AI for small business owners: where do you actually start?
You've heard AI will change everything. But where do you begin? A practical guide without the hype for business owners.
Daniel Dahlen
January 22, 2025
You've heard it everywhere. AI will change everything. Everyone needs to keep up. Those who don't learn now will fall behind.
Okay. But where do you actually start?
If you run a business and feel overwhelmed by all the tools, terms, and possibilities, you're not alone. I talk to small business owners every week who feel the same way.
This guide is for you. No hype. No buzzwords about "the future is here". Just practical advice you can use today.
First: forget the hype
Let's be honest. Much of what you read about AI is exaggerated.
AI cannot:
- Replace your judgment and industry expertise
- Do everything automatically without your involvement
- Solve problems it doesn't understand the context for
- Guarantee that everything it produces is correct
AI can:
- Save you hours on repetitive tasks
- Give you a starting point for texts, emails, and documents
- Summarize long documents quickly
- Help you brainstorm and structure thoughts
- Answer questions around the clock (via chatbots)
This isn't about AI taking over your job. It's about getting more time for what actually requires your expertise.
That said, the pace of change is fast. AI agents are already starting to transform how autonomous tasks get done, handling multi-step workflows that would have seemed impossible a year ago. Never say never when it comes to what language models will be able to do. What you're reading here is a snapshot of today. Tomorrow looks different.
A good rule of thumb
If a task is repetitive, text-based, and doesn't require confidential information, AI can probably help you with it.
The three questions you need to ask yourself
Before you start experimenting with tools, take five minutes to think about these questions:
1. Where do I spend the most time on repetitive tasks?
Think about your typical work week. What do you do over and over again?
- Do you write similar emails multiple times a day?
- Do you summarize meetings or documents regularly?
- Do you answer the same type of customer questions?
- Do you fill in forms or reports with similar information?
These are your candidates for AI assistance.
2. What decisions do I make based on data I don't have time to analyze?
Do you have information you know is valuable but never have time to go through properly?
- Customer reviews you haven't read
- Sales data you haven't analyzed
- Competitors' content you haven't had time to check
- Customer feedback sitting in a folder somewhere
AI is good at quickly summarizing large amounts of text and finding patterns.
3. What would I do if I had an assistant available 24/7?
Not a human assistant that costs money. A digital one that can do the groundwork for you.
- First drafts of texts?
- Answering simple customer questions?
- Organizing and categorizing information?
- Helping you formulate thoughts?
5 use cases that work today
Here are concrete ways small business owners are already using AI. No future visions. Things that work now.
1. Customer service and support
The problem: You get the same questions over and over. It takes time to respond personally every time.
The solution: Use AI to write responses or set up a simple chatbot.
Concrete example: Copy a customer email into Claude or ChatGPT and write:
Help me write a friendly and professional response to this customer email.
I run a craft shop and our delivery time is normally 5-7 business days.
[Paste the customer email here]
You get a draft in seconds. Adjust as needed and send.
2. Content and marketing
The problem: You know you should post on social media and write newsletters. But it takes time and you don't know what to write.
The solution: Let AI give you ideas and first drafts.
Concrete example:
I run a hair salon in Seattle. Give me 5 ideas for Instagram posts
that aren't about discounts but show our expertise and personality.
Or for newsletters:
Write a short newsletter (max 200 words) to my customers about us
extending our Thursday hours. The tone should be warm and personal,
not salesy.
3. Document handling
The problem: You receive long contracts, policies, and documents that you should read but rarely have time for.
The solution: Let AI summarize and point out what's important.
Concrete example: Upload a PDF document to Claude and write:
Summarize this contract in bullet points. Focus on:
- What I'm committing to
- Any costs and fees
- Notice period and conditions
- Things I should be aware of
Important about sensitive documents
Keep in mind that information you share with AI tools may be used for training. Don't share sensitive customer data or confidential business information without first checking the tool's privacy policy.
4. Administration and accounting
The problem: Small administrative tasks eat up time. Categorizing receipts, writing reminders, structuring information.
The solution: AI can help sort and categorize.
Concrete example:
Here's a list of expenses. Categorize them for accounting purposes.
Suggest an appropriate category for each item.
[Paste your list]
5. Business development and strategy
The problem: You have ideas but no one to bounce them off. And consultants are expensive.
The solution: Use AI as a sparring partner to structure thoughts.
Concrete example:
I'm thinking about launching a new service: X. My target audience is Y.
Help me think through:
- What problems does this solve for the customer?
- What would they pay for it?
- What objections might they have?
- How could I test the idea before investing big?
Start here: the simplest first step
You don't need to learn everything at once. Start with just one step.
This week:
- Go to claude.ai or chat.openai.com
- Create a free account
- Choose ONE task from the list above
- Try it
That's it. Nothing more.
My suggestion
Start with customer emails. Next time you need to respond to an email that feels difficult to formulate, ask AI for help. It's low risk and often provides immediate value.
What does it actually cost?
Good news: you can get far for free.
Free options:
- ChatGPT Free: Limited usage but enough to test
- Claude Free: Generous usage, good for longer texts
- Google Gemini: Free and integrated with Google Workspace
Paid versions (around $20/month):
- ChatGPT Plus: Faster responses, better model, image generation
- Claude Pro: Much more usage, best for long documents
- Gemini Advanced: Integration with Google tools
For most small business owners, the free version is enough to start. Upgrade when you notice you're using the tool regularly and hitting limitations.
Common mistakes I see business owners make
1. Trying to automate everything at once
"Now I'm going to set up AI for everything!" No. Start with one thing. Learn how it works. Add more gradually.
2. Not learning the tool yourself
"My employee can handle the AI stuff." Problem: you don't understand the potential and can't evaluate if it's working. Spend 30 minutes testing it yourself.
3. Expecting magic without effort
AI doesn't give perfect results immediately. You need to learn to give good instructions (prompts) and adjust the results. It takes some practice but isn't difficult.
4. Blindly trusting everything AI says
AI can be wrong. It can make up things that sound convincing but are incorrect (this is called "hallucinations"). Double-check important facts.
5. Using AI for the wrong tasks
AI isn't good at everything. Mathematical calculations? Use a spreadsheet. Current information? Google it. AI is best at text and language.
Next steps: when you're ready for more
Once you've tested the basics and want to take the next step, there's more to explore.
Want to learn to give better instructions? Read my guide on prompt engineering (coming soon).
Want to automate workflows? Check out my guide on n8n for beginners.
Want to build your own tools? Read my guide on Claude Code for beginners.
Need help getting started? Book a call and we'll discuss what would work for your business.
TLDR
AI isn't as complicated as it sounds. It's about:
- Identifying where you spend time on repetitive text-based tasks
- Testing a free tool for a specific task
- Learning to give clear instructions
- Gradually using it for more tasks
The most important thing is to start. Not to become an expert. Not to understand everything.
Try it this week. One email. One summary. One idea you want to bounce around.
And then come back and tell me how it went.
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