needs to be discussed.
Here, a plan is designed to attain multiple objectives. Some of these objectives include the setting of growth strategies as well as securing investment. Outline the purpose of your AI business.
ii. Company Description
With the executive summary section completed, your attention should shift to the next.
Here, want to describe your AI business in terms of how you operate, who you are, and the goals you seek to achieve. To do this, the company description section should include a legal structure under which you intend to operate.
Also, you’ll have to provide your business’s brief history, what needs it serves and an overview of AI services and products. That’s not all.
You also need to have a summary of company growth (for existing AI businesses), and also a summary of long and short-term goals. Don’t exclude information on how you intend to make a profit.
iii. Products & Services
The products and services section is where you unveil the detailed range of products or services you wish to provide. Such information is supplied concerning customer benefits.
What market role do your AI services play?
Do your products have a life cycle? You’ll need to include such information in addition to relevant and applicable copyrights, trade secrets, and patents.
iv. Market Analysis
This is the section where a lot of work will go into. Here, you want to demonstrate your industry knowledge. AI is a vast field with boundless opportunities.
So, it’s necessary to have a sketch of your targeted market segments. Of course, such analysis should include customer demographics as well as the size.
More details to include are the industry description and outlook plus any supporting statistics. Have historical, current, and projected marketing data to make your analysis more comprehensive.
You’ll need to also examine your competition with a focus on their strengths and weaknesses.
v. Strategy & Implementation
No business plan will be complete without a strategy and implementation section. Here, you want to include information on how you wish to promote your AI business to reach clients.
Also, details on pricing, costs, promotions as well as distribution need to be added.
Also have information that explains how your company will operate. Of course, this will include the operations cycle. What are your sources of labor?
This piece of information, as well as the number of employees, should be added.
vi. Organization & Management Team
One of the keys to running a successful AI company is by having a sound organization and management team. Under this section, you’ll need to include an organizational chart that describes departments and key employees.
Also include information about the business owners, their names, percentage ownership, and extent of involvement in the company.
The profiles of your management team need to be added with names, positions, and responsibilities included.
vii. Financial Plan & Projections
With the help of a financial expert (such as a professional accountant), provide details about the historical financial data with key details such as income statements, cash flow statements, and balance sheets covering a three to five-year period.
There should be realistic prospective financial data consisting of cash flow statements, income statements, balance sheets, and capital expenditure budgets for a five-year period. Also, have a brief analysis worked out.
With these sections covered in your artificial intelligence company business plan, you should have no issues convincing investors.